Running Head: E-Reader Market Analysis
E-Reader Market Analysis
November 11, 2011
The electronic reader (E-reader) is considered a relatively recent phenomena; at least in its modern manifestation in the so called E-readers and “tablets.” As the days of traditional print media as the dominant source of information continue to grind to a screeching halt; we see new frontiers being reached and new battles being fought by organizations recognizing the potential of the new technological age we live in today. Here we will examine the industry, market, and organizations specific to the e-reader. Specifically; we examine consumer demand, barriers to entry, products, promotion and various other strategies in the fight for e-reader supremacy.
The e-reader industry is thriving now; and at the expense of the traditional book publishing industry. People are still reading, but they are using different channels, such as the internet, and tablets like the I-pad are crushing the once mighty print industry. “The book publishing industry has entered a period of long-term decline because of the rising sales of e-book readers. For the traditional book publishing industry, the implications of the rise of the e-book and e-book reader markets are frightening, given the decline in paper book printing, distribution and sales (Kolakowski, 2011).” According to Kolakowski, the future does not seem bright for traditional book publishers. “Physical book sales will decline at a compound annual rate of 5 percent. While e-book sales will rise during that same period, the increase won’t cover the revenue gap created by the decline in the physical book market. By 2014, the research note predicts, e-books will occupy some 13 percent of U.S. book publishing revenue, more than twice its current level (Kolakowski, 2011).” Like vultures swarm over...