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Besides, ECM Libra Research was stated that the fall in profits was due to lower revenue from the print and electronic media division and higher printing cost and other cost of sales from the event management and exhibition services sector. The signs of recovery in the economy could result in further improvement in adex figure for 4Q09. Results in more advertisements being placed for adex should have some improvement considering that the Christmas and New Year holidays fall in the last quarter.

Moreover, the research firm said that Star could benefit from a possible decline in newsprint cost in 4Q which given that newsprint prices had fallen since late June. Industry players had suggested that higher costs news print stock should have been used up in 3Q and this would result in falling costs in 4Q.

ADVERTISING REVENUE

Based on Star executive deputy chairman Datuk Clement Hii, the advertising revenue on a quarter-on-quarter is improving, he hopes that the trend will follow into the final quarter of the year. From second quarter into the third quarter were stabilized. He added that the improvement should be given to their active management of newsprint supply, the huge drop in global newsprint prices and their engagements with handling staff costs.

The newsprint prices have significantly fall since the start of the year and have only recently rebound off multi years lows. The lower cost of paper will improve cost pressures in the coming quarters. While for the staff cost, a decline in headcount plus other cost-cutting plans are helping but as the economy expends and as we roll out our expansion plans, that strategy will need to be reconsidered.

Previously, staff motivations such as ex gratia which is given as a favour where no legal obligation were paid out across-the-board based on the company's performance and not individual performance. They have changed to undertaken a system that will reward and incentivize those who have performed well based on both the company and the individual's performance. In the long run, this will increase the productivity. This should send a strong message that they will reward hard work and diligence and it is also a fairer system.

Improve Distribution Channel

Distribution channel is the network of the interdependent companies through which a product passes from producer to end user. There are many different kinds of distribution channel members involved in getting products to buyers and the channel used by The Star to cope with the competition is direct distribution.

In direct distribution, the product travels from the producers to the consumer without intermediaries. The Star now directly offers its news through the multi-channels, such as The Star Online and also SMS news alerts. The Star Online is an information portal on the internet where the news was distributed over World Wide Web, on PDAs and via hand phones through SMS, WAP and wireless Internet access.

Beyond this, The Star has also directly offers its news to the Bahasa Malaysia speaking readers with the introduction of mStarOnline and also mStar SMS news al本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。