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CORPORATE STRATEGY IN THE MEDIA

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How will Dazed Media remain an agenda-setting publishing

powerhouse by 2028?

Karen Ryan

[email protected]

Senior Lecturer

BA (Hons) Fashion and BA(Hons) Fashion Branding and Communication

Arts University Bournemouth


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ASSIGNMENT CONTENTS:

Introduction 4

Stage One: Orientation – Key focal issue defined 5

Stage Two: Exploration – Driving forces and critical uncertainties 8

Stage Three: Scenario planning and creation 12

Scenarios and narratives 12

Stage Four: Options consideration – Strategies, actions and changes 13

Scenario 3.1 Low + Low 13

Scenario 3.2 Low + High 16

Scenario 3.3 High + Low 18

Scenario 3.4 High + High 20

Stage Five: Integration - Early warning signals developed 23

References 26

Appendix A – Dazed Media brand architecture 33

Appendix B – Roger’s adoption/innovation curve 33

Appendix C – Porter’s five forces framework 34

Appendix D – PESTEL analysis 34

Appendix E – UK population by life stage 35

Appendix F – Comparison of young v ageing population 35

Appendix G – Scenario planning components 36

Appendix H – Competitive positioning map 36

Appendix I – Dazed Media: narratives and early indicators 37

Appendix J – Dazed Media: strategic implications and strategic options 37

Appendix K – Fréry’s fundamental dimensions of strategy 38

Appendix L – Reeve’s Strategy palette 38


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Introduction

This essay is a case study based on Dazed Media, a company whose mission it is to

become one of the world’s leading independent fashion and culture media brands.

From the original inception of Dazed and Confused magazine in 1991 (created by

Jefferson Hack and photographer Rankin), Dazed Media has grown to encompass an

evolving network of premium digital channels and iconic print titles reflecting the

company purpose and ethos:

“becoming a lightning rod for cultural provocation – radically reframing

international style culture.”

Dazedmedia.com (2018)

Figure 1: Dazed Media Brand Architecture [Ryan 2017]


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In Strategy as Revolution (1996 p.70) Hamel referred to rule breaking

organisations as “the radicals, the industry revolutionists”, the organisational structure

and working culture adopted by Dazed Media reflects this approach. Jefferson Hack

comments “We need to keep the decision makers young; the creative director, editor-

in-chief and fashion director especially; otherwise it won’t reflect its audience’s value,”

(Ahmed 2017). This is reflected through a series of experimental appointments;

stemming from the magazine’s DIY origins and makeshift sensibility. This emphasis

on giving the youth generation responsibility is vital to the ethos of Dazed media’s

publications and the wider media organisation and is echoed as one of the positive

constituents in the strategy making process (Hamel 2006).

Dazed Media is a vertically integrated organisation, producing content through

their own creative services agency Dazed Media Studio; online platforms for their main

titles — DazedDigital, AnOther and Another Man; through social media and video

production teams; and Nowness, their digital video channel; a brand of LVMH (Moët

Hennessy Louis Vuitton) operated by Chinese publisher Modern Media Holdings in

partnership with Dazed Media.

Stage One: Orientation - Key focal issue defined

Key focal issue: The first stage of scenario planning is to undertake a strategic

environmental analysis to identify the key focal issue in relation to Dazed Media. For

the purpose of this case study, we look ahead ten years, and address the key focal

issue: How will Dazed Media remain an agenda-setting publishing powerhouse by

2028?

With a protagonistic approach the key focal issue raises the question of Dazed

Media’s current independent status, and how the organisation might continue their


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radical, provocative agenda in a future of moral, technical, digital and financial

uncertainty?

In Media Management Tools (2013), John Oliver outlines the reasoning behind

why media organisations develop longer term strategies, “to guide them through an

unpredictable media landscape and evolve in a competitive environment”; this

includes the overarching reasons behind defining strategy objectives “which primarily

increase revenue, improve efficiency, and plan for the future” (Oliver 2013).

There are several schools of thought in existing literature exploring the

theoretical landscape of strategic management including: the prescriptive school:

planning, design and positioning and the descriptive school: power, cultural, cognitive,

entrepreneurial, learning, configuration and environmental (Mintzberg et al.1999).

In Strategic Management in the Media, Kung (2008, p120) explores an ‘adaptive’

approach where some elements evolved from the ‘learning school’ and are similar in

that the strategic aspect of “reconciling and integrating, external and internal elements”

are explored through macro analysis and scenario planning. There are strategy

combinations, i.e. adaptive and entrepreneurial which could suit Dazed Media’s

progressive nature, the strategy palette (Reeves et al. 2015) also explores five further

strategic environments: classical, adaptive, visionary, shaping and renewal. Here the

visionary approach which relies on predictability and change (sometimes disruptive)

would seem most suited to Dazed’s ethos and is explored further in relation to a

specific scenario in Stage Four: option considerations.

In The Fundamental Dimensions of Strategy (2006. P.71), Fréry considers three

objectives in order to understand corporate strategy: creating value, handling imitation

and shaping perimeters. In value terms, Dazed Media’s revenue is unpublished

(Hoovers 2018), although currently estimated at $25M (Owler 2018). “Dazed’s motto


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‘Declare Independence’ reflects its ethos and the fact that Hack and Rankin have

rejected investors to go it alone, “we can work with commercial partners but we are

not owned by them,” says Hack” (Burrell 2018). This highlights Fréry’s (2006. p.72)

question “How do you reconcile the conflicting demands of different stakeholders?” In

order for Dazed Media to develop a sound strategy, “they must evolve between the

extremes of shareholder value and customer satisfaction, profit maximization and

corporate social responsibility” (Fréry 2006).

Secondly, Dazed Media are well placed to avoid imitation (Frey 2006 P.72), the

Guardian said “Dazed has survived – even thrived – by doing all the things that

creative Britain is good at…” (Wiseman 2011). Dazed’s website is exploding with

doctrines and statements: “a movement for creative empowerment”, “we live in an era of

accelerated transformation”, “a lightning rod for cultural provocation” and “radically

reframing international style culture” (Dazed Media 2018). All pertain towards Fréry’s

idea that “sustaining success is dependent on the ability to be unique” (2006 p.72).

and “only when management practice encourages variety and tolerates divergent

ideas does building and sustaining successful strategies become possible” (2006

p.73).

Lastly, Dazed Media will need to re-shape its perimeters (Frey 2006. P.73) by

considering aspects of diversification, globalisation and positioning. In an interview

with Hack, The Independent summed up, “the editorial ‘mantra’ is to try to bring about

‘positive social change’ by publishing stories which embody ‘optimism’ and send a

wider ripple of confidence across the creative communities (Burrell 2018). In terms of

differentiation Kung said “a magazine’s content reflects it editorial vision, and this in

turn reflects its market positioning and is a key source of intangible value” (2008. p.46).


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When Küng wrote ‘Strategic Management in the Media’ (2008 p.48) the internet

was hi-lighted as the biggest strategic issue facing media publishers. Ten years on

and the media organisation’s focus has only been about integrating digital and

publishing as outlined in The Drum (Goodfellow 2016), “Dazed’s bid to better

understand how specific types are shared belies its attempt to leverage its knowledge

of its readers in the uneasy union between publisher and technology platform”. Dazed

Media implemented an innovative advertising software that publishes research data

on their audience’s communication and media habits (Sharethrough 2018) in 2014;

giving Dazed essential access to data reflecting their youthful and dynamic global

audience who are predominantly influencers and early adopters (See Appendix B).

Stage Two: Exploration, driving forces and critical uncertainties.

Exploration and driving forces: The explorative stage focuses on strategic planning

around the industry environment and seeks to identify and evaluate the Driving forces

using PESTEL analysis (See Appendix D). By investigating this analysis, 49 driving

forces were identified with six key strategic environmental factors highlighted below in

order of importance as the most relevant forces in relation to the key focal issue:

Social with political influence – A rise in populism and social activism through

widely available technology has reflected an increase in citizen journalism and politics

(Dalton 2006), with social values and behaviour changing. This has led to internet-

based activism and a more participatory form of communication.

Social dynamics - Demographic age shifts: higher life expectancy, falling birth

rates and an ageing population (Zheng 2018) will continue to contribute to a change

in consumer behaviour and motivation alongside a possible shift in target market,

audience and segments.


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Economic – China, India and Indonesia have been identified as emerging global

markets by 2050 (PwC 2018). This may lead to digital and publishing opportunities

and the growth of global networks and collaborations, which could be advantageous

in the future.

Technological - The Fourth Industrial Revolution (Schawb 2018) potentially

connects billions of people to digital networks, improving their efficiency of

organisation and managing assets, whilst undoing the damage of previous industrial

revolutions (Schwab 2018).

Environmental- Environmental awareness creates new markets and target

market segments. This could develop superior and sustained growth, a strategy that

would provide a new approach to local, regional and global segmentation.

Legislative - Advertising standards, consumer rights and law in relation to a wide

range of media developments could have an effect on consumer data protection and

privacy whether it be across traditional media or in the digital environment (ISBA

2018).

Critical Uncertainties: The next stage of the scenario-planning process was to

explore two key issues from the macro analysis to form the critical uncertainties. These

are the highest influential forces, most likely to define or significantly change the way

the future unfolds around Dazed Media’s key focal issue: How will Dazed

Media remain an agenda-setting publishing powerhouse by 2028? These are

prioritised in relation to Dazed’s youth market audience which is currently their focus

and the nature of content that Dazed are respected and widely known for, as an

engaging and dynamic independent publisher.


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The first critical uncertainty for Dazed media is social (with political

influences/consequences) and addresses the rise of populism and social activism

through widely available technology; including the rise of participatory politics and

citizen journalism (Dalton 2006) which has led to internet-based activism and new

forms of communication across the globe which could impact Dazed’s content, access

and target market strategies in the future.

In Party Politics, Gibson argued that “digital media are introducing a new

grassroots-based mode of ‘citizen-initiated campaigning’” (2013 p. 183), we have seen

recent political uprisings in Spain’s Catalonian region and also Zimbabwe, where

citizens rejected the Mugabe era, similarly war-torn areas such as Syria and

Afghanistan, ‘citizen journalism’ is often the only point of contact with the media.

Stratfor’s Decade forecast pessimistically predicts “the main political tendency

will be away from multinational solutions to a greater nationalism driven by divergent

and diverging economic, social and cultural forces” (Stratfor 2018). At the Fourth

International Conference on eDemocracy, Marianna Lameiras outlined “the traditional

role played by the media in democratic societies were significantly influenced by many

variables, such as technological innovations and globalization” and reflected “the way

citizens nowadays interact and engage with public issues, in public and private

spheres, is constantly changing and digital technologies play a crucial role in this

process” (Lameiras 2017).

In Citizen Politics (2006), Dalton “examines the debate on the vitality of

contemporary democracy” and argues that “ongoing processes of social

modernisation are changing the values and behaviour of the public new forms of

political activity, such as internet-based activism and new forms of political

consumerism”. These changing values may need to be considered by Dazed Media,


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framed by social, cultural and political issues as they could “foster a culture of ethical

innovation and embed new codes of conduct into emerging digital spaces” (Raymond

2018).

The second critical uncertainty for Dazed Media is social and explores

demographic age shifts: higher life expectancy, falling birth rates and an ageing

population (Zheng 2018). This could contribute to a change in consumer behaviour

and motivation alongside a possible shift in target market, audience and segments.

When Euromonitor’s Mega Trend Analysis looked at the global population as it

approaches 8 billion, they forecast the demographic shifts of higher life expectancy,

falling birth rates and the increasing population of elderly people (predicted to be 2

billion over the age of 60 by 2050), and have an effect on “reshaping consumer

lifestyles and purchasing decisions” (Boumphrey et al. 2018). Alongside an ageing

generation, at the opposite end of the scale The New York Times (Williams 2018)

discussed an emerging ‘Generation Alpha’ which will number almost two billion by

2025 and contribute to a significant change in consumer behaviour and motivation.

By focussing on the three main demographic shifts: higher life expectancy, falling

birth rates and the increasing elderly population, The Office for National Statistics

regularly use data to analyse and forecast the changing age structure by life stage:

children, working age and pensionable age (see Appendix E). The ONS predict “that

by mid-2041, the UK is projected to have a much older population, partly reflecting the

1960s baby-boomers now being in their 70s, but also the continued increase in life

expectancy” (Zheng 2018).

In an age of shifting social dynamics and a fragmented media landscape these

demographic shifts could have a profound effect on media organisations, the

consumer target market and audience segmentation.


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Stage Three: Scenario Planning and Creation

Scenario planning has a long history dating back to the days of the military and is a

known corporate planning tool used by the Harvard Business School, described as “a

process that stimulates imaginative, creative thinking to better prepare an organization

for the future” (Garvin et al. 2006). As one of a range of tools, the scenario framework

(See Appendix G) has a high satisfaction and user rate amongst businesses in

achieving their objectives, and as such is referred to as a ‘power tool’ (Rigby et al 2007

p.20).

It is at this stage we develop a scenario framework; an emergent strategy of

resources and environmental analysis in order to explore four plausible scenarios,

supporting narratives and early warning signals/early indicators.

Scenarios and Narratives (See Appendix I):

Figure 2: Scenario Planning Framework (Amended Garvin et al 2006)


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Scenario 3.1 Low rise of populism and social activism + Low demographic age shift

Scenario 3.2 Low rise of populism and social activism + High demographic age shift

Scenario 3.3 High rise of populism and social activism + Low demographic age shift

Scenario 3.4 High rise of populism and social activism + High demographic age shift

Stage Four: Options consideration – narratives, early indicators, strategic options and

implementations explored.

Scenario 3.1: “NO APPathy…FEEL THE AlgoRHYTHM”

Low rise of populism and social activism + Low demographic age shift

Narrative: Dazed Media’s audience has remained relatively stable over the last

ten years and their core youth market attracts primarily early adopters and influencers

(See Appendix B). The Y and Z generation has been joined by emerging Generation

Alpha who are roughly equal in numbers to the older population (Zheng 2018),

alongside which, the social media landscape is changing; Facebook’s user count is

declining and Instagram is not as prevalent as it was previously. A decade ago,

Jefferson Hack said “we’re no longer going to be a business that just thinks about how

we can host wonderful creative; we’re going to actually partner with brands to create

those things” (Mortimer 2015). And therefore, partnering with Snapchat (one of the

largest growing social media communities), and securing third party distribution,

Dazed Media have cemented their partnership. Through the use of the Discover App,

Dazed Media are able to harness distribution of their video and publishing content,

reaching a much wider target audience. In the previous ten years Dazed’s audience

increased from 200,000 to 3.5m per month across platforms (Mortimer 2015); if


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audience figures increased similarly over time, Dazed could expect 10.8 million

audience views per month.

Early Indicators: The youth market is stable and target audience are

predominantly early adopters and influencers but this is juxtaposed against an

increasingly ageing population (OECD 2018). Digital media companies are focused

on social media channels and this has been a strong influence on the media industry

(Kung 2008). A commissioned study by KPMG (Claydon 2017) revealed 87% of 580

business and IT decision-makers at media companies were extremely concerned

about social media disrupting how media providers engage with consumers, yet there

is still a huge proliferation of online content and sharing opportunities which this

scenario explores.

Populism and social activism is relatively stable at this time yet the youth market

is still highly participatory in nature when engaging in online content, including: politics,

lifestyle and culture.

Strategic implications: The strategic implications in this scenario are that

Dazed Media are youth focused and are concentrating more on their video content

than publications to generate revenue. They previously gave up some control of their

distribution to compete and survive online (The Drum 2016), however in this scenario

Dazed Media regain some ground as a content distributor, partnering with one of the

largest growing social media online communities, by focusing on their core youth

market at a local level, global growth is a secondary focus.

In this scenario Dazed Media adopt a digital age approach by focusing on content

and platforms. By distributing their video content and generating additional revenue


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through branded content they aim to grow their audience from 10 to 40 million unique

views a month through the Snapchat social media network. This would give Dazed

Media the ability to locally-target content and improve user experience seeing a rise

in advertising revenue and monetisation.

Dazed Media have some bargaining power (Porter 2008) with Snapchat which

could mutually benefit them by integrating Dazed’s Sharethrough software

(Sharethrough 2018) to optimise analytics and advertising. Dazed could provide key

demographic and targeting statistics, optimising niche audiences, and providing

geographic-focused value to both users and advertisers.

Strategic options: In this scenario a shaping approach is identified by assessing

current practice (Reeves et al. 2016). Dazed Media has partnered with Snapchat in

order to distribute digital and branded content and entered into a partnership which

could be seen to “create a shared vision of the future at the right point in time” (Reeves

et al. 2015), this ultimately would create value for the organisation.

Dazed’s intended approach would be to benefit from investment across

distribution platforms in order to achieve market power through vertical integration and

develop partnership opportunities. This would define an advantageous business

model for this perceived environment ‘where it guides thinking for competitive moves

i.e. joint ventures and alliances’ (Garvin 2006) and would profitably differentiate the

company from its competitors.

Although Dazed’s core youth market is stable with the benefit of being able to

exploit unique content in multiple ways, Dazed should be using their analytics to future

forecast the demographic structure of their customer and diversify into new segments

of the market.


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Scenario 3.2: “MIND THE GAP! GENERATION X: THE NEXT POWER

GENERATION”

Low rise of populism and social activism + High demographic age shift

Narrative: In this next scenario the Media, Culture and Society Journal outlines

the rise of the boomers and upcoming Generation X as an affluent and educated

dominant customer segment of the consumer market; most likely to have a significant

impact on the media industry (Claydon 2018). With a falling youth market due to low

birth rates over the previous fifty years (See Appendix F), the X and boomer

generations have led Dazed Media to re-assesses their core business strategy and

product/content focus and are looking to the emerging markets of socially and

culturally aware, technically connected older customers. With co-founders Hack and

Rankin taking a back-seat from the day to day running of the company Susannah Lau,

better known as Suzie Bubble of Style Bubble; who previously worked as Dazed

Digital’s commissioning editor in the millennium years, is appointed as Managing

Editor of the Dazed Media Group and is creatively moulding differentiated content to

encompass different viewpoints and broaden topics for an increasingly older yet

connected generation.

Early Indicators: With low birth rates, an ageing population and higher life

expectancy, the youth market is decreasing and customer segment dominance is

being re-thought. A culturally, socially and politically aware, digitally connected older

audience are at large and new markets are actively being explored. The current UK

population in 2028 is 70 million with a widening gap of the working population (OECD

2018).


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Strategic implications: The implications of this scenario are that Dazed Media

now have an overlap in target consumer groups and lifestyles brought about by a

macro environmental change through demographic shifts of higher life expectancy,

falling birth rates and a significant ageing population. Whilst the rise of populism and

social activism in this scenario are low, the nature of Dazed Media’s output still drives

a certain level of provocative debate with participatory engagement from their now

older, actively engaged and educated market segment.

A report by Liz Claydon for KPMG in 2018 highlighted that “clearly the older

generations should therefore not be underestimated in the context of ecommerce

made even more apparent in our analysis which showed that the boomers matched

the digital-first millennial generation in making on average fifteen online transactions

a year but spent on average $30 more per transaction” (Claydon 2018), and many

academics outline “not to underestimate the online boomers” (Aris et al. 2009 p.316),

which amplifies towards 2028; with an older population surge, combining the younger

boomers and the growing Generation X.

Widening their focus away from early mover segments, Dazed Media are

addressing emerging market potential. In the past they may not have considered re-

evaluating their wider market potential and were focused on their core youth market.

In 2028 the Dazed team have grown up and with it has their customer, they are

providing content to reach a wider audience demographic, with its tone and outlook

aligned with the culture and readership of the time.

Strategic options: In this adapted scenario Dazed Media has shifted its focus

from early mover segments to cross-category growth, re-allocating resources to


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support and grow new profitable market segments; attracting potential advertisers and

potentially increasing advertising revenue.

Euromonitor (Boumphrey et al. 2018) identified an ageing population as a mega

trend or ‘large structural shift’ (Reeves et al. 2015), this highlights the current

unpredictable business environment that Dazed Media find themselves and the need

to apply a flexible adaptive approach. With the high predictability of an ageing

population Dazed Media would need to consider the early warning signals and

integrate an approach to develop their core portfolio competences. Dazed might want

to consider one of Hamel’s (1996) democratic principles of ‘geographic periphery’ by

applying a similar ‘demographic periphery’, where older voices contribute to the

strategy making process. In Strategic Management in the Media Kung says “a

magazine’s content reflects it editorial vision, and this in turn reflects its market

positioning and is a key source of intangible value” (2008, p.46) with content one of

Dazed’s core competencies they should strategically monitor content production

across publication and digital platforms. This affluent and growing market already

includes competitive rivalry (Porter 2008) from publications Cereal (2018) and Kinfolk

(2018). With Dazed Media forging stronger, more valuable relationships with a wider

demographic a planned adaptive approach could increase their market share.

Scenario 3.3: “ONE STEP BEYOND”

High rise of populism and social activism + Low demographic age shift

Narrative: In this scenario Dazed Media is taking advantage of its range of digital

capabilities and expanding future technology. Engaging with its core youth market

through more direct channels of communication Dazed Media are using interactive


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advertising and experimenting with augmented and virtual reality to enhance its

customer centric approach and differentiate it from the hyper competitive situation that

faces independents currently in the media sector. With the internet having the

strongest influence in the media industry (Kung 2008) Dazed Media is investing in

immersive technology which could replace mobile computing in the future.

Early Indicators: There is a high level of participatory engagement and opinion

sharing through a citizen-initiated approach to digital communication. Interactive

advertising is on the increase and there is a plethora of increased niche content across

independent media companies off and online. With a buoyant youth market, the

environmental focus is very much on digital communication platforms.

Strategic implications: This narrative looks outside the structure and

boundaries of Dazed’s existing business by investing in new technology and engaging

with its youth market through innovative communications. There is a negative

implication that increased consumption of digital media can cause a decline in empathy

especially in the younger generation, however Dazed’s narrative is moving towards an

empathic, human-centric understanding of an advanced society.

The idea of engaging in interactive activities is “recognised as a powerful

innovation mechanism” (Aris et al. 2009, p.319) which increases community

interaction once virtual and interactive technologies are introduced. With immersive

technology replacing mobile computing, these technologies could empower smaller

independent’s such as Dazed Media to produce higher quality content at a lower cost,

whilst driving up value to their core customer. By adopting the McKinsey & Company

approach of “fostering a society with informed perspectives of other communities and


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identities” (Hall et al. 2017) Dazed media could enhance its customer centric approach

and create value in terms of customer relationship management.

Strategic options: Where an emerging mega trend is innovation, a visionary

strategy is used to create value supported by a reconstructionist/blue ocean strategy

(Kim et al 2005). In Managing Media Companies, Aris (2009 p.93) highlights three

characteristics that successful innovators have in common, “a clear sense of direction,

open to new ideas and a rigorous approach to execution”. Dazed have been open to

new ideas since their inception and by developing immersive technologies to support

their portfolio they can create direct experiences and expand customer touchpoints,

“shifting the attention from supply to demand” (Kim et al 2005). Dazed are exploring

this untapped market, nevertheless in a hyper competitive market, whilst Dazed can

pursue differentiation and be competitive for now, it may not be long before technology

and their competitors catch up (See Appendix H).

Scenario 3.4: “DAZED AND CONFUCIUS”

High rise of populism and social activism + High demographic age shift

Narrative: Dazed Media is not new to building relationships with China, and in

2014 partnered with Chinese online media giant, Modern Media Holdings in order to

gain greater distribution of their video content through Nowness channel globally.

Today Baidu Inc. has announced a bid for iconic independent, Dazed Media

threatening their independence as a content distributor and distinctive brand identity.

With a once challenging philosophy, Dazed Media has seen a gradual decline in

audience figures and advertising revenue; as their once predominantly youthful


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audience has grown older and wiser. The morality and political correctness of 2028

has watered down what was once revolutionary editorial to what will now become an

emphasis on personal and governmental morality, political correctness, traditional

social values, justice and sincerity.

Early Indicators: Regressive and ultra-conservative politics have seeped into

the social and political global environment. China, who are one of the fasted emerging

markets, with massive global investments, dominate an institutional landscape of

corporate governance and strict regulatory content of the media. With falling birth

rates, an ageing population and higher life expectancy, the youth market has

decreased significantly with a sudden decline in consumer demand of innovators and

early adopters.

Strategic implication: This scenario explores the most changed environment in

which Dazed Media could find themselves and threatens their key focal issue

of remaining an agenda-setting publishing powerhouse by 2028. The critical

uncertainties are at their harshest, with falling birth rates and an increasing elderly

population; the effect being Dazed’s core youth market decreases and an older market

has emerged which Dazed have failed to plan for in the long term. Similarly, the

second critical uncertainty: a rise in populism and social activism has grown to

encompass an ultra- conservative outlook with China’s republic never more traditional

in its views and outlook, politically and socially. The traditional values of morality and

political correctness have led to far reaching media regulations and monitoring and

would have an effect on Dazed Media’s content and market in the wake of a takeover.


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In the previous decade Chinese media firms quickly worked out the profit

potential by investing in stakes of emerging digital companies, and targeted markets

which improved local to global network coverage and market concentration.

With China identified as one of the fastest growing emerging markets by 2050

(PwC 2018) with a rise in their middle classes; widening target market opportunities

would connect Dazed Media with a new generation of Chinese consumers. In

Managing Media Companies, Aris discusses how “investing in internet-based

businesses is a successful strategy in the medium term” (2009, p.263). However, often

there is a risk that aggressive Chinese investment and expansion with the expectation

of high targets and fast returns is an unsustainable strategy across the longer term

and a high risk of failure from not understanding the market.

The final implication in this scenario would be Dazed Media’s organisational

resistance to a takeover which would jeopardise their independence as a fashion and

culture media brand. In the past primary shares held by founders “protected them from

the pressures of the capital market “(Aris et al. 2009 p.264). With many of the original

media founders retiring, Dazed Media is “transitioning from an entrepreneurial culture

to a professional management structure” (Aris et al. 2009 p.263) and their past

statements “we can work with commercial partners but we are not owned by them,”

(Burrell 2018) is in jeopardy.

Strategic options: In this final scenario, where Dazed are part of an acquisition

strategy by Baidu Inc. they are most vulnerable by being exposed to an emerging

market which is “characterized by circumstances that are unpredictable and

malleable” (Reeves et al. 2015. p.119). However, this scenario is far from malleable

and is impacted by a number of sudden environmental effects; the youth market has


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decreased significantly and a sudden decline in consumer demand. In order for Dazed

Media to avoid losing independence they could adopt a renewal approach and aim to

reserve resources (Reeves et al 2015), keeping a financial stake in Dazed Media in

order to keep some negotiating power (Porter 2008) and “re-align their strategy”

(Reeves et al 2015). Chinese investment could bring distinctive digital capabilities and

value creation, however cultural differences would need to be addressed in order to

achieve a successful transformation. Dazed could look at strategic innovation through

a re-brand or targeted product development to improve viability whilst conserving their

resources and negotiate merger with Baidu Inc. Without investment and intervention,

the family like culture of camaraderie associated with the Dazed business could

disappear and the open and creative ethos which is the cornerstone of Dazed culture

would be eradicated.

Stage Five: Integration - early warning signals developed

From the early stages of scenario planning the early warning signals are the leading

indicators that provide us with a series of low to high probabilities of the plausible

consequences and effects on Dazed Media’s key focal issue: How will Dazed

Media remain an agenda-setting publishing powerhouse by 2028? If Dazed Media (as

part of their corporate strategy) implemented scenario planning to identify early

warning signals it could enable them to react effectively and plan ahead for any

turbulent environments in the future.

In terms of the signals that would have most impact on the key focal issue, the

following are the early warning signals that would have the most significant impact

(See Appendix I) on Dazed Media.

• youth market decreases


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• older population increases

• move towards regressive politics

• regulation of content

The first signal, highlights a decreasing youth audience; Dazed would need to have

a demographic overview of their market and any fluctuation at any given point would

be an early warning signal to address their customer focus, the core target market and

segmentation variables.

The second signal of an increasingly older generation could have negative and

positive implications. On one hand a decrease in the youth market could reduce

Dazed’s audience and market share yet there could be opportunities to offer

diversification in terms of product and content to niche audiences.

Thirdly, a move towards regressive politics could signal the inflexibility of free

speech, the reduction of interactive participation and restricted communication across

platforms. This would result in a loss of identity as an independent publisher, and with

provocative and diverse content, Dazed Media would lose its voice.

Lastly the fourth signal would be the regulation of content; this has similar

consequences to the above in terms of restricting content and would challenge the

company’s ethos of radical, experimental and provocative writing, signifying a change

in attitudes to journalistic content.

In conclusion the process of scenario planning is a logical process in which Garvin

and Levesque (2006) describe as “a way of rehearsing the future”. Dazed Media could

ignore scenario planning and wait for a series of trial and error scenarios to emerge

from which it would be impossible to predict or plan thereby “surrendering the future

to revolutionary challengers” (Hamel, 1996). Or by adopting a scenario planning


25

approach, it would allow their organisation to plan, implement and control any

environmental uncertainties over the longer-term by being “mentally prepared to

address the future” (Oliver et al, 2017).

Similarly, in Hamel’s Strategy as Revolution (1996), Dazed Media was

fundamentally created based on the existence of ‘revolutionaries’ making an impact,

company and industry wide, therefore its future strategy should be reflective of those

aims.


26

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33

Appendices

Appendix A – Dazed Media brand architecture

Appendix B – Roger’s adoption/innovation curve


34

Appendix C – Porter’s five forces framework

Appendix D – PESTEL analysis


35

Appendix E – UK population by life stage

Appendix F – Comparison of young v ageing population


36

Appendix G – Scenario planning components

Appendix H - Competitive positioning map


37

Appendix I – Dazed Media: narratives and early indicators

Appendix J – Dazed Media: strategic implications and strategic options


38

Appendix K – Fréry’s fundamental dimensions of strategy

Appendix L – Reeve’s Strategy palette