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Caroline Abbott Nicolo Beccalossi Raphael Lacava Theresa Holt
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Company Background Pearson is one of the world’s largest book publishers Founded by Samuel Pearson in 1844 The education division was acquired from Simon & Schuster in 1998 Created CourseSmart along with five other higher-education publishers
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Mission Our mission is to preserve the tradition of literature and continue to provide the option to any individual who desires the paper and pen method.
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Vision Our vision is to combine the old with the new. We want to successfully continue providing great literature in the form of books, always having new editions for our customers.
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VRINE MODEL Valuable Rare Inimitable Non-substitutable Exploitable
Books are a valuable resource Students primarily use textbooks Rare Not rare Easily obtainable Inimitable Other Publishing companies McGraw Hill & Macmillan Education Non-substitutable Online textbooks- CourseSmart E-readers Exploitable Books don’t provide the capabilities of e-readers Publishers need to learn how to compete with their new competition
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Verdict Valuable Rare Inimitable Non-Substitutable Exploitable
YES Rare NO Inimitable Non-Substitutable Exploitable Even though books have been a valuable resource for thousands of years, new technology is greatly hurting the publishing industry. Books do not have a competitive advantage over e-readers that are more accessible and provide more capabilities for the consumer.
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The PESTEL Model Political
How is the Government influencing the industry? Economical How is GDP and inflation level affecting the industry? Socio-cultural How is the young demographic changing the industry? Technological How are disruptive technologies changing the industry? Environmental What is the impact of the industry on the local and international market? Legal How is intellectual property protected with the development of new technologies?
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Absolute cost advantage Economies of scale
THREAT OF NEW ENTRANTS Absolute cost advantage Economies of scale SUPPLIER POWER Supplier concentration Little negotiation strength RIVALRY Highly concentrate Industry growth Low diversity of rivals BUYER POWER Small price sensitivity Buyers concentration RIVARLY THREAT OF SUBSTITUTES Necessity of product Large variety of substitutes
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Value Curve
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Profit Pools
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THANK YOU
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