Harvard Case - Contently: Evolution of a Media Start Up
"Contently: Evolution of a Media Start Up" Harvard business case study is written by Ava Seave. It deals with the challenges in the field of Information Technology. The case study is 36 page(s) long and it was first published on : Apr 13, 2015
At Fern Fort University, we recommend Contently adopt a multifaceted growth strategy that leverages its core strengths in content marketing and technology while navigating the evolving media landscape. This strategy will focus on expanding its service offerings, embracing digital transformation, and fostering strategic partnerships to achieve sustainable growth and market leadership.
2. Background
Contently is a media start-up founded in 2010, offering content marketing services to businesses. The company's initial success stemmed from its innovative approach to content creation and distribution, attracting a diverse clientele. However, the case study highlights the company's struggle to maintain its growth trajectory amidst increasing competition and evolving market dynamics.
The main protagonists are:
- Shane Snow: CEO and co-founder, responsible for overall strategy and direction.
- Joe Coleman: COO, responsible for operations, finance, and technology.
- The Contently team: Dedicated employees working across various departments, including content creation, technology, sales, and marketing.
3. Analysis of the Case Study
This case study can be analyzed through the lens of Porter's Five Forces framework:
- Threat of New Entrants: High, due to the low barriers to entry in the content marketing industry.
- Bargaining Power of Buyers: Moderate, as clients have multiple content marketing providers to choose from.
- Bargaining Power of Suppliers: Low, as Contently can leverage a diverse pool of freelance writers and content creators.
- Threat of Substitute Products: High, as alternative marketing channels like social media and influencer marketing are readily available.
- Competitive Rivalry: High, with numerous established players and emerging start-ups vying for market share.
Key challenges faced by Contently:
- Maintaining growth amidst competition: The content marketing landscape is becoming increasingly crowded, making it difficult for Contently to stand out.
- Evolving customer needs: Businesses are demanding more sophisticated content marketing solutions, requiring Contently to adapt its offerings.
- Technological advancements: The rapid pace of technological innovation necessitates continuous investment in technology and infrastructure to remain competitive.
Strengths of Contently:
- Strong brand reputation: Contently has built a solid reputation for quality content creation and innovative solutions.
- Experienced team: The company boasts a talented and experienced team with expertise in content marketing, technology, and business development.
- Strong technology platform: Contently has developed a robust platform that streamlines content creation, management, and distribution.
4. Recommendations
1. Expand Service Offerings:
- Content Strategy Consulting: Offer strategic consulting services to help clients develop comprehensive content marketing strategies aligned with their business objectives.
- Content Analytics and Optimization: Leverage data analytics and AI to track content performance, optimize content strategies, and provide actionable insights to clients.
- Content Distribution and Promotion: Develop partnerships with leading media platforms and influencers to expand content reach and drive engagement.
- Content Creation for Emerging Channels: Offer content creation services for emerging channels like podcasts, video content, and interactive experiences.
2. Embrace Digital Transformation:
- Invest in Cloud Computing: Migrate core operations to the cloud to enhance scalability, security, and cost-efficiency.
- Data Analytics and Business Intelligence: Implement robust data analytics solutions to gain insights into customer behavior, content performance, and market trends.
- Artificial Intelligence (AI) and Machine Learning (ML): Leverage AI and ML for content personalization, automation, and predictive analytics to improve efficiency and effectiveness.
- Internet of Things (IoT): Explore opportunities to integrate IoT technologies into content marketing strategies, creating immersive and interactive experiences.
3. Foster Strategic Partnerships:
- Collaborate with Industry Leaders: Partner with leading brands and organizations in relevant industries to co-create content, expand reach, and establish thought leadership.
- Strategic Alliances with Technology Providers: Partner with technology companies specializing in content management, marketing automation, and analytics to enhance service offerings.
- Joint Ventures with Content Creators: Collaborate with established content creators and agencies to expand reach and tap into new markets.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Expanding service offerings, embracing digital transformation, and fostering strategic partnerships align with Contently's core competencies in content marketing and technology, while reinforcing its mission to empower businesses through compelling content.
- External customers and internal clients: The recommendations address the evolving needs of clients seeking more comprehensive and data-driven content marketing solutions, while also empowering internal teams with advanced tools and resources.
- Competitors: By expanding its service offerings, embracing digital transformation, and fostering strategic partnerships, Contently can differentiate itself from competitors and establish a competitive advantage.
- Attractiveness - quantitative measures: While specific quantitative measures like NPV and ROI are not provided in the case study, the recommendations are expected to drive revenue growth, improve operational efficiency, and enhance customer satisfaction, leading to increased profitability and market share.
6. Conclusion
By adopting a multifaceted growth strategy that encompasses expanding its service offerings, embracing digital transformation, and fostering strategic partnerships, Contently can navigate the evolving media landscape, achieve sustainable growth, and solidify its position as a leading provider of content marketing solutions.
7. Discussion
Alternative Options:
- Focus solely on content creation: This option would limit Contently's growth potential as it fails to address the evolving needs of clients seeking more comprehensive solutions.
- Acquire existing content marketing companies: While this could provide immediate market share expansion, it carries significant financial risks and integration challenges.
Risks and Key Assumptions:
- Execution risk: Successfully implementing the recommended strategy requires effective project management, resource allocation, and change management.
- Technological risk: Rapid technological advancements could render existing technologies obsolete, necessitating continuous investment in research and development.
- Competitive risk: Existing and emerging competitors could adopt similar strategies, requiring Contently to constantly innovate and adapt.
- Market risk: Changes in consumer behavior and market dynamics could impact the demand for content marketing services.
8. Next Steps
Timeline with Key Milestones:
- Year 1: Develop and implement a comprehensive strategic plan, including service expansion, technology adoption, and partnership development.
- Year 2: Launch new service offerings, invest in data analytics and AI capabilities, and establish strategic partnerships.
- Year 3: Optimize operations, refine service offerings based on customer feedback, and expand into new markets.
By focusing on these key milestones, Contently can ensure a smooth and successful transition to a more sustainable and profitable growth trajectory.
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Case Description
At the time of its launch, Contently was a digital marketplace, where small businesses, agencies, and corporations could search for writers. But recent financial results showed that Contently earned substantially more profit from its Software-as-a-Service (SaaS) business than from its writers' commissions.
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