The-Soon-To-Be-Death-Of-Paperback-Books-Has-Gener a265

Text-only Preview

The soon-to-be death of paperback books has
generated a wonderful-mess for the book
publishing industry and created a clear Blue
Ocean opportunity.
blue ocean strategy

Well – the Blue Ocean opportunity is clearly there, but who and
what is blue ocean strategy not And book publishing industry executives
are far from happy at the moment Blue Ocean opportunity refers to Blue
Ocean Strategy, the proven system for making the competition irrelevant
by creating new market spaces through simultaneous achievement of
differentiation and low cost Instead of being locked in red oceans of
fierce bloody competition, Blue Ocean Strategy moves to clear,
uncontested waters of highly profitable growth The book publishing
industry, now more than ever, faces its toughest competition to date

The book publishing industry has survived books on tape and books on
phones However, Amazon com's Kindle, which offers the
innovative alternative to paperback books through its 3G Wireless
capability to download electronic books in less than 60 seconds, can hold
up to 1,500 books

not to mention its large selection of over 450,000 books Moreover, the
recent release of Apple's iPad - The iPad's easy-to-use
interface allows consumers to play games, navigate the internet and
download electronic books The ameliorating electronic movement
through technological innovation has created a crowded red ocean of
competition for the book publishing industry Amazon and Apple continue
to take huge bites of profit out of the book publishing industry requiring an
inevitable Blue Ocean Strategy, value-innovation driven, change

"Traditional trade book publishers are scared," says Harvard Business
school professor (and former CEO of Random House) Peter Olson "The
world that they have known, of print books and brick-and-mortar
bookstores – the whole physical distribution system – is on
the cusp of changing fundamentally " Recently, Macmillan, privately-held
international publishing company, battled with leading online retailer
Amazon over e-pricing as the biggest source of friction Amazon briefly
removed the publisher's Kindle editions and print book from its site
after Macmillan indicated it would begin setting higher consumer prices
for e-books than Amazon's standard charge

Amazon eventually renegotiated terms with Macmillan, but the
confrontation reflects publishers' concern that more and more
customers are going to get used to cheap electronic pricing that will
undercut print books Publishers believe that consumers' perception
of things that are digital should be less expensive or free The ongoing
power struggle between publishers and key online retailers like Amazon
remains an open question Odd enough, the focus of publishers and
retailers is primarily on the amount of resources dedicated to the
manufacturing and physical distribution of books

Blue Ocean Strategy focuses on customers and non customers as a
source for value innovation to make the competition irrelevant The
current industry concerns are confrontation versus cooperation with
retailers and e-pricing and royalty rates But, consider the solution from a
different approach – a Blue Ocean Strategy approach The major
publishing companies and online retailers are competing and worrying
about the strategies for competing

For example, publishing companies are pricing their books based not on
what is costs or what people want to pay for it, but based on another
format that is completely different, just because they want to keep the old
format alive Macmillan was able to win the shot-term pricing battle with
Amazon, but couldn't Amazon just retaliate by promoting other
publishers' titles more? The electronic movement has resulted in
the inevitable – disruption happens But, what company in the
book publishing industry is going to create a Blue Ocean of highly
profitable growth and how will they do it? Can the book publishing make
the market more attractive with additional electronic features, packages,
etc? With the central focus of the publishers' and retailers'
debate on price and the adoption of the e-reader it will require the
application of the fundamental aspects of Blue Ocean Strategy –
differentiation and low cost to survive

blue ocean strategy