Marks dinkra Books Discussion Homework

tion B – Answer Question 1 and anv other one ( 60 Marks) iestion 1 (Case Study) – 40 Marks dinkra Books is one of the leading bookstores in Ghana. It has been previously known as a big Ally in the bookstore industry that drove small independent bookstores out of business with its ggressive pricing tactics and an unbeatable inventory of books. Today, Adinkra Books finds its ole reversed as it fights a fierce battle to survive in the inevitable era of e-books. Booksellers aave been one of the many industries disrupted by the Internet and, more specifically, the rise of e-books and e-readers. Adinkra Books hopes to change its business model to adapt to this new environment before it suffers a similar fate as many of its competitors, who failed to move along with the changes that technology has brought. In the current digital age, consumers enjoy reading books on electronic gadgets – e-readers, iPods, tablets, and PCs – instead of physical books. Although Adinkra Books still depends on its physical, brick-and-mortar stores to drive its business, the company has thrown its energies behind the development and marketing of tablets and an e-reader series called Xoon. Reaction to the Xoon series has been phenomenal, as Adinkra Books has grabbed a significant market share from Amazon and Apple in the e-book marketplace. In 2011, analysts estimated that Adinkra Books controlled approximately 27 percent of the digital book market. Adinkra Books’ progress with e-books has, however, come at a steep cost. The company incurred a loss of GHC 73.9 million in 2017, compared to a GHC 36.7 million profit the previous year. The investment required to launch and promote the Xoon was the primary reason for the shortfall, and expenditures are expected to continue to climb. In response. Adinkra Books canceled its stock dividend. The key questions for Adinkra Books are whether the Xoon will eventually bring in revenues that justify its steep development and marketing costs, as well as whether the Xoon can help drive traffic to Adinkra Books’ brick-and-mortar stores.

The economics of e-book sales are very different from traditional book sales. Customers who visit Adinkra Books’ website buy three digital books for every one physical book, but booksellers still make more money on print books than e-books. Still. Adinkra’s Xoon business has been growing rapidly, and traditional bookstores are not. Total e-book sales were nearly GHC 970 million in 2018. more than double from the previous year, and the percentage of e-books within the total number of books sold is still on the rise, measuring 14 percent that same year. For Adinkra Books, because the Xoon series was booming and the brick and- mortar stores had been stagnating, the company has been considering spinning off its digital business from its fading bookstore business. In 2020. Microsoft announced that it would invest GHC 300 million it a 17.6 percent stake in a new company consisting of Adinkra Books’ Xoon tablet and etader business. As part of the deal, the Xoon application would be included in Microsoft’s Vindows 8 operating system. This arrangement will provide Adinkra Books with additional oints of distribution from hundreds of millions of Windows users around the world, and both companies will share revenues from sales of e-books and other content. The deal also furthers Microsofi’s strategy of investing in new businesses to move beyond its Windows and Office software franchises. The Xoon e-reading app could also enhance Microsoft efforts to establish a digital storefront to market e-books, apps, and other content for Windows 8, which is critical to plans for entering the tablet market. Adinkra Books has also experimented with ways to drive traffic to their physical stores using apps on the Xoon.

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Although this is a seemingly impossible task, they are at least coming up with some inventive ideas. For example, if you connect to a Wi-Fi network in an Adinkra Books store with your Xoon, you can get free extras in many apps and games, where you can unlock a bonus character that normally costs GHC 25. Other companies are using similar techniques to promote board games, toys, movies, and of course, physical books. Adinkra Books has also expanded its store space for toys and games and added new display space for its Xoon devices. There are also plans to experiment with slightly smaller stores. These promotional campaigns probably won’t be enough to stop Adinkra Books’ dwindling in-store sales. What will the future hold? Will Adinkra Books be able to succeed as a digital company, and is there a future for its brick andmortar stores? Is there a way for e-books to help sell print books, just as print books have stimulated demand for their digital versions? Although Adinkra Books has made a spirited effort to revamp its business and go toe-to-toe with several tech titans, it’s possible that it might be too tall an order for the storied bookseller. Case study questions a. Discuss the management, technology and organizational strategies that were adopted by Adinkra Books to change their business models to deal with the internet and e-book technology (18 Marks). b. Using the competitive forces model, discuss the impact of the internet on Adinkra Books. (15 Marks) c. How was the value chain model applied in the Adinkra Books’ case study? (7 Marks) Question 2 What could be the various revenue generation models of a portal? Which do you think might be most successful, and why? (20 Marks) Question 3 Describe the relationship between organizations. information systems, and business processes. (20 Marks).

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