Business Case: “The Smith State College Textbook Program”
A group of 5 disgruntled student activists at Smith State College have just concluded a meeting with the Dr. Wendy Wilson, the Associate Dean of Student Affairs. The students had asked for the meeting to generally complain about the escalating cost of textbooks at Smith State.
They cited examples of students having to drop courses because they could not afford textbooks. They implied that a number of students were considering dropping out of Smith State in the current economic environment. The students railed against the textbook publishers and the college bookstore for continuing to “rip off” students and were upset that the college administration “had not done anything about this problem for years.”
The Smith State College book store is managed on campus by Barns Books. Barns Books is a nationwide corporation that outsources college bookstores for 148 colleges in the United States and Canada. Dr. Wilson called the bookstore manger, Gina Genaro while the students were in Dr. Wilson’s office and Gina offered that she would be glad to talk to the students and listen to their complaints. The students responded to Dr. Wilson that other students talked to Gina last semester and “nothing ever changes.” One angry student stated: “The whole problem is that the college refuses to fire Barns Books no matter how bad a job they do because Barns is bribing the college administration!”
Sensing the frustration Dr. Wilson made the following suggestion: “Listen, I have $10,000 of unallocated grant money that I might be able to use for this problem. Write a business plan of how you would go about lowering the cost of textbooks to students. I will show it to a couple of professors in the business school and if I get consensus that you have a good plan I will fund your student-run business.
Review the Business Case at: Business Case: Smith State College
Spend at least 1 hour googling / binging on "Higher Education Textbook Market and Trends".
Examine the entire textbook industry for higher education institutions. Understand all of the Organizations and individuals that participate in creating, packaging, distributing and selling content to college students.
There are several Links and .pdf files with Textbook Market information in the Module:Good Articles and Information to help with the Business Case Team Project
Consider used book exchanges, eBooks, custom book reproduction, eReaders and other current trends in this market. Try to understand the business model of each firm in the textbook business. Who are the competitors and who are partners in the textbook business?
Create a 2-3 page Market Report that summarizes the current Trends in the Textbook market.
Identify the sales and distribution channels in the textbook business. What impact is the internet and eCommerce having on this industry? What is the potential for digital delivery of content? Identify 2-3 companies involved in this business and try to identify their business model and market strategy. Do you think their business plans are using IT as a strategic investment?