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The book industry has witnessed a significant transformation in the last decade, with e-books dominating the market more than physical book sales. This has resulted in significant changes in the business model deployed in the book-publishing sector, characterized with a focus on e-books. This is evident in the case of Amazon. Such changes have not received a positive welcome among book publishing companies that are still relying on the conventional business model associated with physical book sales. In addition, the e-book business has received criticism from conventional publishers on accounts that they are protecting the traditional business model through the nurturing of literary culture. Book publishing is an inefficient industry that currently requires a restructuring of the business model. This is evident by the increasing failures of store chains like Borders. The only hope for book publishing industry is the increasing sales of e-books. Despite this business opportunity, there is a potential challenge associated with the need to control the emerging market; this is evident in the fierce completion among Amazon, Google, Apple, and Barnes & Noble. Among the competitors, Amazon is the largest retailer; therefore, it is in a better position to control a larger portion of the e-books market.
Despite the criticism directed at Amazon regarding the e-book strategy, other industry leaders perceive Amazon as a potential partner in the retail business. Publishers were of the view that the inception of electronic books increased the likelihood of getting numerous retailers out of business, while favoring Amazon. This is analogous to the implications of Apple’s iTunes in killing the compact disc and the bankruptcy of music retailers. As a regulative measure, book publishers demanded the price of e-books under the Amazon’s website be under their control.
Despite the promising business of electronic books, Amazon faces a significant challenge of returning its paper books to the physical stores. The situation is worsened by the standoff between Amazon and publishers.