The needs and demands of the customers are high. They indeed want lots of different functionalities when they read. It is even sometimes contradictory : for example, they like advice from (printed) book retailers that you can obtain in a shop; but they also like books that are small and do not weight a lot, and that can only be achieved with an e-book.
Switching from a printed book to an e-book has a cost. It is especially high for publishers and readers: Publishers have to change their whole production process and readers have to adapt themselves to a totally new way of reading. In addition, readers have to purchase an e-reader, when switching from a printed book to an e-book.
Revenues generated by e-books seem attractive, from each stakeholder's perspective.
Finally, the dematerialization of books is a market issue as e-books become ever more popular. Moreover, the price of books, either printed or digital, is going to be sensitive to the creation of more open sources libraries and free e-books online stores. Piracy of books is now possible with the e-book appearance and will certainly be a problem when dealing with authors rights. E-books growth also questions the information quality of the content, as nowadays anybody can publish anything.
Here is the slideshow explaining in detail the market forces of the environment model applied to the book publishing industry.
Environment Model - Market Forces
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