The Electric Book Company, Inc.
Business Plan
Executive Summary
Electric Books will sell textbooks and other course materials in an
electronic format to students in elementary and secondary schools as well as to
students in colleges and universities worldwide.
The Company and Mission
The Electric Book Company is a proposed entity to be formed during the
third quarter of 2004 as either a corporation or a limited liability company. The
form of the company will be determined by the requirements of investors.
The Industry
Book sales totaled more than $26.8 billion in 2002, a 5.5 percent increase
over 2001, according to figures released by the Association of American
Publishers. Elementary and high school sales were down 5 percent to $4.07
billion, while higher education sales rose 12.4 percent, with sales of $3.90 billion.
Higher education sales were 16.8 percent greater in December 2003,
totaling $744.4 million. Year to date figures showed sales were up 3.6 percent for
the year, final month gains were critical in bringing this growth. Elementary and
high school net sales were up 14.8 percent in December 2003, with sales of
$139.2 million. Calendar year to date numbers showed sales in this category
gained 2.5 percent in 2003.
The Target Market
According to the U.S. Department of Education, enrollment in public
schools for prekindergarten through grade twelve reached an estimated 47.6
The Electric Book Company, Inc.
Business Plan
Park & Co. Inc.
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million in 2002. Enrollment is projected to be 47.7 million 2003. For the first
half of this decade, public enrollment for prekindergarten through grade twelve is
projected to increase to an all time high of 47.9 million in 2005.
Total undergraduate enrollment in postsecondary institutions has generally
increased in the past three decades, and it is projected to increase throughout the
next ten years. These increases have been accompanied by changes in the
attendance status of students, the type of i