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Question: With the widespread use of e-books, such as Amazon.com's Kindle, book publishers are faced with a tough channel decision: should they introduce the conventional hardcover and the ebook versions simultaneously or delay release to the e-book channel until after the hardcover has had a chance to generate sales through the conventional channels? HarperCollins, the publisher of former vice presidential candidate Sarah Palin's book, Going Rogue: An American Life, opted for the delay strategy. The publisher chose to wait over a month after the release of the hardcover before making the book available via e-book. The publisher had produced 1.5 million copies of the hardcover version, which were available for sale in book stores and online in mid-November. But the e-book version was not made available until December 26, the day after Christmas. Apparently HarperCollins was worried about the ebook cannibalizing sales from the hardcover version.
Do you think HarperCollins made the right channel decision? Why or why not?
Q. In our lemonade stand example, those of you participating in the class discussion held a general consensus which by externalizing costs onto society; Lemonade Inc. was acting unethically according to which system(s) of ethics?
To create the required common size income statements for IBM, see the following resources: NetMBA (2010) Common Size Financial Statements Investigating AnswersUse total revenue for sales to construct these values.
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