... What is the impact of the Internet and e-book technology on book and newspaper publishing? Who will win and who will lose out, and how will the struggle play out? Newspapers are the most troubled segment of the publishing industry, due to the availability of alternatives to the printed newspaper and publishers' inability to protect valuable content from being distributed for free over the Internet. Over 60 percent of newspapers have reduced news staff in the past three years and about the same percentage report reducing the size of their newspapers. Readership has been declining for about a decade and advertising is down 15 percent a year. Alternative online sources of news such as Yahoo, Google, and blogs have become major sources of news for many Americans, especially younger readers. At first glance, the online newspaper industry appears to be a classic case of a disruptive technology destroying a traditional business model based on physical products and physical distribution. But the newspapers have much valuable content worth preserving and they have acquired a huge online audience. Next to social networks, newspapers have the largest online audience of any media, and online newspaper readership is growing by 17 percent each year. Contrary to popular opinion, they are one of the most successful forms of online content to date. The problem is that online newspapers are not generating enough revenue online from paying readers or from advertising. They are trying to revamp...
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...through E-Books In her newspaper article “Your E-Book is Reading You”, Alexandra Alter uses an informal tone to grab the reader’s attention. Alter informs the reader of the new methods used to improve book sales and customer reading experiences. She demonstrates that major book publishers are capable of tracking reading habits including how much of the book is read, and how long they read for. The data also indicates that readers use methods of reading depending on the genre of the book. Once Alter provides the information regarding what publishers are capable of, she points out the negative aspects of the data collection including the loss of creativity and privacy. While Alter does address the negative aspects of data collection, the primary focus of the article is the positive aspects of having reader data. The research she includes comprises mainly of statistics and quotes from book publishers. Through her use of style, tone and research, Alter successfully convinces the reader that the act of habit analysis by publishers is in the reader’s best interests. Initially, Alter sets up her article in a style that appeals to the reader. Throughout the essay, she jumps back and forth between expository and persuasive tones. The main purpose of this article is to inform the reader; however, she also includes the use of pathos to get the reader emotionally involved. In her opening paragraph she appeals to the reader’s emotions by stating “Nearly 18,000 Kindle readers have highlighted...
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...bouadjenak@NEWSPAPER.com Tel: +1 437 555 670 Dear Mr Sullivan, I am pleased to present to you the report about the current effects of Applications and Ecommerce on newspaper publishers and furthermore strategic recommendations for your company. This report has been prepared according to the upcoming extraordinary session of Chicago Tribune Newspapers CEO’s, Strategic Advisor and the consultancy assistance of McKinsey Strategic Department. This report covers the current situation of circulations and subscriptions regarding the digital era as well as available technologies for newspaper publishers to increase their revenues. Also includes an evaluation of business strategies and activities regarding Chicago Tribunes’ major competitors. This report covers some recommendation for further strategic positioning and investments to create a competitive advantages. In presenting this report, I want to pay tribute to the work of every one of my colleague throughout the strategic department and all journalists within this newspaper. It is a pleasure to find strategies and solutions to keep our business alive and develop further goals. If you have any further questions, please do not hesitate to contact me at any time. Yours sincerely, Zora Bouadjenak; MBA Strategic Advisor Chicago Tribune 1 HOW DOES THE IMPLEMENTATION OF APPS AND E-SUBSCRIPTIONS EFFECT NEWSPAPER PUBLISHERS REVENUES AND THEIR STRATEGIES FOR FURTHER BUSINESSES? A case for Chicago Tribune Newspaper Lectures name: Date...
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...Chapter 3 Information Systems, Organizations, and Strategy 103 I N T E R A C T I V E S E S S I O N : T E C H N O LO GY IS THE IPAD A DISRUPTIVE TECHNOLOGY? Tablet computers have come and gone several times before, but the iPad looks like it will be different. It has a gorgeous 10-inch color display, a persistent WiFi Internet connection, potential use of high-speed cellular networks, functionality from over 250,000 applications available on Apple’s App Store, and the ability to deliver video, music, text, social networking applications, and video games. Its entry-level price is just $499. The challenge for Apple is to convince potential users that they need a new, expensive gadget with the functionality that the iPad provides. This is the same challenge faced by the iPhone when it was first announced. As it turned out, the iPhone was a smashing success that decimated the sales of traditional cell phones throughout the world. Will the iPad do likewise as a disruptive technology for the media and content industries? It looks like it is on its way. The iPad has some appeal to mobile business users, but most experts believe it will not supplant laptops or netbooks. It is in the publishing and media industries where its disruptive impact will first be felt. The iPad and similar devices (including the Kindle Reader) will force many existing media businesses to change their business models significantly. These companies may need to stop investing in their ...
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... book publishing before and after the onset of the e-‐book revolution. What are the long-‐term threats and opportunities facing the book publishing industry? Threats: -‐ Amazon / Apple – companies like this have revolutionized distribution (by being so highly efficient) and have gained the upper hand and bargaining power over Publishers as concerns PRICING – therefore greatly reducing prices and profits for Publishers. -‐ E-‐books -‐ percentage of ebook sales will continue to grow – again this threatens pricing and profit margins and through cannibalization of especially existing paperback sales threatens the profitability and continuation of the paperback. -‐ Death of chain bookstores – low margins on sales units threatens the closure of these distribution points – which have traditionally played a major role in the value / supply chain for Publishers – their going out of business changes the playing...
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...E-Books vs. Printed Books: The 21st Century Debate By Elana Goodwin on September 12, 2014 Tweet Pin It E-book sales have skyrocketed in recent years as personal digital reading devices have steadily risen in popularity since the Amazon Kindle was released in 2007. This trend has sparked a worldwide debate of the pros and cons of e-books vs. printed books and what technological advances in reading means for the publishing industry as a whole. Back in 2010, when Apple came out with the first generation of its tablet, the iPad, the Pew Research Center found that only 5 percent of Americans owned an e-reader and 4 percent owned a tablet. But as e-readers improved their design and debuted increasingly sleeker, more intuitive, larger memory models, e-reader ownership grew. Photo Credit: u-publish.com Today, those numbers have severely multiplied, with 32 percent of Americans owning an e-reader and 42 percent owning a tablet, those devices being two of the biggest ways e-books are consumed by readers. http://www.uloop.com/news/view.php/134689/E-Books-vs-Printed-Books-The-21st-Cent However, though e-reader and e-book sales numbers seem to be constantly growing, a report by the Association of American Publishers (AAP) showed that in 2013, hardcover book sales in the U.S. were actually up while overall U.S. e-book sales were actually down about 5 percent. The AAP found that hardcover book sales rose 11.5 percent to $778.6 million through August of 2013 while e-book sales were...
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...was introducing Acrobat and the PDF document format, which also quickly became an industry standard. * In the subsequent years Adobe added to its product mix successful products like PageMaker, After Effects and GoLive by acquisition. Despite all these achievements, the company experienced substantial difficulties during 1998. Important product delivery date was missed, sales declined and the stock price plummeted encouraging a takeover attempt by one of their direct competitors, Quark, Inc. * Bruce Chizen, who was appointed as a CEO later in 2000, managed to stabilize the situation. This was not an easy task, as most of Adobe's executive management left the company while he had to lead a drastic restructuring of the business. Adobe had to carry out a major reform in order to be more profitable. Case Overview: * This case describes the early success Adobe had establishing Postscript as the preferred software application for printing documents. The case describes the strategy Adobe set in motion to secure script position as the established utility for printer manufactures, publishers, PC OEMs/ODMs and software developers. * Adobe also started to expand the product offering when they introduced Portable Document Format (PDF) and the companionship utilities Reader and Acrobat Business Tools. This case describes the strategy Adobe implemented in order to make these products the defacto standards for electronic...
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...era of e-books. Booksellers were one of the many industries disrupted by the Internet and, more specifically, the rise of e-books and e-readers. B&N hopes to change its business model to adapt to this new environment before it suffers a similar fate as many of its competitors, like Borders, B. Dalton, and Crown Books, or their peers in other industries, like Blockbuster, Circuit City, and Eastman Kodak. More than ever, consumers are reading books on electronic gadgets—e-readers, iPods, tablets, and PCs—instead of physical books. Although B&N still depends on its physical, brick-and-mortar stores to drive its business (B&N operates 691 bookstores in 50 states, as well as 641 college bookstores), the company has thrown its energies behind development and marketing of the Nook series of e-readers and tablets. Once simply a bookseller, B&N now styles itself as a seller of e-books, devices to read them on, and apps that enhance the reading experience. The company has had success gaining market share, but at a steep cost, and to stay afloat, it will need to contend with increased competition from Amazon, Apple, and Google—not exactly feeble opposition. B&N has a market capitalization of $1 billion. Amazon, B&N’s current top competitor, has a market capitalization of $98 billion. How can B&N compete against these tech titans? The answer remains to be seen. B&N was likely the only bookseller big enough to complete the considerable task of developing an e-reader, marketing...
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...The Rand dom Ho ouse Re esponse to the Kindl e e le By early 2010, the internation news med had begun to character y t nal dia n rize book pub blishing as the next e entert tainment ind dustry to be revolutioniz zed by new digital form mats. Amazon announced that n d Christ tmas 2009 had been the fir day ever th its custom rst hat mers had orde ered more ele ectronic versio of ons books for their Kin s ndle reading d devices than p print books.1 Many other companies w were reported to be d ready ying e-readers for an early 2010 launc Most antic s y ch. cipated was Apple Inc.’s iPad, expect ted to chang the terrain of the e-rea ge n ader segment just as the iPhone had r t revolutionize the smartp ed phone marke 2 Worryin et. ngly, prices fo the e-book versions of n or newly publish titles wer at $9.99 or less, hed re, r dropp ping well bel low half the l price of a new hardco list over; public d domain titles (books for w s which copyr right protectio – 70 years after the de on s eath of the au uthor – had e expired) were being offere by e ed some e-vendors fo $0.00.3 Moreover, the ri or ights to electr ronic versions of books pu s ublished befor the re adven of e-books in the 1990s (when publis nt shers first beg to amend their contrac with authors to gan d cts reflect digital edit tions) were i dispute: literary agen and the Authors Gu in nts uild had prot tested vocife erously when Random Ho n ouse, the largest trade boo publisher, asserted in D ok December 2009 that it own the...
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...chain and competitive forces models to evaluate the impact of the Internet on book publishers and book retail stores such as B&N. Value chain and competitive five forces model was provided by Michael porter and explains how to edge over rival firms in the industry. Value chain helps in identifying ways to create the best value for the customers and it’s a 3 step process: activity analysis, value analysis and lastly evaluating and planning. Five forces of competition according to Michael porter are: threat of substitutes, rivalry, supplier power, buyer power, and barriers to entry. B&N Company, publishers and other book retailers thrive to survive in the current competitive environment and with the internet posing all this challenges. Threat of Subtitute In the industry there are some of substitute that the customers might use if our product have a problem. With the new technology it can create new substitute all the time. Internet has enhanced development of e-books and e-learn which have become substitutes to physical books. As e-books are getting popular, the demand for traditional books have declined, and demand and supply more substitute products are getting dominant. This has threatened existence of both publishers and book retailers since people have adapted to using the current means which is of low cost and easy to access. Rivalry Amazon Company has been using e-book and e-learn to which B&N has also shifted to the same segment with them developing an...
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...Assignment 1: Will Technology Save the Publishing Industry? 1. Evaluate the impact of the Internet on newspaper and book publishers using the value chain and competitive forces models. In the past, Internet has had a negative effect on all publishing, including both the newspaper and book industries. Publishing companies have experienced a decline in advertising revenues, circulation, and readership while Internet traffic to online news sites and readership of e-books has grown rapidly (1). Many blame the newspaper and publishing companies themselves, expressing a defect in the companies’ value chain and competitive force models as they relate to the Internet. According to Michael Porter’s value chain model, a company must perform each business activity in the model in the most efficient way possible in order to add value to the company, i.e. maximize shareholder wealth and sustain a competitive advantage (2). Value-adding activities that are vital to the company according to the model are inbound logistics, operations, outbound logistics, marketing and sales, and service. The infrastructure of the company, human resource management, technology development, and procurement are all supporting activities that must be performed efficiently as well (3). In the past, newspaper and book publishing companies have failed at performing these value-adding activities efficiently, leading to minuscule profit margins. Simply put, these companies failed to offer a level of value...
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...ISM EXTERNAL PROGRAMS ISEG BUSINESS SCHOOL - 5th year ISM - 431 E-BUSINESS FINAL ASSIGNMENT Student : FLORENTIN THEVENET Professor : S Subject : The Impact of the Online Publication on the Print Media Words : 3 733 strategic shift with the influx of new means of dematerialization of information. A study conducted in 2010 by Bain & Company1 reports that in 2015, 15 to 20% of the population should be equipped with a digital book, an electronic reader (called an Ereader) or multifunction tablet (not including Smartphones). These last may even represent the majority of the market, reaching a wider audience, if prices, still exceeding € 300, were to fall. Also according to this study, the digital book and digital media in general should know a better situation and favorable growth in the coming years, most users remaining faithful to the paper (including books), seeing the new devices with only additional functions. In addition, unlike the music industry or the audiovisual industry, there are very few parallel market, where users can illegally download works. If this phenomenon were to grow, then it may be as difficult for the publishing industry as the entertainment industry. Currently, there are three main schools of thought on the so-called traditional print media and its evolution towards digital media. Some see through this trend the death of newspapers and even the journalists (the professional ones). We cannot give them completely wrong, when you look...
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...In-Class Activity for Ch. 3 Due September 24 2012 1. Evaluate the impact of the iPad using Porter’s competitive forces model. * Traditional Competitors- Apple’s traditional competitors were companies that sold mp3 players, computers, and phones. * New Market entrants-Now their competitors have branched out to businesses that make digital book readers, websites that offer books online, textbook companies, and book/magazine/ and newspaper publishers. * As a substitute product and service- Substitute products and services for Apple would be Kindle, publishers of paperback books, and other e-readers. * Suppliers- Apple may impose high levels of pressure on businesses to raise their prices, lower the quantity of the product they are making, or push them in to having to reduce the availability of their product because they are no longer making the profits they had before the iPad came on the market. 2. What makes the iPad a disruptive technology? Who are likely to be the winners and losers if the iPad becomes a hit? Why? * The iPad is a disruptive technology because it is more expensive than the products it is replacing. It cost more to buy an iPad per megabyte than it does to by a notebook. * It doesn’t necessarily work as well as the products it is replacing. Trying to type a document on an iPad is difficult, and if you truly want to take notes, you need to buy an apple keyboard, which will run you another $100 or so. * Research...
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...Technology has led to a total and complete transformation of the way books are sold. This new phenomena is known as the electronic book. The electronic book or eBook allows users to download their favorite book right to there handheld reader. These readers take the form of dedicated eBook devices such as the Kindle or fully integrated digital media devices such as the IPad. These downloads are relatively inexpensive compared to buying the printed book version. Also, as technology progresses and the market becomes more saturated the price of the readers will fall even lower than their already relatively affordable prices. Does this new form of media have enough to overtake its predecessor of the printed book? The introduction of this near perfect sounding new media is facing some resistance. This resistance is coming for the publishers that produce the material in the first place. They are fighting to keep the old business model of printed books alive. This struggle is similar to that of the music industry. The once striving music industry is now crumbled due to the introduction of online music downloads. Most of this is due to illegal music sharing, but it is also attributable to the pricing of the songs. Publishers fear that this will have the same effect on the book industry. There are many unknowns as the eBook industry evolves, but one thing may be clear, the eBook industry has arrived ready to take over. Is there still room for the printed book or has the electronic book completely...
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...about the local community, the nearest populated city, and our nation once gave people a since of pride. In current times, even though people are just as informed, there are many forms of media that has surpassed the newspaper in providing information with up to the minute news releases. This has taken a large share of the market away from the outdated art of reading the printed version of the news. As people have become more familiar and comfortable with the internet, they are increasingly choosing it as a source of news delivery. In addition there are several other sources of wired and wireless electronic media delivery platforms that are available to the vast majority of people. These devices include netbooks, mobile phones, and e-readers. The newspaper industry is experiencing its worst financial crisis since the Great Depression which is also when radio broadcasting emerged. Radio broadcasting provided an alternate means of news and advertising mass delivery. Also, the rise of television took place during the 50’s and again, the newspaper industry took another plunge. The U.S. newspaper industry is once again suffering from a shift in technology...
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