econinect

uild$-$Borrow$-$Buy: Exploring Options for Your World

Potential Partners

Your World Media

first.

Text Direct

Text Direct

Greg

I think our best option is to move into the online textbook

industry by partnering with Text Direct.

Greg

We could leverage our research and writing skills to create to very up$-$to$-$date digital textbooks across a variety of topic areas. We would avoid large entry$-$level classes and gear our expertise at higher$-$end specialized classes with fewer students.

As you can see, Text Direct could be a good partner for us since we could bring a new direction for textbook publishers.

Tamara

How do you think we should engage with them?

Company Information

Annual Sales: $$78$ Million

Employees: $450$

Key Assets: Direct Sales Force, Online$/$Physical Distribution, Growing Brand Name

Textbook Industry Information

Total Sales: $$12$ billion

Entire Industry Growth Rate: $12\%5-$year CAGR $($compound annual growth rate$)$ Electronic textbooks Growth Rate: $20\%5-$year CAGR $($projected$)$ Industry Trends:

More electronic texts

Additional aids for professors $($slides$,$ test banks, etc$)$

Concerns over pricing for students

Increase in physical textbook rental

Demands for updated data$/$presentation not just new editions

Pushback on the overall cost of college

We should just build it ourselves.

We should acquire them.

We should ally with them.

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