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Group 12Caledonian Newspapers Ltd.

Case # 18

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GroupGroup 1212

Md. Khaledi FahminMd. Khaledi Fahmin 1111--075075

Mohammad Wares Uddin KhubaibMohammad Wares Uddin Khubaib 1111--115115

Md. Golam MuqtadirMd. Golam Muqtadir 1111--169169

Md. Shahidul IslamMd. Shahidul Islam 1111--175175

Md. Rashidul Hasan KhanMd. Rashidul Hasan Khan 1111--181181

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Economy AnalysisEconomy Analysis

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Economy AnalysisEconomy Analysis

Rece

ssion prev

ailed

in the

UK marke

t in 90s. Advertising cost haddroppeddramatically.

Regional newspapers were hit badly.

Revenues weredeclining over the time.

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Industry AnalysisIndustry Analysis

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Industry AnalysisIndustry Analysis

Porters FiveForces

RIVALRY AMONG

COMPETITORS

(Moderate)

BARGAINING POWER OFSUPPLIERS

(Moderate)

RISK OF NEW ENTRANCE

(High)

THREAT OF SUBSTITUTE

PRODUCTS

(Low toModerate)

BARGAINING POWER OF

BUYERS

(Moderate)

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Industry Analysis ( Porters Five Forces Model)Industry Analysis ( Porters Five Forces Model)

Risk of New Entrance- High

Capital requirements- High

Acquired redundancies whichwill generate annual saving.

Economies of Scale- Low

Differentiation- Moderate

Rivalry among competitors-Moderate

Industry concentration - High

Market Growth- Moderate

Fixed Costs- High

Differentiation- Moderate

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Industry Analysis ( Porters Five Forces Model)Industry Analysis ( Porters Five Forces Model)

Bargaining power of suppliers-Moderate

Concentrated suppliers

Inputs- Costly

Bargaining power of buyers- High

Concentration- High

Industry's ability to save buyers

money- moderate Switching costs- Low

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Threats of substitute products- Low to

moderate

Substitute products of Newspapers are internet news, TV

news.

Consumer are sensitive to relative price of the substitute

products

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Company AnalysisCompany Analysis

SWOT AnalysisSWOT Analysis

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SWO l i f l iSWO l i f l i

r t .r t .

The Glasgow News Clarion is the English Speaking world

oldest daily newspapers.

Relatively stable circulation due to readers loyalty towards

the Calendonian publications.

Productions equipment up to dated.

Text is keyed directly by journalists.

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Use of 40 years old rotary press providing

reasonable level of printing quality lower than

web offset press.

Started to underperform after MBO.

In efficient management and business

Strategic problems involved.

SWOT Analysis of CaledonianSWOT Analysis of Caledonian

Newspapers Ltd.Newspapers Ltd.

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SWOT Analysis of CaledonianSWOT Analysis of Caledonian

Newspapers Ltd.Newspapers Ltd.

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SWOT Analysis AB VolvoSWOT Analysis AB Volvo

Caledonian s strategy of the of the free

newspapers may be flawed.

The current environment of the market is

not attractive .The company may be liquidated due to

defaults in loan agreements.

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Company AnalysisCompany Analysis

Risk AnalysisRisk Analysis