Abstract

The case is about Hachette, the biggest publishing firm in France, and deals with issues related to the context of evolving book industry. With the arrival of digital age and eBooks, Hachette (and publishers in general) have to face two main issues: the loss of revenues, due to eBooks over paper version, and the change of power in the editorial relationship, which is the core competence of publishers. The case describes the strengths and weaknesses of the company, its past successes and the challenges it has to face now. An overview of the book industry in France is provided, since it is a particular industry with many specificities. The role and repartition of power between the different actors is explained, as well as the changes introduced in the industry because of the digital age. The eBook is presented in its complexity, and the student should decide, based on the elements, if it is a product or a service, and if it represent a niche, a threat or an opportunity for Hachette. Finally a picture of the different competitors for Hachette is provided, with the details of their current relationship with Hachette giving a vivid and contextual understanding of the situation.

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