This document analyzes the potential market for Xerox's Book-In-Time (BIT) print-on-demand system based on a PEST analysis of the publishing industry environment and value chain. It identifies publishers and printers as potential customers since they work closely on printing costs. The document estimates BIT sales targeting the 20 million out of print titles with run lengths below 1,000 copies, pitching the system as able to deliver books for significantly less cost. Potential BIT customers are estimated at selling to around 6-7 top printing companies, 60-70 mid-size companies, and 1,750 smaller companies.

2. PEST Analysis Source: Rangan, V. Kasturi. "Xerox: Book-In-Time," Harvard Business School, 2002. Book-In-Time system SOHO explosion Economic recovery in mid 1990s Federal funding for libraries and arts likely to increase New Techniques and Technologies (personal computing, client-server, local area networks, etc.)‏ Increased enrollments in schools and colleges Increasingly automated printing process Social changes likely to lead to increased sale of healthcare and technological titles Technological Social Economic Political

3. Industry Analysis

4. Publishing Industry Value Chain Authors Printers Publishers Wholesalers Retailers End Customers

5. Value Chain for $25 Book (retail)‏ Note: Wholesaler excluded from this diagram due to lack of case info

6. Where to Market Xerox Book-In-Time? Authors Printers Publishers Wholesalers Retailers End Customers Since Publishers work closely with Printers (20% of their sales is in manufacturing costs), BIT could be sold to either of these links in the value chain.

9. Effect of Amazon.com on Value Chain Note: Wholesaler excluded from this diagram due to lack of case info