It is important to note, however, that the solution provided by Xerox actually fits on a very specific niche, operating most efficiently only for run lengths of 1,000 and below. This would mean increased competition on the over 1,000 segment, with less competitiveness for Xerox.
The second option is much riskier and it involves entering the book production business. On the other hand, its potential is practically unlimited. The market for on-demand, short-run books is a market that exceeds the lifecycle of a normal book, providing numerous opportunities. Additionally, the book market itself is enormous: 50,000 new titles and 1.5 million repeat titles a year is a figure worth to be taken into consideration.
The main disadvantage in such an option is the fact that the competitors have already gained (1) a significant operating experience and (2) a strong position on the market. The first 12 publishers account for 85% of overall U.S. book publishing market, so Xerox would find it difficult to find the best niche into which to fit an entire publishing...
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