Company Profile: An Australian business investment magazine that publishes article pertaining to financial success and investment strategies. Corporate Purpose: To increase magazine circulation and achieve rapid growth in a declining magazine category. Business Model: WCM’s distinctive competencies lie within its team of personnel who are all extremely motivated individuals like the magazine target market; and are dedicated to the success of the magazine. The company focuses on having experienced column staff who are not journalists, but successful business men and women.
It has a competitive advantage over other publications in that it is published bimonthly and therefore ensuring the content quality. In addition, it is supported by other Wealth Creator products such as Wealth Net, the largest wealth and business club in Australia, and Wealth Creator Radio. 1 The magazine generates value to customers by empowering readers with the skills, tools and motivation to become wealthy. They achieve this by providing informative articles that identify key strategies of successful entrepreneurs and business people.
This has boosted circulation to over 100,000 since its first issue in September 2002 generating a cash surplus for the owners. 2 Competitor Profile: WCM has many competitors in the business investment magazine category with Money, My Business, Personal Investor, Australian Property Investment, and Dynamic Small Business magazines being the top rival publications. Industry Trends: Research has shown the business investment magazine category is a mature market and is currently in decline. Scenarios:
Best Case: The magazine increases circulation and revenue by continuing to differentiate themselves from their competitors based on content and not price, to meet demands of the target demographic. Worst Case: The economy experiences a downturn and interest rates go up, negatively impacting the investment sector and thus the attractiveness of the magazine to consumers. Issues: 1. WCM is unable to sustain their competitive advantage through product differentiation especially against larger and more popular publications with greater financial backing.
Competing magazines have been around longer and Money magazine has received much exposure as the spin off from the former television show. In addition it has alignments with celebrity financial experts giving it greater validation than WCM which is a relatively new entrant in the market. 2. The ability of WCM to retain consumer interest in an economic downturn especially when many investment strategies within the publication pertain to property investment, development, and share investments. In this environment the desired target market are less likely to leverage their homes and use debt equity to finance other investments.