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The introduction of the Internet has brought about many changes to this industry. It has increased rivalry, buyer power, and substitutes. Spending time "surfing the net" is one of many substitutes to reading books nowadays. Other technological advances, such as VCR's and video games, have replaced time otherwise spent reading. Buyers have greater influence over the industry, because they have more buying options and faster price comparison ability.
In order to remain competitive in the market, it is necessary to not only understand the book industry as a whole, but to know what your competitors objectives are in the market...
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