A31. The following appeared in a plan written by the business manager of a daily newspaper called The Smallville Bulletin.
“Last year nationwide revenues from classified ads posted on the Internet rose 50 percent, but our revenues from daily and weekend classified ads for autos, jobs, and homes rose only 5 percent—the smallest rise in the past five years. The message is clear: we at The Smallville Bulletin can expect that within the next five years, revenues from our classified ads section will decline steeply. Since most of our revenues will therefore come from ads placed in the other sections of our newspaper, we can best ensure the survival of The Smallville Bulletin by printing only one classified ads section per week and by creating new sections on a different set of consumer-related topics such as fashion, home décor, and technology.”
1Last year's trend does not necessarily indicate the future trend.
2Other factors other than the emerging rivalry such as the efficiency of the daily newspaper can also contribute to the decline of revenue rise.
3There is no guarantee that the other consumer-related topics will necessarily be a success for the Smallville Bulletin.
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