Chinese newsprint can rescue US newspaper?
FT reported several US newspaper publishers have began to use chinese newsprint to reduce the newspaper cost. although analysts claim the newsprint is the second largest cost source for US newspaper publishers. but the root cause is really so simple?
I remembered there was an article talking about AMD's secret weapon some days ago. the article disclosed the important role of AMD's Dresden fab in AMD's strategy. we all know German labor cost is very high, but AMD still can produce leading edge CPUs with price advantage to compete intel. so I think the low raw material or manufacturing cost based on low labor cost is not the real core competency for a company. a company should make due diligence on both cost and labor's capability. it's not single-dimensional matrix but multi-dimensional.
although the case of US newspaper publishers is a little different with AMD case, I still don't think chinese newsprint is panacea, it's just a temporary solution. actually someone have discussed the impact on traditional media from new media like internet, IPTV, etc. maybe executives in newspaper publishers should review their problem at this level. and also can turn to their colleages—book publishing houses. I believe they can borrow some useful experiences.
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