From Publishing books to publishing portfolio; lessons from Amazon

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Pubishers of books are in transition to market and customerdriven portfolio development with marketing as an effective means to help them. Amazon is both a threat and an opportunity to learn what matters most. Proven tools and new ones are briefly introduced to get a better picture of the steps to be taken to get to a new publishing portfolio.

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  • I know what you could have been afraid of…
  • From Publishing books to publishing portfolio; lessons from Amazon

    1. 1. Getting from Publishing Books to a Portfolio; Lessons from Hermann Buss GEA Consultancy bv
    2. 2. 219 september 2013 Bookpublishers feel being attacked
    3. 3. 319 september 2013 The market moves constantly
    4. 4. 419 september 2013 Cowboys seem to take over
    5. 5. 519 september 2013 What used to work doesn’t anymore
    6. 6. 619 september 2013 Publishing is in Transition
    7. 7. 719 september 2013 TRANSITION to what...?
    8. 8. 819 september 2013 Mi What could you do
    9. 9. 919 september 2013 Look at Developments 1
    10. 10. 1019 september 2013 Mi Is there something to learn from online players like....
    11. 11. 1119 september 2013
    12. 12. 1219 september 2013 Amazon is a giant... Started in 1994 in Seattle, USA 91.300 employees (april 2013) Turnover $ 91miljard growth 29% p.j. range of products (in ca. 16 categories) Worlwide logistics network Marketleader online sales !
    13. 13. 1319 september 2013 MAAR MET EEN VISIE BUT WITH a VISION
    14. 14. 1419 september 2013 Jeff Bezos wanted to combine old economy with a concept without being bothered by fysical retail: the internet
    15. 15. 1519 september 2013 HOW?
    16. 16. 1619 september 2013 1. Large Selection Digital gives endless choice and inventory
    17. 17. 1719 september 2013 2. Ease of Use Digital boosts customerfriendly solutions
    18. 18. 1819 september 2013 3. Lowest Price Digital allows high margin and lowest prices
    19. 19. 1919 september 2013 1. Large Selection 2. Ease of Use 3. Lowest Price It yields an Effective Strategy
    20. 20. 2019 september 2013 MAAR MET EEN VISIE COMPETITION The Digital Engine is the perfect way to gain advantage over the competition
    21. 21. 2119 september 2013 MAAR MET EEN VISIE INNOVATION Amazon uses 6% of its turnover for Research&Development;; Dutch Bookpublishers do less than 0,5%
    22. 22. 2219 september 2013 MAAR MET EEN VISIE VALUE CREATION New Competitors in Publishing build up REACH first; Relevant Content Comes in Later.
    23. 23. 2319 september 2013 MAAR MET EEN VISIE Value Creation Amazon accelarates its Reach by Smart Cooperations and Acquisitions
    24. 24. 2419 september 2013 ACQUISITIONS SINCE 1998..... 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Little A
    25. 25. 2519 september 2013 ...WITH A PURPOSE 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 datamining online boekretailer online boekretailer reminder service used boeken online financial. transactions online webanalyses rare boeken social community boeken gebruikte boeken Little A
    26. 26. 2619 september 2013 ...WITH A PURPOSE 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 social community boeken Little A Online Reach & Technology
    27. 27. 2719 september 2013 ...WITH A PURPOSE 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Online Reach & Technology selfpublishing platform e-books mobile print on on demand social community books Audio books social community books used books search environment author fansite social community books Little A Audio books
    28. 28. 2819 september 2013 ...WITH A PURPOSE 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Online Reach & Technology social community boeken Little A Self Publishing
    29. 29. 2919 september 2013 ...WITH A PURPOSE 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Online Reach & Technology Self Publishing succesful out of print & selfpublishers translations in Englishs Romance thrillers, mysteries scifi, horro, fantasy romance, Mysteries Distribution Agreement liteary fiction, memoires comics Children’s books and Young adults
    30. 30. 3019 september 2013 ...WITH A PURPOSE 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Online Reach & Technology Self Publishing PUBLISHER
    31. 31. 3119 september 2013 ...WITH A PURPOSE 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Online bereik Technologie Self Publishing PUBLISHER
    32. 32. 3219 september 2013 MAAR MET EEN VISIE LESSONS There are three things we can learn from Amazon
    33. 33. 3319 september 2013 1. Aim for getting Reach
    34. 34. 3419 september 2013 - FOCUS on a number of markets and genres and realise therein the biggest and deepest offer (catching up Amazon in all its breadth is out of your reach anayway) - LEARN to know all your customers in these markets an realiase relevant Reach with them. - MAKE as much as possible interesting products for them (do it together in cooperation with others or via takeovers)
    35. 35. 3519 september 2013 2. Realise ease of use for your customer in everything you do
    36. 36. 3619 september 2013 - One click away design - Ease of ordering - Ease of searching - Ease of marketing - A low price, not necessarily the lowest - Serve customers with products the customer perceives as helpful
    37. 37. 3719 september 2013 - plan nieuwe dingen - maak ze af en test ze snel - stop er mee als het niets blijkt te zijn - investeer iets minder en ga partnerships aan met partijen die andere competenties hebben dan jij. 3. Innovate and Invest
    38. 38. 3819 september 2013 - Plan new things - Finish them and test them fast - Stop if it doesn’t work, kill our babies - Invest in partnerships with parties that have competencies you don’t have.
    39. 39. 3919 september 2013 What’s happening between Publishers and New Entrants high low low highCRITICAL MASS/REACH RELEVANCE needed position ! route via content: publishers in transition from print to digital/online/hybrid route via media-equipment, network or distribution channel: e.g. Apple, Google, Amazon
    40. 40. 4019 september 2013 Wie neemt welke rol en positie tegen welke prijs? high low low highCRITICAL MASS/REACH RELEVANCE Added Value from content Added Value from media and channel needed position ! What’s happening between Publishers and New Entrants
    41. 41. 4119 september 2013 Get big, get niche or get out! high low low highCRITICAL MASS/REACH RELEVANCE needed position ! nr. 1 and 2 players small niche players selfpublishers specialist publishers, science publishers new entrants nr. 3, 4 and 5 players
    42. 42. 4219 september 2013 Look at Those Who Use Your Products 2
    43. 43. 4319 september 2013 Who Are My Customers
    44. 44. 4419 september 2013 What do they consider important
    45. 45. 4519 september 2013 Make a distinction between products for Endusers and other Actors An Actor doesn’t use the publishing product but is part of your businessmodel e.g. Authors, advertisers, distributors etc. An Enduser actually USES your publishing product
    46. 46. 4619 september 2013 Get to Know your Customers by gathering Data about them
    47. 47. 4719 september 2013 Look what their (hidden) motives may look like Empathy map by Xplane.com
    48. 48. 4819 september 2013 SEGMENT AND PROFILE
    49. 49. 4919 september 2013 1. Example of an Internetsegmentation
    50. 50. 5019 september 2013 Demographic
    51. 51. 5119 september 2013 Psycho Graphic, Benefits, etc.
    52. 52. 5219 september 2013 Persona marketing strategy product strategy innovations
    53. 53. 5319 september 2013 2. Example Dutch Public Media
    54. 54. 5419 september 2013 3. Example Dutch Mentality Milieus Source: Motivaction
    55. 55. 5519 september 2013 4. Example Australia Ref: ‘Books Alive, Reader Research’, prepared by Starcom for Australia Council for the Arts, 2008.
    56. 56. 5619 september 2013 You get to know your Customer and Her/His Problems/Needs/ Benefits
    57. 57. 5719 september 2013 Look at the Portfolio You Offer Them... 3
    58. 58. 5819 september 2013 Analyse your portfolio and your competition with the GE matrix
    59. 59. 5919 september 2013 Selfpositioning publisher GE-matrix high low high lowRELATIVE COMPETITIVE POSITION MARKETATTRACTIVENESS
    60. 60. 6019 september 2013 Used Criteria - market volume - yearly growth of the market - average profit margin - added value to primary process - possibility to innovate and differentiate - market cyclicity - intensity and diversity of competition - impact on customer environment - influence of political environment. -marketshare -growth marketshare -image/reputation -market knowledge -commercial power -product costprice -efficiency production -logistical performance -product quality -technological knowhow. . MARKET ATTRACTIVENESS RELATIVE COMPETITIVE POSITION
    61. 61. 6119 september 2013 EXAMPLE
    62. 62. 6219 september 2013 Resulting Basic Strategies GE-matrix FTE Middelen 5% 15% Voorschotten, royalties etc. 50% 35% product ontwikkeling 20% 25% promotie 20% 20% sales 5% 5% klantrelatie high low high lowRELATIVE COMPETITIVE POISTION MARKETATTRACTIVENESS Selectief / managen op inkomsten - bescherm bestaande programma - concentreer investeringen in segmenten waar winstgevendheid goed is en de risico’s relatief beperkt zijn Manage op inkomsten - bescherm positie in meest aantrekkelijke segmenten - waardeer productenlijn op - minimaliseer investeringen Terugtrekken - verkoop op tijdstip waarop de waarde maximaal is - snij in vaste kosten - niet meer investeren Vasthouden positie - investeer in maximaal haalbare groei - concentreer inspanning op handhaven sterkten Selectief uitbouwen - specialiseer rondom de (beperkte) sterkten - zoek naar wegen op zwakten te compenseren en om te buigen - terugtrekken als er geen indicaties zijn voor aanzienlijke groei Selectief uitbouwen - investeer zwaar in meest aantrekkelijke segmenten - bouw vaardigheden op om de concurrentie aan te kunnen - benadruk rentabiliteit door kostenreductie en productiviteit Beperkte expansie of oogsten - zoek naar mogelijkheden (met beperkte middelen) voor expansie - of: minimaliseer investeringen en rationaliseer operatie Bescherm en heroriënteer - manage gericht op huidige inkomsten - concentreer op meest aantrekkelijke segmenten - verdedig sterkten Investeer om uit te bouwen - ga voor marktleiderschap - bouw selectief op sterkten - verstevig kwetsbare gebieden aantrekkelijkheid new initiatives
    63. 63. 6319 september 2013 Make Strategic Choices for Investment and Innovation by using the GE matrix
    64. 64. 6419 september 2013 Analyse the RISK of running away of your Authors during Transition
    65. 65. 6519 september 2013 Authorimage, Turnover and Risk of running away have impact Authorimage Riskofrunningaway 0 0 5 0,2 0,4 0,6 0,8 1,0 1 2 3 4 Authorimage Riskofrunningaway 0 0 5 0,2 0,4 0,6 0,8 1,0 1 2 3 4 DANGERLet Go Not important Question Mark
    66. 66. 6619 september 2013 Use other ways to determine interesting innovations for your product portfolio
    67. 67. 6719 september 2013 Place your products and development in another context... PublishingPortfolioTM Question Problem Need
    68. 68. 6819 september 2013 PublishingPortfolioTM Place your products and development in another context...
    69. 69. 6919 september 2013 ..it delivers new insights..
    70. 70. 7019 september 2013 Product Connect BELEVINGKENNISVER STROOIING -Offline - -Online -Offline Boeken, ebooks - -Online Boekenapps Social Transact •leesclub •community •leestweets in app bestel mogelijkheid -Event -Crime-beurs -Game, video’s -Films ..or unexplored places..
    71. 71. 7119 september 2013
    72. 72. 7219 september 2013 Make the Unthinkable Thinkable 4
    73. 73. 7319 september 2013 MAAR MET EEN VISIE CONSIDER: what would I do if I would invest 6% of my turnover in innovations ?
    74. 74. 7419 september 2013 Do I have... Competencies Capacity Processes ...
    75. 75. 7519 september 2013 MAAR MET EEN VISIE ALSO CONSIDER: what would I do if Amazon would enter my publishing area ?
    76. 76. 7619 september 2013 Of als deze jongens hetzelfde doen?
    77. 77. 7719 september 2013 ...Het begint er al op te lijken... Online bereik Technologie Self Publishing UITGEVER
    78. 78. 7819 september 2013 1. Grote Selectie 2. Gemak 3. Lage Prijzen They Look For This
    79. 79. 7919 september 2013 Be Wiser and Smarter
    80. 80. 8019 september 2013 MAAR MET EEN VISIE 1Look at Developments 2 3 4 Look at Those that Use Your Products Look at the Portfolio You Offer Them Make the Unthinkable Thinkable
    81. 81. 8119 september 2013 Thank You! Sources - Rosales et al.,Amazon business models, Heriot Watt University, Oct 2010 - Guy Kawasaki, APE, Author Publisher Entrepreneur, Nov. 2012 - Stéphane Distinguin, Amazon.com: the Hidden Empire, faberNovel, May 2011. - McKinsey&Co, Amazon’s secret sauce, CMSOForum, Oct 2012 - Bill Slawski, Amazon Acquisitions and Investments, SEObythesea.com, Jul 2009 - Wikipedia.org - Illustrations: Microsoft Office Online; Slideshare h.buss@gea.nl M: +31(0)6 53 841 935 This is a translated presentation held in Dutch for the NUV (Dutch Publishers Association 19/9/2013) Inspiration -Andre Knol, GEA -Guy Kawasaki -Alexander Osterwalder

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