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Business Essay

2793 words - 12 pages

E-Commerce of Online Book Publishing Company

E- Books are such types of books which can be read by digital means without having printed copy. According to the study of Armstrong (2008), e-book can be any text that is readable by electronically without printed form regardless its size and origin or composition. Day by day, the numbers of e-books as well as e- book publishing companies are increasing because of technological advancement, pointed out by Li (2010). However, success of e-book publishing business mostly depends on establishing a successful business model. According to the finding of Vasileiou et al. (2009), establishing e-books related business model is now very complex and ...view middle of the document...

Because, there are various environmental factors included inside and outside of business have significant impact on ongoing business operation. Situation analysis is the first approach of understanding a business environment.
Situation analysis of online book publishing business means collecting information from past and present about political, economical or other environmental factors to evaluate impact on online book publishing business. In this case our product is online book publishing, from where books are available to the website and the interested buyer can buy books with the online payment system. As on Mussinelli (2010), day by day online book publishing company is increasing by number and quality of services as well. Though there are various types of draw backs of online book publishing, according to the research of Wischenbart (2010), the year 2007-08 was very much positive for the online book publishing companies, because of significant advancement on book reading as well as payment system have achieved. In this season, the world largest e- book seller Amazon introduced kindle service to read book online. Situation analysis is also included SWOT analysis as well as PEST analysis.
SWOT analysis means analysis the strength, weakness, opportunity and threat of a particular business. This analysis gives a business, internal as well as external possibility of success in business operation. Though there are some limitations of SWOT it is very popular among the analysts. SWOT analysis of online books publishing company is given below:

Strengths | Weaknesses | Opportunities | Threats |
Strong & nice finishing | Difficulty in reading | Chance to add other features | Piracy problems |
Environment friendly | More expensive | Books can be printed within a notice | Breaking copyrights law |
Make customer more loyal | Problem of amature publishing | Distribution cost is low | Reduce the percentage of sale |
Publication need very short time | Reading from PC may hamper eye | Author can get some earnings | Overpaid by the print publisher |
Ability to arrive everywhere | Depends on internet accessibility and speed | Smart people be happy to Use | Server may be terminated |

Table 1: SWOT analysis of online book publishing company
Another term in addition to SWOT analysis, porter five forces is Useful tool to analyze business environment situation. These five forces evaluate the industry performance and business strategy to measure competitive advantages of a business environment situation whether it is favorable or unfavorable for a new entrance (Porter, 1979). The more powerful of forces indicates the lower profit of a business. These five forces assess the weal points of business and try to build a strong market strategy (Porter, 1979). These five forces are illustrated below:
1. First of all, the bargaining power of buyer is important because if the number of buyer is less compare to seller or switching cost from present...

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