ABSTRACT
The News Corporation example illustrates many important strategic management principles. First, a firm exists in a rapidly changing context which includes both the external world and the firm’s internal skills. The media business and News Corp have experienced the turbulence of the digital revolution, downloading and globalization. Strategy is about understanding and capitalizing upon such changes. Context also requires understanding the operations of financial markets. In early 1990 News Corporation had high debt and was almost bankrupted. It weathered the 2008/09 recession with lower sales and significant losses. The firm has, however, been proactive, soliciting support from interest groups such as politicians, governments, regulators, financial markets and allies in many countries. Context also includes developing new skills and the firm has had to develop new skills in TV, cable operations and international operations, among many others.
