
With the announcement of two of the more powerful publishing companies in the world that they will be divesting of some of their major properties, it shows the impact of a number of factors upon business that we need to know.
First though, let's look at what they're getting rid of. The New York Times Co. or The Times Co. is getting entirely out of the broadcast business.
"We believe a divestiture would allow us to sharpen our focus on developing our newspaper and rapidly growing digital businesses, and the synergies between them," said Janet L. Robinson, president and CEO.
Time Inc. has said that they are whittling down its magazine inventory by 18 publications. Included in the sell off are Popular Science, Parenting, Outdoor life and Field & Stream. A larger number of niche publications are also being sold off like Yachting, MotorBoating, and SaltWater Sportsman, TW Skateboarding, TW Snowboarding, TW Surf, TW Motocross, Ride BMX, Quad, Ski, Skiing, and Warren Miller Entertainment.
This is a great example of what is happening all around us in the business world. The large companies are struggling to keep the general audiences, but are being totally beat up by the businesses catering to specialty niches. This is why the companies are scrambling to get back to their core businesses to try to keep them from sinking.
These are the battles that are being fought now, and will be for years to come. Those businesses that are trying to reach the general consumer will need to completely understand what they can battle against in that area, and what the niche businesses will demolish them in. Bigger companies must focus on general interests that reach to larger audiences and not try to go too deep. Niche companies will find themselves needing to dig deeper into their demographic and not be tempted to spread out too thin because of their successes.
Both walk a thin line. The big winners will be those that know how far to go without crossing it
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