Waterstones 5 Forces

For university students who need to read widely, books are undoubtedly one of the most commonly used items. However, the choice of reading methods and approaches is not only a concern for readers, but also a key factor for the survival of direct and indirect book sales stakeholders. As a significant brand in the UK book market, Waterstones’ status reflects the actual situation of the entire industry. This essay will analyze the development and strategies of Waterstones. To make the discussion clear, this essay will be divided into three parts: Firstly, an introduction to the history and development of Waterstones. Secondly, Porter’s five forces will be used as a tool to analyze the potential external threats. Thirdly, it will use the resourced-based view (RBV) to assess Waterstones main competitiveness.

Porter’s Five Forces
Its division of the industry’s competitive structure has led to a more accurate analysis of competitors and other threats. Since these multiple factors jointly determine the company's market position, it is not only essential to evaluate the system, but all the factors need to be re-examined (Clegg, et al., 2017: 54-55) to maintain dynamic advantages when any one of them changes.

The potential threat from new comers is the first factor to evaluate, which is because the entrants to the book store market may have impact on Waterstones’ market share, and falling prices due to more intense competition will further affect profitability (Porter, 1980). Although traditional physical bookstores led by Waterstones began to appear profitable, and the Swedish Pocket Shop performed well after entering the UK (McGrath, 2017; Campbell, 2016), the future