Businessmodel of Dow Jones

Customer Segments

Dow Jones has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at consumers and businesses.

Value Proposition

Dow Jones offers two primary value propositions: accessibility and brand/status.

The company creates accessibility by providing a wide variety of options. It provides its information in multiple formats, including print, digital, mobile, and live events. It distributes this content through a wide range of mediums, including websites, mobile apps, tablets, eBook readers, newspapers, newswires, newsletters, proprietary databases, conferences, magazines, and video.

The company has established a powerful brand due to its success. It produces several leading publications and products, including the flagship Wall Street Journal, the largest newspaper in America by paid circulation; Barron’s, Factiva, MarketWatch, DJX, Financial News, Dow Jones Risk & Compliance, Dow Jones VentureSource, and Dow Jones Newswires. Factiva alone has a database with almost 33,000 premium news sources, including licensed publications.

Channels

Dow Jones’s main channel is its website for consumers and its direct sales team for businesses. The company promotes its offerings through its websites, social media pages, and advertising.

Customer Relationships

Dow Jones’s customer relationship is primarily of a self-service, automated nature. Customers utilize its products while having limited interaction with employees. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Dow Jones’s business model entails designing, developing, and distributing its products to customers.

Key Partners

Dow Jones’s key partners are the content providers that provide information for its various platforms.

Key Resources

Dow Jones’s main resources are its human resources, who include the media professionals that design and develop its products, the sales employees that promote them, and the customer service personnel that provide support.

Cost Structure

Dow Jones has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is operating expenses, a fixed cost. Other major drivers are in the areas of sales/marketing and administration, both fixed expenses.

Revenue Streams

Dow Jones has two revenue streams: revenues generated from circulation/subscription sales and revenues generated from sales of advertising space to third parties.