...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...
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...“Newspaper Publishing” Industry Table of Contents Executive Summary 2 Industry Overview 2 Newspaper publishing in India: Industry Scenario 2 Forecast of future growth 3 Industry Boundary for Newspaper Publishing houses 3 5-Forces Analysis 3 Threat of New Entry 3 Threat of Substitutes 4 Bargaining Power of Suppliers 4 Bargaining Power of Buyers 4 Rivalry among existing competitors 5 Government’s Role 5 Threat from Complements 5 Changing Industry dynamics 6 Global dynamics 6 Local dynamics 6 From traditional to integrated news room model 9 Partnership Ventures 9 Capacity Sharing Model 9 Key Action Points for the Newspaper Industry 10 Conclusion 11 Executive Summary The newspaper industry in India is highly fragmented amongst the Hindi Dailies, English Dailies and several vernacular Dailies. The market size of the entire industry stands at INR263 billion. Whereas with the growth of the digital media and strong presence of big search engines like Google; the print newspaper industry is struggling all over the world. But interestingly, Indian print newspaper industry is growing with the digital counterpart with hand in hand. On one hand Digital media is increasing its hold in tier I and II cities and also amongst young readers but on the other hand print media is reaching out to small villages and remote areas due to stronger and efficient distribution system and increased literacy rate. So here in this industry analysis...
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...Michael E. Porter explains in his "How Competitive Forces Shape Strategy" that the state of competition in an industry depends on five basic forces: new entrants, suppliers, buyers, substitutes, and industry competitors. In this paper, I analyzed the competition in the personal computer (PC) industry using Porter's Five-Force Analysis. 1. Buyers (strong) Buyers of personal computers are businesses, governments, educational institutions, and individuals. Large businesses, governments, and schools, which buy computers in large volumes, have the power to bargain on price, quality and service. Personal computer buyers are price-sensitive. However, buyers have less power when the switching costs and brand-loyalties are high. Thus, PC manufacturers can reduce a threat of buyer power by differentiating their products. An example is Apple Computer. Apple's unique operation system and its computers specifically targeted to publishing and designing industry prevent their buyers from switching to competitors' products. Its sleek product design represented by iMac and iBook also acquired many fans and increased brand-loyalty. But, despite several ways in which manufacturers have differentiated their products and found ways to increase switching costs, customers still see units as very similar and thus choose primarily on price. 2. Suppliers (Moderate) Components for manufacturing personal computers are the microprocessor, motherboard, memory storage, and peripherals such as...
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...CHAPTER 4 INDUSTRY AND COMPETITOR ANALYSIS Industry Analysis 4.1 Porter's Five Forces A. Rivalry among Competing Firms - Weak Rivalry among competing firms is considerably low since NBS has maintained its position on being the largest and top bookstore and distributor of the country. Moreover, there are relatively fewer sellers that any one company's actions have little direct impact on rival's business. Products of rival competitors were also somehow different in approach as to which, say, Fully Booked and Goodwill Bookstore focus on book retailing rather than offering school supplies. Even if firms compete with same books and other materials, the pricing strategy of NBS is relatively lowest among rivalry. This has been one of the advantages of NBS throughout the decades past. Lastly, competition has already transcended on internet based systems by delivering online services which fast-paced technology-driven consumers demand. Almost all competing firms have already adapt this change and continually to develop further their online marketing, promotions and strategies. B. Threat of New Entrants - Moderate Threats of new entrants for NBS is moderate since factors of relative price of substitute, low product differentiation, big switching cost to buyers, easy access to distribution channels and high capital requirement is considered. Relatively, strong partnerships with publishers would be advantageous for potential entering firms. Moreover, it is easy...
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...two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry: Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that the Personal Computer Industry is largely unfavorable when viewing the industry facts specific to 1998. Industry Rivalry is high, with many players of similar size relative to...
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...strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry : Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that the Personal Computer Industry is largely unfavorable when viewing the industry facts specific to 1998. Industry Rivalry is high, with many players of...
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...QUESTIONS AND ANSWERS ~ COMPETITIVE ADVANTAGE 1. Using Porter’s five-forces framework, discuss why profitability in the European textile industry is lower than that in book publishing. Porter’s five-forces model of competitive industry structure proposes that the determinants of industry attractiveness and long-run profitability are the threat of new entrants, the threat of substitutes, the bargaining power of buyers and suppliers, and the rivalry between existing competitors. Using these forces we shall examine the European textile and book publishing industries: Threat of new entrants: many newly industrialized countries develop a textile industry since the skills and technology are relatively easy to acquire. Book publishing relies more on commissioning authors with the skills to write best sellers: it is easier to make a shirt than a book in Hong Kong that will sell in Europe. The threat of new entrants is likely to be lower for book publishing than textiles. Bargaining power of suppliers and buyers: it is difficult to distinguish between two industries on these bases. Suppliers of basic textile commodities (such as wool and cotton) are unlikely to have a great deal of power; authors (unless already proven winners) certainly do not. In both industries large retail outlets dominate sales to consumers. However, where retail price maintenance is practised there may be less pressure on producers to trim prices. Threat of substitutes: the key to understanding differences...
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...together different scopes of the media industry, and they hoped to capitalize on the brand equity and marketing aspects contained by each. The purpose for this memo is to look at the different business segments within Time Warner, the strengths and weaknesses of its operations, and a definitive long-term operating strategy that will position them for continued success. Time Warner is one of the largest media companies in the world, but faces tight competition from industry giants like Disney and Viacom. While the company is required to adhere to the restrictions by the Federal Communications Commission, the FCC has been loosening the reigns slightly with regards to the diversification and size of the main media players. The regulation goal of the FCC is to prevent one company from solely influencing the information passing through the airways and entertainment outlets into the mind of consumers. Porter’s Five Forces: In order to carefully formulate the strategies to be employed by Time Warner, a comprehensive examination of each of its business areas needs to be evaluated. Time Warner has five main business lines: AOL, film entertainment, publishing, programming networks and cable systems. We will begin the analysis of T.W. and its merge with AOL, including the consequent benefits and shortcomings. As a basis for this analysis, we will be using the most applicable forces in each situation out of Porter’s Five Forces: bargaining power of buyers and suppliers, threat of entry, threat...
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...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...
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...E-Commerce of Online Book Publishing Company E- Books are such types of books which can be read by digital means without having printed copy. According to the study of Armstrong (2008), e-book can be any text that is readable by electronically without printed form regardless its size and origin or composition. Day by day, the numbers of e-books as well as e- book publishing companies are increasing because of technological advancement, pointed out by Li (2010). However, success of e-book publishing business mostly depends on establishing a successful business model. According to the finding of Vasileiou et al. (2009), establishing e-books related business model is now very complex and there are many incompetents between the producers and the products. Though there are significant advancements have achieved in e-book technology, there are still various incompetents exist in the industry of e-book business. Tonkin (2010) pointed out that, the reader of e-books are becoming easy to Use but, still there are various types of e-books reader and e-books which are not made according to standard format and creating problems. Today people can not think a world without e-book. Hillesund (2010) opined that, today’s world can thinkable without printed books but can not without e- books. It is clearly indicating the popularity of e-books among the people across the world. In this assignment it is elaborately discussed about building a new e- book publishing company named Books r Us. It...
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...E-Book’s Case Table of Content Introduction ..……………………………………………………………………………… 2 Crafting a Strategy………………………………………………………………………... 3 The Business Model ………………………………………………………………………. 3 The Platform ……………………………………………………………………………… 4 Key Success Factors (KSF) ………..……………………………………………………… 4 Evaluating a Company’s External Environment ……………………………………….. 6 The Five Forces Model of Competition ………………………………………………….. 6 The Industry ………………………………………………………………....……………. 7 The Four Test of Resources Competitor Power ………………………………………… 8 SWOT Analysis …………………………………………………………………………… 9 Product Attributes …………………………………………………………...…………… 11 Introduction The case begins with Professor Harry Lindsol who noticed a trend in 2012. What he noticed was a rapidly changing environment with advancements in technology that led to the internet taking over how americans purchased things. He also began to see big internet retailers like Amazon taking out brick and mortar style companies like Barnes & Noble and local bookstores. The one market that had not been penetrated yet by these large internet retailers was the college bookstores. Lindsol also observed that even though students all owned electronic devices and e-readers, they still preferred the convenience of buying hardcopy textbooks from student stores. Lindsol recognized an opportunity but had to analyze the business models of the current large scale textbook publishers...
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...Syracuse University INDUSTRY ANALYSIS OF COLLEGES AND UNIVERSITIES IN THE UNITED STATES Matthew Gerlitzki Strategic Management - MBC 645 Professor Wimer May 11, 2016 Industry Definition This is an industry analysis paper of the Colleges and Universities in the United States and it is important to begin with a definition. A goal of an industry definition and boundaries scope must not be too narrow or broadly defined because this will alter the scope of the analysis and result in a skewed conclusion. I will begin by differentiating between non-profits and for-profits businesses due to the different strategies involved within management in attempt to maintain the scope of this analysis. At first thought this seems irrelevant, however, the internal and external environments of these two types of business structures are different and management must prioritize accordingly. In academia, the for-profit institution must operate similar to a regular business with a focus on profitability that will satisfy stakeholders rather than focus primarily on the quality of education. The non-profit institution will focus primarily on education and student success, which will contribute to the brand awareness and prestige that will be discussed later. An analysis of the Colleges and Universities in the United States will be limited to non-profit private and public institutions that offer Bachelor’s, Master’s, and Doctorate degrees. Bachelor’s (undergraduate) degrees are the...
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...ORTER’s Five Forces Analysis: Buying Power of Buyer’s: In Indian market the buying power of the consumer or the buyers is high. As there are a lot of other comic books available in the market, so the buyers can easily switch over to other comic publications. The cost factor of available comic publications makes it easy for the consumers to switch from one comic to the other. Generally comics with 40 to 50 pages are priced between Rs. 15 to Rs 20. As done by the major players like Raj comics & Virgin Comics . Buying Power of Suppliers: 1. Suppliers in the Indian market do not enjoy Bargaining power as the buyer does. There is limited no. of publication house that have license to publish comics of famous carton characters in India. So under such a condition the bargaining power of suppliers goes down. 2.The suppliers of comic publishing material in India loose bargaining power because of low switching costs as India is a price sensitive country. If they don’t provide competitive cost the publisher can easily switch over. Threat of New Entrants: 1. In the present scenario the Threat of new entrants is high in the Indian markets, Recently in June 2006 Virgin Comics entered Indian market by tying up with Gotham Comics. These comics are getting good response in the market and after seeing the market potential more comics & entertainment companies are likely to enter Indian markets. 2.At present the market potential of the Indian comics market is Rs. 100...
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...Five Forces Analysis of the Video Game Industry The video game industry is the economic sector involved with the development, marketing and sale of video and computer games. It includes video game consoles, game software, handheld devices, mobile games and online games. The video gaming industry has been growing exponentially in recent years with Sony, Microsoft and Nintendo competing for the higher profits in the market. This essay will analyze each of the five forces acting on the industry: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and the competitive rivalry among existing firms. Then it will be determined if the video game industry is still an attractive industry for Sony. The video game industry has high entry barriers because of its high research and development costs, and capital investment needed to start a business in the console industry. The cost required to develop and manufacture a product that could be a decent competitor in this market is too great for a non-established company in this industry. The technology that is needed to be successful is too advanced for new competitors to achieve. For this reason, the threat to Sony, Microsoft and Nintendo of new entrants, was not very high in 2008. Additionally, Sony’s PlayStation, Microsoft’s Xbox, and Nintendo’s gaming systems were very well established names in the industry. The prestige of these products was so strong that it...
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...the retail industry. External factors are constantly changing the environment and industries that businesses operate in today. Analysing these factors is the best way to determine which aspects have the largest effect on the industry and the business. The retail industry in New Zealand is by no means small. This means that The Warehouse Ltd is constantly under threat from numerous competitors. Stores such as Farmers, Briscoes, Rebel Sports and Dicksmith all sell similar or the same products as The Warehouse Ltd products. In 2011 the total expenditure for the retail industry in New Zealand was $65,901,115 (Retail Research and Statistics, 2009-2011). This is a very high amount of expenditure which means rivals have plenty of opportunities to gain their share within the retail industry in New Zealand. The Five Forces Analysis is the best way to understand the key dynamics, drivers and forces which control the retail industry. The threat of new entrants to the retail industry is an important aspect. The Five Forces Model states that new entrants can pose to the industry consist of (Hanson, Ireland, Hoskisson, & Ireland, 2011): * Product differentiation * Economies of scale * Capital requirements * Switching costs * Access to distribution channels * Cost disadvantages independent of scale * Government policy * Expected retaliation. Whether or not suppliers have bargaining power is also an important factor that is related to the retail industry. In this...
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