Know-How Exchange : Student Questions

Do a 5-forces analysis covering both the overall newspaper business and the freesheet segment of the newspaper business, applying this specifically to New York City. Do not describe the 5 forces model, apply it. Likewise, do not just identify which firms fit into the various categories of the 5 forces model, analyze their bargaining power and what impact they could have on Metro’s ability to enter and succeed in its business in the New York area. For instance, evaluate barriers to entry and how they might be overcome (and who would best be able to overcome them). Similarly, don’t just list the suppliers to the newspaper industry, assess their bargaining power and ability to capture value relative to newspaper companies in general and relative to Metro in particular in terms of the 5 forces model. Think about who a newspaper’s “customers” really are and how newspapers compete with each other. Evaluate how the various forces are related to each other and their combined impact on a new entrant like Metro.
Metro has heard that there is the possibility of some competition for its intended NYC freesheet. Specifically, there are rumors that CNN, Starbucks and UPS (United Parcel Service) are each considering starting up a freesheet. Evaluate the relative strengths and weaknesses of each of these three companies as potential entrants to the freesheets business in New York City, and make an argument for the one that you believe would have the best chance for success and for whom the new business would make the most sense. Explain its business model for the freesheet business. Explain which one you think would make the best partner for Metro in order to enter the freesheet business in New York City (not necessarily the same one as you think would have the best chance for success on its own).