Two heads are better than one, and sometimes in the business world, two companies are better than one. At least, that’s the mindset that Random House and Penguin – two of the world’s largest publishers – have taken as they consider a possible merger.
The two businesses are trying to find ways to head off the growing competition from online retailers, according to reports. If completed, the deal would create a combined entity that would control nearly 25 percent of the United States book market. Powerhouse authors like Dan Brown, Toni Morrison and John Grisham from Random House would be under the same roof as Junat Diaz and Patricia Cornwell from Penguin.
“A merger of Random House and Penguin could help the publishing houses cut costs by combining resources, and it would give them more heft in negotiations with Amazon and Apple as readers increasingly abandon print for cheaper e-books,” reported a New York Times Article.
Ian Whittaker, an analyst at Liberum Capital Ltd. in London, told Bloomberg Businessweek that the merger makes strategic sense for Pearson – the British media conglomerate that owns Penguin. With the publishing industry facing structural problems, the easiest way to get profits are synergies and cost cutting, he said.
Stay innovative with binding equipment and supplies
With digital media becoming a stronghold in the publishing industry, businesses need to find new and creative ways to stay ahead of the competition. Mergers, like the possible one between Random House and Penguin, are an option that companies can take.
Another is to continue to put forth quality product and invest in equipment that can create unique and professional pieces for customers. For example, using coil or wire binding equipment offers a way to hold papers together that is more polished than a single staple. Additionally, paper folding machines can forge uniform folds for pamphlets or handouts that need to be sent through the mail.