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Old 11-13-2012, 12:15 PM   #26
Kali Yuga
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Quote:
Originally Posted by DustyDisks View Post
Large company's compared to small ones are slow to adopt change and are also shackled to their own inertia.
Small publishers have limited funds, zero leverage with Amazon, and few alternatives.

For every Baen who can successfully innovate and avoid mainstream retailers, there are a dozen small publishers who have no choice but to accept terms of sale from Amazon, B&N and Apple with no options to negotiate.

Big publishers did drag their heels for a year or two, but then very quickly realized they had to go digital or they were done for. They did in fact innovate -- by completely redefining their relationship to the retailers, stopping bad policies like windowing, and pushing more and more back catalog into digital.


Quote:
Originally Posted by DustyDisks
It is proven the small company's are more nimble and can adapt to change quicker than any large organization.
Where and by whom?

Smaller companies can also be just as beholden to an existing customer base or business model as a large one, and may not have deep enough pockets or a diverse enough brand to survive a major change in business model. They can also fail long before achieving profitability.

For example, Apple -- which is hardly a small company -- has completely revolutionized their business model, going from selling computers to making half their revenue from the iPhone, and another 20% or so from the iPad. And that's all since 2007 / 2010.

Amazon, Sony and, to a lesser extent, B&N have also moved very rapidly into ebooks. Sony and Amazon put out ebook readers years before anyone thought ebooks were feasible. In fact, those two pretty much created the market in the US; smaller companies, even ones that had good products, never gained any traction. B&N learned its lesson from the transition to online book sales, and very rapidly got into ebooks -- a very expensive move which has grievously harmed their bottom line for years.

CES in 2010 was awash in small companies putting out ebook devices: Alauratek, Plastic Logic, Bookeen, iRiver, Jinke, Hanvon, Interead, Copia, Spring Design, the Blio.... any of these edging out the Kindle, iPad or Nook? Which of these companies proved "more nimble" than Amazon or Apple?

Fusion Garage was a small company that developed the JooJoo, aka "CrunchPad," a small Linux-based tablet computer. It was announced before the iPad, shipped after it, and by late 2011 -- when Apple was on its second version of the iPad -- the company was dead. Is that what you mean by "more nimble?"

Or, the small innovator gets bought out by the behemoth. Picasa, Sketchup, Adsense, Blogger, Youtube -- that's just the tip of Google's M&A Iceberg.

I'm more than happy to be proven wrong -- but by actual proof, not citations of Fast Company truisms.


Quote:
Originally Posted by DustyDisks
one of the reasons that publishing houses get so big is if they are publicly and not privately owned. The shareholders demand profit!
That's a nice theory, but analysts have known for years that mergers usually aren't good for stockholders. E.g. http://money.cnn.com/magazines/fortu...8718/index.htm
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