External Factors

External Factors:

Political/Regulatory:

The publishers are interested in taking over the task of making and distributing audiobooks. This is because they have noticed an upward trend in the market share of audiobooks in the past couple of years. The Canadian government has strict laws regarding copyright. So, Simply Audiobooks should make sure that they follow the copyright laws strictly.

Economic:

Real gross domestic product edged down 0.1% in July, the first monthly decline since August 2009. Simply Audiobooks would actually be satisfied because the economy has recovered to a huge extent. However, still slower improvement is taking place. So, the company should not expect to improve their sales to a great extent as the spending powers of the population won’t improve too much. (Stats Canada 2010)

http://www.statcan.gc.ca/daily-quotidien/100930/dq100930a-eng.htm

Social:

Life is getting busier day by day. People don’t get time for any leisure activities. So, this can also create an alarming situation for the owners of Simply Audiobooks. However, as population is increasing, more cars are coming on the road and there are more and more traffic jams all over Canada including the highways. This can prove to be beneficial for Simply Audiobooks because people might be willing to buy audiobooks in order to make their traffic jams less miserable.

Technological:

The business strategy of Simply Audiobooks is too outdated. They should introduce new softwares that are only related to Simply Audiobooks. For instance, Apple has made a separate library for audiobooks in iTunes. Similarly, Simply Audiobooks should create a separate software. In this way, they can even expand their company later by introducing other add-ons in the same software.

Competitive:

The audiobooks are a bit new in fashion. So, their market conditions are quite competitive. There are many small, medium and large scale firms that are in this industry. Audible Inc is a firm that is a lot bigger...