Financial Times - Pearson PLC - Failed Business Model
The Financial Times owned by Pearson PLC (PSO) is one of the best written papers in the world while at the same time one of the worst run businesses in the world. They have forgotten that one of the basic missions of a newspaper is supposed be to DELIVER the news. In some markets in the US they miss home delivery almost 50% of the time.
The price of the stock over the past 6 months shows investors think the are failing too:
Let me share some of the Paper's problems:
When you call customer service you are told that there were flight cancellations or delays from:ChicagoWashington, DCOrlandoCustomer service doesn't even know where papers supposedly destined for the Carolinas are printed and distributed from. I have called the airport on days I was told flights were delayed or cancelled and found that the flights arrived as scheduled but my paper didn't.
Part of a subscription is supposed to be magazines and supplements but subscribers in the Carolinas do not get them. If you complain enough they are sent by UPS - much more costly than US Mail 3rd class. The company says the weekend paper is too heavy to include promised magazines and supplements. I've suggested the supplements be sent with the Monday paper - which is the lightest of the week but management would rather waste money on UPS.
News is only News when it arrives NEW and the Financial Times under Pearson PLC (PSO) just can't seem to do that.
Maybe they should turn over the Distribution Department to some Summer Interns and they can straighten out the problems, because the present management seems to be inept.
The stock can't even hold its own against the market as measured by the Value Line Index:
Solution: Since the Financial Times can't seem to solve the problems of physical delivery there may be only one solution. Every subscription should include an Apple IPad (AAPL) because reading the on-line version may be the only solution to getting the news while it's still new.