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Xerox Case Analysis Chace Estes,Benjamin Fieman, Greg Holt, Anthony Khors, Jasmine Olikh & Natalie-Rosanna Rebot
Political Transition in 2001 Both administrations placed a high priority on education and encouraged reading by increasing federal funding for libraries
Economic: GDP Economy was strong during most of the Clinton years, but began to decline during his last year and again after 9/11.  Economy was again robust during most of the Bush years, but again began to decline towards the end of his second term.
Social ,[object Object],[object Object]
Technology ,[object Object],[object Object]
Value Chain of Book Industry
Printing Industry Analysis ,[object Object],[object Object]
Printing Industry Analysis
Printing Industry Analysis
Publishing Industry Analysis ,[object Object],[object Object]
Book Publishing Industry Analysis
Size & Profit Margins Industry Size Profit Margin Author N/A 10-15% Printing $20B 6-7% Publishing $23.1B 5% Retailing (Specialty Retailers)‏ $34.9B 3-5%
Book Value Chain (with Wholesaler)‏ Author     Printer     Publisher     Wholesaler     Retailer     Customer Price paid by customer $25 10 to 15% royalty Opportunity cost 5% (60 cents)‏ $23.1 Billion Sales 48% to trade ($12)‏ 20% manufacturing 20% author 30% overhead 25% costs of book returns $20 billion industry $500-$750k capital  + $5k overhead 1 to 2%  Net margin $5 more than purchase price 16% unit share 3 to 5% Net margin $0.6 $5.75 $12 Profit Value Added $3 $2 $0.15 $5.65 $3.15 $0.5 $17 $0.34 $4.66 $1 $7 Lease costs Overhead
Book Value Chain (without Wholesaler)‏ Author     Printer     Publisher     Retailer     Customer Price paid by customer $25 10 to 15% royalty Opportunity cost 5% (60 cents)‏ $23.1 Billion Sales 48% to trade ($12)‏ 20% manufacturing 20% author 30% overhead 25% costs of book returns $20 billion industry $500-$750k capital  + $5k overhead 3 to 5% Net margin $4.6 $5.75 $16 Profit Value Added $3 $2 $0.15 $5.65 $3.15 $0.5 $2 $7 Lease costs Overhead
Question 5 ,[object Object],[object Object],[object Object]
Amazon ,[object Object],[object Object]
Amazon in the Value Chain Authors Printers Publishers Wholesalers Amazon Customers Wholesalers Amazon

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Final Xerox by BACN+2

  • 1. Xerox Case Analysis Chace Estes,Benjamin Fieman, Greg Holt, Anthony Khors, Jasmine Olikh & Natalie-Rosanna Rebot
  • 2. Political Transition in 2001 Both administrations placed a high priority on education and encouraged reading by increasing federal funding for libraries
  • 3. Economic: GDP Economy was strong during most of the Clinton years, but began to decline during his last year and again after 9/11. Economy was again robust during most of the Bush years, but again began to decline towards the end of his second term.
  • 4.
  • 5.
  • 6. Value Chain of Book Industry
  • 7.
  • 10.
  • 12. Size & Profit Margins Industry Size Profit Margin Author N/A 10-15% Printing $20B 6-7% Publishing $23.1B 5% Retailing (Specialty Retailers)‏ $34.9B 3-5%
  • 13. Book Value Chain (with Wholesaler)‏ Author  Printer  Publisher  Wholesaler  Retailer  Customer Price paid by customer $25 10 to 15% royalty Opportunity cost 5% (60 cents)‏ $23.1 Billion Sales 48% to trade ($12)‏ 20% manufacturing 20% author 30% overhead 25% costs of book returns $20 billion industry $500-$750k capital + $5k overhead 1 to 2% Net margin $5 more than purchase price 16% unit share 3 to 5% Net margin $0.6 $5.75 $12 Profit Value Added $3 $2 $0.15 $5.65 $3.15 $0.5 $17 $0.34 $4.66 $1 $7 Lease costs Overhead
  • 14. Book Value Chain (without Wholesaler)‏ Author  Printer  Publisher  Retailer  Customer Price paid by customer $25 10 to 15% royalty Opportunity cost 5% (60 cents)‏ $23.1 Billion Sales 48% to trade ($12)‏ 20% manufacturing 20% author 30% overhead 25% costs of book returns $20 billion industry $500-$750k capital + $5k overhead 3 to 5% Net margin $4.6 $5.75 $16 Profit Value Added $3 $2 $0.15 $5.65 $3.15 $0.5 $2 $7 Lease costs Overhead
  • 15.
  • 16.
  • 17. Amazon in the Value Chain Authors Printers Publishers Wholesalers Amazon Customers Wholesalers Amazon