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PEARSON eTextBook Reader Ahmed TantawyBrian GuernseyJosh LaumanPranav DharwadkarTapan Kamdar
Hawk and Dove
Pearson & Market BackgroundNorth American Educational Market(Million Students ,2008)Major Business Units $6.4 Billion annual textbook industry
37% market share
 $880.5 Million profit Education segment
 $605 Million profit N. America Edu. Pearsons strategic decision
Physical vs. Digital ModelPhysical ModelAuthor royalties = 7% on a book saleRents captured by Publisher & WholesalerDigital ModelPartial book sale, subscription modelRemoves middle man (Wholesaler)Added value provided by publisher to educational institutes
$$ or Market Share - Protecting market share/ eroding profits in the emerging digital ageSubscription per subject / year = $10 # of Books / year                   = 10.4 Free Device (one time)           = $299* Market Penetration- Cannibalization*=
RecommendationsPartner to build eReaderInteractive content for textbook marketNew subscription model for schoolsV/S
APPENDIX
Porters Five Forces

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