Conduct a Porters fiver forces analysis of the used book ind

Conduct a Porter’s fiver forces analysis of the used book industry.Is this an attractive industry?Why or why not?Which force or forces have the strongest influence?

Solution

The porter’s five forces for used book industry are;

Threat of new entrants; The threat is high as there is no barrier to the entry. Anyone can enter the industry and start the business. There is nor requirement of high capital investment as well.

Bargaining power of customers; The bargaining power of customers is high as they have othet alternatives than buying used books. They can download the e-book version of get the pirated copy of the books. The buyers can negotiate well with the sellers

Threat of substitutes; Substitutes for used books are the pirated copies and the pdf versions which are sometimes available for free on the internet. Hence the threat of substitutes are high as well

Competition within the industry; Competition within the industry not high as its not a consolidated market but a fragmented one where there are several small or mid sized players. Hence the competition within the industry is not much

Bargaining power of suppliers; Bargaining power of suppliers are high. The suppliers here will be the students who have previously owned the books but now want to sell it off. Hence, they can sell it higher price as there would be many buyers of the books