Competitive Strategy

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Chapters Indigo
Competitive Strategy


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Executive Summary

Chapters Indigo is an industry pioneer within the book selling industry, having begun business over 70 years ago. Although the company now is involved with more than simply selling books, their main focus has been with hard copy books and e-books. The company operates internationally; however, this report will place emphasis on the domestic portion (Canada) as it accounts for most of the total revenue. Chapters Indigo exercises a strategy under two main headings: in store and online sales. The current main distribution channel would be the physical Chapters Indigo stores and are known as leaders in the in-store book selling business. The company continues to be profitable but as their sales do not reach the proportion as Amazon, the two companies continue to be fierce competitors.

Within the book industry, there are few main competitors such as Amazon and ITunes. The book industry in continually changing because of the growth in technology and consumer preferences. The retail book industry is highly competitive. After an in-depth analysis of Chapters indigo and the retail book industry it is clear that chapters indigo should move towards concentric horizontal merger. This would involve merging another company in the same industry that has low growth potential and by doing this it will help to eliminate a competitor and then the two companies will increase there size and there overall power of the higher economies of scale and hopefully reduce the prices of there products which is a high factor in such an sensitive industry.

Finding a perfect match is key to Chapters success with concentric horizontal merger. Overall if they do continue to follow the path of the concentric horizontal merger it will give a clear path for chapters indigo to stay in and compete in the future industry.

Table of Contents
Environment and Industry Analysis
Industry definition
ETOP Analysis
Future Driving Forces
Chief Business Characteristics
Market Size
Key Competitors/Structure of Competition
Technology/Innovation
Number of Competitors within the Industry
Ease of Entry/Exit
Industry Profitability
Stage in Life Cycle
Economies of Scale
Market Growth
Degree of Vertical Integration
Product Characteristics
Experience Curve Effects
Financial Analysis of Industry
Five Forces of Competition
Supplier Power
Buyer Power
Competitive Rivalry
Threat of New Entrants
Threat of Substitutes
Key Success Factors
Knowledge of Market KSF
Technology – Online Marketing KSF
Other types of KSF’s
Conclusions: Industry
Company Situation
Chapters Indigo: Mission Statement
Objectives
General and Historical Data
Present Condition of the Company
Methods of Operation
Human Resources
Marketing and Advertising
Internationalization
POM
Financial Analysis of Company
Conclusions: Company Situation
Swot Analysis
Strengths
Weaknesses
Opportunities
Threats
Conclusion of SWOT
Selection of a Strategy
Porter’s U-Curve – Current
Porter’s U-Curve – Future
Alternatives for Indigo
Business Plan
Evaluation of strategy
Expected problems with implementation of the plan
Conclusions and Unresolved Issues
Appendices


Environment and Industry Analysis

Industry definition

The North...
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