Value Chain Case Study

Superior Essays
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
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An advantage to a hard copy book is that it does not run out of battery whereas an e-book can. Books can be brought anywhere and are the most dependable in the book market

From the viewpoint of the manager it is easier to work with an e-book value chain. The cost is relatively cheaper to produce because a manager would not have to pay for the book to be printed, and there are less players involved in the actually value chain. Also because the value chain involves less players the e-book production time is shorter, which means customers c get quicker access to the book. This is not always the case but sometimes e-books are released earlier than a hard-copy. E-books also do not need room for inventory which makes it easier to produce more of them.

4. What is the role of operations in each of these value chain designs and

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