Fairfax Case

Fairfax media limited is the most diversified media organization in Australia. It has excellent portfolio media assets evolving with changes in consumer preferences and aiming for growth with owning more than 300 newspapers, 50 Web sites, 17 printing plants and 15 radio stations in Australia and New Zealand (The Seattle Times 2011). Fairfax is allocating their resources is to be able to generate the capabilities of quality independent journalism that differentiates Fairfax from their other competitor, they also create capabilities of high value, premium journalism and content for print, online, mobile and beyond (ABC 2011). These days Fairfax is planning to step further away from their competitor by launching IPad application for their two most popular newspapers, The Sydney Morning Herald and The Age (ABC 2011). Fairfax’s media business are diverse and reaching from broader audiences to niche audiences ensuring flourished revenue growth, from online news, real estate site, employment, automotive, dating, travel, financial services and even reaching agricultural publications in Australia, New Zealand and USA (Fairfax 2011).

Most of Fairfax’s market are from Australia and New Zealand, their fundamental market are highly concentrated with limited number of dominant newspaper titles own by several rivals Australia media company such as News Corporation and Star News Group. However in 2011 Fairfax faces the challenges by made a loss of $390.9 million after-tax for the 12 months to the end of June, the result is a huge turnaround from last year's $282 million profit (ABC news 2011). Newspaper company around the world have been deteriorating by declining readership, falling advertising revenue, shifting media environment, facing a tough economic recession and competition from hundreds of new news sources from blogs, new website based on organizations and individual startups could singularly or collaboratively create broader option and channel for consumers.