Essays24.com - Term Papers and Free Essays
Search

Market & Swot Analysis Emap

Essay by   •  December 31, 2010  •  5,030 Words (21 Pages)  •  1,745 Views

Essay Preview: Market & Swot Analysis Emap

Report this essay
Page 1 of 21

Background

Operating in the field of publishing EMAP PLC are a company who have grown over the last 50 years to become the second largest publisher in UK and international markets.

Founded in 1947 with several local newspapers the company soon expanded away from news making and by the 1950's was creating business publications for the automotive industry. In 1974 the group expanded further into what is now its largest market of Consumer Media with its publication Smash Hits! The launch of this consumer magazine marked EMAP as a company involved in the very fabric of creating new markets and with the addition of new brands to the product portfolio over the next 20 years EMAP has continued the trend been both instrumental in the creation of movie mags with its publication Empire as well as infamous lad mags with brand FHM. Alongside these successes EMAP continued to expand its business publication portfolio and cease opportunities in emerging new media markets such as commercial radio and digital music television.

EMAPS business success was and is still hinged on creating or acquiring into vertical markets. Once in the business EMAP specialise in creating strong brands and brand awareness through marketing and cement their products, as "must have media". The exploitation of vertical markets and marketing competencies has meant EMAP have increased circulation of their brands and consequently advertising revenues and profits.

EMAPS current product portfolio stands as:

q Over 150 consumer magazines in the UK, France and around the world

q Over 200 business-to-business (b2b) events, magazines and conferences

q 18 UK local analogue radio stations, seven digital music TV channels and the biggest digital radio network in the UK

Its multiple interests as well as moves into international markets has lead EMAP to maintain a business structure which it believes can best manage its large product portfolio. In 2000 EMAP had eight divisions managing its interests:

EMAP Performance - Managing Radio and Television interests

q EMAP Elan - Managing Consumer Magazine interests

q EMAP Automotive/Active - Managing automotive Business Magazines

q EMAP Communications - Managing other business magazines and its exhibitions arm

q EMAP France - Managing its interests in France where its purchase of Edition Mondiale and Hersant in 1994 has seen the company emerge as the largest publisher in the French Market

q EMAP USA - Managing its 1998 Ј1 billion acquisition of Petersen Publishing in the US

q EMAP International - Managing other international interests in Australia and 14 other countries

q EMAP Digital - Managing new media such as digital radio and Internet interests

At cross management breakpoint in 2000 EMAP simplified its structure to drop its American interests (at a loss), integrate its automotive magazines into its other business publication operations and integrate its digital and international product management inherent to the relevant brands affected.

Currently the following models represent EMAP PLC's structure:

DIAGRAM SOURCE: EMAP. (2004) About Us: Homepage

< http://www.emap.com/nav?page=emap.aboutus.homepage> (22/04/04)

Industry Context

EMAP operations cross two industry sectors, publishing and TV/Radio. A brief analysis of these industries with the assistance of Porters Five Forces Industry Model is carried out below.

Publishing

In this industry EMAP has interests in multiple market sectors in both its B2B publishing operation EMAP Communications and EMAP Consumer Media. Consumer Media is a mature industry with Mintel data showing 2-5% market growth each year on average across the sectors which effect EMAPS top selling magazines. A list of these sectors is shown to the right.

As such market share is the most important feature of profitable business and EMAP claim 2nd position with a 16% share of the market place next to AOL/Time Warner. (See Right)

The fight for market share makes product differentiation the key to competitive success and EMAP maintain their strong position with brand identification (45 of their brands are in the top 250 circulated magazines). It is near impossible for EMAP to launch a new product without a substitute product been offered by a rival publisher as was the case recently when EMAP launched Zoo and IPC followed shortly after with publication Nuts, both magazines targeting the Men's market sector.

25% of EMAPS Retail Sales Value comes from 'new' magazines like Zoo, which have been launched within the last ten years suggesting that although the industry is mature it has traits of Schlumpter's dynamism view with new growth been found through innovation.

In terms of pricing the industry is relatively disciplined with most similar products retailing at a comparable price. Similar discipline is found in supply where EMAP, HayMarket Publishing LTD and BBC Worldwide own the main distributor of magazines in the UK, Frontline LTD. This asset was acquired in an example of vertical forward integration undertaken by EMAP in 1989. This distribution arrangement keeps the industry stable and provides publishers involved with considerable power over retail buyers such as WH Smiths as well as building barriers to entry. Overall competitive rivalry in this industry can be characterised as moderate.

Media and Entertainment

Although television and radio are technological formats that have existed for some time it is the adoption arrival of digital DAB radio and of digital television technologies that have been creating a new industry dimension welcoming competition and choice for the consumer.

EMAP were quick to acquire digital television (DTV) assets when the market emerged in 1999 and now have seven digital music television stations, which are distributed via subscription suppliers such as BSKYB and Telewest. This reduces their power to control distribution but by opening up all their

...

...

Download as:   txt (32.3 Kb)   pdf (307.3 Kb)   docx (23.4 Kb)  
Continue for 20 more pages »
Only available on Essays24.com
Citation Generator

(2010, 12). Market & Swot Analysis Emap. Essays24.com. Retrieved 12, 2010, from https://www.essays24.com/essay/Market-Swot-Analysis-Emap/27258.html

"Market & Swot Analysis Emap" Essays24.com. 12 2010. 2010. 12 2010 <https://www.essays24.com/essay/Market-Swot-Analysis-Emap/27258.html>.

"Market & Swot Analysis Emap." Essays24.com. Essays24.com, 12 2010. Web. 12 2010. <https://www.essays24.com/essay/Market-Swot-Analysis-Emap/27258.html>.

"Market & Swot Analysis Emap." Essays24.com. 12, 2010. Accessed 12, 2010. https://www.essays24.com/essay/Market-Swot-Analysis-Emap/27258.html.