RANDOM HOUSE: SHIFTING TO E BOOKS IN A GLOBALIZED WORLD Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

RANDOM HOUSE: SHIFTING TO E BOOKS IN A GLOBALIZED WORLD CASE SOLUTION

PART 03

Recommendation

Moreover, by becoming a potent force in the e-book market, the company would be able to generate more revenues because it shall lower the overall operational cost. The distribution cost would also be saved once the company looks to focus e-book market.
As per the information provided in the case, by opting to go for the e-book or the digitization of the business efforts, the company shall be able to penetrate further the market. Most of the mergers and acquisitions taken by the company Random House have been with the publishing house.

Once it goes for the digitization, the company shall look to a partnership with small e-book manufacturer that shall help the company compete with bigger rivals or the market leaders in this industry such as Amazon.

The business model of Amazon has been quite committed and dedicated at offering e-books where it ships its products around the globe. If Random House follows the same strategy, it can become a strong competitor in the market because of the company being the market leader. Moreover, it shall also allow the management to diversify itself into non-tangible industry also.
Therefore, based on the information provided, the most feasible option for Random House shall be to enter the e-book market and look to focus on this industry along with the already established market of the publishing industry.

Marketing Paper

SWOT analysis

Strengths:

The major strength of Random House has been its market position. The company has been regarded as the top company in the industry because of the strong brand name. Along with this, the financial stability of the company has also been its strong competitive edge.

Moreover, the most renowned and famous authors have been associated with the company that makes it a strength for the company. Along with this, Random House has been supported by a well-known and an established parent company.
The element of mergers and acquisitions has also been strength for the company. The strong supply chain network and an effective and efficient distribution network has also been a strength for the company. The above mentioned are the major strengths of the company.

Weaknesses:

One of the major weaknesses of Random House has been its limited access to the e-books. The company in spite being financially stable along with strong brand name has been unable to penetrate in the e-book industry. This has been a major weakness for the firm.

Along with this, the slump in the publishing market has been a weakness for the company because it has been one of the major strength previously for the firm that has become obsolete now.

Moreover, the reduction in the profit margins and the market becoming highly competitive is also a major weakness for the firm. Furthermore, the perceived stigma by the readers in the target market has been associated with the reading large print books.

Opportunities:

The major opportunities for the company, Random House in the future, shall be to penetrate in the e-book market. Moreover, another opportunity for the company is to enter the industrialization by entering in the internationalization.
Along with this, there is growing target audience with the highest level of disposable income in the market. Moreover, another opportunity for the company has been the forward integration, and the company can sustain in the market. The potential acquisitions and mergers have been a major opportunity for the company.

Random House Shifting To E Books In A Globalized World Case Solution

Threats:

The major threat to Random House has been the threat of competition and the rivalry with the competitors. Along with this, the online and the digital content has also been a threat for the company.
The limited access to the backward integration for Random House has also been a weakness for the company. The level of competition with limited sales and revenue has been also a weakness for the company.....................

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RANDOM HOUSE: SHIFTING TO E BOOKS IN A GLOBALIZED WORLD Harvard Case Solution & Analysis