Aaron Virgil Woolridge wrote:

Digital Books and Print Books

Buyer Power:

Digital Books – Buyer power is low because there are only so many platforms that you can buy books on. Amazon and Apple are the only two major players in the market. Other companies sell their products on those devices but with both Apple and Amazon taking a 30% cut of each purchase companies are unable to keep prices too low.

Print Books – Buyer Power is high. There are so many places to get print books and used books. People sell them everywhere from garage sales to Barnes and Noble. Also with the demand for eBooks going up the print book isn’t exactly flying off the shelf.

Supplier Power:

Digital Books – Supplier power is low. With only having Apple and Amazon to make your books available that diminishes much of the power the publishers have. As more products hit the market supplier power will grow.

Print Books – Supplier power is low. Much of the book market is used books which the supplier (publisher) never sees a dime from.

Competition:

Digital Books – Competition is very high. While there are only two platforms that dominate the place you read the book there are many different applications that allow you to read digital books. As textbooks become digital that will only enhance the number of applications out there for reading digital books.

Print Books – Competition is low. The business model of only selling print books won’t be around much longer. Most publishers already have a digital solution. With publishers realizing the print book isn’t what consumers are demanding competition will become less.

Alternatives and Substitutions:

Digital Books – Outside of the print book there really isn’t many options. People could supplement Digital books with news articles and websites.

Print Books – Digital Books is the alternative/substitution.

Threat of New Entrants:

Digital Books – I believe the threat of new entrants is very high. More and more publishers and companies will attempt to sell their books digitally. I don’t believe we will see many new products that the books will be read on though.

Print Books – The threat of new entrants is low. The business model of publishers is being forced to shift to eBooks just like the music industry was forced to move to digital music 10 years ago. While I don’t believe the print book will ever diminish completely the number of books sold is only going to drop drastically in the coming years.

I agree with Aaron and the points he made about each of the five forces, I would just like to add that for competition I see the public library as a large competitor to both types of book sales.  I love to read and refuse to buy a new book, I am constantly at the library picking up a book or putting a book on hold.  I also am big on used book stores and sales and find them to be really popular for people who constantly read for fun.

Aaron Virgil Woolridge wrote:

Digital Books and Print Books

Buyer Power:

Digital Books – Buyer power is low because there are only so many platforms that you can buy books on. Amazon and Apple are the only two major players in the market. Other companies sell their products on those devices but with both Apple and Amazon taking a 30% cut of each purchase companies are unable to keep prices too low.

Print Books – Buyer Power is high. There are so many places to get print books and used books. People sell them everywhere from garage sales to Barnes and Noble. Also with the demand for eBooks going up the print book isn’t exactly flying off the shelf.

Supplier Power:

Digital Books – Supplier power is low. With only having Apple and Amazon to make your books available that diminishes much of the power the publishers have. As more products hit the market supplier power will grow.

Print Books – Supplier power is low. Much of the book market is used books which the supplier (publisher) never sees a dime from.

Competition:

Digital Books – Competition is very high. While there are only two platforms that dominate the place you read the book there are many different applications that allow you to read digital books. As textbooks become digital that will only enhance the number of applications out there for reading digital books.

Print Books – Competition is low. The business model of only selling print books won’t be around much longer. Most publishers already have a digital solution. With publishers realizing the print book isn’t what consumers are demanding competition will become less.

Alternatives and Substitutions:

Digital Books – Outside of the print book there really isn’t many options. People could supplement Digital books with news articles and websites.

Print Books – Digital Books is the alternative/substitution.

Threat of New Entrants:

Digital Books – I believe the threat of new entrants is very high. More and more publishers and companies will attempt to sell their books digitally. I don’t believe we will see many new products that the books will be read on though.

Print Books – The threat of new entrants is low. The business model of publishers is being forced to shift to eBooks just like the music industry was forced to move to digital music 10 years ago. While I don’t believe the print book will ever diminish completely the number of books sold is only going to drop drastically in the coming years.

I believe it will take a long time for the popularity of books to decline.  There are lots of people who do not own a computer or other source to read a digital copy.  Plus, as you get older your eye sight sometimes gets the best of you.  So, reading from a digital source is not as easy on the eyes as reading from a book.  Last, you can bring a book anywhere without the threat of power source failure or in most cases to much damage from the environment such as water.  I also believe another threat may be books on CD's.  Lots of people who travel enjoy listening to the book on their journey or commute.