News Corporation (NWSA) BCG Matrix Analysis

If you are an investor, you need to know what products or services are worth investing in and which ones to avoid. You also need to know which products have the potential to bring in higher returns. One way to analyze the profitability of a company's products is by using the Boston Consulting Group (BCG) Matrix Analysis. Here we will take a closer look at News Corporation (NWSA) and its products/brands using this framework.

In this blog, we will discuss News Corporation's 'Stars,' 'Cash Cows,' 'Dogs,' and 'Question Marks' based on their current market share, growth potential, and financial performance. We will also provide you with the latest statistical and financial information for each category. By the end of this article, you will have a better understanding of which of News Corporation's products/brands have the most potential to thrive and bring in higher returns for shareholders.

So, without further ado, let's dive into the different categories of products/brands that News Corporation (NWSA) has based on the BCG Matrix Analysis.

Background of News Corporation (NWSA)

News Corporation (NWSA) is a multinational mass media conglomerate. The company was founded in 1980 by Rupert Murdoch and is currently headquartered in New York City. NWSA operates through various segments, such as News and Information Services, Book Publishing, Digital Real Estate Services, Subscription Video Services, and Others.

As of 2023, NWSA has a market capitalization of approximately $13.5 billion. In 2021, the company reported a total revenue of $9.3 billion and a net income of $1.3 billion. Additionally, NWSA had a total asset value of $22.7 billion, with a total debt of $9.8 billion.

Latest Financial and Statistical Information of News Corporation (NWSA)

• NWSA's market capitalization as of 2023 is $13.5 billion.
• The company reported a total revenue of $9.3 billion in 2021.
• The net income of NWSA in 2021 was $1.3 billion.
• The total assets of NWSA in 2021 were valued at $22.7 billion.
• As of 2021, NWSA's total debt was reported at $9.8 billion.

News Corporation (NWSA) continues to be a leading player in the global mass media industry. The company's diversified portfolio of businesses across various segments has helped it navigate through changing market dynamics while maintaining a strong financial position.

News Corporation (NWSA) Stars

News Corporation (NWSA) is a diversified global media and entertainment company with operations in the United States, Australia, and the United Kingdom. In 2023, the company has several products/brands in its portfolio, which can be considered as 'Stars' based on their high growth potential and market share.

• Fox News Channel: Fox News Channel is a 24-hour cable news channel with a market share of 37% as of 2021. The channel has a loyal viewership and has been the most-watched cable news network in the United States for several years. In 2022, the channel generated revenue of $2.75 billion.
• Sports Broadcasting: News Corporation's sports broadcasting division, which includes Fox Sports and several regional sports networks, has a combined market share of 27%. The division has exclusive broadcasting rights for major sporting events, including NFL games, MLB games, and NASCAR races. In 2022, the division generated revenue of $4.3 billion.

These products/brands are leaders in their respective industries and have a significant growth potential. However, they still need support for promotion and placement, which means that News Corporation needs to invest in them to sustain their success. If market share is kept, these 'Stars' are likely to grow into 'Cash Cows' in the future.

The BCG Matrix Analysis can help News Corporation identify its potential growth opportunities and allocate resources accordingly. Investing in its 'Stars' can help the company achieve sustainable growth and increase its market share.

News Corporation (NWSA) Cash Cows

As of 2023, News Corporation (NWSA) has several products that fall under the Cash Cows quadrant of the Boston Consulting Group Matrix Analysis.

• Fox News Channel
• The Wall Street Journal
• Dow Jones

According to the latest financial reports in 2022, Fox News Channel earned a revenue of approximately $2.9 billion USD. The Wall Street Journal earned a revenue of approximately $1.2 billion USD, and Dow Jones earned approximately $1.1 billion USD.

These products have all attained high market share in their respective mature markets. As leaders in their industries, they possess immediate competitive advantages, allowing them to achieve high-profit margins and consequently, generate a lot of cash flow. Furthermore, they require low investments in terms of promotion and placement, and the investments into supporting infrastructure can improve their efficiency and, as a result, increase their cash flow.

Overall, these cash cows are vital to News Corporation (NWSA). They provide the cash required to invest and turn other products into market leaders, fund research and development, cover administrative costs, service corporate debt, and pay dividends to shareholders.

News Corporation (NWSA) Dogs

As of 2023, News Corporation (NWSA) has a few products/brands that are categorized as Dogs according to Boston Consulting Group (BCG) Matrix Analysis. These products/brands have low market share and low growth rates. Below are the latest (2021 or 2022) statistical and/or financial information for NWSA's Dogs products/brands in USD:

• National Rugby League (NRL): NRL is a professional rugby league competition in Australia. It has a low market share and low growth rates. As of 2022, NRL's revenue was 200 million USD and its net profit was 10 million USD.
• Move.com: Move.com is an online real estate company. It has a low market share and low growth rates. As of 2021, Move.com's revenue was 100 million USD and its net profit was 5 million USD.
• US News & World Report: US News & World Report is a digital news and information company. It has a low market share and low growth rates. As of 2022, US News & World Report's revenue was 150 million USD and its net profit was 8 million USD.

Although these products/brands are still generating some revenue and net profit, they are not growing in the market and have low market share. NWSA should avoid putting in more resources and expensive turn-around plans for these products/brands as they are not expected to turn around in the near future.

News Corporation (NWSA) Question Marks

News Corporation (NWSA) is an American multinational mass media corporation operating in the media and publishing industry. As of 2023, it has several products and/or brands in the Question Marks quadrant of Boston Consulting Group Matrix Analysis.

• News Corp Education: In 2022, News Corp Education (an education software provider) had revenues of $450 million but low market share. It is in a high-growth market but is still an emerging product and has not yet gained widespread adoption.
• Sports Betting: News Corp has made some investments in sports betting but is yet to gain significant market share. In 2021, FOX Bet (the sports betting division of News Corp's FOX sports network) generated $250 million in revenue. However, it still has a low market share in the industry.
• News Corp Australia: News Corp Australia has struggled to maintain market share in a rapidly transforming media market. In 2022, News Corp Australia's advertising revenue was $700 million, down from $800 million in the previous year.

The above-mentioned brands are high-growth products or services, but they have low market share. Due to their low market share, they require a significant amount of investment to gain a foothold in their respective industries. News Corp needs to invest heavily in these brands if it wants to remain competitive and increase its market share.

While these products/brands are currently in the Question Marks quadrant, they have the potential to become Stars, provided News Corp invests in them strategically. However, if the products do not have the potential for growth, it is best for News Corp to sell them to other companies. Companies are recommended to follow a focused growth strategy for Question Marks to avoid ending up with a portfolio of unprofitable products.

In conclusion, News Corporation's diversified portfolio includes products that fall under the categories of Stars, Cash Cows, Dogs, and Question Marks. The BCG Matrix Analysis is a useful tool for identifying the potential of each product and allocating resources accordingly.

News Corporation's Stars, such as Fox News Channel and Sports Broadcasting, have significant growth potential and need investment to sustain their success and grow into Cash Cows in the future. The Cash Cows, such as Fox News Channel, The Wall Street Journal, and Dow Jones, generate a lot of cash flow and provide the necessary funding for research and development, administrative costs, corporate debt, and dividends.

However, News Corporation also has products that fall under the categories of Dogs and Question Marks, which have low market share and low growth potential. News Corporation should avoid investing heavily in these products and sell them to other companies if they do not have the potential for growth.

Companies are recommended to follow a focused growth strategy for Question Marks to avoid ending up with a portfolio of unprofitable products. By carefully analyzing its portfolio using the BCG Matrix Analysis, News Corporation can focus its resources on the products with the greatest growth potential and increase its market share in the global media and entertainment industry.

• Key takeaway: The BCG Matrix Analysis is a useful tool for identifying the potential of each product in a company's portfolio and allocating resources accordingly.
• Recommendation: News Corporation should focus its resources on its Stars and Cash Cows to sustain their success and grow their market share.
• Caution: Companies should avoid investing heavily in Dogs and sell them to other companies if they do not have the potential for growth. A focused growth strategy is recommended for Question Marks to avoid ending up with unprofitable products.

Overall, News Corporation's portfolio includes a range of products with varying growth potential and market share. By using the BCG Matrix Analysis, News Corporation can strategically invest in its products, increase its market share, and remain competitive in the global media and entertainment industry.