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Amazon vs. Publishers

Amazon vs. Publishers . Josh Miller Adam O. . The situation. Amazon. Amazon wants to decrease inventory on hand by using printing on demand.

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Amazon vs. Publishers

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  1. Amazon vs. Publishers Josh Miller Adam O.

  2. The situation Amazon • Amazon wants to decrease inventory on hand by using printing on demand. • In 2005, Amazon acquired on-demand provider, BookSurge and began offering publishers the option of printing-on demand copies when physical volumes of a book sell out. http://www.youtube.com/watch?v=i6H7nfHjHtY

  3. Supplier / buying power conflict • Amazon switches to printing on demand • Buying Power increases: • It allows amazon to purchase less and print more. • Publishers - Supply power decreases. • Less power because amazon has the right’s to print without them.

  4. Publisher Responds • Publishers: • Investing: • Supply chains • Storing books in warehouses • Develop transportation infrastructure to compete. Question: What are some other ways publishers could respond to amazon’s attempt to control the market?

  5. Espresso Book Machine • Manufactured by Xerox – Created in 2003 • Created by On Demand Books • ATM-Like machine to create hard-to-find books. • http://www.youtube.com/watch?v=Q946sfGLxm4

  6. Questions • Who likes to read from tangible books in comparison to e-text/books? • Do you believe the entire population will eventually switch over to E-books? • Do you think it is a smart move for publishers to attempt to compete against amazons distribution capabilities or to simply give in and accept the terms amazon has purposed to them?

  7. Sources • http://www.youtube.com/watch?v=i6H7nfHjHtY • http://i.cnn.net/money/magazines/fsb/fsb_archive/2006/12/01/8395114/book_atm.03.jpg • http://images.fastcompany.com/upload/amazonukbig.jpg • http://www.businessweek.com/printer/articles/22358-amazon-vs-dot-publishers-the-book-battle-continues

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