In today’s world, companies are part of a complex environment, and to cope with uncertainty is the main problem of strategic management. At the latest with the change from seller to buyer market in the 70s, companies cannot see themselves apart from their surroundings, and no company exists in isolation. A world has emerged in which converging technologies and markets, swirling competition, and innovation can outdate established industry structures overnight.
In the past, the world of business was neatly divided into primary, secondary and third sectors while today, the third sector cannot be seen apart from the others. Service becomes more important as time perceives. This orientation leads companies into the understanding that interdependencies with their customers determine the organisation, in which resources, activities and actors are linked to each other. The focus on customers grants at least some stability in the fast changing environment of companies. However, the customers react to environmental changes and put challenging demands on their suppliers. Especially new information technology is a driving force for relationships but asks for the demanding task to contribute information on multiple channels at the same time. The Boston Consulting Group (BCG) notes, “the online channel has a profound influence on consumer’s behaviour”. Especially the internet has revolutionized customer relationships and “the revolution is far from over”.
Businesses have become more multifaceted through the developments in the information and communications technology – the internet, mobility and multimedia. Many authors see a digital revolution taking place today and stress that this is a driving force behind many changes in companies. Businesses cannot afford to ignore digital influences and have to make it a leading priority during the next half-decade. Therefore the terminology “Multichannel” seems to be “one of the hottest topics in Europe” where different alternatives of channels should lead to a cohesive whole.
When the “digital revolution” is considered in the strategy of companies, planning tools of the past decades seem not sufficient, and even misleading. While changes in the technology are certain, their exact form is unclear. In those dynamic conditions, managers need to consider the environment of the future, not just of the past and the emphasis for planners should change from forecasting to foresight.
Table of Contents
1. INTRODUCTION
1.1. BACKGROUND
1.2. PROBLEM AREA
1.3. AN OPTION TO FACE THEPROBLEM OF UNCERTAINTY
1.4. COMPANY VESTMANLAND LÄNS TIDNING, VÄSTERÅS (VLT)
1.5. REASONS FOR THE SELECTION OF THE COMPANY
1.6. ORGANISATION OF THE CHAPTERS
1.7. AIM OF THE PAPER
1.8. RESEARCH QUESTIONS
1.9. DELIMITATION
1.10. TARGET GROUP
1.11. DISPOSITION
2. METHODOLOGY
2.1. SYSTEMATIC RESEARCH
2.2. SCIENTIFIC AND METHODOLOGICAL APPROACHES
2.3. INDUCTION / DEDUCTION / ABDUCTION
2.4. DATA COLLECTION
2.4.1. Secondary Data
2.4.2. Primary Data
2.4.2.1. Surveys and questionnaires
2.4.2.2. Interviews
2.5. QUALITATIVE METHOD
2.6. VALIDITY AND RELIABILITY
2.6.1. Validity
2.6.2. Reliability
3. DESCRIPTION OF VLT
3.1. COMPANY INFORMATION
3.2. COMPANY SITUATION
3.3. COMPANY STRATEGY
4. GUIDELINE THROUGH THE ANALYTICAL CHAPTERS
4.1. CONNECTING LINKS BETWEEN CHOSEN THEORIES
4.2. ORGANIZATION OF THE ANALYTICAL CHAPTERS
5. ANALYSIS OF THE RM AT VLT
5.1. INTRODUCTION
5.2. EXTERNAL RM
5.2.1. The Augmented Service Offering
5.2.1.1. Theory
5.2.1.2. VLT and the Augmented Service Offering
5.2.2. Adaptation - following customers’ requests
5.2.2.1. Theory
5.2.2.2. Adaptation at VLT
5.2.3. Branding
5.2.3.1. Theory
5.2.3.2. Branding at VLT
5.2.4. CRM: a RM Tool
5.2.4.1. Theory
5.2.4.2. CRM at VLT
5.3. INTERNAL MARKETING
5.3.1. Theoretical Aspects
5.3.2. Internal Marketing at VLT
5.4. IMPACT OF INFORMATION TECHNOLOGY ON RM
5.4.1. General Aspects
5.4.2. Impact at the Newspaper Business and thus at VLT
5.5. SUMMARY
6. MULTI-CHANNEL STRATEGY
6.1. LEAD IN
6.2. CHANGE TO A MULTI – CHANNEL STRATEGY
6.2.1. Strategic Change
6.2.1.1. Theory
6.2.1.2. Application
6.2.2. Internal Structure
6.2.2.1. Theory
6.2.2.2. Application
6.2.3. Multiple Channels
6.2.3.1. Theory
6.2.3.2. Application
6.3. SUMMARY
7. RECOMMENDATIONS
7.1. ADAPTATIONS
7.2. CUSTOMISATION
7.3. DATABASES
7.4. LAYOUT OF THE WEBSITE
7.5. PROFIT ON MULTI-CHANNELS
7.6. GENERAL RECOMMENDATION FOR THE MANAGEMENT GROUP
8. SCENARIO TECHNIQUE AS A STRATEGIC TOOL FOR VLT
8.1. BASICS FOR THE TOOL: SCENARIO TECHNIQUE
8.1.1. History
8.1.2. Scenarios – definitions and goals
8.2. METHOD TO CREATE SCENARIOS
8.2.1. Preparation
8.2.2. The funnel Model
8.3. APPLICATION OF THE SCENARIO -TECHNIQUE AT VLT
8.3.1. Analysis of the task
8.3.1.1. Theory to the technique
8.3.1.2. Practical Application at the Newspaper Company VLT
8.3.2. Analysis of the Environment
8.3.2.1. Theoretical Aspects
8.3.2.2. Practical Application at the Newspaper Company VLT
8.3.3. Projections
8.3.3.1. Theoretical Aspects
8.3.3.2. Practical Application at the Newspaper Company VLT
8.3.4. Combining Alternatives and Creating Scenarios
8.3.4.1. Theoretical Aspects
8.3.4.2. Practical Application at the Newspaper Company VLT
8.3.5. Analysis of consequences and scenario transfer
8.3.5.1. Theoretical approach
8.3.5.2. Practical Application at the Newspaper Company VLT
8.3.6. Analysis of disturbing events
9. CONCLUSION
9.1. SUM UP
9.2. PERSONAL OPINIONS
Research Objectives and Themes
The paper analyzes how a local newspaper company, specifically VLT, can fulfill evolving customer demands through a multi-channel strategy while navigating the uncertainty of the digital era and the changing media landscape.
- Relationship Marketing (RM) as a foundation for customer-centric strategy.
- Implementation challenges of a multi-channel approach in traditional media.
- Strategic adaptation of internal structures and employee roles to digital transformation.
- Utilization of scenario techniques to plan for long-term uncertainty in the news industry.
Excerpt from the Book
5.2.1.1. Theory
Customers do not buy goods or services, they buy the benefits goods and services provide them with. They buy offerings consisting of goods, services, information, personal attention and other components. Customers are looking for solutions or packages, which they can use so that value is created for them. Consequently, firms should provide customers with solutions consisting of all the components requested from them. Grönroos describes this concept as the “Augmented Service Offering” and this will be explained briefly below.
Managing the service offering based on benefits customers appreciate requires four steps: Developing the service concept; Developing a basic service package; Developing an augmented service offering; Managing image and communication.
The service concept determines the intentions of the organization and is the fundament for the basic service package, which describes the bundle of services that are needed to fulfil the needs of customers. In the Augmented Service Offering model, the service process and the interactions between the organization and its customers are included. The corporate and/or local image and its marketing communication enhance the perception of the Augmented Service Offering and will be described later in the part 5.2.3. In the following graph the different parts of the Augmented Service Offering are pictured.
Summary of Chapters
1. INTRODUCTION: Presents the research background regarding the digital revolution, identifies the problem area, and outlines the thesis goals and research methodology.
2. METHODOLOGY: Explains the qualitative research design, the use of abduction/deduction, and the process of data collection through interviews and management surveys.
3. DESCRIPTION OF VLT: Provides an overview of the company's business model, current economic situation, and strategic structure.
4. GUIDELINE THROUGH THE ANALYTICAL CHAPTERS: Describes the theoretical framework and the logical connection between Relationship Marketing, Multi-Channel Strategy, and Scenario Technique.
5. ANALYSIS OF THE RM AT VLT: Examines how VLT implements Relationship Marketing, focusing on the Augmented Service Offering, adaptation, branding, CRM, and internal marketing.
6. MULTI-CHANNEL STRATEGY: Analyzes the transition to a multi-channel approach, focusing on internal strategic changes and the integration of online and print channels.
7. RECOMMENDATIONS: Offers short-term suggestions for VLT regarding adaptations, website layout, database management, and customisation.
8. SCENARIO TECHNIQUE AS A STRATEGIC TOOL FOR VLT: Applies scenario planning to envision the company's long-term future under different external and internal environmental influences.
9. CONCLUSION: Summarizes the key findings and addresses the original research questions based on the conducted analyses.
Keywords
Relationship Marketing, Multi-channel Strategy, Scenario Technique, VLT, Newspaper Industry, Digital Revolution, Customer Satisfaction, CRM, Strategic Management, Information Technology, Branding, Adaptation, Media Management, Forecasting, Foresight.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis explores how traditional newspaper companies, using VLT as a case study, can manage strategic uncertainty and maintain customer relationships by adopting a multi-channel strategy.
What are the primary thematic areas covered?
The research covers Relationship Marketing, the implementation of multi-channel business models, the impact of digital technology, and the application of strategic foresight through scenario techniques.
What is the main objective or research question?
The aim is to analyze the scientific context in which a newspaper company can fulfill customer demands on multiple channels and to provide valid strategic recommendations for VLT.
Which scientific methods are employed?
The author uses a qualitative research methodology, including an extensive literature study, interviews with the marketing manager of VLT, and a survey conducted among the company's management group.
What does the main analytical part entail?
The analysis investigates VLT's current RM and multi-channel practices, evaluating its service offerings, internal marketing effectiveness, and the influence of information technology on their news delivery.
Which keywords characterize this work?
Key terms include Relationship Marketing, Multi-channel strategy, Scenario Technique, VLT, Newspaper Industry, Digital Revolution, and Customer Relationship Management.
How does the Scenario Technique help VLT?
It acts as a tool for "foresight," allowing managers to move away from rigid forecasting and prepare the company for various future environments, especially given the high uncertainty of technological developments.
Why is the "Augmented Service Offering" model relevant to VLT?
This model is used to break down how VLT provides value beyond just the basic newspaper product—integrating goods, services, information, and personal attention to build stronger customer loyalty.
- Quote paper
- Manja Ledderhos (Author), 2003, Strategy on Multiple Channels - Customer Relationships as a driving force for a multi-channel strategy: a view on today and tomorrow at VESTMANLANDS LÄNS TIDING, Munich, GRIN Verlag, https://www.grin.com/document/14879
