Reshaping the Book Industry or Back to Basics? (B) The Case of France Loisirs

Published 18 Dec 2002
Reference 5075
Topic Strategy
Industry Retail Media Production
Region Europe
Summary

The Bertelsmann-owned French book club, France Loisirs, has successfully operated a subscription-based business model delivering a remarkably high profit margin. Considering rising economic pressure and a declining member base, the case introduces the club's basic business principles and summarizes strategic options for sustainability and further growth from a top management perspective.

Teaching objectives

The teaching objectives include: (1) understanding subscription-based business rules and their pros and cons, (2) recognizing profit optimisation options in a hybrid mail-order and shop business model, and (3) defining and formulating strategies to bolster and sustain mid-range growth and profits for a profitable, but seemingly old-fashioned business model.

Keywords
  • Strategy
  • Media
  • Business model
  • Commitment business
  • Retailing
  • Management
  • Industry and business analysis
  • Customer service
  • Marc Oliver Sommer