The Examiner's Answers – November 2011 E3 - Enterprise Strategy SECTION A Answer to Question One Requirement (a)(i) The impact of the three possible pricing strategies suggested by X and financial effect of changing the Daily News website to a subscription basisis shown in the tables below: (i) Current advertising revenue per week Pages 5
Price per page £ 6,000
Days 7
Total £ 210,000
(ii) Forecast subscription revenue per week Strategy
Daily subscriptions: Price per day
Daily subscriptions: Forecast number of subscribers per day
1 2 3
£0.25 £0.50 £0.75
4,000 3,500 1,500
Total daily subscriptions revenue per week
Weekly subscriptions: Price per Week
£ 7,000 12,250 7,875
£ 0.50 0.75 1.50
Weekly subscriptions: Forecast number of subscribers per week 17,000 15,000 6,000
Total weekly subscription revenue
Total subscription revenue
£ 8,500 11,250 9,000
£ 15,500 23,500 16,875
(iii) Forecast advertising revenue per week Strategy
1 2 3
Days
7 7 7
Enterprise Strategy
Revenue per page £ 4,000 3,750 2,500
Forecast number of pages sold per day 7 9 10
1
Total weekly revenue £ 196,000 236,250 175,000
November 2011