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Flevy Management Insights Case Study
Digital Transformation for Internet Publishing and Broadcasting Company


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Scenario Planning to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

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Consider this scenario: An established internet publishing and broadcasting company faces a significant strategic challenge amid a rapidly evolving digital landscape, requiring comprehensive scenario planning.

The organization is experiencing a 20% decline in user engagement due to increased competition from emerging digital media platforms and shifting consumer behaviors towards content consumption, alongside internal inefficiencies in content management and distribution. The primary strategic objective is to enhance digital capabilities and user engagement while streamlining operations to regain market share and profitability.



The organization is a well-established internet publishing and broadcasting company currently grappling with a 20% decline in user engagement. External challenges include increased competition from digital media platforms and changing consumer behaviors towards content consumption. Internally, the company faces inefficiencies in content management and distribution. The primary strategic objective is to enhance digital capabilities and user engagement while streamlining operations. This decline in performance may stem from a slow adoption of new technologies and ineffective content strategies.

Market Analysis

The internet publishing and broadcasting industry is undergoing rapid transformation driven by technological advancements and changing consumer preferences.

We begin our analysis by analyzing the primary forces driving the industry:

  • Internal Rivalry: High, with numerous established players and new entrants competing for audience attention and advertising revenue.
  • Supplier Power: Moderate, as content creators and technology providers can influence cost and quality, but numerous alternatives exist.
  • Buyer Power: High, with audiences having a plethora of free and paid content options, increasing the demand for high-quality, engaging content.
  • Threat of New Entrants: High, due to low entry barriers and the rise of new digital platforms and content creators.
  • Threat of Substitutes: High, with social media, streaming services, and user-generated content platforms offering alternative forms of entertainment and information.

Emergent trends indicate a shift towards personalized and interactive content. Major changes in industry dynamics:

  • Increased Mobile Consumption: Creates opportunities for mobile-first content strategies but risks overdependence on mobile platforms.
  • Rise of Social Media Platforms: Offers chances to engage younger audiences but increases competition for attention.
  • Demand for Video Content: Presents opportunities to diversify content offerings but requires investment in video production capabilities.
  • Data-Driven Content Personalization: Allows for tailored user experiences but necessitates robust data analytics infrastructure.
  • Subscription-Based Revenue Models: Provides a stable revenue stream but challenges include user retention and competition from free content.

STEEPLE analysis reveals social trends towards personalized, on-demand content, technological advancements in AI and data analytics, economic pressures on advertising revenues, environmental considerations in digital infrastructure, political factors such as regulations on digital content, legal issues around intellectual property, and ethical concerns related to data privacy.

Learn more about User Experience Data Analytics Data Privacy Market Analysis

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Market Research Method (109-slide PowerPoint deck)
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Internal Assessment

The organization has strong brand recognition and a diverse content portfolio but struggles with digital transformation and operational efficiency.

SWOT Analysis The organization’s strengths include a well-established brand and diverse content offerings. Opportunities lie in expanding digital capabilities and leveraging data analytics for personalized content. Weaknesses are inefficiencies in content management and slow technology adoption. Threats include intensifying competition and evolving consumer preferences.

Organizational Structure Analysis The current hierarchical structure impedes quick decision-making and innovation. A flatter structure could enhance agility and responsiveness, enabling faster implementation of new initiatives. The top-down approach may cause misalignment between strategic vision and ground realities. Empowering cross-functional teams could bridge this gap and drive innovation.

Value Chain Analysis The value chain includes content creation, management, distribution, and audience engagement. Strengths lie in content creation and established distribution channels. However, inefficiencies in content management and lack of advanced digital tools hinder overall effectiveness. Optimizing these areas can enhance user experience and operational efficiency.

Learn more about Digital Transformation Value Chain

Strategic Initiatives

Based on the competitive nature of the internet publishing and broadcasting sector, the management decided to pursue the following strategic initiatives over the next 12 months .
  • Digital Content Strategy Revamp: Develop a data-driven content strategy to enhance user engagement. This aims to tailor content to audience preferences, increasing interaction and retention. Value creation will come from higher user engagement and advertising revenue. Requires investment in data analytics and content management systems.
  • Mobile-First Strategy: Focus on optimizing content for mobile platforms to reach a broader audience. The goal is to increase mobile traffic and engagement. Value creation stems from tapping into the growing mobile user base. Needs investment in mobile app development and responsive design.
  • Video Content Expansion: Increase video content production to meet rising demand. Aims to diversify content offerings and attract new audiences. Value creation through higher engagement and potential new revenue streams. Requires investment in video production capabilities and talent.
  • User Experience Enhancement: Improve website and app usability to provide seamless user experiences. The goal is to reduce bounce rates and increase session duration. Value creation through improved user satisfaction and retention. Needs investment in UX/UI design and user testing.
  • Subscription-Based Model: Introduce subscription options for premium content. Aims to create a stable revenue stream and reduce dependency on advertising. Value creation through predictable revenue and loyal user base. Requires investment in subscription management systems and premium content creation.
  • Scenario Planning: Implement regular scenario planning to anticipate market changes and adapt strategies accordingly. The goal is to stay ahead of industry trends and mitigate risks. Value creation through proactive strategy adjustments and reduced uncertainty. Requires investment in strategic planning tools and expertise.
  • Operational Efficiency Improvement: Streamline content management and distribution processes. The goal is to reduce operational costs and improve efficiency. Value creation through cost savings and faster content delivery. Requires investment in workflow automation and process optimization.
  • Data Analytics Infrastructure: Build robust analytics capabilities to leverage user data for strategic decisions. Aims to enhance personalization and content strategy. Value creation through data-driven insights and targeted content. Requires investment in data analytics tools and talent.

Learn more about Strategic Planning Scenario Planning Value Creation

Scenario Planning Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


That which is measured improves. That which is measured and reported improves exponentially.
     – Pearson's Law

  • User Engagement Rate: Measure the effectiveness of content strategies and user experience enhancements.
  • Mobile Traffic Growth: Track the success of the mobile-first strategy in increasing mobile user base.
  • Subscription Revenue: Evaluate the financial impact of the subscription-based model.
  • Operational Cost Savings: Assess the efficiency improvements and cost reductions in content management.
  • Video Content Views: Monitor the reach and engagement of new video content offerings.
These KPIs provide insights into the success of strategic initiatives, highlighting areas of improvement and ensuring alignment with overall objectives.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Stakeholder Management

Success of the strategic initiatives hinges on the involvement and support of both internal and external stakeholders, including content creators, technology partners, and marketing teams.
  • Content Creators: Essential for developing engaging and high-quality content.
  • Technology Partners: Responsible for implementing digital tools and infrastructure.
  • Marketing Team: Crucial for promoting new content and driving user engagement.
  • Data Analysts: Provide insights to inform content strategy and user personalization.
  • Investors: Provide necessary financial backing for digital transformation initiatives.
  • Users: The ultimate beneficiaries of enhanced content and user experience.
Stakeholder GroupsRACI
Content Creators
Technology Partners
Marketing Team
Data Analysts
Investors
Users

We've only identified the primary stakeholder groups above. There are also participants and groups involved for various activities in each of the strategic initiatives.

Learn more about Stakeholder Management Change Management Focus Interviewing Workshops Supplier Management

Scenario Planning Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Digital Content Strategy Framework (PPT)
  • Mobile-First Strategy Roadmap (PPT)
  • Subscription Revenue Model (Excel)
  • User Experience Enhancement Plan (PPT)
  • Operational Efficiency Improvement Toolkit (PPT)

Explore more Scenario Planning deliverables

Digital Content Strategy Revamp

The implementation team utilized the Resource-Based View (RBV) and McKinsey's 7S Framework to guide the Digital Content Strategy Revamp. RBV focused on leveraging the organization's unique resources and capabilities to gain a competitive advantage. It was particularly useful in identifying and optimizing existing content assets and capabilities to enhance user engagement. The team followed this process:

  • Conducted an inventory of all content assets and assessed their performance metrics.
  • Identified key capabilities in content creation, curation, and distribution.
  • Mapped out strategic resources that could be better utilized to create high-value content.
  • Developed a content strategy that aligned with the organization's core competencies and market needs.

McKinsey's 7S Framework was also deployed to ensure alignment across the organization. This framework helped in examining the internal elements of the organization to ensure that all aspects were aligned with the new content strategy. The team followed this process:

  • Analyzed the existing strategy, structure, systems, shared values, style, staff, and skills.
  • Identified misalignments and areas needing improvement.
  • Implemented changes to ensure all 7 elements supported the revamped content strategy.
  • Conducted workshops and training sessions to align staff with the new strategy.

The implementation of these frameworks resulted in a more cohesive and effective content strategy. User engagement metrics improved by 15%, and content production efficiency increased by 20%.

Learn more about Competitive Advantage Core Competencies

Scenario Planning Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Scenario Planning. These resources below were developed by management consulting firms and Scenario Planning subject matter experts.

Mobile-First Strategy

The implementation team employed the Jobs to Be Done (JTBD) theory and the Agile Methodology to guide the Mobile-First Strategy. JTBD focused on understanding the core needs and tasks that users aim to accomplish with mobile content. This approach was useful in designing a mobile experience that directly addressed user needs. The team followed this process:

  • Conducted user interviews to identify the primary jobs users want to accomplish on mobile devices.
  • Mapped out user journeys to understand pain points and opportunities.
  • Designed mobile features and content that directly addressed these user jobs.
  • Tested prototypes with users to gather feedback and refine the mobile experience.

Agile Methodology was employed to ensure rapid development and iteration. This framework facilitated continuous improvement and quick adaptation to user feedback. The team followed this process:

  • Formed cross-functional teams to work in sprints.
  • Prioritized features and improvements based on user feedback and business impact.
  • Conducted daily stand-ups and bi-weekly sprint reviews to track progress and adapt plans.
  • Released incremental updates to the mobile platform, incorporating user feedback continuously.

The implementation of these frameworks led to a 25% increase in mobile traffic and a 30% improvement in user satisfaction scores.

Learn more about Continuous Improvement Agile

Video Content Expansion

The implementation team used the Value Innovation framework and Lean Startup methodology to guide the Video Content Expansion initiative. Value Innovation focused on creating new value by offering unique video content that competitors were not providing. It was particularly useful in identifying gaps in the current content offerings and opportunities for differentiation. The team followed this process:

  • Conducted market research to identify unmet needs and preferences in video content.
  • Brainstormed innovative video content ideas that could fill these gaps.
  • Developed a value proposition for each new video content idea.
  • Tested these value propositions with target audiences to validate their appeal.

Lean Startup methodology was employed to minimize risks and ensure efficient use of resources. This framework helped in rapidly developing and testing video content ideas. The team followed this process:

  • Created minimum viable products (MVPs) for new video content ideas.
  • Released MVPs to a small segment of the audience to gather feedback.
  • Iterated on the content based on feedback, improving quality and relevance.
  • Scaled successful video content ideas to a broader audience.

The implementation of these frameworks resulted in a 40% increase in video content views and a 20% boost in overall user engagement.

Learn more about Value Proposition Market Research Value Innovation

User Experience Enhancement

The team utilized the Design Thinking framework and the Kano Model to guide the User Experience Enhancement initiative. Design Thinking focused on empathy and iterative prototyping to create user-centered designs. It was particularly useful in understanding user needs and pain points. The team followed this process:

  • Conducted user interviews and surveys to gather insights into user experiences.
  • Created user personas to represent different segments of the audience.
  • Developed prototypes of new user interface designs based on user feedback.
  • Tested these prototypes with users and iterated on the designs.

The Kano Model was used to prioritize features based on their impact on user satisfaction. This framework helped in identifying which features would delight users and which were basic expectations. The team followed this process:

  • Classified features into basic needs, performance needs, and excitement needs.
  • Prioritized development efforts on features that would provide the most significant impact on user satisfaction.
  • Implemented and tested these features incrementally to ensure they met user expectations.
  • Gathered continuous feedback to refine and improve the user experience.

The implementation of these frameworks resulted in a 25% reduction in bounce rates and a 30% increase in average session duration.

Learn more about Design Thinking

Subscription-Based Model

The implementation team employed the Customer Lifetime Value (CLV) model and the RFM (Recency, Frequency, Monetary) analysis to guide the Subscription-Based Model initiative. CLV focused on understanding the long-term value of subscribers and optimizing strategies to maximize this value. It was particularly useful in designing subscription plans and retention strategies. The team followed this process:

  • Calculated the CLV of different customer segments to identify the most valuable subscribers.
  • Designed subscription plans that catered to the needs of these high-value segments.
  • Implemented retention strategies such as personalized offers and loyalty programs.
  • Monitored CLV metrics to assess the effectiveness of these strategies.

RFM analysis was used to segment subscribers based on their purchasing behavior. This framework helped in tailoring marketing efforts to different subscriber segments. The team followed this process:

  • Analyzed subscriber data to determine recency, frequency, and monetary value of their interactions.
  • Segmented subscribers into different categories based on RFM scores.
  • Developed targeted marketing campaigns for each segment to enhance engagement and retention.
  • Measured the impact of these campaigns on subscriber behavior and adjusted strategies accordingly.

The implementation of these frameworks resulted in a 35% increase in subscription revenue and a 20% improvement in subscriber retention rates.

Scenario Planning

The implementation team utilized the PESTLE Analysis and the Scenario Matrix framework to guide the Scenario Planning initiative. PESTLE Analysis focused on understanding the external macro-environmental factors that could impact the organization. It was particularly useful in identifying potential threats and opportunities. The team followed this process:

  • Conducted a comprehensive analysis of political, economic, social, technological, legal, and environmental factors.
  • Identified key trends and uncertainties in each of these areas.
  • Assessed the potential impact of these trends on the organization.
  • Developed strategic responses to mitigate risks and capitalize on opportunities.

The Scenario Matrix framework was employed to create multiple future scenarios based on key uncertainties. This framework helped in preparing for different possible futures. The team followed this process:

  • Identified two critical uncertainties that would have the most significant impact on the organization.
  • Developed a 2x2 matrix to create four distinct future scenarios.
  • Outlined strategic actions for each scenario to ensure preparedness.
  • Regularly reviewed and updated scenarios based on new information and trends.

The implementation of these frameworks resulted in a more resilient and adaptable strategic plan. The organization was better prepared to navigate uncertainties and capitalize on emerging opportunities.

Learn more about PEST PESTLE

Operational Efficiency Improvement

The implementation team employed the Six Sigma methodology and the Theory of Constraints (TOC) to guide the Operational Efficiency Improvement initiative. Six Sigma focused on reducing variability and improving process quality. It was particularly useful in identifying and eliminating inefficiencies in content management and distribution. The team followed this process:

  • Defined the key processes involved in content management and distribution.
  • Measured current performance metrics to establish a baseline.
  • Analyzed data to identify root causes of inefficiencies.
  • Implemented process improvements to reduce variability and enhance quality.

The Theory of Constraints was used to identify and address bottlenecks in the content management process. This framework helped in optimizing the flow of content creation and distribution. The team followed this process:

  • Identified the primary bottleneck in the content management process.
  • Developed strategies to alleviate this bottleneck and improve throughput.
  • Implemented these strategies and monitored their impact on process efficiency.
  • Repeated the process to address subsequent bottlenecks and continuously improve.

The implementation of these frameworks resulted in a 30% reduction in operational costs and a 25% improvement in content delivery speed.

Learn more about Process Improvement Six Sigma Theory of Constraints

Data Analytics Infrastructure

The implementation team utilized the Data Maturity Model and the CRISP-DM (Cross-Industry Standard Process for Data Mining) framework to guide the Data Analytics Infrastructure initiative. The Data Maturity Model focused on assessing and improving the organization's data capabilities. It was particularly useful in identifying gaps and areas for improvement. The team followed this process:

  • Assessed the current data maturity level across different dimensions such as data governance, quality, and analytics.
  • Identified gaps and areas needing improvement to reach a higher maturity level.
  • Developed a roadmap to enhance data capabilities and infrastructure.
  • Implemented initiatives to improve data governance, quality, and analytics capabilities.

The CRISP-DM framework was employed to guide the data analytics process. This framework provided a structured approach to data mining and analysis. The team followed this process:

  • Defined business objectives and data mining goals.
  • Collected and prepared data for analysis.
  • Conducted exploratory data analysis to identify patterns and insights.
  • Developed and validated predictive models to support decision-making.
  • Deployed models and monitored their performance to ensure accuracy and relevance.

The implementation of these frameworks resulted in a 40% improvement in data quality and a 30% increase in actionable insights derived from data analytics.

Learn more about Maturity Model Data Governance Data Analysis

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Key Findings and Results

Here is a summary of the key results of this case study:

  • User engagement increased by 15% following the implementation of a revamped digital content strategy.
  • Mobile traffic grew by 25% due to the successful execution of a mobile-first strategy.
  • Video content views surged by 40%, contributing to a 20% boost in overall user engagement.
  • Subscription revenue rose by 35%, with a 20% improvement in subscriber retention rates.
  • Operational costs were reduced by 30%, and content delivery speed improved by 25% through process optimization.
  • Data quality improved by 40%, leading to a 30% increase in actionable insights from data analytics.

The overall results of the initiative indicate a significant positive impact on key performance metrics, particularly in user engagement, mobile traffic, and video content views. The increase in subscription revenue and the improvement in subscriber retention rates are also noteworthy, demonstrating the effectiveness of the subscription-based model. However, while the operational efficiency improvements and data analytics enhancements were successful, the user engagement increase of 15% fell short of the initial 20% target, suggesting that further refinements in content strategy may be necessary. Additionally, despite the overall success, the rapid changes in the digital landscape and emerging competition continue to pose challenges. Alternative strategies, such as deeper personalization of content and more aggressive marketing campaigns, could potentially enhance user engagement further.

Moving forward, it is recommended to focus on continuous improvement in content personalization and user experience. Investing in advanced AI-driven analytics can provide deeper insights into user preferences and behaviors, enabling more targeted content strategies. Additionally, expanding the video content library and exploring new content formats, such as interactive and live-streaming videos, could further boost engagement. Strengthening partnerships with technology providers and content creators will also be crucial in maintaining a competitive edge. Finally, regular scenario planning should be institutionalized to anticipate market changes and adapt strategies proactively.

Source: Digital Transformation for Internet Publishing and Broadcasting Company, Flevy Management Insights, 2024

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