Business Newscorp

F5 Delonix, Godfrey Lee

Discuss how external influences are shaping News Corporation’s strategy

First of all, one must understand the meaning of external influences in order to answer this question. An external influence is different from an internal influence because the influence doesn't come from within the company, it is the forces outside of the company that affects and alters the company’s decision making. Strategies are steps a company takes in order to achieve an objective or a goal. For this question, I am going to use a PEST analysis to discuss how external influences are shaping News Corporation’s strategy.

Political N/A | Economic -Adding internet and telephone services into product portfolio | Social -Young people using the internet to get news rather than newspapers | Technological -Rapidly changing New technologies |

An economic factor is a consideration regarding how a consumer's disposable income and other financial resources tend to impact their buying activities. For example, the marketing team of a manufacturing business might do an analysis of how changes in every significant economic factor relevant to their target consumer market tend to affect consumption patterns for their product type. [2] From the stimulus we can see that the economic factor is News Corporation trying to add telephone and broadband services into their product portfolio in response to the companies that have started selling packages including internet, telephone, and digital television services. An opportunity of this is that News Corporation would have the ability to compete with the cable industry and earn more profit, as they are implementing more services into their product portfolio and attracting a larger customer base. However, compared to the cable industry, News Corporation is relatively new to internet and telephone services, which means the cable industry has a more established customers. The cable industry has probably also acquired...