Introduction to problem of Traditional Books

Nowadays, technological advancement has shaped our reading patterns also. Market analysis indicates that in developing countries e-books sales are more than the sales of traditional books because of the advantages provided by e-books. As a result of the business of this technological and behavioral change of traditional book selling and publishing companies is getting influence in a negative way. E-books came as an innovative form of books and surpassed traditional books. Here comes a question that is the main concerning point of this report.

Can publishers of traditional books (such as textbooks) make profits in the digital age? Moreover, the report will discuss this question in other dimensions also to reach the generalize conclusion. In this report, we will discuss what are the factors that still encourage readers to buy traditional books rather than e-books? How a traditional publisher might attempt opportunities and competition to win the market? What are the challenges to protecting property rights? Addressing these area and key questions report will include a statistical overview of sales and trend of buying e-books and traditional books (Zhang & Kudva, 2014). Moreover, the report will project information about key concepts including switching cost, lock-in, and network effect.

Background of Traditional Books

E-books are new in the market. In the past, hard binding books were quite common in the society, or in fact the only option available to the readers. Somehow, the situation is changed now.               Currently, readers have two options whether to buy a hard traditional book or purchase an e-book (a soft form of books) (Bergström, 2015). According to research studies, customers usually prefer to buy things that give them more benefits and high quality rather than buying things with higher prices as luxury prices. Customers ever preferred need-based products and goods on luxury goods.          

Digital Economy of Traditional Books

Considering the increasing trends and sales several research studies have to find e-books a threat to traditional books. Somehow, traditional books business is not decreased too much. Changes in the present and the past total number of sales are evidence of changes caused by technology (Zhang & Kudva, 2014). In the beginning, eBooks sales were very limited therefore, publishers preferred traditional books but now changing the situation can poses threat and problems for those publishers who are still consisted with the traditional books business.

Other than e-books overall digital economy is also getting advancement and importance with the passage of time (Korwitts, 2019). E-commerce is replaced the market shares and sales of other physical supermarkets and retail stores. Digital economy not only relates to the e-commerce of daily use products, electronic products, clothing, and gardening only in fact it also covers the buy and sells process of e-books. E-books sales have contributed greatly to the digital economy and ensure new trends in the market that will also benefit the digital economy in the future (Zhang & Kudva, 2014). 

                                                   

As the e-book reading market is growing fast, new e-book publisher and seller companies are getting entrance in the market. As mentioned earlier readers prefer e-books because of ease of and quick availability. The key reason behind this ease is the availability of many platform and e-book seller publishers (Korwitts, 2019). There are a number of publishers currently promoting and selling e-books. Some of these top sellers are presented below in the graph. The graph presents that Amazon Kindle and Ipad are highly used by e-book readers.

Thus concluding the whole market situation analysis, we can say that the current market of e-books and print books are fluctuating continuously. E-books are new in the market, but still, traditional market profitability is not going to face loss in business operations (Zhang & Kudva, 2014). Advantages and Disadvantages of Traditional Books

Traditional books and e-books have several types of advantages and disadvantages for readers that can influence the sales and adoption trend in the market. Advantages e-book is threats for traditional books as an increase in the advantages of e-books will encourage the selected audience to buy e-books rather than wasting their money on the purchase of traditional books. When both contain the same content then why not to prefer low prices (Zhang & Kudva, 2014). Basically, e-book prices are kept low to attract readers. In other words, we can say that e-books publishers are following low-cost market leadership pricing strategy. Somehow, the advantages and disadvantages of e-books and traditional books are not limited to prices only (Zhang & Kudva, 2014). In fact, there are many other advantages and disadvantages that make the purchase of e-books and traditional books a wise decision. See the presented below enlisted and described the advantages and disadvantages of e-books and traditional books.      

Advantages and Disadvantages of Traditional Books  

Advantages	Disadvantages
Tangible and easy to carry	Inconvenience
No batteries needed	Space consuming
No need for any extra reading device	Hard to carry around

In light of the table mentioned above, we can say that traditional books are the best and preferable option for readers as these are tangible that one can easily carry. Classic books don't depend upon batteries. Readers can enjoy reading anytime without any fear of battery-related issues. Moreover, traditional books also don't require extra reading devices or electronic devices to assist in reading (Schwab, 2017). Somehow, classic books have some key disadvantages that can influence sales and market of traditional books. The principal disadvantages are inconvenience and space consumption. Traditional hard books require space on bookshelves. You cannot buy hundreds of books and cannot store all these on your bookshelves as hard books will require space.       

Advantages and Disadvantages of e-Books  

Advantages	Disadvantages
Speed	Difficulty in reading
Easy to Access	Battery life
Fonts adjustment options	Cannot borrow
Cheaper
No limit for storage

Key advantages of e-books are related to its prices, storage, and ease of use. E-books are available at cheap rates. Readers can easily download and purchase an e-book from e-commerce platforms such as Amazon, and e-libraries. E-books do not require physical spaces at book shelves. Readers can easily store hundreds of books in online and offline database storages.

Moreover, a unique feature that takes e-books at an advanced level and develops competitive edge is that readers can also access their e-books from any other locations. For instance, if the e-book is stored in the personal computer at readers home even then the reader can access it while sitting in his/her office. Traditional books cannot provide this kind of advantages. Somehow, we cannot distinguish e-books as the best option because e-books have some disadvantages also. For instance, readers cannot use e-books if they don't have an e-reader. Battery low is also a problem that can make readers unable to read these books.     

Key Concepts of Traditional Books

Switching Cost of Traditional Books

Switching cost is an economic term that represents the cost incurred by an individual or a group of customers while switching from one product or service to the product or service. Supplier changes their product line to the products that have a good reputation and high chances of sales. If we implement this concept in e-books business, it will help us know that suppliers are highly concerned about hard or traditional books rather than e-books. Maybe a significant factor behind this has differed in the marginal cost and net profit generated by the operations. Somehow, if we talk about the price, we can say that the minimal costs of digital and electronic books (e-books) are almost 0. The critical factor behind this 0 marginal cost is that digital information is relatively expensive to create for the publishers somehow low-cost availability and distribution generate the distinction between e-books and traditional books marginal cost.

Moreover other than suppliers readers are also highly concerned with this concept. Readers also do not switch to a new book type if they are engaged with this type of books. In such a situation, we can say that the switching cost is high. The cost is because of customers substantial equity towards the product. If customers are once engaged with the traditional book, then it will be a hard job to switch these customers or readers to the new form as eBooks. In case we insist on switching them to a new product then it will require high costs. Readers are familiar and habitual of reading traditional style books without using any devices. Therefore, when e-books require them to learn the use of new devices to read e-books, they will definitely find it difficult. Thus concluding the whole discussion, we can say that switching cost is high for both customers and suppliers.         

Network Externalities

Research studies concluded that Social network and peer group could influence perception and buying decision. Readers as a customer also get influence from their network and peer group while deciding on buying an e-book or traditional book. The network can have both types of impact positive and negative as it all depends upon the system of readers. For instance, students are encouraged by their teachers to read traditional books will prefer to buy a conventional book even e-books provide them with attractive discount offers. Network externalities and an increase in the total number of readers in a network has a positive impact on overall profitability. Term network externalities represent the change in the surplus and benefit derived by the agents.   According to the research network externalities emphasis that Somehow artificially created, network externalities can also benefit a business group. As an example, we can say that if publishers of traditional books artificially create network externalities, then it can cause to increase their business.

Lock in  Traditional Books

Lock in is like bounding customers with the offered products. Companies usually try to lock in their customers to avoid customer churn. Customers interests in substitutes and available alternative options can work as a threat to a business. Therefore publisher also ever try to engage their customer at maximum with their products such as a traditional book. Customers lock-in is also possible through secure positioning and continuous promotion of products. Lock in benefit publishers as because of this readers usually assume switching to a new product relatively tricky job.    

Bundling Traditional Books

As discussed earlier in this report publishers has marginal cost meagre because of the high prices required to be spent on books selling and publishing process. In such a situation, they are paying emphasis on the increase of their books in such a way that reduces their total cost or increase their profit margin. The best strategies in such a situation are to get leverage from fixed cost reduction and to offer their books in bundles. For instance, introducing a package for 1st-year students to buy all books in the solid form (traditional books) and get a discount. Bulk sales will increase the profit margin. Therefore, publishers will easily afford discounted prices.

Solution of Traditional Books

Bundling was the best solution to the problems faced by traditional publishers. Somehow another essential solution available to publishers is to increase their sales through involving social media platforms for the promotion. Social media platform provide an opportunity for the businessman to communicate and interact with their targeted customers. Other than using marketing strategies traditional books publishers can also compete e-books through changing their pricing strategies and targeted markets.

Challenges to face Traditional Books

Key challenges available to print and traditional books publishers are related to ignorance, risk, uncertainties patents, and copyrights. Many times traditional publishers publish a book and another book publish copy their content because of the inefficient copyright system. Copyrights can prevent such risk factor and protect the publishers from data breaches and copies without permission. Patents and legal documents also support traditional and e-book publishers to avoid negative consequences. Ignorance is also a significant challenge. Customers or reader are also not well aware of the possible benefits that they can earn by using offered products.   There are many challenges related to copyright in the digital age. It is important not to include other writer’s work without its consent in the books. The copy writes laws however can help such writers who think there work have been stolen or used without their permission.

Findings of Traditional Books

Research findings project the importance of traditional books and e-books. According to research studies, both types of books have different kinds of advantages and disadvantages. How publishers can get maximum benefit and how customers can get maximum benefits is a concerning question. Somehow it all depends upon the right selection of books (Lavergne, 2017)

Moreover, the market situation also indicated that print books and traditional books market is at a declining trend because of advancement in technology. Therefore, areas in which technology and the internet are not advanced, classic books business is still growing. While on the other hand, countries have developed techniques and a large number of internet users has a declining trend for traditional books and the growing trend for electronic publications (Zhang & Kudva, 2014).    

The presented below graph present statistical results of printed and e-books in the year 2014 and 2018 to show the difference in the worth of print and electronic books. By this graph, we can say that in 2014 the print books market was leading as electronic books and e-readers were not quite common in the world (Bergström, 2015). Somehow, changes in technological factors and easy availability of internet in the selected markets of the United States has made it possible for the e-books to lead the market of books and surpass the print books. While the situation in other countries is relatively different. Still, there are many countries in this world in which e-books market is not proliferating (Statista.com, 2014).

                                      

Source: https://www.statista.com/chart/2823/book-market-development-forecast/

The following graph presents the demographic details of e-book readers in the United States. The statistics of 2018, indicate that 34% of e-book readers are between the ages of 18-29. Readers of this age usually read e-books such as novels, story books, and academic books (Statista.com, 2018).

A more detailed analysis of printed book and e-book statistics is presented below in the bar chart. By the given below results, we can say that readers usually prefer e-books because of ease of availability (Zhang & Kudva, 2014). 

Moreover, research findings also concluded that publishers of traditional books (such as textbooks) make profits in the digital age also as all market shares of books are not covered by the online books and e-books still they have high customer demand as an opportunity to grow.

Conclusion on Traditional Books

The whole discussion concludes that traditional and e-book publisher has fierce competition in the market that encouraged them to bring efficiencies and changes in their strategies to remain sustainable in the market. Traditional books publisher are facing a decline in popular books demand, but still, their business is in a practical situation as it has enough business to generate operating income. Legal rights and copyright protections challenges can influence the activity of publishers if not appropriately managed.     

References of Traditional Books

Bergström, A., 2015. E-books in the shadow of print. [Online]
Available at: https://projectebooks.wordpress.com/2015/05/18/e-books-in-the-shadow-of-print/

Korwitts, K., 2019. Print books vs E-books: What’s the future of reading?. [Online]
Available at: https://www.surveymonkey.com/curiosity/print-books-vs-e-books-whats-the-future-of-reading/

Lavergne, C., 2017. Book publishing in the digital age. [Online]
Available at: https://techcrunch.com/2017/04/10/book-publishing-in-the-digital-age/?guccounter=1&guce_referrer_us=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_cs=uuZl8rVEH7DqIKtwKzNFFw

Schwab, P.-N., 2017. Amazon’s new business move will lock customers further. [Online]
Available at: https://www.intotheminds.com/blog/en/amazons-new-business-move-will-lock-customers-further/

Statista.com, 2014. E-Books Set to Surpass Print in the U.S. [Online]
Available at: https://www.statista.com/chart/2823/book-market-development-forecast/

statista.com, 2017. E-books: unit sales in the U.S. in 2017. [Online]
Available at: https://www.statista.com/statistics/191992/sales-of-e-books-in-the-us-since-2006/

Statista.com, 2018. E-book readers in the U.S. 2018, by age. [Online]
Available at: https://www.statista.com/statistics/249767/e-book-readers-in-the-us-by-age/

Zhang, Y. & Kudva, S., 2014. E-books Versus Print Books: Readers’ Choices and Preferences Across Contexts. JOURNAL OF THE ASSOCIATION FOR INFORMATION SCIENCE AND TECHNOLOGY, 65(8), pp. 1695-1706.