Mon
26
May
2014
Dealing with Amazon
Part 1: The Gorilla in the Marketplace
As reported in the Wall Street Jouranal, and just about everywhere else, the mighty Amazon is flexing its muscles in the book distribution and selling space. In its latest round of market maneuvers, Amazon is pressuring Hachette Book Group to renegotiate its e-book pricing terms. As Hachette resists giving more of its profit margins to Amazon, Amazon is no longer allowing its customers to pre-order Hachett books, making it harder for people to buy new titles from Hachett. While the resulting outrage is understandable, shaking fists at Amazon is going to do little, if anything, to change what is going on. I think it's time to stand back and take a look at the reasons why Amazon is where it is, and to examine strategies that authors, publishers and independent book stores can take to improve their market position.
As a writer, I am extremely supportive of my local, independent bookstore. I launched my novel with a well-attended reading at Powel's City of Books in Portland. I've read my own works, and support readings by other writers, at Broadway Books, Annie Blooms and other book stores in Oregon and Washington. And yet, I am dependent on Amazon to generate any kind of volume in sales, and for getting my novel to readers who prefer e-books to to traditional hardcopy. It's not a love-hate relationship with Amazon, so much as an unasked-for-dependency.
As a market strategist, I help my client's analyze their position in the marketplace. Are they new to the market? Are they an established player? How do they stack up against the competition? What unique value do they add for their customers? How does their supply chain work for, or against, them?
But ONE of THE MOST IMPORTANT elements I help them discover is the dynamics of the Market Life Cycle. Every product category (and by category, I mean a class of products. Think cars, light bulbs, laundry detergent, laptops, tractors, coffe, and yes, books!) goes through a series of life cycle phases. These phases range from an early entry through growth, maturity, and decline. At each phase, the dynamics change. And market strategies need to change across those phases.
By understanding and exploiting these dynamics, Amazon was able to first disrupt, and then dominate, the book distribution market. As an undisputed market leader, Amazon's position allows it to:
1. Have a favored negotiation stance
2. Be first in the minds of consumers
3. Leverage suppliers to further reduce costs and improve profits
4. Enjoy free third party support
5. Be accorded customer loyalty and forgiveness when it makes mistakes.
Can you think of another company that enjoys these advantages? How about Apple in the concumer electronics market? Hewlett-Packard in the printer market? Sometimes this dominance makes one just want to throw up one's hands and lay down. It's unlikely (OK, impossible), that Hachett can snap its fingers and make Amazon go away. But in looking at other indsutries where one company dominated, we can look at potential strategies to that comapnies can use to survive and even thrive.
Friends, over the next few weeks I will review the market dynamics that have led to Amazon's dominant position and, more importantly, examine what publishers and independent book stores can do to strengthen their own position. Let me say right up front that much of the foundational work here has been laid by Geoffrey Moore, author of "Crossing the Chasm", "Dealing with Darwin," "Escape Velocity," and other books. I am fortunate enough to be an affiliate of The Chasm Institute. And although this work is grounded in the technology sector, the principles can still be applied here. And Amazon is a technology-dependent company.
I hope you will join me on this exploration. I claim no exclusive set of insights, and I invite your comments, insights and propositions. Let's make this a dialogue of ideas.
Next Up: Why the Amzon Business Model works in its favor and also contains some important points of weaknesses.
Sun
27
Apr
2014
TAG: A Writing Process Tour
Suzy Vitello tagged me in a writing process blog tour. I love Suzy's debut novel. It's technically classified as young adult, but I was totally engaged as an older adult.
So, first of all, you need to read Suzy's post. I'm betting you will be enthralled with her writing.
You're back from Suzy's blog already? (OK, which new YA novel did she feature? Oh, OK, you did read her blog. Good!) Now, having been tagged myself, I'm here to answer the following questions:
What am I working on?
Having just launched "The Gods of Second Chances" I have been busy with readings and interviews. But I am working on my next novel. Don't have a solid title yest, but this time the protagonist is
a woman learning to live on a ranch in eastern Oregon. It's the Depression and her aunts have arranged for her marriage to a rancher. Though she's been enamored of "life in the West," she will
encounter unexpected challenges of the land and heart. I promise unexpected twists along the way.
How does my work differ from others of its genre?
It's difficult to say what "genre" my writing fits into. I'll go with the term publisher Laua Stanfill uses at Forest Avenue Press.
I write "quiet novels," those with plenty of page-turning writing, but where the world acts more on the protagonist than the protagonist changes the world. So, strong characters, plenty of plot
twists, and an interior, emotional journey that is even more important than the external plot.
Why Do I Write What I Do?
I've always loved books with compelling characters caught up in circumstances that were beyond their control. I love books whose characters are vulnerable, human and yet likable. I think perfection is the antithesis of a compelling character. When I re-read a scene that I've written and read many times, and still find myself laughing or becoming a bit choked up, then I know I've done a good job.
How does my writing process work?
I start with a character who needs to confront an issue within themselves, even though they'd rather not. Location and landscape are a big part of my writing. Landscape can add so much texture to a story when it's done well. It's one of the reasons I love writing stories that take place in the West. It's interesting to have a character wind up in an unfamiliar location, again forcing him or her to confront something in themselves they'd rather not.
I never outline what is going to happen in a story. Sometimes a character or action takes me in a direction I had not anticipated. I do ask myself, "What ten things must happen in this novel."
A technique I learned from Peter Maas many years ago was to ask what would happen if my characters did the opposite of what I had originally intended. For example, if my male and female protagonists are about to fall in love, what would happen if they didn't? What would happen if one of them did irreparable harm to the other?
Next up on TAG! YOU'RE IT:
Here are a couple of terrific new reads you all need to know about. They are both "rock" novels from
talented writers, each of whom has played in bands.
Each features a protagonist who is triying his hand once again in the music business, even though it nearly destryed him once before. That being said, the journeys are very different and you will find something new and different in each!
Rob Yardumian's "The Sound of Songs Across the Water" takes place in 1995 in the hills above LA. Riley has come there to find his old friend Will, now a successful producer of records. This story is as much about rivalry and coming to terms with past deeds as it is about music. And remember what I said earlier about landscape? Yardumian does a stellar job in using the hills and canyons above LA as a land of temptation and heartbreak.
In a similar vein, Art Edwars' "Badge" is the soulful examination of a man who once tasted success in the rock music business. But here, the protagonist steps in the way of his own happiness. Badge is torn between a "normal" life with his son and the lure of the rock tour and a certain, young and sexy new rock star. Taking place five years later than Yardumian's novel, Badge hits at that moment in music history when everything is going to digital. How can an aging rocker possibly cope?
Fri
25
Apr
2014
To Dis, or Not to Dis, a Location
I was very excited to see a photo of my novel displayed at Hearthside Books and Toys in Juneau, Alaska. After all, the story takes place on a fictional small island in SE Alaska. And the characters visit Juneau more than once.
So, the wonderful folks at Hearthside were curious about the "dig" my two main characters gave Juneau, one of whom comments on avoiding Juneau because of the drunken boat operators and the other adds that "It's an armpit, all right."
Ouch!
To set the record straight, alcoholism is more prevalent in the smaller Alaskan communities than Juneau. Smaller communities often do not have the resources to deal with alcolism, homelessness and addiction. So addicts often wind up in Juneau. So in that sense, Juneau is no different than many cities, such as Seattle or Portland, where I live.
But what's a fiction writer to do? Should we avoid disparaging remarks about a city or town or country? Apologize for doing so? Is it ever OK to insult a location? In my mind, there are a couple of considerations, the first being if it is serving the story.
What is the context for the remark? In this case, the protagonist's daughter is a meth addict who started using on the small island on which they live. But he still sees the island as his home and a place of protection, a community where people look out for each other. Easier to blame ills, such as addiction, on the bigger cities. His own limited vision often keeps him seeing what is really going on around him.
Does this perspective come through in the scene where the insult occurs? No. The reader has to sort through that after reading enough of the novel to say, "Hey, this main character doesn't always see things as clearly as he needs to."
A mitigating tactic could have been to show Juneau in a more flattering light from a different point of view, perhaps from another character or an objective description of the city. For example, I could have described the beautiful shoreline of Juneau. But I did not. Why? Because it would not serve the story. The characters' viewpoint of Juneau did.
So, I hope the readers in Juneau and elsewhere will enjoy "The Gods of Second Chances" and I hope to see them in the not-too-distant future.
Writers and readers, what do you thinK?
Mon
26
May
2014
Dealing with Amazon
Part 1: The Gorilla in the Marketplace
As reported in the Wall Street Jouranal, and just about everywhere else, the mighty Amazon is flexing its muscles in the book distribution and selling space. In its latest round of market maneuvers, Amazon is pressuring Hachette Book Group to renegotiate its e-book pricing terms. As Hachette resists giving more of its profit margins to Amazon, Amazon is no longer allowing its customers to pre-order Hachett books, making it harder for people to buy new titles from Hachett. While the resulting outrage is understandable, shaking fists at Amazon is going to do little, if anything, to change what is going on. I think it's time to stand back and take a look at the reasons why Amazon is where it is, and to examine strategies that authors, publishers and independent book stores can take to improve their market position.
As a writer, I am extremely supportive of my local, independent bookstore. I launched my novel with a well-attended reading at Powel's City of Books in Portland. I've read my own works, and support readings by other writers, at Broadway Books, Annie Blooms and other book stores in Oregon and Washington. And yet, I am dependent on Amazon to generate any kind of volume in sales, and for getting my novel to readers who prefer e-books to to traditional hardcopy. It's not a love-hate relationship with Amazon, so much as an unasked-for-dependency.
As a market strategist, I help my client's analyze their position in the marketplace. Are they new to the market? Are they an established player? How do they stack up against the competition? What unique value do they add for their customers? How does their supply chain work for, or against, them?
But ONE of THE MOST IMPORTANT elements I help them discover is the dynamics of the Market Life Cycle. Every product category (and by category, I mean a class of products. Think cars, light bulbs, laundry detergent, laptops, tractors, coffe, and yes, books!) goes through a series of life cycle phases. These phases range from an early entry through growth, maturity, and decline. At each phase, the dynamics change. And market strategies need to change across those phases.
By understanding and exploiting these dynamics, Amazon was able to first disrupt, and then dominate, the book distribution market. As an undisputed market leader, Amazon's position allows it to:
1. Have a favored negotiation stance
2. Be first in the minds of consumers
3. Leverage suppliers to further reduce costs and improve profits
4. Enjoy free third party support
5. Be accorded customer loyalty and forgiveness when it makes mistakes.
Can you think of another company that enjoys these advantages? How about Apple in the concumer electronics market? Hewlett-Packard in the printer market? Sometimes this dominance makes one just want to throw up one's hands and lay down. It's unlikely (OK, impossible), that Hachett can snap its fingers and make Amazon go away. But in looking at other indsutries where one company dominated, we can look at potential strategies to that comapnies can use to survive and even thrive.
Friends, over the next few weeks I will review the market dynamics that have led to Amazon's dominant position and, more importantly, examine what publishers and independent book stores can do to strengthen their own position. Let me say right up front that much of the foundational work here has been laid by Geoffrey Moore, author of "Crossing the Chasm", "Dealing with Darwin," "Escape Velocity," and other books. I am fortunate enough to be an affiliate of The Chasm Institute. And although this work is grounded in the technology sector, the principles can still be applied here. And Amazon is a technology-dependent company.
I hope you will join me on this exploration. I claim no exclusive set of insights, and I invite your comments, insights and propositions. Let's make this a dialogue of ideas.
Next Up: Why the Amzon Business Model works in its favor and also contains some important points of weaknesses.
Sun
27
Apr
2014
TAG: A Writing Process Tour
Suzy Vitello tagged me in a writing process blog tour. I love Suzy's debut novel. It's technically classified as young adult, but I was totally engaged as an older adult.
So, first of all, you need to read Suzy's post. I'm betting you will be enthralled with her writing.
You're back from Suzy's blog already? (OK, which new YA novel did she feature? Oh, OK, you did read her blog. Good!) Now, having been tagged myself, I'm here to answer the following questions:
What am I working on?
Having just launched "The Gods of Second Chances" I have been busy with readings and interviews. But I am working on my next novel. Don't have a solid title yest, but this time the protagonist is
a woman learning to live on a ranch in eastern Oregon. It's the Depression and her aunts have arranged for her marriage to a rancher. Though she's been enamored of "life in the West," she will
encounter unexpected challenges of the land and heart. I promise unexpected twists along the way.
How does my work differ from others of its genre?
It's difficult to say what "genre" my writing fits into. I'll go with the term publisher Laua Stanfill uses at Forest Avenue Press.
I write "quiet novels," those with plenty of page-turning writing, but where the world acts more on the protagonist than the protagonist changes the world. So, strong characters, plenty of plot
twists, and an interior, emotional journey that is even more important than the external plot.
Why Do I Write What I Do?
I've always loved books with compelling characters caught up in circumstances that were beyond their control. I love books whose characters are vulnerable, human and yet likable. I think perfection is the antithesis of a compelling character. When I re-read a scene that I've written and read many times, and still find myself laughing or becoming a bit choked up, then I know I've done a good job.
How does my writing process work?
I start with a character who needs to confront an issue within themselves, even though they'd rather not. Location and landscape are a big part of my writing. Landscape can add so much texture to a story when it's done well. It's one of the reasons I love writing stories that take place in the West. It's interesting to have a character wind up in an unfamiliar location, again forcing him or her to confront something in themselves they'd rather not.
I never outline what is going to happen in a story. Sometimes a character or action takes me in a direction I had not anticipated. I do ask myself, "What ten things must happen in this novel."
A technique I learned from Peter Maas many years ago was to ask what would happen if my characters did the opposite of what I had originally intended. For example, if my male and female protagonists are about to fall in love, what would happen if they didn't? What would happen if one of them did irreparable harm to the other?
Next up on TAG! YOU'RE IT:
Here are a couple of terrific new reads you all need to know about. They are both "rock" novels from
talented writers, each of whom has played in bands.
Each features a protagonist who is triying his hand once again in the music business, even though it nearly destryed him once before. That being said, the journeys are very different and you will find something new and different in each!
Rob Yardumian's "The Sound of Songs Across the Water" takes place in 1995 in the hills above LA. Riley has come there to find his old friend Will, now a successful producer of records. This story is as much about rivalry and coming to terms with past deeds as it is about music. And remember what I said earlier about landscape? Yardumian does a stellar job in using the hills and canyons above LA as a land of temptation and heartbreak.
In a similar vein, Art Edwars' "Badge" is the soulful examination of a man who once tasted success in the rock music business. But here, the protagonist steps in the way of his own happiness. Badge is torn between a "normal" life with his son and the lure of the rock tour and a certain, young and sexy new rock star. Taking place five years later than Yardumian's novel, Badge hits at that moment in music history when everything is going to digital. How can an aging rocker possibly cope?
Fri
25
Apr
2014
To Dis, or Not to Dis, a Location
I was very excited to see a photo of my novel displayed at Hearthside Books and Toys in Juneau, Alaska. After all, the story takes place on a fictional small island in SE Alaska. And the characters visit Juneau more than once.
So, the wonderful folks at Hearthside were curious about the "dig" my two main characters gave Juneau, one of whom comments on avoiding Juneau because of the drunken boat operators and the other adds that "It's an armpit, all right."
Ouch!
To set the record straight, alcoholism is more prevalent in the smaller Alaskan communities than Juneau. Smaller communities often do not have the resources to deal with alcolism, homelessness and addiction. So addicts often wind up in Juneau. So in that sense, Juneau is no different than many cities, such as Seattle or Portland, where I live.
But what's a fiction writer to do? Should we avoid disparaging remarks about a city or town or country? Apologize for doing so? Is it ever OK to insult a location? In my mind, there are a couple of considerations, the first being if it is serving the story.
What is the context for the remark? In this case, the protagonist's daughter is a meth addict who started using on the small island on which they live. But he still sees the island as his home and a place of protection, a community where people look out for each other. Easier to blame ills, such as addiction, on the bigger cities. His own limited vision often keeps him seeing what is really going on around him.
Does this perspective come through in the scene where the insult occurs? No. The reader has to sort through that after reading enough of the novel to say, "Hey, this main character doesn't always see things as clearly as he needs to."
A mitigating tactic could have been to show Juneau in a more flattering light from a different point of view, perhaps from another character or an objective description of the city. For example, I could have described the beautiful shoreline of Juneau. But I did not. Why? Because it would not serve the story. The characters' viewpoint of Juneau did.
So, I hope the readers in Juneau and elsewhere will enjoy "The Gods of Second Chances" and I hope to see them in the not-too-distant future.
Writers and readers, what do you thinK?
Fri
25
Apr
2014
To Dis, or Not to Dis, a Location
I was very excited to see a photo of my novel displayed at Hearthside Books and Toys in Juneau, Alaska. After all, the story takes place on a fictional small island in SE Alaska. And the characters visit Juneau more than once.
So, the wonderful folks at Hearthside were curious about the "dig" my two main characters gave Juneau, one of whom comments on avoiding Juneau because of the drunken boat operators and the other adds that "It's an armpit, all right."
Ouch!
To set the record straight, alcoholism is more prevalent in the smaller Alaskan communities than Juneau. Smaller communities often do not have the resources to deal with alcolism, homelessness and addiction. So addicts often wind up in Juneau. So in that sense, Juneau is no different than many cities, such as Seattle or Portland, where I live.
But what's a fiction writer to do? Should we avoid disparaging remarks about a city or town or country? Apologize for doing so? Is it ever OK to insult a location? In my mind, there are a couple of considerations, the first being if it is serving the story.
What is the context for the remark? In this case, the protagonist's daughter is a meth addict who started using on the small island on which they live. But he still sees the island as his home and a place of protection, a community where people look out for each other. Easier to blame ills, such as addiction, on the bigger cities. His own limited vision often keeps him seeing what is really going on around him.
Does this perspective come through in the scene where the insult occurs? No. The reader has to sort through that after reading enough of the novel to say, "Hey, this main character doesn't always see things as clearly as he needs to."
A mitigating tactic could have been to show Juneau in a more flattering light from a different point of view, perhaps from another character or an objective description of the city. For example, I could have described the beautiful shoreline of Juneau. But I did not. Why? Because it would not serve the story. The characters' viewpoint of Juneau did.
So, I hope the readers in Juneau and elsewhere will enjoy "The Gods of Second Chances" and I hope to see them in the not-too-distant future.
Writers and readers, what do you thinK?