Making a move into online classified
by | Industry Report | Media
For several years, Arkwright has supported a major European media client as it has both optimized existing print titles and moved into new activities such as commuter papers….
For several years, Arkwright has supported a major European media client as it has both optimized existing print titles and moved into new activities such as commuter papers. The client was faced with rapidly declining revenues from print classifieds in its home market within the major segments of jobs, homes and cars—despite being the undisputed regional market leader for all three. The online classified activities that the company had launched had been largely unsuccessful.
Management asked Arkwright to develop a completely new strategy for transitioning successfully into online classifieds. To do this, we had to help the company address several key questions:
- What are the individual drivers for ads and advertisers in each of the three segments?
- To what extent is market development driven by structural changes and to what extent by business cycles?
- Which competitors have been more successful and why?
- What strategic options (buy, build or exit) exist in each segment?
Rigorous analysis made it clear that a completely different approach had to be developed for each major segment. Arkwright completed the project by supporting the client in acquiring its main competitor in the homes segment through a joint venture with a second media group, re-launching existing activities in the jobs segment and closing down existing activities in the automotive segment.