Essay about Book Publishing in 2010

1647 Words Feb 18th, 2014 7 Pages
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
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Retailers controlled books’ marketing in stores, displaying (shelf and internet), and shelf time, which had tremendous impact on demand. As a result retailers had significant impact on publisher’s profit. Also, retailers purchased in bulk and generate the biggest part of revenue for publisher, therefore they had strong negotiation power. Finally, books from different publishers usually were similar therefore buyers could easily switch among publishers.
Bargaining power of suppliers – High for Manuscripts of popular authors/ Low for material
Production: Two of major costs for publishers ware paper and printing. Both paper and printing services were easily accessible and publisher could easily switch from one supplier to another. As a result, bargaining power of suppliers was low. In addition, in terms of printing, publishers could choose either to outsource printing or to build their own printing facilities, which put even more pressure on suppliers.
Manuscripts: Bestselling authors had a strong bargaining power; publishing houses even went to auctions to buy new manuscripts. Meanwhile, new and unknown authors had low bargaining power. For them it was important to get on the book store shelves.
Industry after advent of e-books
Threat of new entrants - Increased.
Internet and e-books lowered barrier to enter. There are more and easier ways how publishers can reach consumers. People

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