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| Details |
Case Code: CLBS002
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| Case Length: 4 pages |
| Period: -- |
| Pub Date: 2004 |
| Teaching Note: Not Available |
| Subject :Business Strategy |
| Price:Rs.50 |
| Organization :-- |
| Industry :Media & Entertainment |
| Countries : -- |
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Reader’s Digest - The Story of a Magazine* |
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| The case examines the restructuring and redesigning efforts undertaken by Reader’s Digest to increase profitability and reach during the early 21st century. |
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Issues: |
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- Business restructuring initiatives undertaken by RDA during the late-1990s and the early 21st century, with an emphasis on the redesigning strategies for the magazine.
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- The effectiveness of redesigning strategies.
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| Introduction |
| In 1998, under the leadership of new CEO Thomas Ryder, Readers Digest Association (RDA) announced a re-engineering strategy, to increase profitability and create long-term growth opportunities by building on its core strengths.
As a part of this, RDA decided to revitalize RD’s franchises, focus on health, home, faith, family and finance (areas of high interest to consumers), focus on new marketing channels apart from sweepstakes and direct mail, and continue geographic expansion.
Following this, RDA focused on efforts towards leveraging the RD brand, building editorial expertise and direct-marketing skills, and attaining a large customer database and global reach. Ryder announced a three-phase plan - management restructuring, cutting costs and finding new revenue growth to achieve these objectives.... |
| Questions for Discussion: |
1. Critically evaluate the restructuring strategies put in place by RDA during the late-1990s to regain its lost profitability. Did RDA succeed in its attempts? Give reasons.
2. Discuss the future of Reader’s Digest in the light of dissatisfaction of its readers and the acquisition of Reiman Publications. What according to you should the company do to regain its profitability and subscriber base? |
Keywords |
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Thomas Ryder,redesigning,RDA,Ryder, Readers Digest Association
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
$16) per copy.
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