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Andrew Ascoli Dan Cullina Lea Kunesh Chun-Che Peng Shengbo Xu June 4, 2008
1
Contents
1 Introduction 2 Six Forces Analysis of the E-book Industry 2.1 2.2 2.3 2.4 2.5 2.6 Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rivalry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplier Bargaining Power . . . . . . . . . . . . . . . . . . . . . . . . . . Buyer Bargaining Power . . . . . . . . . . . . . . . . . . . . . . . . . . . Substitutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Complements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 4 5 5 6 6 6 7 8 8 8 8 9 10 11
3 SWOT Analysis 3.1 3.2 3.3 3.4 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Strategy 4.1 4.2 4.3 Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Long Term Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Conclusion
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1
Introduction
While the concept of e-books dates back to at least the 1970’s, the industry has only begun to develop since the late 1990’s and is still in its infant years.[1] As of today, there are only a handful of e-book readers available for consumers. Early entrants include Sony, Jinke Electronics, iRex, and numerous other smaller companies, but none of the companies have yet to establish a solid reputation. In November 2007, Amazon.com entered the e-book reader market with the Kindle. Amazon originally priced the Kindle at $399 and it sold out within hours of its release. The device remained out-of-stock until April 21, 2008.
Andrew Ascoli Dan Cullina Lea Kunesh Chun-Che Peng Shengbo Xu June 4, 2008
1
Contents
1 Introduction 2 Six Forces Analysis of the E-book Industry 2.1 2.2 2.3 2.4 2.5 2.6 Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rivalry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplier Bargaining Power . . . . . . . . . . . . . . . . . . . . . . . . . . Buyer Bargaining Power . . . . . . . . . . . . . . . . . . . . . . . . . . . Substitutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Complements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 4 5 5 6 6 6 7 8 8 8 8 9 10 11
3 SWOT Analysis 3.1 3.2 3.3 3.4 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Strategy 4.1 4.2 4.3 Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Long Term Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Conclusion
2
1
Introduction
While the concept of e-books dates back to at least the 1970’s, the industry has only begun to develop since the late 1990’s and is still in its infant years.[1] As of today, there are only a handful of e-book readers available for consumers. Early entrants include Sony, Jinke Electronics, iRex, and numerous other smaller companies, but none of the companies have yet to establish a solid reputation. In November 2007, Amazon.com entered the e-book reader market with the Kindle. Amazon originally priced the Kindle at $399 and it sold out within hours of its release. The device remained out-of-stock until April 21, 2008.
References: [1] Sam Vaknin. The Second Gutenberg: Interview with Michael Hart. Planet eBook www.planetebook.com/mainpage.asp?webpageid=376, 2002. [2] E-Ink: Electronic Paper Displays. E-Ink Corporation www.eink.com/technology/index.html, 2008. [3] Kindle: 2008. [4] Arianne Cohen. A Publishing Company. New York Magazine Amazon’s New Wireless Reading Device. Amazon.com www.amazon.com/Kindle-Amazons-Wireless-Reading-Device/dp/B000FI73MA, www.nymag.com/news/features/2007/profit/32906/, 2006. [5] Company News; Barnes & Noble Profit Dropped in Third Quarter. NY Times Online www.query.nytimes.com/gst/fullpage.html?res=9E03EFD7153FF935A25752C1A9629C8B63&fta=y, 2004. [6] R. Preston McAfee. Competitive Solutions: The Strategist’s Toolkit. Princeton University Press, Princeton, NJ, 2002. [7] Fortune 2008. [8] S. Levy. Technology: Will Amazon’s Kindle Change the Way We Read? 500 2008: Amazon.com. CNNMoney.com www.money.cnn.com/magazines/fortune/fortune500/2008/snapshots/10810.html, NEWSWEEK-AMERICAN EDITION-, 150(22):56, 2007. [9] Brad Stone. Envisioning the Next Chapter for Electronic Books. NY Times Online www.nytimes.com/2007/09/06/technology/06amazon.html? r=1&oref=slogin, 2006. [10] Daniel Wood. L.A. Times’s Epic Battle to Retain Glory - And Profits. The Christian Science Monitor www.csmonitor.com/2006/1027/p01s03-ussc.html, 2006. [11] Edward Wyatt. Electronic Device Stirs Unease at Book Fair. NY Times Online www.nytimes.com/2008/06/02/books/02bea.html?ref=business, 2008. 12