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Martha Stewart and her Insider Trading - Essay Example
Martha Stewart Living Omnimedia has eight core content regions - Home, Cooking and Entertaining, Gardening, Crafts, Holiday, Keeping, Weddings, and Baby and Kids - in that creative experts are constantly seeking and developing new ideas to maintain the high quality and value associated with the brand. …
The professionals at Martha Stewart Living Omnimedia generate a broad compilation of ‘how to’ articles, books, television programs, newspaper columns, radio sections and products relating to the eight core content areas all through the four business section.
Publishing is Martha Stewart Living Omnimedia's largest business section that accounted for US $182.6 million of total revenues for 2002. It includes magazines such as Martha Stewart Living and Martha Stewart Weddings, nearly 40 Martha Stewart books, the ask Martha newspaper column and radio show, and a music library of compilation CDs. The Television section accounted for US $ 26.7 million of total revenues for 2002, where it now offers around 30 opportunities every week for viewers to watch Martha Stewart programming. Kmart plays a huge role in Martha Stewart Living Omnimedia's merchandising section. In 1987, Martha Stewart Living Omnimedia and Kmart created a partnership that has been extremely beneficial for both companies. Sales of Martha Stewart merchandise in Kmart stores have reportedly been in excess of US $5 billion since the beginning of the partnership. (Louria, 2) In 2001, Kmart sold US $1.5 billion worth of Martha Stewart Everyday house wares, and those licensing fees accounted for almost 25% of Martha Stewart Living Omnimedia's profits. But since Kmart filed for bankruptcy on January 22, 2001, Martha Stewart Living Omnimedia finds its fastest growing section - merchandising - in jeopardy. Kmart has increasingly lost ground to competitors such as Wal-Mart and Target due to ill-advised price-cutting strategies and a mismanaged supply chain. It has already closed the doors of 250 to 350 of 2,100 stores and Martha Stewart Living Omnimedia has taken quite a hit.