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W - Weakness

In the past, newspapers have tried to increase circulation in outlying and scattered areas. By touting circulation figures they hoped to attract advertiser. The cost of generating these numbers has proved to be heavy for the newspaper. On the other hand, over the years, advertisement media buyers and planners have reduced their dependence on absolute readership numbers.

Instead, they look they look at the qualitative aspects of the targeted readership. No wonder the elusive advertiser is much more inclined to use other less expensive media for the quality and quantity reach instead of depending on traditional media like print.

Thus, if inconsequential circulation can be reduced even by a percentage, it would be a great savings for the beleaguered industry. Yes, it also means leaving vacant spots to smaller local players. But then perhaps it is the only way for the market to evolve.

Secondly, the revenue earned from the cover price after distributor commission recovers only a small part of the cost of production and distribution. If the cover price cannot be tinkered with for fear of losing circulation, then the industry must look at the question of page level. In these tough times it would be a folly to assume that advertising revenue will make up for all the shortfalls.

O - Opportunity

This is an important factor to identify opportunity as a result of external influence. It is often leads to more business or investment as well as opportunity for innovation of products and services. Due to the fact it is external, many assumptions is used. In real life application, there are cases where opportunities derived from operation are classified in into this Opportunity factor.

Higher economic growth will translate to higher ad spend and as The Star authorize a large share of the adex market, Star Publications (M) Bhd executive deputy chairman Datuk Clement Hii expect that trend to continue give the improvements that they have undertaken to make The Star a fresher and better read. Cost will likely to be reduced as newsprint prices come down apart from rising advertising revenue.

Their investments and expansion into the Internet will gather speed built on the momentum already established by the Daily Chilli and their various online portals. More resources will be ploughed back to tap the synergistic benefits of these ventures. They are mindful of the costs involved in building an impactful online presence.

The Star is intense to monetize its online ventures by a greater degree, going forward, by tapping into its existing large database. They are also acutely aware that the vernacular newspapers especially the Malay papers have made huge strides in circulation. In this light, they own a Malay newspaper license and plan to gingerly test the market to see how best they can reap benefits from such a venture. Their successful M Star is only the tip of their plans.

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