Environment Model < Industry Forces

Competitors and new entrants:

The landscape of the book publishing industry has changed in recent years. Large publishers are no longer alone. They continue to be important competitors, based on their main advantages which are guaranteed quality of the object and content. However, "new" competitors have emerged with different business models: e-book and self-publishing. The main advantage of these new entrants is the cost structure. While traditional publisher face costs and risk of unsold books, new publishers have an advantageous cost structure obtained by transferring the printing costs and the risk of unsold to the authors. One of the advantages of this new cost structure is that it helps to meet the demand from small and unknown authors.

Stakeholders:

Since the advent of e-books and the development of self-publishing, there has been a change of power among stakeholders. Before, big traditional publishers held much power. Authors were totally dependent on them for the publication of their books. Today, authors do not necessarily need traditional publishers, they have more power. Indeed, even unknown authors can more easily be published.

Choice of books has exploded and readers have become dominant stakeholders, especially since they can express themselves through blogs and social networks such as Facebook and Twitter.

Substitute products and services: The book format may be in danger, but the need that books (or e-books) are satisfying will certainly not disappear.

Suppliers and other value chain actors:

The business of self-publishing is dependent on unknown and small authors. Printers are important suppliers of the book publishing industry because traditional publishers often printing services. IT providers take more and more importance in the book industry because of the new publishers and their need to have a developped and efficient web-platform either to self-publish book or create e-books.

Environment Model - Industry Forces

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