Random house Assignment Example | Topics and Well Written Essays - 500 words

Random house - Assignment Example On their part, publishers can exercise their bargaining powers by becoming the largest players in the industry through, for example, mergers and acquisitions (Bickert et al 4). Competitive rivalry is manifested by the presence of numerous publishers offering diverse products. Consolidation in book publishing affords a publisher more presence in both local and international markets, enabling them to reach a wider and more diverse market. For example, following consolidation with a publisher that focuses on a particular language or of area of interest, the parent company will be able to bring the market targeted by its new merger or acquisition into its profitable operations (Bickert et al 5). Based on the operations, for example, of a publisher that targets a Spanish-speaking market, the benefits can be considerably large, since the Spanish-speaking market is wide-spread. Another example of a large benefit would be consolidation with a publisher that targets the Chinese market, where 51 percent of citizens in China live in cities with stable consumption of education in the form of published books. Random House’s five elements of strategy included digitalization; internationalization; mergers and acquisitions; strengthening of the core business; and responding to the shifting consumption of media (Bickert et al 5). Digitalization would ensure that they conform to the emerging trend of online reading and, hence remain relevant in the industry. Internationalization was meant to reach a wider, global market while mergers and acquisitions would facilitate the internationalization strategy. Strengthening of the core business meant that the existing assets for example the 20-meter high warehouse, would continue being in use while responding to shifting media use meant the publisher would serve emerging markets as well. The main benefits Random House draws from being part of a corporate parent like Bertelsmann is that it operates