1. Xerox Case Analysis Chace Estes,Benjamin Fieman, Greg Holt, Anthony Khors, Jasmine Olikh & Natalie-Rosanna Rebot

2. Political Transition in 2001 Both administrations placed a high priority on education and encouraged reading by increasing federal funding for libraries

3. Economic: GDP Economy was strong during most of the Clinton years, but began to decline during his last year and again after 9/11. Economy was again robust during most of the Bush years, but again began to decline towards the end of his second term.

6. Value Chain of Book Industry

8. Printing Industry Analysis

9. Printing Industry Analysis

11. Book Publishing Industry Analysis

12. Size & Profit Margins Industry Size Profit Margin Author N/A 10-15% Printing $20B 6-7% Publishing $23.1B 5% Retailing (Specialty Retailers)‏ $34.9B 3-5%

13. Book Value Chain (with Wholesaler)‏ Author  Printer  Publisher  Wholesaler  Retailer  Customer Price paid by customer $25 10 to 15% royalty Opportunity cost 5% (60 cents)‏ $23.1 Billion Sales 48% to trade ($12)‏ 20% manufacturing 20% author 30% overhead 25% costs of book returns $20 billion industry $500-$750k capital + $5k overhead 1 to 2% Net margin $5 more than purchase price 16% unit share 3 to 5% Net margin $0.6 $5.75 $12 Profit Value Added $3 $2 $0.15 $5.65 $3.15 $0.5 $17 $0.34 $4.66 $1 $7 Lease costs Overhead

14. Book Value Chain (without Wholesaler)‏ Author  Printer  Publisher  Retailer  Customer Price paid by customer $25 10 to 15% royalty Opportunity cost 5% (60 cents)‏ $23.1 Billion Sales 48% to trade ($12)‏ 20% manufacturing 20% author 30% overhead 25% costs of book returns $20 billion industry $500-$750k capital + $5k overhead 3 to 5% Net margin $4.6 $5.75 $16 Profit Value Added $3 $2 $0.15 $5.65 $3.15 $0.5 $2 $7 Lease costs Overhead

17. Amazon in the Value Chain Authors Printers Publishers Wholesalers Amazon Customers Wholesalers Amazon