Book Publishing in 2010

1627 words 7 pages
This paper is about Book publishing industry in the USA. Main analysis are done using Porter’s five forces analysis. First analysis is on industry before e-books while indentifying main levels of threats for industry from existing rivalry, new entrants, bargaining power of buyers, bargaining power of suppliers and substitutions. Also, same research is being conducted for industry after ebooks emerged. Next part is looking to the future of industry and identifying main opportunities and threats looking forward. Finally paper is concluded with suggestions for suppliers how to sustain their business.
Book publishing business recently has been going through lots of changes. New technologies opened doors for new
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Also, if we take TV, radio, cinema as substitutes for books, threat remains high from this perspective.
Bargaining Power of customers (buyers) – Increased
The increasing power of huge online retailers such as Amazon, Apple books store, Nook, increases buyer power. Also, the availability of free e-books (piracy) makes publishers’ products less attractive.
Bargaining power of Suppliers – material suppliers Decreased/ Manuscript increased. Materials: E-books do not require neither purchasing paper nor physical printing. Therefore those two most expensive elements of publishing has been eliminated and power of suppliers decreased further.
Manuscripts: In terms, of book content suppliers, authors have more alternatives for self publishing therefore their bargaining power has increased since substitution easily available.
Opportunities and Threats
1. New marketing channels – For example suggestions for customers similar products to the one they like straight to their reading device. Also, more customized promotions, like blogs reviews for particular niche market.
2. New distribution models - More variety of members clubs, package offered, ability to buy parts of the books, subscription to content. This would allow consumers to get their content straight to device without hustle of going anywhere to buy it physically.
3. Additional content – Since new devices


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