Torstar CorporationTorstar CorporationResource Interdependence Management

Presented by

Hyun-Young Bahk – ID 99048295 Jessie Y. Shen – ID 99271519

Allen Wong – ID 99150070

Jay Lee – ID 00064990

Objectives

Resource interdependence management Torstar Corp.’s background Symbiotic resource interdependencies Competitive resource interdependencies Conclusion and Recommendations

Resource Interdependence Management

Reduce uncertainty in acquiring resources 2 types of resource interdependencies

– Symbiotic: dealing with suppliers and distributors– Competitive: dealing with competitors

2 approaches – Formal: merger, alliances, … – Informal: contracts, cartels, …

Torstar Corp.’s Background

Canadian media giant Based in Southern Ontario Focus in newspaper:

– Toronto Star, Hamilton Spectator, KW Record, etc. Other interests

– Harlequin, Metroland, Multimedia, etc. Decision making centralized at the board of

director level

Torstar Corp’s Domains

Multimedia

Newspaper

Torstar Corp.

BookPublishing

Printing, Publishing, Distribution

toronto.com

Harlequin

eharlequin.com

workopolis.com

Toronto StarHamilton SpectatorKW RecordGuelph MercuryCambridge ReporterMetroTodaySing Tao Daily

Symbiotic Resource Interdependencies

Suppliers: – News articles, novels, etc. – Paper, ink, printers, etc.

Distributors: – Bookstores, book warehouses, etc. – Newspaper distributors, newspaper vendors, etc.

Symbiotic Resource Interdependencies

Book publishing relatively stable field

use informal methods

long-term contract Newspaper

competitive field use formal methods takeover

Symbiotic Resource Interdependencies

Simon &Schuster

Multimedia

Newspaper

Torstar Corp.

BookPublishing

Printing, Publishing, Distribution

QE WebPrinting

Distribution

Long-TermContract

Takeover

Competitive Resource Interdependencies

Newspaper Industry– Hollinger, Thompson (The Globe and Mail),

Quebecor (The Sun), etc.

Multimedia– Bell Globemedia, Rogers Communication, etc.

Competitive Resource Interdependencies

Newspaper industry

competitive & uncertain

formal linkage mechanisms

alliance & takeovers Internet media

new & uncertain

formal yet cost-effective linking mechanisms

joint ventures

Competitive Resource Interdependencies

Multimedia

Newspaper

Torstar Corp.

BookPublishing

Printing, Publishing, Distribution

Black Press

Metro International

Sing Tao Holdings

Strategic Alliance(Minority Ownership)

Strategic Alliance(Joint Venture)

MetroToday

Strategic Alliance(Joint Venture)

Sing Tao Daily

Competitive Resource Interdependencies

Multimedia

Newspaper

Torstar Corp.

BookPublishing

Printing, Publishing, Distribution

Bell

sympatico.ca

toronto.com

workopolis.com

women.com

eharlequin.com

Strategic Alliance(Joint Venture)

Strategic Alliance(Joint Venture)

Strategic Alliance(Joint Venture)

Conclusion and Recommendation

Torstar Corp. is able to manage their resource interdependencies properly– They are in a highly competitive industry– They remain as an industry leader

Torstar should consider more innovative linkage mechanisms– Improve corporate reputation – Reduce transaction and management cost

References

[1] Torstar Properties. Retrieved Feb. 5, 2003 from the World Wide Web: http://www.torstar.com/NASApp/cs/ContentServer?pagename=torstar/Render&c=Page&cid=1024322078706

[2] Metroland Printing Publishing & Distribution Ltd. Retrieved Feb. 5, 2003 from the World Wide Web: http://www.metroland.com/front/publishing/other/

[3] The Write News. (2000, Feb. 15) Women.com Networks and Harlequin Launch Site for Romantics. Retrieved Feb. 5, 2003 from the World Wide Web: http://www.writenews.com/2000/021500_women_harlequin.htm