Publishing Industry

The general aim of this chapter is to show digitalization is one of the main threats that is shaping the publishing industry value chain and company business models. The analysis of the publishing industry structure is conducted from the perspective of international features. The value chain system of printed media publishing business is explored with more in-depth analysis of its elements. The primary objective of this research is to establish practical outcomes of Internet influence on the structure and business model of publishing companies. As rapid development in the IT sector and the Internet can be considered a crucial risk factor for contemporary publishing business, it creates new business models and changes the industry structure. Publishers progressively respond to changing consumer demands, especially around digital content. Effective pricing strategies for digital content will be the major challenge for magazine publishers.

Applying Concepts and Frameworks in the Digital Economy in a Context of Convergence

This chapter provides an overview of some aspects of the convergence context and concepts presented in previous chapters. The media sector and the main characteristics of the entertainment industry are described. Several elements are underlined: access, user-generated content, and a higher number of physical supports and electronic platforms. Key trends and developments in ICT industry are explored and main aspects of convergence are described: definitions of convergence, industry impact of convergence, and implications for firms' strategies. Indeed, technological and industrial convergence made possible by digitalization has changed the strategy of ICT companies and has accelerated the erosion of the existing frontiers between the media industries leading to the emergence of new actors (web giants, technology enablers, telecommunications operators, etc.). These compete directly with the “traditional” media players. These ICT groups have adopted different relational strategies to strengthen their activities in the field of entertainment and to achieve a sustainable competitive advantage.

Disruptive Technologies, Innovation, and Competition in the Digital Economy

In this chapter, a general overview of innovation (definition and typologies) is presented based on economics and management of innovation literature. Since the pioneering work of Schumpeter (1934, 1942), a growing body of literature has concentrated on technological change in industries. Technology is one of the main factors shaping environmental conditions of firms. The dynamics of innovation and technology may require several approaches to be analyzed. Innovation in various sectors is driven by standards and/or patents and other Intellectual Property Rights (IPR). Standards and patents are helpful for tracking globalization patterns. The current digital economy is characterized by fierce patents and standards battles. Standards and patents are helpful for tracking globalization patterns. The increasing development of Internet traffic and some of the key enabling technologies for the new digital economy called disruptive technologies are introduced.

A Dynamic Vision of Value Chains

The Business Model (BM) notion has become popular because of a business environment shaped by ICT and globalization and characterized by an increasing complexity and uncertainty. Innovative ICT industry coupled with ever-growing products, services, and applications have placed business models at the heart of the new digital revolution. In this chapter, the authors examine how the concept has been applied in the field of ICT and is used in contemporary debate. These new BMs are based on new forms of organization and/or on new products and services offerings. The BM concept has attracted attention both from practitioners and academics. The concept has received wide recognition; yet in practice, it is a new and evolving concept. It has inspired numerous researchers and academics and has given rise to different interpretations, one around which there is not always a perfect consensus. However, despite its wide use, the notion of the business model has become more complex.

The Different Perspectives on International Strategy

The products and processes complexity, the evolution and the fast obsolescence of technologies, and the difficulties in reaching new geographical or specialized markets oblige the companies to reinforce their strategy at the international level. The objective of this chapter is to show how these operations affect not only the competitive advantages of the firms but also the comparative advantages of the countries. In the literature, several theories and conceptual frameworks exist to explain a firm's internationalization strategy and the influences of different factors that affect the choice of entry. The internationalization logic is the result of a multi-field step. The intensification of internationalization is explained as much by external factors (political-regular and socio-economic conditions, technological context, industrial competing dynamics) and by specific companies factors (positioning, distinctive resources, core competences and innovation, etc.). The global competitive environment varies both by industry and by country.

Video Game Consoles

This chapter introduces the main market trends of the video game sector and analyzes the mutations of this industry. Video game sector is characterized by very high network externalities, a lock-in phenomenon, and the increasing technological complexity of consoles, which are also subject to cycles, a structural increase in game development costs, and the predominance of strategic marketing. Since the beginning of the century, this industry has witnessed major developments: the arrival of Microsoft in 2001 onto the game console segment, a growing interest of game publishers in other platforms, the dramatic growth of new platforms (mobile terminals), and the rapid development of online and downloadable games. In addition, this chapter addresses some of the most important issues in the field of strategic management: value chains and business models. These concepts are applied to the video game industry in the context of competitive intensity and modification of market structures.

A Framework for Corporate Strategies and Modes of Development in a Changing Environment

This chapter focuses mainly on corporate growth strategies and growth modes. The main question is how to create and develop a sustainable competitive advantage for the whole company. The traditional strategic management approach is to consider two different levels of analysis: business and corporate strategy. In fact, both of them represent today the basis for obtaining sustained competitive advantage in particular in dynamic and turbulent markets. A firm competing in domestic and international contexts is often faced with making a choice between three corporate strategies: diversification, specialization, and vertical integration. One of the fundamental problems facing the process of strategy formulation in a company is that the number of potential strategic options is unlimited and in some cases extremely complex. This chapter considers that there are mainly three viable alternatives to implement a growth strategy: internal development (often called “organic growth”), external growth, and cooperation (alliances).

The Historical Development of the Strategic Management Discipline

The purpose of this chapter is to explain the origins of strategic management. It highlights the different perspectives of strategy that have emerged from economics research. It gives a brief history of economics within strategic management. It addresses particularly the meaning of “strategy” and “strategic management.” It describes a general overview of the evolving nature of the strategy discipline. Strategic management is a concept that has evolved over time and will continue to evolve. As a field of study, strategy or strategic management is relatively recent. Its theoretical foundations come mainly from economics (economic theory, international economics) and industrial organization studies. Developments in industrial organization theory stress the importance of strategic behavior by firms.

Key Disruptions in the Global and TV Industry

This chapter explains how the movie industry has to face new challenges closely related to globalization, technology innovation (digitization), industrial convergence, and new consumer demand since the end of the 1990s. Market has evolved towards an oligopolistic structure, and technology changes are affecting both content production and distribution. Consequently, this sector has been confronted by major changes in its sources of revenues. Traditional media groups have to adapt their services to changing consumer expectations for more on-demand content and face new competitors. New operators offer Over-The-Top (OTT) services, which increase regularly. This chapter looks at causes of change and the impact on value chains and illustrates the increasing role of the Internet in the distribution of audiovisual content (for both IPTV and OTT audiovisual services).

From Cooperation to Coopetition and Business Ecosystems

This chapter is devoted to an analysis of cooperative relationships, networks, and coopetition. The different types of agreements and the main theoretical approaches of cooperation are presented. The chapter explores the evolution of cooperation within inter-organizational networks and the emergence of other networks such as business ecosystems. The concept of coopetition, defined as the ability of the organization to compete and to cooperate simultaneously with other firms in particular within business ecosystems, is discussed. The chapter introduces a different perspective of coopetition linked with the notions of strategic alliances and business ecosystems.