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Business, 06.06.2020 21:05 bettybales1986

One industry with an impact on both undergraduate and MBA students is textbook publishing. Traditional printed textbooks are being challenged on one hand by self-publishing firms offering very low prices for specific instructor materials, and on the other hand by a need to offer digital resources that substitute for 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 about 25 percent of student purchasing volume in 2015.50 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. a. Identify the threat of new entrants. Choose one of the concepts (Economies of scale, Network effects, Customer switching costs, Capital requirements, Advantages independent of size, Government policy, Credible threat of retaliation) to discuss the intensity of threat of new entrants. And discuss whether the intensity of threat of new entrants is high or low.

b. Identify the power of supplies. Discuss whether the power of supplies is high or low (1-e) Identify the power of buyers. Discuss whether the power of buyer is high or low (1-g) Identify the threat of substitutes.

c. Discuss whether the threat of substitutes is high or low

d. Identify the rivalry among competitors. Choose one of the concepts (Competitive industry structure, Industry growth, Strategic commitments, Exit barriers) to discuss the intensity of rivalry among competitors. And discuss whether the intensity of rivalry among competitors is high or low.

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