United Daily News Group (A): Building Hybrid Business Models
(10 pages of text)
The United Daily News Group, a leader in Taiwan’s media, faces the imminent death of the country’s newspaper industry. The founder’s grandson took over as the company’s chair just four years earlier, during a time when an increasing number of readers were turning to the Internet for their news. Looking ahead, he needs to sustain the company’s future development while recognizing that the business of running traditional newspapers may no longer be profitable. He needs to assess the company’s strengths, integrate the group’s resources, improve news content, introduce digital media and, in doing so, create a new business model. He wonders how to best initiate the integration of resources and which media innovations he should introduce. See supplement cases 9B15M076
The purpose of the case is to enhance students’ understanding of business model design by means of resources integration. The case investigates the formation of three hybrid business models, in which each business group leverages resources to establish various forms of hybrid business models. The objectives are:
- To illustrate how to design a new business model when firms embark on diversification or transformation.
- To gain an understanding of how a newspaper company may expand its business through the building of a hybrid model, by integrating the resources of the subsidiaries and the parent company.
- To introduce how to integrate resources from both the old and new business models while creating synergy between them.
Information, Media & Telecommunications
Taiwan, Large, 2011
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