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Issue: Should ABE accept B&N・s offer?
Introduction
The success of ABE and its customer base in the rare-and-used book industry makes it a viable out-of-print partner for B&N and from ABE・s perspective, an exclusive arrangement of this sort is certainly tempting. ... These contain technical as well as financial risks, which if not addressed properly, can bring to the demise of ABE.
External Analysis
ABE and its rivals act as infomediaries between book buyers and sellers. As such, their effectiveness depends on the convenience of their service and is greatly influenced by the selection they offer customers, the number of book dealers they represent and the accuracy of the data in their systems . The superiority of online book infomediaries over printed catalogues also relies on the time and cost saving dealers benefit from.
Book dealers are the cornerstone of a rare-and-used book infomediary success, therefore a quality and direct relationship with those dealers is crucial for a company such as ABE. ... These latter providers may possibly link with ABE・s competitors once ABE is associated with B&N.
In terms of competition, Bibliofind seems to be the most aggressive competitor to ABE, offering the same basic service to dealers and buyers, for a lower cost. It seems that all dealers that list on a service in addition to ABE include Bibliofind as their default alternative. ... It would be safe to assume that these ：lower tier； dealers generate significant load on the system and the support staff by constantly adjusting their book levels and importing listings into the system. ...
Striving for superior customer service in order to encourage loyalty, ABE provides many added value services for free. These services not only have a negative affect on the cost structure of ABE (12 out of their 23 staff member belong to the support team) but also present a potential for revenue if charged for.
Approximate Word count = 1460
Approximate Pages = 5.8
(250 words per page double spaced)
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