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Book Publishing in 2010

In: Business and Management

Submitted By juskru
Words 1655
Pages 7
Summary

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 e-books 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.

Introduction

Book publishing business recently has been going through lots of changes. New technologies opened doors for new competitors in industry and started to reshaping many processes. To sustain long-term profitability publishers now must respond strategically to new competition. Natural thing to do is to track your established rivals and react accordingly. However, as you scan competitive arena, are you also looking beyond your direct competitors. As Porter explains four additional forces can hurt your prospective profits. (1) * Savvy customers can force down prices by playing you and your rivals against one another. * Powerful suppliers may constrain your profits if they charge higher prices. * Aspiring entrants, armed with new capacity and hungry for market share , can ratchet up the investment up the investment required for you to stay in the game . * Substitutes offerings can lure customers away.(1)
Industry prior e-books revolution
Before e- books publishing industry was highly fragmented, which was also very highly labor intensive. However, as many mature industries faces significant changes with emerging new technologies, so did and publishing. Internet and self-publishing technologies brought more fierce rivalry into…...

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