Bookmaster Case Case Study Questions MGMT357 Professor Janet Steinke March 10, 2013 Background The case bookmaster explains how Drew went to bookmaster to buy a book he wanted to enjoy reading. When Drew arrived at the bookstore and explained to the CRA what book he wanted. The CRA informed Drew that the book was instock and that there were actually two copies of the book on the shelf. However, when Drew and the CRA went to the shelf to get the book there were no copies available.
Drew would have to drive to another store that was 15 miles away to get the book. The CRA then suggested to Drew to buy the ebook which was almost $20 cheaper. Drew would have to download the ebook on his computer since the Kindle and iPad’s were too costly for him at the time. Kindle an Ipad both have many restrictions on their work and try to prevent piracy to maximize profits. Case Questions 1. Each player in the above value chain makes money by creating value for the stakeholders. 2. 3.
The ebook has many advantages and disadvantages. the first advantage is the development, marketing, and decreasing costs for eReaders. The second advantage is its easy accessible and can be read on any device if it’s an apple because they are linked together. The third advantage is that marketing the product is easier on line than in a book store. The first disadvantage is that the sale price is lower so the profit margin is relatively the same. The second disadvantage is that piracy is more common and the content is easier to duplicate.
Books are harder to carry around if you have more than a few with you. The third disadvantage is the costs of books are high. 4. The role of operations in the hardcopy value chain is to print books. The role of operations in ebooks is to produce digital content and to store the content. 5. The other issues that are important on critiquing both of these is the future. Where are books headed in the future? It is important to try and forecast whether ebooks or hardcopy books will be a thing of the past.