A New Frontier

Sara Sheehan The Global Marketplace

`

`

`

`

Create a new division of Simon & Schuster within Mexico Focus on Spanish-language adult trade titles, in addition to translations of US bestsellers Invest in already-produced titles, creating revenue through backlist, then expand S&S already has a multinational presence
UK Canada Australia

` ` ` ` ` ` ` `

Federal republic Population: 113 million Literacy Rate: 86% GDP per capita: $13,500US GDP: $1.5 trillion US Unemployment: 5.5% Median age: 29 Biggest trading partner: United States
56.7% of imports 80.9% of exports

`

`

`

` ` `

Already developed backlist of Spanish-language titles Current exchange rate between US dollar and Mexican peso is 1:12, making it easier to fund a start-up on little cash Most improved country based on Economic Freedom Index Regulatory system provides ease of start-up 18 procedures for entry Approximately 35 days to start a business

`

`

`

`

Mexico has increased book imports from the US 21% in the last year Revenue from US imported books is currently over $40 million Locally, there are under 300 publishing companies within Mexico, and they produce mostly independent novels or scientific and trade textbooks In-country publishing is not subject to Mexico¶s price-fixing on imported goods

`

`

Mexico¶s publishing industry is currently populated with almost strictly independent publishers The only major house to have a location in Mexico is Macmillan
They only publish English-language educational titles for a Mexican market

`

Considering S&S¶s interest in producing Spanishlanguage trade books, there will be little crossover in terms of market

` `

`

`

`

Mexico is a free market economy NAFTA member means there are few restrictions on imports into the country Starting a business takes less than two weeks on small amount capital Caveat: Corruption Index Rating is in the bottom 50% of the world. However: Economic Freedom Index is most improved in the world in 2010.

Year 1 Revenue Book Sales

Year 2

Year 3

Year 4

Year 5

Year 1

50,000 copies of 10 already-produced books @ $5.50US (50% of cover price) with new titles from US rotating in yearly

$225,000

$225,000

$225,000

$225,000

$225,000

Year 2

6 original titles @ 20,000 copies each @ $5.50US (50% of cover price) 12 original titles @ 20,000 copies each @ $5.50US (50% of cover price) 12 original titles @ 20,000 copies each @ $5.50US (50% of cover price) 24 original titles @ 20,000 copies each @ $5.50US (50% of cover price)

$660,000

Year 3

$1,320,000

Year 4

$1,320,000

Year 5

$2,640,000

Total Revenue

$225,000

$885,000

$1,545,000

$1,545,000

$2,865,000

Year 1

Year 2

Year 3

Year 4

Year 5

Expenses Staff Editorial Marketing Publicity Production Assistants Production Printing (@ $1.50US per book) $75,000 $255,000 $435,000 $435,000 $795,000 $35,000 $35,000 $35,000 $35,000 $80,000 $35,000 $35,000 $35,000 $35,000 $80,000 $70,000 $70,000 $70,000 $70,000 $80,000 $70,000 $70,000 $70,000 $70,000 $80,000 $140,000 $140,000 $140,000 $140,000 $160,000

Art (@ $2,500US per cover) Marketing/ Publicity Budgeted for all titles Equipment Office Supplies Rent

$0

$15,000

$30,000

$30,000

$60,000

$50,000

$150,000

$300,000

$300,000

$600,000

$20,000 $600,000

$20,000 $600,000

$20,000 $360,000

$20,000 $360,000

$20,000 $360,000

Total Expenses

$965,000

$1,260,000

$1,505,000

$1,505,000

$2,555,000

Year 1

Year 2

Year 3

Year 4

Year 5

Net Profit

($740,000)

($375,000)

$40,000

$40,000

$310,000

Sign up to vote on this title
UsefulNot useful