Industry Analysis Book Publishing in United States
| INDUSTRY ANALYSIS: BOOK PUBLISHING IN UNITED STATES | Individual assignment 2 | | Monika Sajdyk | 2013-11-02 |
Introduction - theoretical basis
Do you want to better understand an industry? Are you considering to start a new business or take over the company? Do you want to diversify your activities and enter new markets? But you do not know how difficult it will be to keep them? Porter 's 5 forces analysis will help to understand the market where you are targeting or going to work. Not all markets, industries and sectors are the same. In some access to the materials is simple and they are cheap, easy to enter the market, and customers are pushing the doors and windows. In such markets, companies are relatively easy to get a high margin on sales, and thus maintain high profitability. In other markets, the competition is fierce - access to raw materials can be difficult, it may be difficult to get a reasonable share of the market, customers can be very demanding. In such markets, companies are often faced with high costs and low prices, and it is difficult to obtain satisfactory margins. In such markets, companies must constantly fight to stay afloat. If you are considering to start a new business, diversification of activities, buy or invest in an existing business, Porter 's 5 forces analysis is a great tool by which you judge the difficulty of the market in which you compete. On the other hand, if you act on the market, the same analysis will show you the competitive context in which it is located. If you understand the forces which influence the market situation in your industry, you can develop strategies which will help you gain a competitive advantage and increase profits.
Porter 5 forces analysis is to examine the competitive market in five dimensions:
1. Competitive force in the market competition
The intensity of competitive rivalry is the first force in Porter 's 5 forces analysis which analyze “market difficulties”.
Introduction - theoretical basis
Do you want to better understand an industry? Are you considering to start a new business or take over the company? Do you want to diversify your activities and enter new markets? But you do not know how difficult it will be to keep them? Porter 's 5 forces analysis will help to understand the market where you are targeting or going to work. Not all markets, industries and sectors are the same. In some access to the materials is simple and they are cheap, easy to enter the market, and customers are pushing the doors and windows. In such markets, companies are relatively easy to get a high margin on sales, and thus maintain high profitability. In other markets, the competition is fierce - access to raw materials can be difficult, it may be difficult to get a reasonable share of the market, customers can be very demanding. In such markets, companies are often faced with high costs and low prices, and it is difficult to obtain satisfactory margins. In such markets, companies must constantly fight to stay afloat. If you are considering to start a new business, diversification of activities, buy or invest in an existing business, Porter 's 5 forces analysis is a great tool by which you judge the difficulty of the market in which you compete. On the other hand, if you act on the market, the same analysis will show you the competitive context in which it is located. If you understand the forces which influence the market situation in your industry, you can develop strategies which will help you gain a competitive advantage and increase profits.
Porter 5 forces analysis is to examine the competitive market in five dimensions:
1. Competitive force in the market competition
The intensity of competitive rivalry is the first force in Porter 's 5 forces analysis which analyze “market difficulties”.
Bibliography: 1. Hollensen, S., Global marketing: A decision-oriented approach, 5th edition, Pearson Education Limited, Italy, 2011, ISBN 978-0-273-72622-7. 2. Publishing Market Watch, Sector report 2: Book Publishing, 2004, (access 12.02.2013), < http://ec.europa.eu/information_society/media_taskforce/doc/pmw_20050127.pdf> 3 4. The History of Publishing 2010-2020, published on 04.01.2010, Fiction Matters, (access 12.02.2013), < http://www.fictionmatters.com/2010/01/04/the-history-of-publishing-2010-2020-1> 5 6. Hose C, How much does it cost to start a publishing company?, eHow, (access 12.02.2013), < http://www.ehow.com/info_7959375_much-cost-start-publishing-company.html> 7 8. List of American Publishers, Publishers Global, (access 12.02.2013), < http://www.publishersglobal.com/directory/united-states/publishers-in-united-states> 9 10. Reading on the rice, A new chapter in American Literacy, National Endowment for the Arts, 2009, (access 12.02.2013), < httphttp://www.nea.gov/research/Readingonrise.pdf> 11 12. Wischenbart R, The Global eBook Market: Current Conditions&Future Projections, 2011, (access 12.01.2013), < http://www.publishersweekly.com/binary-data/ARTICLE_ATTACHMENT/file/000/000/522-1.pdf> 13 14. Turning the Page, The Future of eBooks, PWC, (access 12.01.2013), < http://www.pwc.com/en_GX/gx/entertainment-media/pdf/eBooks-Trends-Developments.pdf> 15