Random_House[1]

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

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BUSI 698 RANDOM HOUSE
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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?
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Case Takeaways Publishing industry has challenging economics Creative industry: Star authors and best-sellers are critical High level of “clutter”, competition for readers’ attention
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Unformatted text preview: Large fixed costs Almost zero growth Random Houses 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...
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This document was uploaded on 11/04/2011 for the course BUSI 471 at UNC.

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

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