Naspers Case Study

Strategic management - assignment 1

Question 1.1

Q.1.1 Give a brief overview of the organisation — its structure, architecture and brand portfolio. (10)

[pic 1]

(Nasper, 2015)

Naspers is a multinational internet and media group offerings services operating in over 130 countries aiming to win locally in a globalized world they have successfully managed to adapt to multiple cultures and countries with strong growth potential (Naspers, 2015). Originally founded in print media they have expanded to video entertainment and internet communications and services and a focus on ecommerce.

Through the Identification of markets with strong growth potential and successfully identifying trends, innovating and adapting to the changes in the markets they have become a leader in the industry. The focus is on building leading companies that empower people and enrich the community.

The Naspers corporate structure is divided into three sections print, video entertainment and internet.

1. The print section consists of over 60 magazines and 90 newspaper, logistics in terms of distribution and book publishing business in South Africa and further print media investments in international companies (Naspers, 2015). Under this section is Media24 Africa’s leading media group, 24.com Africa’s leading digital publisher, Novus holdings a leader in print and manufacturing sector and book publishing (Naspers, 2015). With continued innovation and technology they are embracing the digital technology to create more beneficial services for the customers and opportunities for expanded business (Naspers, 2015).[pic 2]

(Naspers, 2016)

1. The video entertainment section is spread over 50 countries across Africa with ten million customers. They use new technologies to create ease of use offering direct-to-home satellite services, digital terrestrial services, online and mobile services (Naspers, 2015). Further in this section they develop fundamental content protect and access management technologies for the internet, pay-television and mobile platforms.

[pic 3]

1. Internet services offer communication, social networking, entertainment and mobile value added services with have a strong focus on expanding and development on e-commerce (Naspers, 2015). The ecommerce included consumer-to-consumer transactions through the classified operations such as OLX and business-to-business transactions such as etail, marketplaces, online comparison shopping, payments and new business ventures (Naspers, 2015). Naspers has a investments in two listed international integrated social network platforms Tencent in China and Mail.ru in Russia (Naspers, 2015).

[pic 4]

The brand portfolio is spread over multiple countries and business each with its own challenges. However their impressive portfolio supports the coexistence of local and global content which gives them a competitive edge in a volatile and competitive market place.

Q.1.2 Give an overview of the industry and competitive environment in which the organisation conducts business — the conditions and trends, key competitors, opportunities and challenges the company has met over the past three (3) years. (20)

http://www.pwc.co.za/en/assets/pdf/enm/entertainment-and-media-outlook-2016-2020.pdf

The entertainment and media industry is dynamic and diverse with steady and sustainable growth opportunities. There are several shifts occurring in the global landscape.

• Demographically the youth, millennials, are driving the industry through new consumption behaviours and the increased ability to multitask in different Medias (PWC, 2016:22).
• Competition: Traditional media corporations struggled in comparison to technology-driven platforms and communication platforms driven by content. Content is being structured based on forces of globalisation and localisation. Naspers has a content based business model to support the coexistence of global and local (PWC, 2016:22).

Naspers biggest competitors are Facebook, Amazon and Google (Fin24,2016)