Draw The Brick And Mortar Process Stages Of The Value Chain Essay

976 Words Sep 4th, 2015 4 Pages
1. Draw the brick and mortar process stages of the value chain by which hard-copy books are created, produced, distributed, and sold in retail stores. How does each player in the value chain make money?

Each of these players in the value chain makes money in the book production process. Typically publishers offer a deal to the author. “In most cases, publishers will offer the author a contract where they get 10-15% royalties off each sale” (Collier). The more books that are sold the more money the publishers and authors earn. The publisher sends the book to the printing company and pays them to print the books. After this process, the publisher/printing company sends the books to different wholesalers. After the wholesaler receives the book they get sent to different retailers, which is where the customer makes their purchase. Once the book is at the retailer the customer has the opportunity to buy the book. Finally after the book is sold, the retailer, the author, and the publisher each get a percentage of the sale.

2. Draw the process stages for creating and downloading an e-book today. How does each player in this new electronic/digital value chain make money?

The way each of these players makes money is basically the same as a hard copy book. The author and publisher receive royalties for each book that is sold. The retailer in this case is an online store so the customer will download their e-book to their preferred device. The online store also makes a percentage…

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