Reference no: EM132169496
You are a book publisher in Australia. Please use Porter’s five-forces model to identify what kind of force each of the following items is (buyer, supplier, new entrant, rivalry, or substitute)? As a general conclusion, do you think the book publishing industry in Australia is an attractive business?
The book publishing industry in Australia
1- 20% of books are sold via independent retailers that tend to specialize in a particular genre or prefer unusual (not mainstream) books
2- 70% of books are sold via large retail chains that only deal in mainstream books published by large or long-established publishers who also provide promotional dollars to support their books
3- 10% of books are sold via the internet (e.g. Amazon) and this is expected to dramatically increase as they increasingly capture the time-poor or budget-conscious market segments
4- Book sales have been fairly stable in this mature industry, however they are expected to decline in the future as internet and cable-TV usage increases
5- Australia has one of the highest per capita magazine sales in the world
6-There has been a dramatic increase in self-publishing over the past 10 years, however these books are typically not accepted by retailers and tend to have print runs of less than 1,000
7- E-books would be in the early growth phase of their product life cycle. They currently have relatively low sales but are expected to steadily increase over time
8- There is an increased number of authors in the marketplace, appearing to be driven by easy access to research material (via the internet) and by the increasing popularity of blogs
9- Despite more authors available, there is only a small number of “brand” authors (such as Bryce Courtney) who can attract significant book sales on their name alone
10- Excluding self-published books, there are around 500 new books available in the Australian market each month (including books published internationally)
11- There is an increasing number of large book publishers, as the larger ones battle for market share by acquiring smaller publishing houses