One industry with an impact on both undergraduate and MBA students is textbook p

Question

One industry with an impact on both undergraduate and MBA students is textbook publishing. On the one hand, traditional printed textbooks are being challenged by self-publishing firms offering very low prices for specific instructor materials, and on the other hand, a need to offer digital resources that substitute printed materials. Large textbook publishers are increasingly investing in adaptive learning systems such as WileyPLUS, Cengage MindTap, and McGraw-Hill Connect. Complicating factors for the
publishers is the changing business model of renting textbooks (printed and electronic). U.S. university book rental was projected to top 25 percent of student purchasing volume in 2015.49
Use the five forces model (with complements) to think through the various impacts such technology shifts may have on the textbook industry. Include in your response answers to the following questions.

Explanation / Answer

Porter's five force model is a tool that is used to determine the nature of competition within any industry. The five forces that act and influence any organization's growth are

Companies can strategize their market position by thoroughly understanding how these five forces need to be kept in check and by implementing practices within their organization that ensures their growth.

Now let us look at the factors/determinants under each of the five forces.

1. Number/ size of suppliers

Now looking at this frame work, startegy for a company in the Textbook industry can be determined with the factors that are described as in the question.

Competition New entrants Buyers Suppliers Substitutes 1. Number of competitors 1. Time and cost of entry 1. Number/size of order

1. Number/ size of suppliers

1. Performance level of substitute 2. Quality difference 2. specialist knowledge 2. Differences in service levels between competitors 2. Service levels 2. Cost of change 3. switching costs 3. Economies of scale 3. Price sensitivity 3. ability to substitute between suppliers 4. Customer quality 4.Technology protection 4. Ability to substitute 4. Cost of switching

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