This business proposal is being created to provide recommendations to Will Bury in an effort to increase revenue and the associated production levels for Will Bury’s digitized books. Also included will be associated recommendations that will assist Bury in adjusting fixed and variable costs allowing him to maximize profits while also reducing costs. The following proposal will also identify the actions that should be taken in current and presumed circumstances as well as future actions that should be taken to maximize efficiency, production levels, and price changes.
Given the current economic condition, staying competitive and increasing profit is essential to a healthy business. Will Bury is an enterprising entrepreneur who has patented a new product that takes books and either digitally enhances them or allows the listener to listen to the book in a realistic synthetic voice. Although there are other products like this available, such as books on compact disk, this is a niche market that has its place in the broader marketplace, especially for businesses and school systems. However, if Will does not price his product accordingly, consumers have other avenues in which to pursue this type of product. Will knows that he has free access to books that no longer have copyright protection under the law and can pay a relatively low royalty fee of $5 per title to expand his existing catalog.
The market model for Will Bury’s digital book is a monopolistic competition model. This is defined as one with many sellers that offer differentiated products using non-price competition such as brand names and trademarks to promote their own product over another product. (McConnell, Brue, and Flynn, 2009) Will Bury will be targeting mostly affluent families with a high income who have a higher acceptance of digital reading for pleasure, although their desire for digital reading for business may be further behind. In addition, the article that Will is basing this on also found...