Case Name :      Auto-Graphics, Inc. and the Library-Automation Industry-the New Technology Frontier

Authors :           Olukemi Sawyerr, Stanley Abraham

Source :             North American Case Research Association (NACRA)

Case ID :            NA0211

Discipline :        Strategy

Case Length :    31 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

The Auto-Graphics, Inc. (“A-G”) case is an example of a small business that has survived over three generations through adapting to industry and market trends, yet still faces challenges as technology continues inexorably to change the business environment. A-G competed in the public, academic, and consortia (PAC) segment of the library-automation industry. It was founded in 1950 in Alhambra, CA by Ira C. Cope and in 2011 was led by his grandson, Paul Cope. The case opens with Paul Cope’s excitement and optimism about the future possibilities of the library-automation industry. His optimism was tempered by the fact that the library market was very mature and libraries in both Canada and the U.S. were confronted with shrinking budgets. Although Paul Cope was hopeful about the future possibilities of the library-automation industry, A-G had to find a way to increase revenues in its North American business in the face of declining library budgets. The case describes the library-automation industry, the market segments served, the products offered by the firms in the industry, the trends affecting the industry, and the challenges faced by incumbents in the industry. It then describes competition in the PAC segment, which was intense throughout the 2000s. Competing technologies included SaaS (Software as a Service) and open-systems software. Markets were also changing. One ongoing issue was that library patrons belonged to a generation accustomed to Google-like search engines and the latest and greatest technologies, so held high expectations for a library’s ease of use and breadth of content. Libraries needed to make radical changes to redefine their relevancy with their community of users and to keep up with changes in technologies including eBooks, eJournals and other online resources. The case then describes A-G itself-how it innovates, its product line, and its financial statements over the past five years. The case ends with the challenges facing Paul Cope and A-G. The case will challenge students to integrate industry and competitive dynamics with market demands and technological trends and devise a set of worthy strategic alternatives commensurate with its financial resources to help A-G continue to grow in the future.