The Random House Response to the Kindle
Posted: 16 Feb 2012
Date Written: February 7, 2011
In early 2010, e-readers like Amazon's Kindle, and Apple's impending iPad, threatened to disrupt the book publishing industry. The case provides an overview of the industry, describes the broader trends regarding e-readers, and asks: how should major publishers like Random House respond to these trends?
Learning Objective: The case provides an opportunity to examine corporate change among print book publishers amidst trends towards digital platforms. In addition to examining changes within this particular industry, the case is useful to highlight certain general issues involved in any corporate strategic change process, particularly: understanding the impact of external shocks on industry economics; clarifying underlying assumptions regarding trends in technology, customer behavior, and competitor response; and crafting integrated strategic options in response.
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