Sei sulla pagina 1di 10

Udaipur Times: Strategy of a Hyperlocal News Website

A Report for the course

Managerial Communication II

7th December, 2019

Submitted to: Submitted by:

Instructor: Dr. Diti Vyas GROUP 7


Associate: Ms. Ankita Dash PGDM IM - 05
Adani Institute of Infrastructure Management
December 7, 2019

Dr. Diti Vyas

Adani Institute of Infrastructure Management

Shantigram

Ahmedabad

Report on Strategy to deal with “reducing customer base” of “Udaipur Times: Strategy of a

Hyperlocal News Website” case.

Dear Ma’am,

In accordance with the instructions given, we are submitting our report regarding the strategy

of dealing with the reduction in the number of viewers of “UdaipurTimes.com”. Report

contains evaluation of the options and recommendations to deal with the issue. We hope this

will serve the purpose.

Yours sincerely,

GROUP 7

PGDM-IM (2019-21)

i
Table of Contents

Executive Summary .................................................................................................. i


Situation Analysis .................................................................................................... 1
Problem Statement .................................................................................................. 1
Options ..................................................................................................................... 1
Criteria ..................................................................................................................... 1
Evaluation of Options .............................................................................................. 1
Recommendations.................................................................................................... 2
Plan of Action .......................................................................................................... 3
Executive Summary

Akhtar Bohra along with Zaheer Abbas of UdaipurTimes.com (UT) senses an opportunity of

pro bono strategy consulting for their business growth. They are confused between identical

options like developing the mobile application, adding product portfolio, or creating a web app

considering limited resources. After evaluating all the options, it seems that last option would

result in better output as compared to other two options, satisfying criteria of growth in views,

user engagement, social presence, cost-risk factor and ease of access. Also, internal app testing

and launching it with social media platform could serve the purpose. (95)

i
Situation Analysis:

Akhtar Bohra, the director, along with Zaheer Abbas, founder and editor-in-chief of

UdaipurTimes.com (UT) were preparing for their upcoming meeting with Jeff Thomas’s media

division partner for further strategic planning related to Udaipur Times growth. UT’s financial

statement depicted annual advertising earnings which were quite satisfactory, but the steadiness

in terms of number of views was a matter of concern. Both were in a dilemma, whether to

develop a mobile application for UT or to increase product portfolio on UT website to entice

new readers and remain ahead in the competition arising from other local websites. Abbas and

Bohra knew that having limited resources for driving their business to the next level of growth

was a challenge.

Problem Statement:

What strategy should UdaipurTimes.com choose to increase their customer base and maintain

the growth level?

Options:

• UT may develop a mobile application that could tap the market.

• Improvisation of existing website could be done by increasing the product portfolio.

• A web app could be created along with social marketing solutions.

Criteria: (in decreasing order of preference):

1. Number of Views

2. User involvement

3. Social presence

4. Cost-risk factor

1
5. Ease of access

Evaluation of Options:

• Option 1: Developing a Mobile Application:

Investing in development of mobile application would help them as it would be more user-

friendly and easily accessible. Users would also be timely updated with latest news by push

notifications [Exhibit 1]. But developing an app would incur a huge amount including updating

and maintenance [Exhibit 2]. Also, mobile application being a success is uncertain. Moreover,

if the UI of the app fails to satisfy the user; they might uninstall app even if the contents are

good. Creating an app would also divert the traffic from website to app that could reduce

revenues from website advertising. This option fails to fulfill the criteria for social presence

and cost-risk factor.

• Option 2: Expansion in Product Portfolio:

Existing website can be improved for more user-interaction. UT can also hold contests such as

blog-writings, guest blogs, etc. which can be further shared through personal social accounts

using hashtags that would attract more viewers worldwide. Holding contests would cost more

than generating revenues as content writers need to be paid which would incur additional cost.

Moreover, adding products in the portfolio will lead to additional development costs and hiring

an extra employee [Exhibit 3]. Also, websites are not user-friendly and is less preferred over a

mobile app. This option fulfills criteria just for user-involvement and cost-risk factor leaving

the other criteria unfulfilled.

• Option 3: Innovation through Web App:

UT can develop a web application (web app) which is a website supported mobile application

that does not require complicated developing and hosting like a regular mobile application.
2
Webapp costs a lot lesser as compared to mobile app [Exhibit 4]. Additionally, web apps do

not incur any registration cost on google play and apple app store. The size of web apps is not

more than 2-3 MB which does not require high storage space. With the help of webapp, UT

will be able to handle more traffic, have faster webpage’s loading speed, improved online and

offline browsing experience with much lower maintenance cost. More ways to grab viewers

can be done by building backlinks where one can link other websites to the web ads. Posting

on social media could extend the reach beyond the network. UT can also add multi-language

(English and Hindi) feature in it to attract readers of wider diversity. This option fulfills all the

criteria required.

Recommendations:

We would suggest Udaipur Times to drive their growth by implementing choice three because

it fulfils all the criteria and will lead them to better outcomes. Considering factors like viewers

growth, social presence, value risk issue and easy access will urge them to make a far better

strategy and meet their concerns satisfactorily. Web App is widely accepted tool of late in

modern digital marketplace.

Plan of Action:

For the forthcoming meeting, Akhtar Bohra and Zaheer Abbas, should ensure that they are well

prepared with their overall strategy. Being aware of the constraints and limitations that would

affect their website in terms of cost as well as viewers, they need to get suggestions regarding

implementation of the idea of web app from external or internal developer. He can get it

implemented into the organization’s internal system through their IT professional for proper

testing and launching it in the market.

3
Exhibit 1: Device used for viewing Udaipur Times

Device % of readers
Mobile handset 64
Desktop/Laptop 34
Tablet 2

Exhibit 2: Total Cost for Development of Mobile App

Particulars Mobile App

Mobile App Development Rs 75000/- to Rs 200000/-


charges

Google Play and Apple App Rs 20000/- per annum


store hosting charges

Technological updates 20% of development cost

UTs Profit Statement

Cost Head Amount (in Rs.)


Total Revenue of UT for a year* 1457250
Total Cost incurred by UT for a year* 1200000
Total Profit for UT for a year 257250

*Refer Exhibit 5 & 6 for details.


Working: Taking the minimum amounts from exhibit 1 (without considering risk factor),
the sum total 75000+20000+15000 = 110000;

which will lower the profits from Rs. 257250 to Rs. 147250

4
Exhibit 3: Cost Comparison Statement (Portfolio Vs Web App)

Cost head Development of Portfolio Web App

Development Cost Rs 50000/- One time Rs 0/- to 3000/- One time

Additional Employee Rs 10000/- per month; 120000 No cost we already have


cost per annum website team

Working: Taking the minimum amounts from exhibit 2;

the sum total 50000 + 120000 = 170000;


which will lower the profits from Rs. 257250 to Rs. 87250

Exhibit 4: Cost Comparison Statement (Mobile App Vs Web App)

Cost head Mobile App Web App

Mobile App Development Rs 75000/- to Rs 200000/- Rs 0 to Rs 3000/-


charges

Google Play and Apple App Rs 20000/- per annum Rs 1800/- one-time
store hosting charges updation cost

Technological updates 20% of development cost No updation cost

5
Exhibit 5: Udaipur Times’ Cost Break-Up

Cost head Number of Unit cost Total cost


employees Per month

Sub-editor 1 Rs 12000/- Rs 12000/-

Photojournalists 4 Rs 10000/- Rs 40000/-

Web programmer 1 Rs 18000/- Rs 18000/-

Accountant 1 Rs 10000/- Rs 10000/-

Web hosting and office rental 1 Rs 20000/- Rs 20000/-

Total Aggregate Cost: Rs 100000/-

Exhibit 6: Working for Exhibit 5

Total of Monthly Advertising revenue for 1 year Rs 1457250/-


(Aggregate of advertising revenue) [Case]

Total cost head for 1 year (100000 x 12) Rs 1200000/-

Total website views 2048000