J O S H M I L L E RA D A M O .

AMAZON VS. PUBLISHERS

THE SITUATION

Amazon• Amazon wants to decrease

inventory on hand by using printing on demand.

• In 2005, Amazon acquired on-demand provider, BookSurge and began offering publishers the option of printing-on demand copies when physical volumes of a book sell out.

http://www.youtube.com/watch?v=i6H7nfHjHtY

SUPPLIER / BUYING POWER CONFLICT

• Amazon switches to printing on demand• Buying Power increases:• It allows amazon to

purchase less and print more.

• Publishers - Supply power decreases.• Less power because

amazon has the right’s to print without them.

PUBLISHER RESPONDS

• Publishers:• Investing:• Supply chains• Storing books in

warehouses• Develop transportation

infrastructure to compete.

Question: What are some other ways publishers could respond to amazon’s attempt to control the market?

ESPRESSO BOOK MACHINE

• Manufactured by Xerox – Created in 2003• Created by On Demand

Books• ATM-Like machine to

create hard-to-find books.• http://

www.youtube.com/watch?v=Q946sfGLxm4

QUESTIONS

• Who likes to read from tangible books in comparison to e-text/books?• Do you believe the entire population will

eventually switch over to E-books?• Do you think it is a smart move for publishers to

attempt to compete against amazons distribution capabilities or to simply give in and accept the terms amazon has purposed to them?

SOURCES

• http://www.youtube.com/watch?v=i6H7nfHjHtY• http://

i.cnn.net/money/magazines/fsb/fsb_archive/2006/12/01/8395114/book_atm.03.jpg• http://

images.fastcompany.com/upload/amazonukbig.jpg• http://

www.businessweek.com/printer/articles/22358-amazon-vs-dot-publishers-the-book-battle-continues