Digital Reading Industry and Cost Analysis Take ZhangYue Technology co., LTD. as an Example

Abstract

Digital reading is a new thing emerging with the rise of the Internet. With rapid development, it has begun to replace paper reading as the preferred way for people to read. Compared with the traditional paper reading, digital reading can not only reduce costs also can bring convenience to read, although compared with the traditional paper reading, digital reading has obvious advantages, but with the rapid development of Internet and the diversity of people pastime, digital reading industry also is full of fierce competition. Firstly, through the overall analysis of digital reading industry and other industries as well as the analysis within the digital industry, this paper has a preliminary understanding of the overall development level of the digital reading industry and the competitive trend within the digital industry. Then take ZhangYue Technology Co., Ltd as an example to further analyze the cost structure of digital reading enterprises. From the analysis in this paper, we can see that the digital reading industry has its own unique characteristics in the cost structure, which is different from the traditional manufacturing industry. Content cost and channel cost + selling cost are the main components of the cost of digital reading industry, which can account for more than 50% of the cost. However, selling cost is not actually related to the source of revenue. Therefore, through the analysis of this paper, enterprises should focus on the reduction of selling cost. More attention should be paid to improving the efficiency of content cost. As for the channel cost, it can be reduced under the circumstance that the enterprise's market share is basically full, and the efficiency of its use should be paid attention to at the same time.