Better World Books - BWB Assignment PDF

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BWB Assignment...

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Read “Better World Books and the Triple Bottom Line” Answer the following questions fully and submit to this DropBox. 1. Conduct a Porter’s five forces analysis of the used book industry. Is this an attractive industry? Why or why not? Which force(s) have the strongest influence? (200 words minimum). Please include a word count of your answer. Threat of substitutes: The book industry itself is already in trouble because of the changing landscape of how sales are made and the accessibility of books online. E-books and audiobooks are cheaper to produce and distribute due to it not being a physical object. Threat of new entrants: Speaking from experience there are not many people looking to get into the used book industry. It is difficult to make money because books have declined in popularity and there are so many other options available. Bargaining power of customers: Given that there are a multitude of different ways books are accessed in the current age, and prices are so low due the availability of e-books, customers can buy a book from their couch and have it in seconds. Even if they want a physical book it is easier and often cheaper to just order it online. Bargaining power of suppliers: Online sellers have more power than the used bookstore on main street. Online books are easy to buy and are readily accessible. If you are looking for a physical copy of a book, brick and mortar bookstores gain some power since they have something you can hold in your hand. Rivalry among existing competitors: There are still quite a few bookstores out in the world but when you add in the online retailers that number jumps by a lot. It is hard for physical stores to compete with an online retailer because you have the convenience of knowing the book is in stock. I worked in publishing for a few years recently and I have to say this industry is not an attractive one. Given the recent pandemic, bookstore sales have plummeted due to stores not being able to open. The profit margin on physical books is also very slim. I think the force that has the strongest influence on the industry would be the threat of substitutes. There are so many options online with Amazon and Barnes and Noble. Most older books have been converted to eBooks by the publishers since trying to sell physical copies of an old book is not profitable. It is easier and more profitable to sell a book on an eBook platform. (367 words)

2. What are BWB’s resources and capabilities? Do they lead to a sustained competitive advantage (Hint: apply the VRIO analysis)? (150 words minimum). Please include a word count of your answer.

BWB’s capabilities are as follows: 

Product diversification by offering not only print books but audiobooks and eBooks as well. They have also expanded to offer games, movies, and music.

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Using social entrepreneurship as a business model provides them with a unique incorporation status as a B corp. This provides them with special tax incentives.

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Its economic profitability helps to sustain job growth and gives back a portion of profits to the donors of the books as well as nonprofit literacy programs that are selected by the donors.

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Social commitments promote literacy education and donations to college book drives.

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Environmental commitments by collecting and reselling used books which keeps them in circulation longer. Books that go unsold are then donated further to literacy groups helping in developing countries. Books that are unfit for sale are properly recycled. They also use reclaimed shelving from libraries to cut down on the amount of metal.

To have a sustainable competitive advantage it must have resources that are valuable, rare, costly to imitate, and the firm must be organized to capture the value. One of the resources BWB has is its supply chain. They build inventory through donations, so if they keep cultivating and investing in that resource it will meet all the requirements to be sustainable. Another resource they have is their internal operations management. BWB operates on thin margins so they must operate as lean and efficiently as possible. Finally, their brand management is a valuable resource. Focusing on a target demographic and building brand loyalty through marketing will provide them with a sustainable customer pool. (263 words)...