The Effect of the Internet on the Magazine Publishing Industry (Track 3, Session 4)
Author(s) :
Hanna-Kaisa Ellonen (Lappeenranta University of Technology, Finland)
Abstract : Over the past few decades, the media industry has been confronted by turbulent, complex and rapid change. Digitalization is strongly influencing the industry: it is changing the existing market dynamics and requires new strategies. The purpose of this paper is to analyze the strategic effect of the Internet on the magazine publishing industry. By combining the views of industrial organization economics and the resource-based view, cross-level analysis is provided at industry and company levels. At the industry level, it seems that the Internet mainly affects the rivalry among existing companies. While the Internet and digitalization speed up processes and alter ways of communication, the Internet has not, at least not yet, significantly changed the five forces that shape the nature and state of competition in the magazine publishing industry. The Internet simply adds another competitive weapon to the arsenal. At the company level, it is proposed that the Internet does not change the traditional core competencies of magazine publishers. Whether publishing in print or on the Internet, sensing the customer needs and packaging segmented content under the magazine brand concept are still key. However, dealing with the Internet also means dealing with change as consumer preferences are constantly changing and the magazine publisher�s organization has to adapt to those changes. Therefore, it is proposed here that more dynamic capabilities are needed.

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