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Competitive Strategy

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Competitive Strategy
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Chapters Indigo
Competitive Strategy

Names: Signature: Email: Date: We confirm that we have read and understood the APA style guide included with the course outline as well as the explanation on plagiarism mentioned in the undergraduate calendar under section IX Academic Offenses, which also has been listed in the course outline. We warrant that all materials, ideas, and text are original creations of our group members and that any portion of the report or presentation that is not our group’s intellectual property is cited within the text using APA format and that these citations have been included in a reference list in the back.

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



References: Akkad, O. (2010, April 12). Amazon given green light to set up shop in canada. Retrieved from http://www.theglobeandmail.com/globe-investor/amazon-given-green-light-to-set-up- shop-in-canada/article1532080/ Amazon.ca search Amazon.ca search. (2012). Retrieved from http://www.amazon.ca/s/ref=nb_sb_noss?url=search- alias=stripbooks&field-keywords=&x=12&y=23 Amazon.com, inc balance sheet Amazon Seeks Permission to open New Canadian Business. (2010, March 3). Retrieved from http://www.thebookseller.com/trackback/12684 Apple.com Barnes & noble annual report 2011. (2012). Retrieved from http://www.barnesandnobleinc.com /for_investors/annual_reports/2011_bn_an nual_report.pdf Book publishing: The writing is on the screen – changes are coming Canada Book Sales Resist the Downturn. (2009, December). Retrieved from http://www.thebookseller.com/trackback/13770 FundingUniverse Future book industry. (2010, 10 24). Retrieved from http://www.thestar.com/news/sciencetech/ technology/lawbytes/article/879267--geist-laying-bare-the-divide-over-future-of-book- History of Amazon. (2011). Retrieved from http://www.webhostingreport.com/learn/amazon. Indigo books & music inc. (2009, November 5). Retrieved from http://www.investorideas.com/ Research/PDFs/IDG_110509.pdf Indigo books and music inc Indigo Books and Music. (2011). Report for the 52 Week Period Ending April 2 2011. Toronto: Indigo Books and Music. Indigo books & music inc. investor fact sheet. (2010). Retrieved from http://images.chapters.indi go.ca/images_2005/Content/Articles/En/AboutUs/PDFs_IR/FactSheets/InvestorFactsheet YearEndFY10.pdf Indigo Books and Music Industry profile book publishing. (2011). Retrieved from http://www.omdc.on.ca/AssetFactory. Jones, S. (2009, January 28). Generations online in 2009. Retrieved from http://pewresearch.org /p ubs/ 1093/generations-online Kobo Mergers & acquisitions. (2003). Retrieved from http://www.themanagementor.com/enlightenm e ntorareas/sm/sfm/MergersAquisi.htm Online Book Retail Swot analysis discover new opportunities. manage and eliminate threats.. (2012). Retrieved from http://www.mindtools.com/pages/article/newTMC_05.htm The bookstore business Timm, J. (2011). Indigo sells kobo: A q&a with heather reisman. Canadian Business, Retrieved from http://www.canadianbusiness.com/blog/business_briefings/56208--indigo-sells- kobo-a-q-a-with-heather-reisman Wikinvest Zook, G. (2007, August 27). Technology and the generation gap . Retrieved from http://www.ll rx.com/features/generationgap.htm

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