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Lab Session 2--Strategic Analysis of Digital Publishing

Using the five forces model to stimulate your analysis

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Unformatted text preview: inting, inventory, shipping, and return costs associated with traditional print books. Should they wish, publishers can now deliver e- books directly to the retailers by providing them with an electronic file. The retailers in turn sell copies of the file to consumers who download the book to their digital device. Retailers pay publishers for each copy sold—for each digital download. The reduced production and printing costs can therefore improve operating and profit margins for publishers, depending on the list price set for the e- book. (Consumers generally expect the price of an e- book to be less than a bound book.) a. If publishers produce only e- books, while continuing to sell through the...
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