ValueMags and Books: A New Idea


ValueMags has recently developed a soft draft of what would be considered an executive summary of their research about the e-book industry. The e-book industry is one of the most booming industries in the world and ValueMags is interested in getting in on the action!

Currently, North America (Canada and the United States) has had 2 consecutive negative quarters which is putting pressure on provincial and federal governments. The concern for students is that if Canada continues their economic decline, these prices will keep rising.

For this reason, ValueMags would intend to approach North America’s largest textbook publisher: Person Canada, for an eventual launch in the metropolitan areas of North America. ValueMags would suggest 3 different packages for their service differentiated by pricing and accessibility. The Basic Package is $49.99 plus taxes which includes the choice of 4 textbooks, 1 audio-book, and unlimited academic journals and tools. The Premium Package is $69.99 plus taxes which includes the choice of up to 6 textbooks, 4 audio-books and unlimited academic journals and tools. Lastly, ValueMags` Platinum Package offers unlimited services for $99.99 plus taxes.

The company plans on approaching Pearson Canada offering them a 15% royalty on every package bought. In total with audio-books, academic journals and learning tools, Pearson will be offered a 32% Stake in ValueMags for a $400,000 initial investment and digital copies of their academic text-books and other (audio, journals, learning tools). In partnering with Pearson Canada, ValueMags can develop Pearson Canada`s media presence and increase market domination. The partnership will increase their sales and give them the opportunity to participate in a growing and concerning global issue: deforestation.

The company will be 68% owner by the two owners. ValueMags will divide role among Pearson representatives and encourage their participation in hiring employees for ValueMags or share current Pearson employees since they are already knowledgeable about our partnering company and their platform.

The risk of this business model is that Pearson Canada will not buy into it. This idea relies on their active participation for years to come. ValueMags intends to build their company and use more innovative channels to get through to their customers. The company is well established although their sales are declining due to emerging independent e-commerce retailers. Despite their conservative approach, ValueMags is confident that Pearson Canada will be interested in their profitable business and partnership plan.