Is Your Business Being Turned Upside Down?
The publishing world is about to get its business model turned upside down. A recent Wall Street Journal article outlined many of the trends seriously impacting publishers. Two related trends are expected to grow exponentially over the next few years: 1) growth of e-book sales; and 2) writers deciding to self-publish as opposed to working through a publisher. Both of these trends continue to minimize the need for the classic book publisher role.
My book was published in 2006 and about a couple of years later it could be purchased on Amazon's Kindle for half the price. The Kindle carved out a leadership position in the e-reader market with "Me-too's" right behind it - a new Apple iPad, along with 35+ other e-readers available for purchase. Granted e-readers are currently only 5% to 10% of the market, but "could reach as high as 20% to 25% of the total book market by 2012," says the article. What a hit to bookstores!
Like many industries that have seen technological advancements change their marketplace, publishers and book sellers will likely be shocked at how fast these changes will impact them. In the next few years, we're likely to see major firms in the industry go out of business or quickly contract (such as Blockbuster is doing now).
What's surprising about this isn't that the publishing industry is in chaos, it's how common this is in all industries. Do you remember when someone had to show you how to open an AOL account so you could access the internet? It wasn't that long ago, and AOL today is staring at a future in which it may not exist.
New approaches and business models are constantly needed. Companies that focus their efforts on adapting, growing, and changing are creating competitive advantages. But this ability to change and grow comes first from a clear vision of customers and changing trends. However, internal myopia often gets in the way.
Do you see technological advancements cutting into your business model?
Add comment June 28 2010 Jaynie L. Smith
