ADVANCE PUBLICATIONS

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ADVANCE PUBLICATIONS

• By Eric Clark
• And Scott Jarrett

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Facts about S.I. Newhouse

• S.I. Newhouse is a billionaire art collector who
  served on the MoMA board or Museum of Modern Art
  in New York for twenty seven years until finally
  resigning last year.
• He has a school of communications named after him
  at Syracuse University where he gives out
  scholarships to students each year.
• As an art collector he is very influence by
  Picasso.
• He is in charge of the magazine portion of the
  business, including Conde Nast, Vogue, and The
  New Yorker.

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Donald Newhouse

• At the age of 72 Donald Newhouse along with his
  brother were worth 7.7 Billion dollars a piece.
• Donald is in charge of all of the Newspapers that
  the company owns and their distribution.
• As of last year him and his brother were the 18th
  richest men in the U.S. behind people like Bill
  Gates and Michael Dell.
• Along with his brother he has been on the Forbes
  400 list every year for more than two decades.

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Over the past two decades, only 58 names
haveappeared every year on the Forbes 400 list

• Marc Rich, Robert Prtizker, Ross Perot,
• Si Newhouse, John Kluge, Marvin Davis,
• Donald Newhouse, Kirk Kerkorian, Lester Crown,
• David Murdock, Ray L. Hunt, Anne Chambers,
• Roger Milliken, Henry Hillman, Barbara Anthony,
• Patrick McGovern, Donald Hill, Helen Copley,
• Cordelia Scaife, May Gordon, Getty Margaret
  Cargill
• John Lupton, Edward Gaylord, Jim Cargill,
• Carl Lindner, Charles Gates, Warren Buffet,
• Samuel LeFrak, Robert Galvin, Donald Bren,
• Ronald Lauder, Ernest Gallo, Steve Bechtel,
• Leonard Lauder, William Clay Ford, Frank Batten,
• David Koch, Max Fisher, Perry Bass,
• Charles Koch, Ted Field, Walter Annenberg,
• Philip Knight, Roy Disney, Herb Allen,

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Partnership

• Advanced Publications is a partnership owned by
  brothers S.I. and Donald Newhouse. They together
  make all of the decisions for the company. If
  they want to start or buy out another periodical
  they only have to answer to each other. The two
  brothers have the branches split, Donald is in
  charge of the newspapers they own and S.I. is in
  charge of the responsibilities for the magazines.

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Capital

• With the addition of more than 1 billion dollars
  worth of additions in the last few years Advance
  has had to add more and more human resources,
  computer systems and purchasing, or capital.
  Media Consultant Michael Wolf was brought in to
  make changes and has made huge contributions to
  the company.
• The Conde Nast headquarters is located
• In New York City.

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Profit Maximization

• Buying out all of the companies the Advance has
  bought out from Disney the New York Times and
  Primedia has been to sell them at lower prices
  and to maximize a higher profit.

Key Numbers
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Firms supply curve

• The increase in the output of magazines has moved
  the firms supply curve up on the model which
  will raise the demand curve and increase profit
  to the company.

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Dominant strategy

• Advance has used a dominant strategy in buying
  out so many periodicals. This strategy has
  allowed them to keep on increasing their profits
  no matter what their competitors do. It allows
  them to change their company no matter what.

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Labor shortage

• Advance had a labor shortage because of the new
  acquisitions to the company that they made. They
  had to bring in new human resources in order to
  fill their gaps.
• Key fact 21 growth in employment over the last
  year.

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Sources

• www.yahoo.com
• www.advance.com
• www.condenast.com
• www.hoovers.com
• www.bizjournals.com