Originally Posted by Bob Russell
You could say similar things for just about any transformation of an industry, couldn't you?
But the winners are not going to be those that won't transform their business and infrastructure. The winners are those that can adapt and find a revenue model that works. Markets are tough - you have to continually reinvent yourself to survive. That's one of the signs that markets are efficient.
If Mr. Justus doesn't feel that he can find a way to succeed in a digital age, I'm sure someone else will be happy to do it in his place.
I think you've nailed it with this one. We're talking about transformational change to an industry. If you want to survive you transform, period. You figure out how to offset your new costs in the short term by savings in other areas.
He also doesn't seem to realize that although there are start up costs with switching to "e", his other costs related to physical books will decrease as "e" increases. They're will obviously be a delay factor, but it will incur. He also seems to be under the mistaken impression that he will be able to maintain the same business margins as he did previously. This is not always the case when industries transform. Sometimes margins stay the same, sometimes they increase and sometimes they decrease. Good leaders get ahead of the curve.
If anyone owns stock in this company I would suggest selling now! Obviously not a very forward looking and thinking leader.