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The interesting aspect of distribution channels occurs when a retailer, in this case, Amazon, integrates backwards with the intent of attracting suppliers (authors with brand names?) and the expectation of utilizing other outlets (traditional bookstores) for full distribution of its products. In this case, the largest traditional bookstore chain, which also has a significant online business, has decided not to stock Amazon’s products in the hope of discouraging authors from signing publication contracts with Amazon. Effective distribution channels call for vertical cooperation, here among authors and their agents, publishers, and retail outlets. But vertical integration invites conflicts.
These articles also relate to recent developments in book retailing:
Bosman (2012). The bookstore’s last stand. New York Times (January 28). Available 5/5/12 through ProQuest database.
Haq, H. (2012). Barnes & Noble refuses to sell Amazon-published books. Christian Science Monitor (February 1). Accessed 5/5/12 at http://www.csmonitor.com/Books/chapter-and-verse/2012/0201/Barnes-Noble-refuses-to-sell-Amazon-published-books
Turner, K. (2012). Independent retailers [bookstores] turn page on business. Toledo Blade (February 5). Accessed 5/5/12 at http://www.toledoblade.com/Retail/2012/02/05/Independent-retailers-turn-page-on-business.html
Your assignment: Develop a report in terms of the following guidelines. A well written report should have a brief introduction, headings or subheadings, and a brief concluding comment. Note that you should use some keywords as headings or subheadings such as "Facts Recap", instead of a sentence or a question.
Briefly review the facts reported in the article.
Was Amazon wise to get into publishing in addition to its very strong position in retailing new and used books? Explain your answer.
If you were a popular author of children’s fiction (with a successful past relationship with a traditional publisher) and your agent (another member of the book publishing channel) asked you whether to approach Amazon regarding the publication of your latest project, what would you say? Why?
Would it matter if you were working on your first book and had no previous relationship with an editor or publisher? If "yes." why would this make a difference?
In your judgment, do you think that either Amazon or Barnes & Noble are likely to change the strategic decisions reported in this article? Why?
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