Category Archives: Business strategy

Latest thinking on corporate strategy.

Will newspapers become like magazines?

I have talking about the print/digital transition for a while and it seems that the decline of print continues. Surprisingly the print media is still slow to reacting to the powerful forces of change. Take New York Times for instance. Despite the writing on the wall being so clear, the company still keeps pushing newspaper subscription through direct mail (I stopped the paper subscription in 2003 but I still get their letters in the mail) and online advertising. I am hoping that they will finally pay attention to the Pew Report on the State of the Media, that concludes, “A growing number of executives predict that in five years many newspapers will offer a print home-delivered newspaper only on Sunday, and perhaps one or two other days a week that account for most print ad revenue.”

Is Indian IT industry’s business model in danger?

Harsh asked in an email, “Is Indian IT industry’s business model in danger?”

While it maybe a somewhat rhetorical statement, all business models are in danger at any given point of time because there is always some company trying to figure out how to destroy a company’s or industry’s business model.

Having said that, in the near term (1-3 years) Indian IT sector business model is definitely going to be under pressure, because these companies have built their business around serving primarily the G-7 countries (there are some early signs of recovery but not strong enough to generate a lot of new business). In the long term, though, these companies are fairly well positioned because outsourcing is not going away (it outsourcing is going to become like manufacturing outsourcing to China); it might just face cost pressures.