Dazed Media - Corporate Strategy in the Media by Karen Ryan

CORPORATE STRATEGY IN THE MEDIA

How will Dazed Media remain an agenda-setting publishing powerhouse by 2028?

CORPORATE STRATEGY IN THE MEDIA ASSIGNMENT CONTENTS: Introduction

Stage One: Orientation – Key focal issue defined

Stage Two: Exploration – Driving forces and critical uncertainties

Stage Three: Scenario planning and creation

Scenarios and narratives

Stage Four: Options consideration – Strategies, actions and changes

Scenario 3.1 Low + Low

Scenario 3.2 Low + High

Scenario 3.3 High + Low

Scenario 3.4 High + High

Stage Five: Integration - Early warning signals developed

References

Appendix A – Dazed Media brand architecture

Appendix B – Roger’s adoption/innovation curve

Appendix C – Porter’s five forces framework

Appendix D – PESTEL analysis

Appendix E – UK population by life stage

Appendix F – Comparison of young v ageing population

Appendix G – Scenario planning components

Appendix H – Competitive positioning map

Appendix I – Dazed Media: narratives and early indicators

Appendix J – Dazed Media: strategic implications and strategic options

Appendix K – Fréry’s fundamental dimensions of strategy

Appendix L – Reeve’s Strategy palette

CORPORATE STRATEGY IN THE MEDIA Introduction This essay is a case study based on Dazed Media, a company whose mission it is to become one of the world’s leading independent fashion and culture media brands. From the original inception of Dazed and Confused magazine in 1991 (created by Jefferson Hack and photographer Rankin), Dazed Media has grown to encompass an evolving network of premium digital channels and iconic print titles reflecting the company purpose and ethos:

“becoming a lightning rod for cultural provocation – radically reframing international style culture.” Dazedmedia.com (2018)

Figure 1: Dazed Media Brand Architecture [Ryan 2017]

CORPORATE STRATEGY IN THE MEDIA In Strategy as Revolution (1996 p.70) Hamel referred to rule breaking organisations as “the radicals, the industry revolutionists”, the organisational structure and working culture adopted by Dazed Media reflects this approach. Jefferson Hack comments “We need to keep the decision makers young; the creative director, editorin-chief and fashion director especially; otherwise it won’t reflect its audience’s value,” (Ahmed 2017). This is reflected through a series of experimental appointments; stemming from the magazine’s DIY origins and makeshift sensibility. This emphasis on giving the youth generation responsibility is vital to the ethos of Dazed media’s publications and the wider media organisation and is echoed as one of the positive constituents in the strategy making process (Hamel 2006). Dazed Media is a vertically integrated organisation, producing content through their own creative services agency Dazed Media Studio; online platforms for their main titles — DazedDigital, AnOther and Another Man; through social media and video production teams; and Nowness, their digital video channel; a brand of LVMH (Moët Hennessy Louis Vuitton) operated by Chinese publisher Modern Media Holdings in partnership with Dazed Media. Stage One: Orientation - Key focal issue defined Key focal issue: The first stage of scenario planning is to undertake a strategic environmental analysis to identify the key focal issue in relation to Dazed Media. For the purpose of this case study, we look ahead ten years, and address the key focal issue: How will Dazed Media remain an agenda-setting publishing powerhouse by 2028? With a protagonistic approach the key focal issue raises the question of Dazed Media’s current independent status, and how the organisation might continue their

CORPORATE STRATEGY IN THE MEDIA radical, provocative agenda in a future of moral, technical, digital and financial uncertainty? In Media Management Tools (2013), John Oliver outlines the reasoning behind why media organisations develop longer term strategies, “to guide them through an unpredictable media landscape and evolve in a competitive environment”; this includes the overarching reasons behind defining strategy objectives “which primarily increase revenue, improve efficiency, and plan for the future” (Oliver 2013). There are several schools of thought in existing literature exploring the theoretical landscape of strategic management including: the prescriptive school: planning, design and positioning and the descriptive school: power, cultural, cognitive, entrepreneurial, learning, configuration and environmental (Mintzberg et al.1999). In Strategic Management in the Media, Kung (2008, p120) explores an ‘adaptive’ approach where some elements evolved from the ‘learning school’ and are similar in that the strategic aspect of “reconciling and integrating, external and internal elements” are explored through macro analysis and scenario planning. There are strategy combinations, i.e. adaptive and entrepreneurial which could suit Dazed Media’s progressive nature, the strategy palette (Reeves et al. 2015) also explores five further strategic environments: classical, adaptive, visionary, shaping and renewal. Here the visionary approach which relies on predictability and change (sometimes disruptive) would seem most suited to Dazed’s ethos and is explored further in relation to a specific scenario in Stage Four: option considerations. In The Fundamental Dimensions of Strategy (2006. P.71), Fréry considers three objectives in order to understand corporate strategy: creating value, handling imitation and shaping perimeters. In value terms, Dazed Media’s revenue is unpublished (Hoovers 2018), although currently estimated at $25M (Owler 2018). “Dazed’s motto

CORPORATE STRATEGY IN THE MEDIA ‘Declare Independence’ reflects its ethos and the fact that Hack and Rankin have rejected investors to go it alone, “we can work with commercial partners but we are not owned by them,” says Hack” (Burrell 2018). This highlights Fréry’s (2006. p.72) question “How do you reconcile the conflicting demands of different stakeholders?” In order for Dazed Media to develop a sound strategy, “they must evolve between the extremes of shareholder value and customer satisfaction, profit maximization and corporate social responsibility” (Fréry 2006). Secondly, Dazed Media are well placed to avoid imitation (Frey 2006 P.72), the Guardian said “Dazed has survived – even thrived – by doing all the things that creative Britain is good at…” (Wiseman 2011). Dazed’s website is exploding with doctrines and statements: “a movement for creative empowerment”, “we live in an era of accelerated transformation”, “a lightning rod for cultural provocation” and “radically reframing international style culture” (Dazed Media 2018). All pertain towards Fréry’s idea that “sustaining success is dependent on the ability to be unique” (2006 p.72). and “only when management practice encourages variety and tolerates divergent ideas does building and sustaining successful strategies become possible” (2006 p.73). Lastly, Dazed Media will need to re-shape its perimeters (Frey 2006. P.73) by considering aspects of diversification, globalisation and positioning. In an interview with Hack, The Independent summed up, “the editorial ‘mantra’ is to try to bring about ‘positive social change’ by publishing stories which embody ‘optimism’ and send a wider ripple of confidence across the creative communities (Burrell 2018). In terms of differentiation Kung said “a magazine’s content reflects it editorial vision, and this in turn reflects its market positioning and is a key source of intangible value” (2008. p.46).

CORPORATE STRATEGY IN THE MEDIA When Küng wrote ‘Strategic Management in the Media’ (2008 p.48) the internet was hi-lighted as the biggest strategic issue facing media publishers. Ten years on and the media organisation’s focus has only been about integrating digital and publishing as outlined in The Drum (Goodfellow 2016), “Dazed’s bid to better understand how specific types are shared belies its attempt to leverage its knowledge of its readers in the uneasy union between publisher and technology platform”. Dazed Media implemented an innovative advertising software that publishes research data on their audience’s communication and media habits (Sharethrough 2018) in 2014; giving Dazed essential access to data reflecting their youthful and dynamic global audience who are predominantly influencers and early adopters (See Appendix B).

Stage Two: Exploration, driving forces and critical uncertainties. Exploration and driving forces: The explorative stage focuses on strategic planning around the industry environment and seeks to identify and evaluate the Driving forces using PESTEL analysis (See Appendix D). By investigating this analysis, 49 driving forces were identified with six key strategic environmental factors highlighted below in order of importance as the most relevant forces in relation to the key focal issue: Social with political influence – A rise in populism and social activism through widely available technology has reflected an increase in citizen journalism and politics (Dalton 2006), with social values and behaviour changing. This has led to internetbased activism and a more participatory form of communication. Social dynamics - Demographic age shifts: higher life expectancy, falling birth rates and an ageing population (Zheng 2018) will continue to contribute to a change in consumer behaviour and motivation alongside a possible shift in target market, audience and segments.

CORPORATE STRATEGY IN THE MEDIA Economic â&#x20AC;&#x201C; China, India and Indonesia have been identified as emerging global markets by 2050 (PwC 2018). This may lead to digital and publishing opportunities and the growth of global networks and collaborations, which could be advantageous in the future. Technological - The Fourth Industrial Revolution (Schawb 2018) potentially connects billions of people to digital networks, improving their efficiency of organisation and managing assets, whilst undoing the damage of previous industrial revolutions (Schwab 2018). Environmental- Environmental awareness creates new markets and target market segments. This could develop superior and sustained growth, a strategy that would provide a new approach to local, regional and global segmentation. Legislative - Advertising standards, consumer rights and law in relation to a wide range of media developments could have an effect on consumer data protection and privacy whether it be across traditional media or in the digital environment (ISBA 2018).

Critical Uncertainties: The next stage of the scenario-planning process was to explore two key issues from the macro analysis to form the critical uncertainties. These are the highest influential forces, most likely to define or significantly change the way the future unfolds around Dazed Mediaâ&#x20AC;&#x2122;s key focal issue: How will Dazed Media remain an agenda-setting publishing powerhouse by 2028? These are prioritised in relation to Dazedâ&#x20AC;&#x2122;s youth market audience which is currently their focus and the nature of content that Dazed are respected and widely known for, as an engaging and dynamic independent publisher.

CORPORATE STRATEGY IN THE MEDIA The first critical uncertainty for Dazed media is social (with political influences/consequences) and addresses the rise of populism and social activism through widely available technology; including the rise of participatory politics and citizen journalism (Dalton 2006) which has led to internet-based activism and new forms of communication across the globe which could impact Dazed’s content, access and target market strategies in the future. In Party Politics, Gibson argued that “digital media are introducing a new grassroots-based mode of ‘citizen-initiated campaigning’” (2013 p. 183), we have seen recent political uprisings in Spain’s Catalonian region and also Zimbabwe, where citizens rejected the Mugabe era, similarly war-torn areas such as Syria and Afghanistan, ‘citizen journalism’ is often the only point of contact with the media. Stratfor’s Decade forecast pessimistically predicts “the main political tendency will be away from multinational solutions to a greater nationalism driven by divergent and diverging economic, social and cultural forces” (Stratfor 2018). At the Fourth International Conference on eDemocracy, Marianna Lameiras outlined “the traditional role played by the media in democratic societies were significantly influenced by many variables, such as technological innovations and globalization” and reflected “the way citizens nowadays interact and engage with public issues, in public and private spheres, is constantly changing and digital technologies play a crucial role in this process” (Lameiras 2017). In Citizen Politics (2006), Dalton “examines the debate on the vitality of contemporary

democracy”

and

argues

that

“ongoing

processes

social

modernisation are changing the values and behaviour of the public new forms of political activity, such as internet-based activism and new forms of political consumerism”. These changing values may need to be considered by Dazed Media,

CORPORATE STRATEGY IN THE MEDIA framed by social, cultural and political issues as they could “foster a culture of ethical innovation and embed new codes of conduct into emerging digital spaces” (Raymond 2018). The second critical uncertainty for Dazed Media is social and explores demographic age shifts: higher life expectancy, falling birth rates and an ageing population (Zheng 2018). This could contribute to a change in consumer behaviour and motivation alongside a possible shift in target market, audience and segments. When Euromonitor’s Mega Trend Analysis looked at the global population as it approaches 8 billion, they forecast the demographic shifts of higher life expectancy, falling birth rates and the increasing population of elderly people (predicted to be 2 billion over the age of 60 by 2050), and have an effect on “reshaping consumer lifestyles and purchasing decisions” (Boumphrey et al. 2018). Alongside an ageing generation, at the opposite end of the scale The New York Times (Williams 2018) discussed an emerging ‘Generation Alpha’ which will number almost two billion by 2025 and contribute to a significant change in consumer behaviour and motivation. By focussing on the three main demographic shifts: higher life expectancy, falling birth rates and the increasing elderly population, The Office for National Statistics regularly use data to analyse and forecast the changing age structure by life stage: children, working age and pensionable age (see Appendix E). The ONS predict “that by mid-2041, the UK is projected to have a much older population, partly reflecting the 1960s baby-boomers now being in their 70s, but also the continued increase in life expectancy” (Zheng 2018). In an age of shifting social dynamics and a fragmented media landscape these demographic shifts could have a profound effect on media organisations, the consumer target market and audience segmentation.

CORPORATE STRATEGY IN THE MEDIA Stage Three: Scenario Planning and Creation Scenario planning has a long history dating back to the days of the military and is a known corporate planning tool used by the Harvard Business School, described as “a process that stimulates imaginative, creative thinking to better prepare an organization for the future” (Garvin et al. 2006). As one of a range of tools, the scenario framework (See Appendix G) has a high satisfaction and user rate amongst businesses in achieving their objectives, and as such is referred to as a ‘power tool’ (Rigby et al 2007 p.20). It is at this stage we develop a scenario framework; an emergent strategy of resources and environmental analysis in order to explore four plausible scenarios, supporting narratives and early warning signals/early indicators.

Scenarios and Narratives (See Appendix I):

Figure 2: Scenario Planning Framework (Amended Garvin et al 2006)

CORPORATE STRATEGY IN THE MEDIA Scenario 3.1 Low rise of populism and social activism + Low demographic age shift Scenario 3.2 Low rise of populism and social activism + High demographic age shift Scenario 3.3 High rise of populism and social activism + Low demographic age shift Scenario 3.4 High rise of populism and social activism + High demographic age shift

Stage Four: Options consideration – narratives, early indicators, strategic options and implementations explored.

Scenario 3.1: “NO APPathy…FEEL THE AlgoRHYTHM” Low rise of populism and social activism + Low demographic age shift

Narrative: Dazed Media’s audience has remained relatively stable over the last ten years and their core youth market attracts primarily early adopters and influencers (See Appendix B). The Y and Z generation has been joined by emerging Generation Alpha who are roughly equal in numbers to the older population (Zheng 2018), alongside which, the social media landscape is changing; Facebook’s user count is declining and Instagram is not as prevalent as it was previously. A decade ago, Jefferson Hack said “we’re no longer going to be a business that just thinks about how we can host wonderful creative; we’re going to actually partner with brands to create those things” (Mortimer 2015). And therefore, partnering with Snapchat (one of the largest growing social media communities), and securing third party distribution, Dazed Media have cemented their partnership. Through the use of the Discover App, Dazed Media are able to harness distribution of their video and publishing content, reaching a much wider target audience. In the previous ten years Dazed’s audience increased from 200,000 to 3.5m per month across platforms (Mortimer 2015); if

CORPORATE STRATEGY IN THE MEDIA audience figures increased similarly over time, Dazed could expect 10.8 million audience views per month.

Early Indicators: The youth market is stable and target audience are predominantly early adopters and influencers but this is juxtaposed against an increasingly ageing population (OECD 2018). Digital media companies are focused on social media channels and this has been a strong influence on the media industry (Kung 2008). A commissioned study by KPMG (Claydon 2017) revealed 87% of 580 business and IT decision-makers at media companies were extremely concerned about social media disrupting how media providers engage with consumers, yet there is still a huge proliferation of online content and sharing opportunities which this scenario explores. Populism and social activism is relatively stable at this time yet the youth market is still highly participatory in nature when engaging in online content, including: politics, lifestyle and culture.

Strategic implications: The strategic implications in this scenario are that Dazed Media are youth focused and are concentrating more on their video content than publications to generate revenue. They previously gave up some control of their distribution to compete and survive online (The Drum 2016), however in this scenario Dazed Media regain some ground as a content distributor, partnering with one of the largest growing social media online communities, by focusing on their core youth market at a local level, global growth is a secondary focus. In this scenario Dazed Media adopt a digital age approach by focusing on content and platforms. By distributing their video content and generating additional revenue

CORPORATE STRATEGY IN THE MEDIA through branded content they aim to grow their audience from 10 to 40 million unique views a month through the Snapchat social media network. This would give Dazed Media the ability to locally-target content and improve user experience seeing a rise in advertising revenue and monetisation. Dazed Media have some bargaining power (Porter 2008) with Snapchat which could mutually benefit them by integrating Dazed’s Sharethrough software (Sharethrough 2018) to optimise analytics and advertising. Dazed could provide key demographic and targeting statistics, optimising niche audiences, and providing geographic-focused value to both users and advertisers.

Strategic options: In this scenario a shaping approach is identified by assessing current practice (Reeves et al. 2016). Dazed Media has partnered with Snapchat in order to distribute digital and branded content and entered into a partnership which could be seen to “create a shared vision of the future at the right point in time” (Reeves et al. 2015), this ultimately would create value for the organisation. Dazed’s intended approach would be to benefit from investment across distribution platforms in order to achieve market power through vertical integration and develop partnership opportunities. This would define an advantageous business model for this perceived environment ‘where it guides thinking for competitive moves i.e. joint ventures and alliances’ (Garvin 2006) and would profitably differentiate the company from its competitors. Although Dazed’s core youth market is stable with the benefit of being able to exploit unique content in multiple ways, Dazed should be using their analytics to future forecast the demographic structure of their customer and diversify into new segments of the market.

CORPORATE STRATEGY IN THE MEDIA Scenario 3.2: “MIND THE GAP! GENERATION X: THE NEXT POWER GENERATION” Low rise of populism and social activism + High demographic age shift

Narrative: In this next scenario the Media, Culture and Society Journal outlines the rise of the boomers and upcoming Generation X as an affluent and educated dominant customer segment of the consumer market; most likely to have a significant impact on the media industry (Claydon 2018). With a falling youth market due to low birth rates over the previous fifty years (See Appendix F), the X and boomer generations have led Dazed Media to re-assesses their core business strategy and product/content focus and are looking to the emerging markets of socially and culturally aware, technically connected older customers. With co-founders Hack and Rankin taking a back-seat from the day to day running of the company Susannah Lau, better known as Suzie Bubble of Style Bubble; who previously worked as Dazed Digital’s commissioning editor in the millennium years, is appointed as Managing Editor of the Dazed Media Group and is creatively moulding differentiated content to encompass different viewpoints and broaden topics for an increasingly older yet connected generation.

Early Indicators: With low birth rates, an ageing population and higher life expectancy, the youth market is decreasing and customer segment dominance is being re-thought. A culturally, socially and politically aware, digitally connected older audience are at large and new markets are actively being explored. The current UK population in 2028 is 70 million with a widening gap of the working population (OECD 2018).

CORPORATE STRATEGY IN THE MEDIA Strategic implications: The implications of this scenario are that Dazed Media now have an overlap in target consumer groups and lifestyles brought about by a macro environmental change through demographic shifts of higher life expectancy, falling birth rates and a significant ageing population. Whilst the rise of populism and social activism in this scenario are low, the nature of Dazed Media’s output still drives a certain level of provocative debate with participatory engagement from their now older, actively engaged and educated market segment. A report by Liz Claydon for KPMG in 2018 highlighted that “clearly the older generations should therefore not be underestimated in the context of ecommerce made even more apparent in our analysis which showed that the boomers matched the digital-first millennial generation in making on average fifteen online transactions a year but spent on average $30 more per transaction” (Claydon 2018), and many academics outline “not to underestimate the online boomers” (Aris et al. 2009 p.316), which amplifies towards 2028; with an older population surge, combining the younger boomers and the growing Generation X. Widening their focus away from early mover segments, Dazed Media are addressing emerging market potential. In the past they may not have considered reevaluating their wider market potential and were focused on their core youth market. In 2028 the Dazed team have grown up and with it has their customer, they are providing content to reach a wider audience demographic, with its tone and outlook aligned with the culture and readership of the time.

Strategic options: In this adapted scenario Dazed Media has shifted its focus from early mover segments to cross-category growth, re-allocating resources to

CORPORATE STRATEGY IN THE MEDIA support and grow new profitable market segments; attracting potential advertisers and potentially increasing advertising revenue. Euromonitor (Boumphrey et al. 2018) identified an ageing population as a mega trend or ‘large structural shift’ (Reeves et al. 2015), this highlights the current unpredictable business environment that Dazed Media find themselves and the need to apply a flexible adaptive approach. With the high predictability of an ageing population Dazed Media would need to consider the early warning signals and integrate an approach to develop their core portfolio competences. Dazed might want to consider one of Hamel’s (1996) democratic principles of ‘geographic periphery’ by applying a similar ‘demographic periphery’, where older voices contribute to the strategy making process. In Strategic Management in the Media Kung says “a magazine’s content reflects it editorial vision, and this in turn reflects its market positioning and is a key source of intangible value” (2008, p.46) with content one of Dazed’s core competencies they should strategically monitor content production across publication and digital platforms. This affluent and growing market already includes competitive rivalry (Porter 2008) from publications Cereal (2018) and Kinfolk (2018). With Dazed Media forging stronger, more valuable relationships with a wider demographic a planned adaptive approach could increase their market share.

Scenario 3.3: “ONE STEP BEYOND” High rise of populism and social activism + Low demographic age shift

Narrative: In this scenario Dazed Media is taking advantage of its range of digital capabilities and expanding future technology. Engaging with its core youth market through more direct channels of communication Dazed Media are using interactive

CORPORATE STRATEGY IN THE MEDIA advertising and experimenting with augmented and virtual reality to enhance its customer centric approach and differentiate it from the hyper competitive situation that faces independents currently in the media sector. With the internet having the strongest influence in the media industry (Kung 2008) Dazed Media is investing in immersive technology which could replace mobile computing in the future.

Early Indicators: There is a high level of participatory engagement and opinion sharing through a citizen-initiated approach to digital communication. Interactive advertising is on the increase and there is a plethora of increased niche content across independent media companies off and online. With a buoyant youth market, the environmental focus is very much on digital communication platforms.

Strategic implications: This narrative looks outside the structure and boundaries of Dazed’s existing business by investing in new technology and engaging with its youth market through innovative communications. There is a negative implication that increased consumption of digital media can cause a decline in empathy especially in the younger generation, however Dazed’s narrative is moving towards an empathic, human-centric understanding of an advanced society. The idea of engaging in interactive activities is “recognised as a powerful innovation mechanism” (Aris et al. 2009, p.319) which increases community interaction once virtual and interactive technologies are introduced. With immersive technology replacing mobile computing, these technologies could empower smaller independent’s such as Dazed Media to produce higher quality content at a lower cost, whilst driving up value to their core customer. By adopting the McKinsey & Company approach of “fostering a society with informed perspectives of other communities and

CORPORATE STRATEGY IN THE MEDIA identities” (Hall et al. 2017) Dazed media could enhance its customer centric approach and create value in terms of customer relationship management.

Strategic options: Where an emerging mega trend is innovation, a visionary strategy is used to create value supported by a reconstructionist/blue ocean strategy (Kim et al 2005). In Managing Media Companies, Aris (2009 p.93) highlights three characteristics that successful innovators have in common, “a clear sense of direction, open to new ideas and a rigorous approach to execution”. Dazed have been open to new ideas since their inception and by developing immersive technologies to support their portfolio they can create direct experiences and expand customer touchpoints, “shifting the attention from supply to demand” (Kim et al 2005). Dazed are exploring this untapped market, nevertheless in a hyper competitive market, whilst Dazed can pursue differentiation and be competitive for now, it may not be long before technology and their competitors catch up (See Appendix H).

Scenario 3.4: “DAZED AND CONFUCIUS” High rise of populism and social activism + High demographic age shift

Narrative: Dazed Media is not new to building relationships with China, and in 2014 partnered with Chinese online media giant, Modern Media Holdings in order to gain greater distribution of their video content through Nowness channel globally. Today Baidu Inc. has announced a bid for iconic independent, Dazed Media threatening their independence as a content distributor and distinctive brand identity. With a once challenging philosophy, Dazed Media has seen a gradual decline in audience figures and advertising revenue; as their once predominantly youthful

CORPORATE STRATEGY IN THE MEDIA audience has grown older and wiser. The morality and political correctness of 2028 has watered down what was once revolutionary editorial to what will now become an emphasis on personal and governmental morality, political correctness, traditional social values, justice and sincerity.

Early Indicators: Regressive and ultra-conservative politics have seeped into the social and political global environment. China, who are one of the fasted emerging markets, with massive global investments, dominate an institutional landscape of corporate governance and strict regulatory content of the media. With falling birth rates, an ageing population and higher life expectancy, the youth market has decreased significantly with a sudden decline in consumer demand of innovators and early adopters.

Strategic implication: This scenario explores the most changed environment in which Dazed Media could find themselves and threatens their key focal issue of remaining an agenda-setting publishing powerhouse by 2028. The critical uncertainties are at their harshest, with falling birth rates and an increasing elderly population; the effect being Dazedâ&#x20AC;&#x2122;s core youth market decreases and an older market has emerged which Dazed have failed to plan for in the long term. Similarly, the second critical uncertainty: a rise in populism and social activism has grown to encompass an ultra- conservative outlook with Chinaâ&#x20AC;&#x2122;s republic never more traditional in its views and outlook, politically and socially. The traditional values of morality and political correctness have led to far reaching media regulations and monitoring and would have an effect on Dazed Mediaâ&#x20AC;&#x2122;s content and market in the wake of a takeover.

CORPORATE STRATEGY IN THE MEDIA In the previous decade Chinese media firms quickly worked out the profit potential by investing in stakes of emerging digital companies, and targeted markets which improved local to global network coverage and market concentration. With China identified as one of the fastest growing emerging markets by 2050 (PwC 2018) with a rise in their middle classes; widening target market opportunities would connect Dazed Media with a new generation of Chinese consumers. In Managing Media Companies, Aris discusses how “investing in internet-based businesses is a successful strategy in the medium term” (2009, p.263). However, often there is a risk that aggressive Chinese investment and expansion with the expectation of high targets and fast returns is an unsustainable strategy across the longer term and a high risk of failure from not understanding the market. The final implication in this scenario would be Dazed Media’s organisational resistance to a takeover which would jeopardise their independence as a fashion and culture media brand. In the past primary shares held by founders “protected them from the pressures of the capital market “(Aris et al. 2009 p.264). With many of the original media founders retiring, Dazed Media is “transitioning from an entrepreneurial culture to a professional management structure” (Aris et al. 2009 p.263) and their past statements “we can work with commercial partners but we are not owned by them,” (Burrell 2018) is in jeopardy.

Strategic options: In this final scenario, where Dazed are part of an acquisition strategy by Baidu Inc. they are most vulnerable by being exposed to an emerging market which is “characterized by circumstances that are unpredictable and malleable” (Reeves et al. 2015. p.119). However, this scenario is far from malleable and is impacted by a number of sudden environmental effects; the youth market has

CORPORATE STRATEGY IN THE MEDIA decreased significantly and a sudden decline in consumer demand. In order for Dazed Media to avoid losing independence they could adopt a renewal approach and aim to reserve resources (Reeves et al 2015), keeping a financial stake in Dazed Media in order to keep some negotiating power (Porter 2008) and “re-align their strategy” (Reeves et al 2015). Chinese investment could bring distinctive digital capabilities and value creation, however cultural differences would need to be addressed in order to achieve a successful transformation. Dazed could look at strategic innovation through a re-brand or targeted product development to improve viability whilst conserving their resources and negotiate merger with Baidu Inc. Without investment and intervention, the family like culture of camaraderie associated with the Dazed business could disappear and the open and creative ethos which is the cornerstone of Dazed culture would be eradicated.

Stage Five: Integration - early warning signals developed From the early stages of scenario planning the early warning signals are the leading indicators that provide us with a series of low to high probabilities of the plausible consequences and effects on Dazed Media’s key focal issue: How will Dazed Media remain an agenda-setting publishing powerhouse by 2028? If Dazed Media (as part of their corporate strategy) implemented scenario planning to identify early warning signals it could enable them to react effectively and plan ahead for any turbulent environments in the future. In terms of the signals that would have most impact on the key focal issue, the following are the early warning signals that would have the most significant impact (See Appendix I) on Dazed Media. •

youth market decreases

CORPORATE STRATEGY IN THE MEDIA •

older population increases

•

move towards regressive politics

•

regulation of content

The first signal, highlights a decreasing youth audience; Dazed would need to have a demographic overview of their market and any fluctuation at any given point would be an early warning signal to address their customer focus, the core target market and segmentation variables. The second signal of an increasingly older generation could have negative and positive implications. On one hand a decrease in the youth market could reduce Dazed’s audience and market share yet there could be opportunities to offer diversification in terms of product and content to niche audiences. Thirdly, a move towards regressive politics could signal the inflexibility of free speech, the reduction of interactive participation and restricted communication across platforms. This would result in a loss of identity as an independent publisher, and with provocative and diverse content, Dazed Media would lose its voice. Lastly the fourth signal would be the regulation of content; this has similar consequences to the above in terms of restricting content and would challenge the company’s ethos of radical, experimental and provocative writing, signifying a change in attitudes to journalistic content.

In conclusion the process of scenario planning is a logical process in which Garvin and Levesque (2006) describe as “a way of rehearsing the future”. Dazed Media could ignore scenario planning and wait for a series of trial and error scenarios to emerge from which it would be impossible to predict or plan thereby “surrendering the future to revolutionary challengers” (Hamel, 1996). Or by adopting a scenario planning

CORPORATE STRATEGY IN THE MEDIA approach, it would allow their organisation to plan, implement and control any environmental uncertainties over the longer-term by being “mentally prepared to address the future” (Oliver et al, 2017). Similarly, in Hamel’s Strategy as Revolution (1996), Dazed Media was fundamentally created based on the existence of ‘revolutionaries’ making an impact, company and industry wide, therefore its future strategy should be reflective of those aims.

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CORPORATE STRATEGY IN THE MEDIA Appendices Appendix A – Dazed Media brand architecture

Appendix B – Roger’s adoption/innovation curve

CORPORATE STRATEGY IN THE MEDIA Appendix C – Porter’s five forces framework

Appendix D – PESTEL analysis

CORPORATE STRATEGY IN THE MEDIA Appendix E – UK population by life stage

Appendix F – Comparison of young v ageing population

CORPORATE STRATEGY IN THE MEDIA Appendix G â&#x20AC;&#x201C; Scenario planning components

Appendix H - Competitive positioning map

CORPORATE STRATEGY IN THE MEDIA Appendix I – Dazed Media: narratives and early indicators

Appendix J – Dazed Media: strategic implications and strategic options

CORPORATE STRATEGY IN THE MEDIA Appendix K – Fréry’s fundamental dimensions of strategy

Appendix L – Reeve’s Strategy palette