{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Random_House[1]

Random_House[1] - – Large fixed costs – Almost zero...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
BUSI 698 RANDOM HOUSE
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Case questions Five-forces analysis of the industry: Is it a profitable industry? How is value distributed among the players in the value chain? Analysis of Random’s corporate advantage: What is Random House’s strategy? What distinctive advantages do they have? What costs do they incur due to their strategy? Sustainability of Random’s corporate advantage: What are the major threats facing Random? How serious are they?
Background image of page 2
Case Takeaways Publishing industry has challenging economics Creative industry: Star authors and best-sellers are critical High level of “clutter”, competition for readers’ attention
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: – Large fixed costs – Almost zero growth • Random House’s corporate advantage: – Back-end integration reduces fixed costs – Front-end separation builds relationships with authors and increases scalability • Major threats include: – Saturation and increased competition – Retailers (e.g. B&N) integrating backward – Electronic publishing and e-books • But Random (and other publishers) will maintain position as long as their main resources are intact: – Discovery and search of authors – Editorial design, layout of books – Marketing, advertising, reducing “clutter”...
View Full Document

{[ snackBarMessage ]}