Rakuten Kobo has an unusual success strategy. It is a global leader that thrives not by taking away from traditional retail but rather acting as an equalizer – it wins by working in partnership with book retailers around the world to sell eBooks and audiobooks. In doing so, it helps those retailers successfully fight for both sales and customer ownership against competitors sometimes seen as unstoppable.
Why go up against global digital ecosystem players like Amazon, Apple and Google? In 2009, Canada’s largest book retailer, Indigo, realized that eBooks were a competitive threat. Not just because they represented digital disruption of their print book business, but because they were the thin edge of a wedge for customer ownership: A customer who started buying eBooks from a competitor would start buying print books, and soon everything else.
Kobo was founded on the realization that every book retailer around the world would face the same challenge in the fight for customers, or lose to a global player. And Kobo offered local players the benefits of global scale without the massive investments required to go head-to-head on their own.
Michael Tamblyn, CEO of Rakuten Kobo, talks about how Kobo has developed global scale through retail partnerships and in doing so has created not just one of the world’s largest eBook retailers, but also one of the largest coalitions of bricks-and-mortar retailers, each successfully competitive in their own market and benefiting from a digital content ecosystem that improves on a daily basis. Along the way, he asks the question of whether a model that has started in the book sector has wider application, with national players using strategic partnerships to achieve world-class competitiveness.
Michael Tamblyn
CEO
Rakuten Kobo Inc.