Let’s Start an Online News SiteRead the INDenverTimes (www.denvertimes.com) case study in the Naldi and Picard (2012) article. Address the following:Identify the reason for the new start up. Discus
Copyright © 2012 Journal of Media Business Studies. Lucia Naldi and Robert G. Picard, “Let’s Start An Online News Site”: Opportunities, Resource s, Strategy, and Formational Myopia In Startups, 9(4): 69-97 (2012).
“LET’S START AN ONLINE NEWS SITE”:
OPPORTUNITIES, RESOURCES, STRATEGY, AND FORMATIONAL MYOPIA IN STARTUPS Lucia Naldi Jönköping International Business School [email protected] Robert G. Picard University of Oxford [email protected] ABSTRACT !
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+ 278A74 @ " ' + 278A74 + " # /C( # Naldi and Picard – Let’s Start An Online News Site85 / . # CROSS CASE COMPARISON ( # A + " , A4 : 74 E4 : D 4 . 23 A4 + A E! ! / 0 / 1 1 /* Attractiveness of the Business Opportunity ' A4 74 . ) . # 2+ < B A9 9?4 . ! ! . 86 Journal of Media Business Studies Table 1: Cross case comparison INDenver Times NewJerseyNewsroom Public Press Scoring Attractive- ness of the business opportunity Degree of novelty Low Replication of a newspaper operations Low Replication of a newspaper operations Moderate 1-1-2 Risk minimi- zation High Low start-up costs High Low start-up costsHigh Low start- up costs3-3-3 3= low risk 1=high risk Subtotals 4-4-5 Resource endowment Prior entrepre- neurial & business work Moderate Started by 30 journalist with no start-up experience, but also 3 local entrepreneurs Low Started by three sport journalists, with no business experience) Low Started by journalism professor, several former journalists and volunteers 2-1-1 Prior media experi- ence High 30 journalist High 3 sport journalists and other ‘hot shot’ reporters High 3-3-3 Prior experi- ence in other industries Moderate 3 local entrepreneurs Low Moderate Volunteer base, with people with different back- grounds 2-1-2 Initial capital Low Some investment and 30 journalists working for free for 2 months Low Several professional journalists working for free for 1 year Low More than 40 volunteers, who worked with fundraising 1-1-1 Social capital-- Ties to high quality workers High -Columnist and writers with good reputation - Strong personal network of the founders High -Professional journalists with good reputation -Strong personal network of the founders High - large activists base 3-3-3 Social capital-- Ties to news sources High High Moderate/ low Mainly retired journalists 3-3-1 Social capital-- Ties to business community Moderate Low Low 2-1-1 Subtotals 16-14-12 Naldi and Picard – Let’s Start An Online News Site87 Strategic develop- ment Viability of business model Paid access and advertising Advertising revenue Fundraising 3-1-1 3=wider sources Market size Small Denver local community Medium-large New Jersey state Small San Francisco bay 3-2-3 More focused market = 3 Degree of strategic flexibility Low Large organization (30 journalists) and a news room with journalists Very High No physical location, reporters deciding their own articles High Flat organiza- tion 1-3-3 Degree of oversight High Low Moderate 3-1-3 Degree of strategic planning High 3 moths plan; when goals not met, the plan was changed. Low No strategic planning, not even at the operational level High 3 year organiza- tional strategic plan 3-1-3 Subtotals 13-8-13 Initial success Attaining original expecta- tion (Capacity to meet the stated goals) Low After 3 months of operations, did not reach its goals. The business backers halt the broader project. The original site still active, but with major adjustment to the business model Low High Managed to attack donations and grants to begin phase 1 of the organiza- tional strategic plan 1-1-3 Capacity to adjust and change High The original site still active, but with major adjustment in the business model Moderate Attempts to develop business competences e.g. hiring an advertising director and sales staff High Although, it is still in phase I, its step-wise business plan allows for adjustments . 3-1-3 Probability of survival (Sustain- ability) Moderate It faces sustainability issues. Needs entrepreneurs to remain interested and involved in the business Moderate It faces sustainability issues Needs to attract money and volunteers High Phase III of the plan more problematic and raises a number of sustain- ability issues 2-2-3 Subtotals 6-4-9 88 Journal of Media Business Studies ! N , @ # N . ! 1 1 . . > " # B . /* / 0 / > " 1 1 2 < 5 A 9=J: < ) A9=G4 . Resource Endowment F . 3 + F 2A9=?4 , A4 74 E4 D4 G4 1 . 3 " . # F /* 1 1 ! . " ! . + 2/ < C A99=4 ' , @ . 2 # 4 L 5 @ Naldi and Picard – Let’s Start An Online News Site89 # /* / 0 / . # . 1 1 # 6 /* 1 1 5 3 @ # /* / 0 / 2 A99?4 . Strategic Development ( ) " @ 5 ' , A4 74 . E4 D4 G 4 5 ) ( /* ! / /* 1 1 # / 0 / . 5 . /* 1 1 > 1 1 + 3 90 Journal of Media Business Studies @ 2) A9==4, ' W ' W ' W 5 W /* # B . 1 1 / 0 / . . ! ! . ! /* ( / 0 / ( /* 1 1 & " /* . 5 5 1 1 ! ! . 2 AD 4 / 0 / . # E Initial Success 5 + 5 2A99=?4 , A4 74 E4 2 4 5 " " @ 1 1 + Naldi and Picard – Let’s Start An Online News Site91 # 3 /* / 0 / 5 . 5 . + 5 ( 1 1 / 0 / " . ' Formational Myopia as a Factor ( . * . # /* / 0 / " * / 0 3 1 1 " . " " " CONCLUSIONS 5 # * / 0 # . + 3 # # 92 Journal of Media Business Studies . : . 5 " " " !1 1 + 3 !
# @ 3 # @ # REFERENCES 5 5 < 6 B 2788A4 % & > , ; C " F L 5 F % < 3 6 ; 2A99D4 3 W ' ( )*+,-. /,012345 )* 2D4 JDG"J?8 5 + 5 < > 0 > 278884 % , 5 " C * ; < $ 5 F 2% 4 " . $ 2 JE"=74 ( . , + 1 5 ' > 2A99D4 % 4 ' 5 , ; 1 > % 2A9984 ( . " ( ' 7 / & ., ( 1 Naldi and Picard – Let’s Start An Online News Site93 > 278894 /* " * / + 5 7E ,LL " L .L/* " " " L > ; . 2788?4 6 743. 8 0"B , 0 > / < / ) 278A74 . 6 9 : " ( , ) + 0 ( > 0 278894 /* . 5 77 ,LL " L -A778GE?7W X 5 79 8D 89 > 6 6 278894 % ") . 5 1 ; AD 5 ,LL L -A7E?889=W X 2 ; AG 78894 6 5 6 C "C 3 0 < ' 6 & 2 A99D4 6 ( & ; 5 *2G4 E?A"E9G 6 5 278894 : < 8 9 ( , ( ) + 0 * ) B < ' . $ % 2A9=D4 ' ( 5 * 274 7=D"79G * 1 2A99G4 6 % V'% ) & ' " 20 274, EE7"EE? * 1 2788E4 , 0 5 $ < * + 2% 4 ' 5 ( 5 4 $ 2M J EAG"E?74 5 , % * 1 < ' .
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