ECONOMICS

The Newspaper Industry

[Name of the Institute]

Introduction3

Findings3

PEST Analysis3

Political factors4

Economic factors4

Social factors4

Field force analysis5

SWOT analysis6

Conclusion8

References10

The Newspaper Industry

Introduction

The newspaper industry in developed countries is passing through a challenging phase. The newspaper industry in Britain is declining as compared to Germany and USA. People in developed countries do not have enough time for reading the newspaper, so they are moving towards mobile applications for being updated. India is one of the developing economies in which newspaper industry is making great progress. People prefer to read newspaper instead of going for television or internet for new updates (Wagner,1981, pp.n.d).

The newspaper business is declining throughout the world, and there are various factors behind that. The modern technology, internet and other sources of communication are serving as big competitors of the newspaper industry. Society is becoming modern day by day, so people are moving towards online means of mass communication. The newspaper industry in all developed countries is changing, but in UK it is changing rapidly. Some of the developing countries are also facing change in the newspaper industry, but on the other hand, the newspaper industry of India is going towards progress (Reinan, 2013, pp.n.d). There are various reasons for this progress. The Indians are getting more educated, and the literacy rate in India is also increasing that is why more people are reading the newspaper.

PEST analysis is necessary for organizations in order to regulate a change in the environment. There are four essential forces include in the PEST analysis. It is also important for the newspaper industry to do SWOT analysis so they can work on their weak areas. Field Force Analysis also helps in identifying various forces which are resisting change to happen. The developed economies are working on various techniques for reducing newspaper decline and for evaluating change. This technique is also used for making a decision about the change.

Findings

PEST Analysis

Environment can affect a lot the productivity of an organization. PEST analysis is one of the efficient tools of management for evaluating external environment of an organization. PEST includes four external factors:

Political

Economical

Social

Technological

PEST analysis helps an organization to evaluate which factors are responsible for poor performance of the organization (PEST Analysis,2009, pp.n.d). It is important for an organization to do PEST analysis as it helps it in identifying various factors which can increase productivity in the future. It is very important for organizations to scan the external environment regularly for exploring various external factors which can influence the organization in the future. It also helps an organization in identifying various forces which are affecting the organization. Organizations can make PEST analysis effective by using different other techniques such as brainstorming. Managers are able to take effective strategic decisions by doing PEST analysis. PEST analysis can also help managers in making SWOT analysis (PEST Analysis,2009, pp.n.d).

Political factors

Political factors include legal and political environment of an organization. There are many political issues faced by organizations in their daily regulations. Political environment of a country affects newspaper industry ...