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National Bookstore Industry Analysis

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Submitted By MonicaJagger
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CHAPTER 4
INDUSTRY AND COMPETITOR ANALYSIS Industry Analysis
4.1 Porter's Five Forces

A. Rivalry among Competing Firms - Weak Rivalry among competing firms is considerably low since NBS has maintained its position on being the largest and top bookstore and distributor of the country.

Moreover, there are relatively fewer sellers that any one company's actions have little direct impact on rival's business. Products of rival competitors were also somehow different in approach as to which, say, Fully Booked and Goodwill Bookstore focus on book retailing rather than offering school supplies. Even if firms compete with same books and other materials, the pricing strategy of NBS is relatively lowest among rivalry. This has been one of the advantages of NBS throughout the decades past.

Lastly, competition has already transcended on internet based systems by delivering online services which fast-paced technology-driven consumers demand. Almost all competing firms have already adapt this change and continually to develop further their online marketing, promotions and strategies.

B. Threat of New Entrants - Moderate Threats of new entrants for NBS is moderate since factors of relative price of substitute, low product differentiation, big switching cost to buyers, easy access to distribution channels and high capital requirement is considered.

Relatively, strong partnerships with publishers would be advantageous for potential entering firms. Moreover, it is easy to adapt NBS strategy on retailing by considering of starting small, penetrating nearby schools and universities. Competitors have also seen that physical store isn't much of a mandatory, since; domestic market has rapidly adapting e-commerce. In lieu, competitors only need a web site or social networking site to work on to.

However, relative start-up cost is high for entering bookstore

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