Print Media Industry Of India – Coursework Example
Print Media Industry in India Inserts His/ Her Inserts Grade Inserts (13, 11, Factor Endowments.
A country’s factors such as population, literacy levels, and employment rates can affect an industry’s production and shape its competition (Porter, 1990).
India has a population of more than one Billion people. Illiteracy and unemployment rates in the country stand at about 83%. Two thirds of the 333million illiterate young people prefer the newspaper because of its vernacular versions. 53% of the entire population read the newspaper, with the print market worth over $300 million (Wolcott & Goodman, 2003).
If local demand is high, local firms adopt competitive strategies to give them advantage over the others (Porter, 2008).
Because of the vast population, there is high demand for print products. 64% of the population prefers print media to electronic and this has appealed to and attracted foreign firms. To beat the increased competition, local firms such as ReleaseMyAd have become more innovative to reduce production costs.
Related and Supporting Industries.
Supporting industry for the print media is the paper industry. The India paper industry accounts for nearly 2% of the global paper production, one of the largest in the world. Paper for newsprint registered a 13% increase in the period 2002-2007, indicating positive growth in the print industry.
Firm Strategy, Structure, and Rivalry.
Most of India’s population is rural. With a total of 62,000 newspapers, 90% of them are in local languages giving priority to local events. Rivalry from the many publishing firms has enabled the printing industry to refine itself (Mrinal, 2009).
The Indian government passed legislation to increase the industry’s foreign direct investment. The increased funding means increased production and competition among the papers, thus increasing quality and seeking innovative ways to reduce costs (Chand, 2006).
Some of the events in the India print industry occur on their own without the firms’ control.
People perceive television as more entertaining than informing, leading to 64% people preferring newspapers to 22% who prefer television for news and current affairs. This has given the print media advantage over broadcast.
Chand, V., 2006. Reinventing Public Service Delivery in India. London: Sage publications.
Mrinal, C., 2009. Contemporary Changes in Print Media in India. Paper presented at The National Seminar on “Future of Print Media”.
Porter, M., 1990. The Competitive Advantage of Nations. New York: The Free Press.
Porter, M., 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review, Vol. 86(1):231.
Wolcott, P., & Goodman, S., 2003. Global Diffusion of the Internet-India: Is The Elephant Learning to Dance? Communications of the Association for Information Systems, Vol. 11:560-646.