Growth and diversification

Strategies for growthGrowth mechanismsReview of alternativesMerger andacquisitionUpside• The least risky form of growth.• Realisation of known resources• Acquisition of mature businesses withproven products and management.• Ability to create synergies by mergingactivities across acquired divisions.Downside• Legislation is limiting share.• Argue that acquiring peers andcompetitors, is buying decline.• Should be seen as a fundingmechanism for other forms of growthProductlaunchOrganicgrowthPartnershipor alliance• Product launch can be an outstanding wayto create value at lower costs.• Rise in the number of newspapers beinglaunched• Growth in circulation drives growth inadvertising driving profits up.• Organic growth in single title markets(Newspapers in decline are also veryprofitable!• Sharing of risk and expertise.• Excellent way to enter new market arenas• Few opportunities remain to launchtraditional newspapers.• Only a minority of new newspaperssurvive passed two years• Growth tends to be at the expensecompetitors.• Competitive pressures to deliver sharecan be expensive• Partnerships fail when things are good.Success can lead to strategicdifferences.WWW.FUTUREOFTHENEWSPAPER.COM