Netlflix your textbook!
Chegg.com, the KPCB backed online book rental market is going to lead a dramatic change in the textbook industry. <br />
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Business model: Paying too much for textbooks is a common complaint for college students. The Netlfix version for textbooks, Chegg offers a great alternative : When you can rent it, why do you buy it? <br />
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Market: Chegg's target market is mostly college age students in the U.S. ....
More >>Chegg.com, the KPCB backed online book rental market is going to lead a dramatic change in the textbook industry. <br />
<br />
Business model: Paying too much for textbooks is a common complaint for college students. The Netlfix version for textbooks, Chegg offers a great alternative : When you can rent it, why do you buy it? <br />
<br />
Market: Chegg's target market is mostly college age students in the U.S. . According to USA Today , the textbook industry is roughly 10 Billion dollars. Chegg's existence might change how the textbook industry operates. <br />
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Originality of the service and competition: Renting textbooks/Pro for sustainability is a quite new concept . In the absence of any IP protection and barrier to entry, there are already similar websites such as bookrenter.com etc. In addition, Chegg still faces other kinds of indirect competition from discount book sellers, local student organized book exchange program to Barns and Nobles which can easily set up a renting arm to compete with Chegg. Potential threats from competition might put Chegg' prosperity into question mark. Although Chegg is not the first online book rental service, <br />
It relies on strong campus marketing campaign to build a solid brand image. Currently, Chegg has outperformed its peers in the textbook rental industry. In order to sustain their market advantage, Chegg might soon expand their database or launch customer retention program to lock in customers. <br />
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Revenue Generation: <br />
As a B2C e-commerce website, Revenue generated from rental is straight forward- rental fee. <br />
Now, Chegg has expanded to second-hand book sales transaction beyond rental. The second book sales might be a means to support the book rental business which helps Chegg reduce its cost for its rental service.
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