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Training program for publishers from the Arab world
Strategic Planning in Publishing
Cairo, July 12th, 2008
1
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The German Book market is the third largest in the world
9.3 Billion Euro turnover
from retail prices per year
900,0000 titles available
80,000 new titles
per year
4,700 booksellers
1.800 publishers
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Source: German Börsenverein statistics 2004
The book trade continues to be the most important channel for books
in Germany. Sales at retail price totalling 5.1 billion € have a share of
55.8% of the total book sales. Direct sales to end customers follow at
17.7% (1.6 billion €)
Mail order companies achieve 0.9 billion € (9.9%), department stores
4.4 % (0,4 billion EUR) and clubs 3.3% (0,3 billion.€). Other point of
sales (e.g. gas stations, drug stores, toy shops etc.) gain 9.0 % (0,81
billion €).
Most of total book sales were done by members of the Börsenverein
(the dominant association of the industry) with appr. 6.400 members.
The membership consists of 1800 publishers and 4700 booksellers.
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Key aspects of the German market for publishing
Number of customers
Germany and Austria have a fixed price agreement: The publisher
decides
upon the retail price of the book and all retailers have to charge the
same price to the customer. The reason for this fixed price agreement
is to
1. enable publishers to realize a wide variety of cultural and political
aspects and
2. protect smaller booksellers from competition.
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Key aspects of the German market for publishing
Fixed price agreement, wholesalers, logistics
Wholesalers keep a huge number of titles in their warehouses and
fleets of cars to ensure overnight dispatch of orders in almost 100% of
the cases. In addition the bookseller may order books from publishers
themselves and will be served with one individual shipment.
Wholesalers get higher discounts from the publishers and will of
course grant only smaller discounts to the booksellers.
Only very few publishers have their own logistics department.
Specialised companies offer a full service. As the market is mature
and highly competitive the synergy effects especially in IT systems
and logistics are the more economical solution.
5
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Key aspects of the German market for publishing
Fixed price agreement, wholesalers, logistics
Luxembourg
appr. 24
Booksellers
Germany
appr. 7200
bookselling
outlets
4700 organized
booksellers
Austria
appr. 1000 booksellers
Switzerland
appr. 240
Booksellers
6
German speaking
Northern Italy
appr. 20
Booksellers
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Key aspects of the German market for publishing
Numer of customers
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But:
No matter how special the market looks, the fundamentals of
strategic planning are applied the same way all over the world, and
not only in publishing.
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1. Strategic Planning – overview
2. Vision /Mission
3. Company Values / Company Goals
4. SWOT Analysis
5. Environmental Analysis
6. Market Analysis
7. Customer Target Groups
8. Competitor Analysis
9. Potential Analysis
10.Action Plans
8
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The day today
The national market has already undergone and will continue to
undergo drastic changes in the coming years:
: More competition by national and international – mostly well
capitalized companies.
 Further development of distribution channels and
technologies
 National consolidation forced by the national economic
situation.
 Ensuring the financing of publishers becomes more and
more difficult.
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Situation of the book market in the segment of non-trade publishing
In order to be ready for the challenges, publishers must adapt to
the new situation. KPMG sees especially the following items as
critical:
 Ensuring the content quality and thereby reaching or keeping the
market leadership in subsegments or topics (reach the „musthave-status“)
 Also connected to possibly necessary and consequent
reassessment of the portfolio.
 Enhance existing technologies to create new distribution channels
in order to provide contents in a timely and up to date manner
(e.g. online)
 Improve equity base to become more independent of outside
financing.
Source: KPMG corporate finance
10
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Requirements
 Which products (areas) are doing well, which ones aren‘t?
Why?
 How well do I reach my customers with my product/my
program?
 How important is a certain area for my total list?
 How costly and time consuming is this area?
 Am I market leader? Where? With what?
 Do I have a supporting program (e.g. journals)?
 What do I need to do to become market leader in a certain
area?
 What would happen, if I stopped publishing in a certain
area? Revenue? Profitability? Image?
 How does a certain area fit together with my whole
strategy?
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Typical Questions for a planning process
Strategic planning/management is defined as
 The process whereby managers establish an organisation‘s
long term direction
 The process whereby specific objectives are set
 Developing strategies to achieve these objects
The aims of strategic planning/management are
 To help the organisation to achieve a competitive advantage
 The special edge that permits an organisation to manage
environmental influences better than ist competitors do
 To ensure long term success for the organisation
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Strategic Planning
Your business strategy
 Defines your position in the market place
 Distinguishes you from your competition
 Determines your market identity
 Reflects the core values of your business
 Drives what actions you must take to maintain and support
your competitive advantage.
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Strategic Planning
 Clearly defines the purpose of the organization and to
establishes realistic goals and objectives consistent with that
mission in a defined time frame within the organization’s capacity
for implementation.
 Communicates those goals and objectives to the organization’s
constituents.
 Develops a sense of ownership of the plan.
 Ensures the most effective use is made of the organization’s
resources by focusing the resources on the key priorities.
 Provides a base from which progress can be measured and
establishes a mechanism for informed change when needed.
 Bringing together of everyone’s best and most reasoned efforts
have important value in building a consensus about where an
organization is going.
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Benefits of Strategic Planning
 Provides clearer focus of organization, producing more efficiency
and effectiveness
 Bridges staff and board of directors
 Builds strong teams in the board and the staff
 Produces great satisfaction among planners around a common
vision
 Increases productivity from increased efficiency and
effectiveness
 Solves major problems
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Benefits of Strategic Planning
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Strategic Planning
Mission
Company Values
Company Goals
Develop Strategy
Action Plans to implement strategy
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Adjustment
Clarity
Vision

"Every organization has a destiny: a deep purpose that expresses the
organization's reason for existence. Visions exist on different levels of the
organization's identity. Every telephone organization, for example, is tied to the
original vision of Graham Bell - to provide a tool for universal communication.
Many members of the organization have a collective sense of its underlying
purpose - but in day-to-day operations those visions are often obscured. To
become more aware of an organization's vision, one must ask the members and
learn to listen for their answers.
People sometimes say that it is pointless to develop a sense of purpose for a
company. There already is a purpose: "To maximize return on investment to
shareholders." Obviously, making money is important. But to confuse the
essential requirement for advancing in the game with the deeper rationale, is a
profound confusion. Focusing on the purpose of making money at the expense of
other purposes, will naturally distract an organization's competitive advantage."
(P. Senge)
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The Vision
 A vision is an over-riding idea of what the organization should be.
It often it reflects the dream of the founder or leader. Your
company's vision could be, for example, to be "the largest
producer of management literature in the US", "the maker of the
finest chocolate candies in London", or "the management
consultant of choice for non-profit organizations in Germany." A
vision must be sufficiently clear and concise that everyone in the
organization understands it and can buy into it with passion.
 A Vision should be presented as a picture of the business in
three or more years time in terms of its likely physical
appearance, size, activities etc. Answer the question: "if
someone from Mars visited the business, what would they see
(or sense)?" Consider its future products, markets, customers,
processes, location, staffing etc.
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The Vision
 The Vision describes a future identity and the Mission describes
why it will be achieved.
 A vision contains the following elements
– capitalizes on core competencies
– it is inspiring
– it is clear and unambiguous
– paints a vivid picture
– describes a bright future (futurecasting)
– is easy to remember
– formulates realistic and achievable aspirations
– is aligned with organizational values and culture
– it is short
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The Vision
 Bill Gates:
There will be a personal computer on every desk running
Microsoft software.
 McGraw Hill:
Our mission is to provide essential information and insight that
help individuals, markets and societies perform to their potential.
 Pfizer:
We will become the world's most valued company to patients,
customers, colleagues, investors, business partners, and the
communities where we work and live.
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Examples for a Vision
 I will come to America, which is the country for me. Once there, I
will become the greatest bodybuilder in history.......... I will go into
movies as an actor, producer and eventually director. By the time
I am 30 I will have starred in first movie and I will be a
millionaire...... I will collect houses, art and automobiles. I will
marry a glamorous and intelligent wife. By 32, I will have been
invited to the White House.
Attributed to Arnold Schwarzenegger who was elected Governor of the State of California in 2003.
 You can find more examples in: http://manonamission.blogspot.com
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Examples for a Vision
 The nature of a business is often expressed in terms of its
Mission which indicates the purposes of the business, for
example, "to design, develop, manufacture and market specific
product lines for sale on the basis of certain features to meet the
identified needs of specified customer groups via certain
distribution channels in particular geographic areas".
 A statement along these lines indicates what the business is
about and is infinitely clearer than saying, for instance, "we're in
books" or worse still, "we are in business to make money"
(assuming that the business is not a mint !). Also, some people
confuse mission statements with value statements - the former
should be very hard-nosed while the latter can deal with 'softer'
issues surrounding the business.
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The Mission Statement
Your Mission Statements should contain the following elements:
 What your business is/does
 Primary products/services
 Key processes & technologies
 Main customer groups
 Primary markets/segments
 Principal channels/outlets
 Reason for existence
 Competitive advantages
 Unique/distinctive features
 Important philosophical/social issues
 Image, quality, style, standards
 Stakeholder concerns
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The Mission Statement
 Pearson:
We lead our markets in quality, innovation and in profitability, and
bring together some of the most valuable brands in publishing.
From our roots as the world's largest book publisher, we've
grown to provide a range of related services: testing and learning
software for students of all ages; data for financial institutions;
public information systems for government departments. With
more than 29,000 employees based in 60 countries, we are a
family of businesses that draws on common assets, processes
and shares a common purpose: to help our customers live and
learn.
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Examples for a Mission Statement
 Mc Graw Hill:
We are dedicated to creating a workplace that respects and
values people from diverse backgrounds and enables all
employees to do their best work. It is an inclusive environment
where the unique combination of talents, experiences, and
perspectives of each employee makes our business success
possible. Respecting the individual means ensuring that the
workplace is free of discrimination and harassment. Our
commitment to equal employment and diversity is a global one
as we serve customers and employ people around the world. We
see it as a business imperative that is essential to thriving in a
competitive global marketplace.
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Examples for a Mission Statement
 Manpower:
To be the best worldwide provider of higher-value staffing
services and the center for quality employment opportunities.
 MacDonalds:
To offer the fast food customer (=key market) food prepared in
the same high-quality manner word-wide, tasty and reasonably
priced (= contribution), delivered in a consistent, low key décor
and family friendly atmosphere (=distinction).
 You can find many more examples in
http://www.missionstatements.com/company_mission_statements.html
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Examples for a Mission Statement
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Excercise
Divide up into groups of 4 and select one of your publishers as an
example. Develop a vision and a mission for this publisher.
Document it on the flipchart.
Design one of your group to present the result.
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Strategic Planning
Mission
Company Values
Company Goals
Develop Strategy
Action Plans to implement strategy
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Adjustment
Clarity
Vision
 Value statements list the overall priorities in how the organization
will operate. Some people focus the values statement on moral
values. Moral values are values that suggest overall priorities in
how people ought to act in the world, for example, integrity,
honesty, respect, etc.
 These values govern the operation of the business and its
conduct or relationship with society at large, customers,
suppliers, employees, local community and other stakeholders.
• Effective organizations identify and develop a clear, concise and
shared meaning of values/beliefs, priorities, and direction so that
everyone understands and can contribute. Once defined, values
impact every aspect of your organization. You must support and
nurture this impact or identifying values will have been a wasted
exercise. People will feel fooled and misled unless they see the
impact of the exercise within your organization.
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Value Statements
 Establish four to six core values from which the organization
would like to operate. Consider values of customers,
shareholders, employees and the community.
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Value Statements
If you want the values to have an impact, the following must occur;
 People demonstrate and model their values in action in their
personal work behaviors, decision making, contribution, and
interpersonal interaction.
 Organizational values help each person establish priorities in
their daily work life.
 Values guide every decision that is made once the organization
has cooperatively created the values and the value statements.
 Rewards and recognition within the organization are structured
to recognize those people whose work embodies the values the
organization embraced.
 Organizational goals are grounded in the identified values.
Adoption of the values and the behaviors that result is
recognized in regular performance feedback.
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Value Statements
 People hire and promote individuals whose outlook and actions
are congruent with the values.
 Only the active participation of all members of the organization
will ensure a truly organization-wide, value-based, shared
culture.
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Value Statements
 Examples for values: ambition, competency, individuality,
equality, integrity, service, responsibility, accuracy, respect,
dedication, diversity, improvement, enjoyment/fun, loyalty,
credibility, honesty, innovativeness, teamwork, excellence,
accountability, empowerment, quality, efficiency, dignity,
collaboration, stewardship, empathy, accomplishment, courage,
wisdom, independence, security, challenge, influence, learning,
compassion, friendliness, discipline/order, generosity,
persistence, optimism, dependability, flexibility.
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Value Statements
Johnson & Johnson Value Statement
• We believe our first responsibility is to the doctors, nurses, and
patients, to mothers and all others who use our products and
services. In meeting their needs, everything we do must be of
high quality. We must constantly strive to reduce our costs in
order to maintain reasonable prices. Customers' orders must be
serviced promptly and accurately. our suppliers and distributors
must have an opportunity to make a fair profit.
• We are responsible to our employees, the men and women who
work with us throughout the world. Everyone must be considered
as an individual. We must respect their dignity and recognize
their merit. They must have a sense of security in their Jobs.
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Example for Value Statements
• Compensation must be fair and adequate, and working
conditions clear, orderly and safe. Employees must feel free to
make suggestions and complaints. There must be equal
opportunity for employment, development and advancement for
those qualified. We must provide competent management, and
their actions must be just and ethical.
• We are responsible to the communities in which we live and
work, and to the world community as well. We must be good
citizens--support good works and charities and bear our fair
share of taxes. We must encourage civic improvements and
better health and education. We must maintain in good order the
property we are privileged to use, protecting the environmental
and natural resources.
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Example for Value Statements
• It is important to explicitly state the business's Objectives /
Goals in terms of the results it needs/wants to achieve in the
medium/long term.
• Aside from presumably indicating a necessity to achieve regular
profits (expressed as return on shareholders' funds), objectives
should relate to the expectations and requirements of all the
major stakeholders, including employees, and should reflect the
underlying reasons for running the business.
• These objectives could cover growth, profitability, technology,
offerings and markets.
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The Goals
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Strategic Planning
Mission
Company Values
Company Goals
Develop Strategy
Action Plans to implement strategy
37
Adjustment
Clarity
Vision
• The Strategies are the rules and guidelines by which the
mission, objectives etc. may be achieved. They can cover the
business as a whole including such matters as diversification,
organic growth, or acquisition plans, or they can relate to primary
matters in key functional areas, for example:
– The company's internal cash flow will fund all future growth.
– New products will progressively replace existing ones over
the next 3 years.
– All production work will be outsourced to improve the
profitability.
• Use SWOTs to help identify possible strategies by building on
strengths, resolving weaknesses, exploiting opportunities and
avoiding threats.
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The Strategies
+
-
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Internal
External
Strengths
Opportunities
Resources:
- HR
- Finance
- Products, Processes
- Knowledge
- Customers
- Competitors
- Suppliers
Weaknesses
Threats
Processes
- Service
- Communication
- Work Flow
- Production
- Political Situation
- Economic Situation
- Social Developments
- Technological Challenges
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SWOT - Analysis
 Be realistic about the strengths and weaknesses of
your organization when conducting SWOT analysis.
 SWOT analysis should distinguish between where
your organization is today, and where it could be in
the future.
 SWOT should always be specific. Avoid grey areas.
 Always apply SWOT in relation to your competition i.e.
better than or worse than your competition.
 Keep your SWOT short and simple. Avoid complexity
and over analysis
 SWOT is subjective.
40
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The Strategies
Organisation
Competitors
Customers
Environment
Analysis of
Potential
Competitor
Analysis
Market
Analysis
Environmental
Analysis
Strenghts / Weaknesses S + W
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Opportunities / Threats O + T
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The Analysis Process
 Is legislation expected which will change the rules?
-
 What happens in the world into which we publish?
 What are the coming trends?
 What will happen in our economy?
 How will the buying power of our customers change?
 How will the age-structure of the population affect us?
 How do technological developments affect us?
 P.E.S.T
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Environmental Analysis
Political Analysis
-  Political Stability
 Intellectual Property Protection
 Anti-trust laws
 Taxation
Example
 Merger of big publishers not possible
 Europe: new law of Basel II makes financing difficult
 Founding a new publishing arm in India: Copyright?
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Environmental Analysis
Economic Analysis
-  Economic growth rate
 Discretionary income
 Unemployment rate
 Interest rate
 Skill level of work force
Example
 High unemployment  no money left to buy books
 Economic growth rate low  companies cut money for
book/magazine purchases
 Number of apprenticeships going down  market
difficult for educational market
44
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Environmental Analysis
Social Analysis
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 Demographics
 Class structure
 Education
 Culture (e.g. gender)
 Attitudes (health, environment, work-life balance)
 Trends
 Leisure
45
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Environmental Analysis
Examples for Egypt:
-  One-third of the population is under 15 and the
average family size is falling from 4.65 people ten
years ago to 4.18 in 2006
 Median age: 24 years
 Illiteracy: Percentage of illiterate Egyptians fell to 29
percent from 39 percent over the past decade (women
41%, men 17%) .
 58% of Egyptians live in rural areas
 Population growth is 22% in rural and urban areas
 Internet users: 6 million
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Environmental Analysis
Examples for Germany:
-  Population: 20% 65+, 14% 15 and under, 66% 15-64
 Population growth: 0
 Median age: 43 years
 Education: lack of educated workforce in technical
(engineers, IT) and natural science branches.
 Trends: more time for myself, work-life-balance, retroromanticism, wellness and nature, supernaturalism,
longing for sense, value of family, value of friends)
 Internet users: 38.6 million (2006)
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Environmental Analyis
Technological Analysis
-  Recent technological developments
 Technological impact on offering your product
 Impact of technology on cost structure
 Impact on value chain structure
Example
 Content on internet  develop media neutral data
 Content management system
 Internet Presence
 Content to market time
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Environmental Analyis
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Excercise
Divide up into groups of 4 and select one of your publishers as an
example. For each area of P.E.S.T. define 3 decisive elements
which will have an effect on the publisher’s future.
Document it on the flipchart.
Design one of your group to present the result.
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Organisation
Competitors
Customers
Environment
Analysis of
Potential
Competitor
Analysis
Market
Analysis
Environmental
Analysis
Strenghts / Weaknesses S + W
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Opportunities / Threats O + T
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The Analysis Process
 Who are your customers?
-
 Which market are you in (market, segment)?
 What is the market size?
 Who are your competitors?
 How big is your market share?
 What is the market growth rate?
 Where is your position in the market?
 How do you get your products to your customers?
 Who are your suppliers and what is your strategy
regarding them?
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Market Analysis
Special knowledge
„find out/benefit“
Professional
Interest
!
The circle of markets
(Ruf)
„Experience“
Special
Interest
personal
professional
Education
„learn“
Trade publishing
„amaze“
general knowledge
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special
Professional
market:
professional
interest
professional
Special market:
special interest
assertion
acknowledgement
I want something very
special and need practical
support for my special
interest.
I want to work
successfully and want to
benefit for my job.
I want to be part of the
group: understand and
be understood.
I want to learn
easily and
advance quickly.
development
personal
participate
Educational market:
Interest in training
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general
Trade market: general
interest
Which customer groups are there?
 Interest groups: special interest, education, entertainment,
general interest
 Educational groups: students, apprentices, teachers, students,
professionals
 Functional groups: people starting their job, employee,
department heads, self-employed
How can customer target groups be defined?
 Socio-demographic: male/female, age, number of children,
urban/rural
 Socio-economic: income, budget
 Psycho-demographic: values, worlds of life, „Milieu“
 Purchasing behavior: loyal to brands, buys a lot, buys little, buys
on impulse
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Customer Target Groups - general
Which customer groups do you target?
1. Institutional Target groups







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Which institution groups (companies, associations) are most
important for you (regarding market share and revenue)?
Which subgroups are there in your target group (Lawyers in the
public service in the area of construction)?
How big are these groups (number of employees)?
Who uses the produsts within this target group?
Which function/position do the users have?
Who decides about the purchase of the product?
Which budgets are available for the purchase?
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Customer Target Groups - detail
Which customer groups do you target?
2. End consumer target groups

Which customer groups are most important for you (regarding
market share and revenue)?

Which subgroups are there in the target group (startups in the
service industry – software consultant)

Age of this customer group?

What is the gender breakdown within this customer group?

Where does this group live (rural/urban)

What education level does this group have?

Which values does this group share?

How high is the income of this group?

Who uses the products (e.g. the husband)?

Who do you need to target with your marketing (e.g. the wife as
she makes the decision about the purchase)
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Customer Target Groups - detail
Which customer groups do you target?
2 A. Which wishes and needs do these customer groups have?

Which customer groups are most important for you (regarding
market share and revenue)?

Which basic wishes do they have (benefit, experience, learn,
amaze)?

Which wishes do they have as „users“ (inform themselves,
improve quality of life, acquire knowledge for their job, sell)

Which basic attitude is characteristic for them (towards their job,
towards their technology)
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Customer Target Groups - detail
Which customer groups do you target?
2 B. Which attitudes do these customer groups have?

Which attitudes do they have in their job (work with assistants,
affinity to computers, little time, lot of travel)?

Which hobbies do they have?

How do they organize their free time /leisure?

Where do they meet?

Where do they shop (catalogue, book shops, internet,
spontaneously)?

Which subject preferences do they have?

Which media preferences do they have (book, journal, CD-ROM,
download)?
58
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Customer Target Groups - detail
Intensive book buyers in Germany (10+ books per year)
 64% female
 30-59 years
 70% higher education
 48% employees and civil servants
 Household net income >2.000 €
 53% in 2-head-families
 43% in cities >500.000
 15% of the population
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Customer Target Groups
Occasional book buyers in Germany (3-9 books per year)
 58% female
 30-59 years
 36% higher education
 35% lower education
 28% skilled worker, 45% employees
 Household net income >1.250 €
 38% in 2-head-families
 38% in cities >500.000
 35% of the population
60
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Customer Target Groups
Get to know your customer:
 Go where your customer goes
 Join his clubs
 Talk to him
 Get information from him
 Be part of your target group
And make your customer become alive!
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Customer Target Groups
And make your customers become alive!
62
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Customer Target Groups
Understand how they live!
63
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Customer Target Groups
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Excercise
Divide up into 2 groups
Group 1: define the your customer target group for a publisher of
cookbooks
Group 2: define the customer target group for a publisher of
management literature
Please take 30 minutes for this exercise. The result should be a
figure of flesh and blood – like Anna Jones, lives in Cairo, works as
…., has 3 children etc…..
Document it on the flipchart. Be creative, use drawings.
Design one of your group to present the result.
64
Do you know your market share?
Potential of market = 240 Mio.
Market volume book = 16,8 Mio.
Market share my publisher = 1,6
Mio = 9%
65
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Market analysis
How attractive is the market?

How big is the market?

What is the growth rate?

How profitable is the market?

Pricing trends?

Competitive rivalry?

Entry barriers?

Opportunity to differentiate products and services?

Segmentation?

Distribution structure?

Technology development?
Question: On a scale of 1-3 how attractive is your market segment?
66
!
Market analysis
And where are you in this market?

How strong is your brand?

What is your market share?

How loyal are your customers?

How high is your distribution strength?

How high is the quality of your product?

How high is your competence in this area?

How would you value your management strength?
Question: On a scale of 1-3 how strong are you in this market?
67
!
Market analysis
Market Attractivity
3
40%
2
1
0
0
1
2
3
Market Position / Strengh
68
!
Market analysis – McKinsey matrix
!
Market analysis
Market Attractivity
3
Invest and grow
2
1
o
Skim and desinvest
0
1
2
3
Market Position / Strengh
69
Markets
new
Products
existing
existing
70
new
Market-penetration
Occupying the market
Expulsion / attack
(Marketing, pricing)
1:1
Market Development /
Enlargement
Product Development
Innovation
Product-Differentiation
Me-too-Products
Exotic products
1:2
Diversification
Products + markets
simultaneously
Vertical diversification
horizontal diversification
lateral diversification
1:20
New markets
New customers
1:5
!
Program strategy – Ansoff Matrix
!
Excercise
 What are the major educational publishers in Egypt?
 How would you rate the attractiveness of the educational
publishing market?
 What is the market share of the 3 major players in the market
and where would you situate them on the chart?
 Let us develop this together on the board.
71
Organisation
Competitors
Customers
Environment
Analysis of
Potential
Competitor
Analysis
Market
Analysis
Environmental
Analysis
Strenghts / Weaknesses S + W
72
Opportunities / Threats O + T
!
The Analysis Process
What do you know about your competitors?
73

Who are our competitors?

What is the profile of our competitors?
- How many titles per year?
- Average price?
- Average page count?
- List width? How many subjects covered?
- Program depth?
- Personnel equipment?
- Capitalization?
- Author pool, author loyalty?

What are the objectives of our competitors?

What strategies are your competitors pursuing and how successful are
these strategies?

How are your competitors likely to respond to any changes to the way
you do business?
!
Competitor Analysis
List (Program) width and depth
Cardiology
Urology
Student Book
Teachers Book
Compendium
First aid book
Atlas
Encyclopedia
Online Portal
74
Nursing
Management of
doctor’s practice
!
Competitor Analysis
!
Excercise
 How do you find out information about other publishers?
75
!
Competitor Analysis
In depth analysis of your competitors – also see your handout
weighting
%
76
us
points
A
points
%
B
points
%
%
Cover
material
10
1
0.1
6
0.6
10
1
Cover design
(target
group?)
50
10
5
5
2.5
10
5
Text on back
of book
Title
Subtitle
Binding
Page count
Paper
Layout
Font
Total
10
20
10
0
0
0
0
0
100
4
10
5
0
0
0
0
0
30
0.4
2
0.5
0
0
0
0
0
8
3
10
10
0
0
0
0
0
34
0.3
2
1
0
0
0
0
0
6.4
10
10
10
0
0
0
0
0
50
1
2
1
0
0
0
0
0
10
Another way of graphically showing the competitor analysis:
Potential
Evaluation
7 6
bad
5 4 3
Market share
Strategy
Financial
Situation
Production
Creativity
your publisher, competitor
77
2 1 0 1 2
medium
3 4 5 6 7
good
!
Competitor Analysis
Organisation
Competitors
Customers
Environment
Analysis of
Potential
Competitor
Analysis
Market
Analysis
Environmental
Analysis
Strenghts / Weaknesses S + W
78
Opportunities / Threats O + T
!
The Analysis Process
What are your own strenghts?
 People (Human Resources): People and skills, staff
development
 Processes (Such as production, editing, controlling): Financial
resources, Management/ leadership, Communication
 Products: Sales, Products, Markets, Intellectual Property
79
!
Potential Analysis
What are your own strenghts?
 What do we do well?
 Is there anything you do better than
most/anyone else?
 What went well?
 What gave us energy?
 What makes us proud?
But also:
 What is our internal situation at the moment?
 How do our products do?
 Sometimes this is the best way to start an analysis
80
!
Potential Analysis









81
Author-Management
Selection competence
Qualification of content
Data becomes information, benefit, emotions
Competence for traget groups
Competence for publishing processes
Competence for topics
Competence for marketing of (print) products
Ownership of Rights
!
Core competence of a publisher
Where are your own products?
Question Marks
Stars
?
Market Attractivity
Poor Dogs
Market Position / Strengh
82
Cash Cows
!
Potential Analysis
!
Strategic Planning
Mission
Company Values
Company Goals
Develop Strategy
Action Plans to implement strategy
83
Adjustment
Clarity
Vision
!
Perspectives
Formulate your action plans regarding the 4 essential indicators
Vision
84
Financial Indicators
…resulting in financial
success.
Customer Indicators
…which íncreases
customer satisfaction…
Internal Business Processes Indicators
…enables execution of
best practices…
Learning and growth Indicators
Attracting and retaining
top employees…
!
Action Plans
Internal Business Processes Perspective
85
Objectives
Measure
Target
Initiative
Make editors
more
competent
Improve
knowledge on
negotiation skills
Get total
advances paid
on 50 contracts
between
January and
December from
12.000 EUR
average down
to 10.000 EUR
average.
Organize trainer and training for
negotiation and make all editors
participate
!
Action Plans
Internal Business Processes Perspective
Objectives
Measure
Make planning Minimize
more reliable
deviance of preand
postcalculation
86
Target
Initiative
Not more than
10% deviation
in all produced
products in
2008
• Get calculation approved by
Financial Department
• Get calculation signed off by
Editorial Manager
• Train Editors and Producers
in using calculation
!
Action Plans
Customer Perspective
87
Objectives
Measure
Target
Improve our cook
book sales
Get to know more
Create a customer • Define 50
about our
profile with
customers
prototype customer information from 50 • Create project
of our readers with
group with editor
information as
A and B and
defined in Target
Sales Manager C
group list until
• Create profile
June.
Improve Customer
Intimacy
Direct meetings
with customer
Bimonthly informal
meetings with 5
key accounts
Initiative
• Set up bimonthly
informal
meetings with A,
B, C, D, E
• Invite to
Customer
Information Day
!
Action Plans
Financial Perspective
88
Objectives
Measure
Target
Initiative
Staff Productivity
Revenue / manday
1000€/manday
Lower sickdays
Improve margin
Cut discount to
publishers
Lower discount
from 40% average
to 35% within 12
months
Discussion with 5
major booksellers
in January
!
Strategic Planning
Mission
Company Values
Company Goals
Develop Strategy
Action Plans to implement strategy
89
Adjustment
Clarity
Vision
!
Strategic Management Process
1. Establish the mission / vision
2. Establish grand strategy (using SWOT)
3. Formulate the strategic plans
4. Carry out the strategic plan
5. Maintain Strategic Control
90
Revise actions,
if necessary,
based on
feedback
 The scheduling for the strategic planning process depends on
the nature and needs of the publisher, but with most publishers
planning should be carried out in a comprehensive and detailed
fashion once every 3 years (mission, vision values,
environmental scan).
Here are a few guidelines:
 Strategic planning should be done when you are just starting
your publisher. The strategic plan is usually part of an overall
business plan, along with a marketing plan, financial plan and
operational/management plan.
 Strategic planning should also be done in preparation for a new
major venture, for example, developing a new department,
division, major new product or line of products, etc.
91
!
Scheduling of Strategic Planning
 Strategic planning should also be conducted at least once a year
in order to be ready for the coming fiscal year. In this case,
strategic planning should be conducted in time to identify the
organizational goals to be achieved at least over the coming
fiscal year, resources needed to achieve those goals, and funds
needed to obtain the resources. These funds are included in
budget planning for the coming fiscal year.
 However, not all phases of strategic planning need to be fully
completed each year. The full strategic planning process should
be conducted at least once every three years.
 Each year, action plans should be updated.
 Note that, during implementation of the plan, the progress of the
implementation should be reviewed at least on a quarterly basis
by the board.
92
!
Scheduling of Strategic Planning
!
Thank you for your attention!!!
93