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Case Study Questions: Questions And Answers On Automatic Pricing

1387 words - 6 pages

“short answer” questions: no more than a paragraph or two for each answer, please.

Case Study Questions

1. In the case, Marty Manley recognized that the used book market has changed significantly since Alibris started working on their pricing module and providing pricing services. Marty realizes that in order to help Alibris suppliers successfully weather this market change, he needs to help them understand what is going on and how it might affect the value of their businesses as well impact their revenues. How well do you think he achieved this informational/teaching goal for the business partners? (of understanding the market) (Katherine)

It is clear that Alibris did all that they could to share their knowledge with their business partners. Marty is conveying the message well, of how the industry environment is changing and how important it is to adapt to this change in order to remain competitive.
In the letter Marty tells his business partners about the changes the company is going to conduct in the future and how they will benefit the booksellers, such as only charging the pricing service fee, if successfully implemented. This shows his partners, that Alibris is proactively trying to collaborate with them.

He goes into detail about the history of the company, demonstrating how Alibris is the leader in innovation and adaptation. He shows that the company is not just looking to maximize profits, but also work for the industry’s benefit, such as creating a total universe database of books.
When large companies like Amazon Marketplace became a key player, Alibris also helped its partners realize that low cost books in high volumes was actually profitable. This led Alibris’s book prices to drop 4.8% but increase sales volume by 50% in 2003. This allowed Alibris to change its focus from rare books to welcoming volumes from different distributors and aided partners in realizing the value in much of the fragmented book market and develop unique pricing strategies.

First by implementing its new revenue model Alibris allowed its dealers stay up- to- date by constantly updating and renovating its online book database, and by implementing ISBN numbers and using the Dewey decimal system. Also Alibris helped booksellers stay current with the market in 2002 by allowing distributors to send books directly to buyers instead of the distribution center thus cutting costs for both sides and lowering costs for customers. Alibris constantly worked with its partners by directly listing their books to the large sellers such as Amazon and Barn’s & Noble holding the market concept that they will “sell their book anywhere we remove it anywhere, and everyone benefits.” Alibris also worked with libraries that wanted to do business and worked to make sales between dealers and libraries in an automated and streamline process. Alibris also worked with book publishers and purchased their returned books which they then sold to Sparks, this...

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