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Case
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Reference no. 503-034-1
Subject category: Marketing
Published by: IBS Center for Management Research
Published in: 2003
Length: 13 pages
Data source: Published sources

Abstract

The case examines the evolution of the Reader''s Digest magazine since its launch in the early 1920s towards becoming the largest selling magazine in the world by the 1980s. It explores the reasons behind the subsequent reduction in profitability and fall in subscriber base during the mid-1990s. The case examines in detail the restructuring and magazine redesigning efforts undertaken by the company to increase profitability and reach during the early 21st century. It also discusses the future of the magazine in light of criticisms faced by the company on account of the redesigning initiatives and acquisition of Reiman Publications in 2002. The case is designed to enable students: (1) to be introduced to the basic philosophy behind the launch of the Reader''s Digest magazine and the reasons behind its phenomenal success over the decades; (2) to explore the reasons for the decline in profits and subscriber base of the Reader''s Digest Association (RDA) during the mid-1990s; (3) to discuss the 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; (4) to evaluate the effectiveness of these redesigning strategies; and (5) to examine the future of Reader''s Digest in view of subscriber dissatisfaction (over the redesigning) and acquisition of Reiman Publications. The case is aimed at MBA/PGDBA students and is intended to be part of the marketing management curriculum.
Location:
Industry:
Size:
Large
Other setting(s):
Late 1990s to 2002

About

Abstract

The case examines the evolution of the Reader''s Digest magazine since its launch in the early 1920s towards becoming the largest selling magazine in the world by the 1980s. It explores the reasons behind the subsequent reduction in profitability and fall in subscriber base during the mid-1990s. The case examines in detail the restructuring and magazine redesigning efforts undertaken by the company to increase profitability and reach during the early 21st century. It also discusses the future of the magazine in light of criticisms faced by the company on account of the redesigning initiatives and acquisition of Reiman Publications in 2002. The case is designed to enable students: (1) to be introduced to the basic philosophy behind the launch of the Reader''s Digest magazine and the reasons behind its phenomenal success over the decades; (2) to explore the reasons for the decline in profits and subscriber base of the Reader''s Digest Association (RDA) during the mid-1990s; (3) to discuss the 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; (4) to evaluate the effectiveness of these redesigning strategies; and (5) to examine the future of Reader''s Digest in view of subscriber dissatisfaction (over the redesigning) and acquisition of Reiman Publications. The case is aimed at MBA/PGDBA students and is intended to be part of the marketing management curriculum.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
Late 1990s to 2002

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