Introduction
The current prevailing market within publishing industry experiences tremendous revolutions as a result of changing technological trends. Level of production of e-books as well as readers are considered crucial issues causing digital disruption within publishing industry.
This is since such issues induce consumers to change their reading as well as purchasing behaviours. Considerably, same consumers within the industry’s market are served by same pricing practices. Introduction of new technologies have the potential of causing radical alterations within crucial societal sectors.
This is since it leads to industry crisis hence creation of changes within market structure, global scope as well as vertical integration. According to Kotler and Armstrong (2012), potentiality of market can be identified through the kind of people or organizations willing to purchase a given product or service.
There are basically four consequent results believed to impact such new introductions, these include; incremental, modular, architectural as well as radical innovations. At the same time, radical innovations within such companies may result into benefits at the expense of non-beneficial externalities (Henderson and Clark, 1990).
SWOT analysis for the company
Strength
The company have strong economic models, however, restructuring model of publishing books within the company, could lead to complex changes within manufacturing process.
This is since the process requires examination of alternative economic models for the purposes of transferring and remitting intellectual property through medium of the e-book. At the same time there is presence of strong management team within traditional publishing channel.
Weaknesses
Introduction of e-book option within company’s production system requires the use of Customer Relationship Management (CRM). However, the company’s traditional print publishing model provides linear and direct flow of books from author, publisher, wholesaler, bookstore retailer and finally the reader.
This would provide difficulties since in digital publishing model supply chain follows a web model providing different numbers and types of players. Digital Publishing model (DPM) would lead to avoidance of physical costs incurred in the process of print production (Michelle, 2009).
Opportunities
Majority users of the e-services are those between the ages of 15 and 50 years. This category of consumers tends to seek for variety of products, hence calling for improvement in the company’s supply system. However, when it comes to provision of e-books, the variety cannot be overemphasized.
The company should put into consideration three related aspects of consumer behaviour analysis present within the market which include improved motivations of the customer, consumer typologies as well as consumer purchasing process (Kotler & Armstrong, 2012, p. 190).
There is intensive use of internet advertising which utilizes power of electronic commerce for the purposes of selling and marketing products. Electronic commerce which refers to any market on the Internet is most preferable tool to utilize in the process of marketing company’s products.
Manufacturing industry is currently at the international market due to technological and competitive changes within marketplace. This calls for the need to enhance the level of company’s competitiveness within the global environment.
Threats
There is existing tension between e-channels and traditional channels. However, websites should be regarded as best alternative to traditional advertising; since relatively low pricing by internet companies provides main factor that makes consumers opt for e-books.
This has created immense completion amongst the publishing digital companies. According to Fifield, (2007), the type of supply chain that the company chooses determines the nature of product flow and depends on three factors; product variety, product variability and demanded volume.
Emergence of digital process posses’ big challenge within company’s structure since there would be shifting of responsibilities from manual system to digital publishers and vendors.
Utilization of Internet Service Providers (ISPs) will make it easier outpacing of traditional industry players especially in the process of creating new business models.
Internal Innovation
The implementation process requires that the company improvises their assets into cloud environments. The digital technology would demand that the company adopt cloud environment as well as expanding various on-premises IT infrastructure.
Also the process will demand that the company operates website which would serve as a crucial point of interaction enabling easy marketing. This will allow consumers to easily access information on-line.
At the same time, consumers would be able to ask questions which would require quick and efficient responses. Such implementation would demand robust collaboration with online initiatives (Kotler & Armstrong, 2012, p. 230).
Incorporating new technologies would be demanding in such scenario due to lack of centralized digital initiatives. Good example of such problems brought by new initiatives involves lack of coordination between website developers and marketing team which might lead to mixed messages.
However such shortcomings can be solved through creation of individual roles capable of connecting disparate digital strategies as well as unifying projects. The company would benefit much from digital officers who are capable of providing right solutions to arising digital situations.
Since introduction of e-publishing is a new venture, the company would require adequate collaboration between departments. This would call for introduction of digital strategy’s leader.
Mandating compliance to the ultimate results of e-publishing would require an executive capable of developing, deploying and designing of required solutions (Kotler & Armstrong, 2012, p. 230).
As a core product, important features that incorporation of e-books will bring to the company should be related to core benefits or services. As an actual product, the company should strategize on how to eventually offer good quality products that are stylish and are being put up with attractive packaging.
The company should also offer after sales services which include installation of equipment, delivery, credit facility and warranty of all its products. All such services should be disbursed at regional levels to ensure that customer needs are addressed.
Through differentiation, the company is able to target a specific population which takes place through manipulation of features, reliability, performance, presentation, design, size and variety (Kotler & Armstrong, 2012, p. 230).
External Strategy
The major challenge within marketplace for e-books is based on uncertainty which requires the company to utilize forced experimentation from authors and publishers. At the same time, the company would face stiff competition originating from other innovations in the form of disruptive technology.
Indulgence into such new territories involving online channels would require appropriate alignment of strategies capable of allowing flexibility. Expansion of the company’s digital ecosystem would pose the challenge availability of ecommerce hosting platforms capable of facilitating integration.
Additionally, some of the ways through which the company can utilize to increase the net present value of the expected revenues of each customer also known as customer lifetime, include establishing of good relationships, increasing the coverage of after sales services, establishing a channel for collecting feedback and addressing customer issues promptly (Phau & Poon, 2000).
Innovation Planning Process
The first process to be considered when planning for the e-book innovation would involve coming up with a list of new publishing ideas and ensuring that the idea rhymes with the company’s strategic plans. In this stage customer segment needs are given consideration and the concept given priority relative to other concepts.
The strategy will also incorporate product viability adequately analyzed based on financials, nature of technology required and market needs to be met (Kotler, 2006). Consumers will be identified based on the target market and required business systems analyzed.
External survey will be done by application of qualitative means such as use of focus groups and interviews. The survey can well include such aspects as customer needs, size of the market, trends as well as competitor analysis.
This will be followed by high-level financial analysis from reliable bodies for the purposes of determining cost and sales projections of the product. There is also assessment of technology for all the departments within the company (Swink, 2000).
Feasibility of the market, financials and technology will prompt elevation of such innovation. Analysis of production costs provides required basis for planning and financial sources. This is necessary since it assists in allocation of required finances for every product availed in the marketplace (Fifield, 2007).
Strategy within Managerial systems
Managers will be required to thoroughly review product definition, verification of target market and also value proposition. There will be designing of detailed processes as well as appropriate business systems and re-evaluation of financial forecasts.
At the same time management will incorporate integration of business systems, networks and total costs into the business models. At the same time, management will require training on the use of various digital facilities before installation.
The supervisors within the company will undergo training on leadership and management tactics which will enable easy dispensing and selection of duties.
Such applications involving the use of internet applications call for the fact that management team upgrade their knowledge for the purpose of coping with an increased competition within the international market.
Such technology would enable effective management of fluctuations on customer relationships existing within digital industry. However, in some instances, the migration from manual to digital operations would pose considerable technical challenges within customer care, demanding for an appropriate long-lasting solution.
Such technicalities can be countered through incorporation of modern communication technology systems, which are usually internet-based
Diversification of brand and models and at the same time intensification of already existing distribution channels makes establishment easier. Their products have the best market prices as compared to the competitors’ hence profits can be maximized while defending the market share.
Any discrepancies surrounding launching should be sorted out before products are handed over to real product life cycle managers. On the same note each stage within the process should be given specific time frame with standard average time per stage being three to six months before real implementation.
Strategy using Dunker diagram
Conclusion
The publishing company e-books should be tailored for the purposes of meeting the expectations of all kinds of consumers within the market. There is need for the company to combine all latest trends as far as technology is concerned with ease of use and capable of producing most incredible customer-centric results.
One of the major problems the company faces is attaining to modern standards of technology; the adaptation process will be gradual for the purposes of familiarizing with the current market situation. However, the need to recruit professional employees capable of embracing abrupt changes is necessary.
References
Fifield, P 2007, Marketing Strategy: The Difference between Marketing and Markets, (3rd Ed), Heinemann Publishers, London.
Fill, C 2009, Marketing communications: Interactivity, Communications and Content, 5thedition, Prentice Hall, Instanbul.
Kotler, P 2006, Marketing Management-Analysis, Planning, Implementation & Control, Prentice Hall, London.
Kotler, P & Keller, K 2007, Marketing Management, Pearson, Upper Saddle River
Kotler, P & Armstrong, G 2012, Principles of marketing, 14 ed, Prentice Hall, New Jersey.
Michelle, W 2009, Issues in Informing Science and Information Technology. Victoria University, Melbourne.
Phau, I & Poon, M 2000, Factors influencing the types of products and services Purchased over the internet, Internet Research, Vol.2, No. 10, pp.102-113
Swink, M 2000, ‘Technological innovativeness as a moderator of new product design integration and top management support’, Journal of Product Innovation Management, Vol. 3, No.17, p 208