A report about BookLoversParadise

Table of Contents
1.Introduction
2.The Business Performance Review
3. Competition and Technological Analysis
4. Conclusion
5.Reference
1.Introduction

There are many bookstore chains in Australia, and BookLoversParadise is a

bookstore chain with many branches. In Australia, it has four stores in
Melbourne, Sydney, Brisbane and Adelaide. It's a bookstore that's been open
since 2007, and they sell mostly non-educational books, and they've been
open for a long time. But since 2013, BookLoversParadise's revenue report
shows that sales at all its stores have fallen sharply. Because of this, companies
want to attract more customers to buy their books. They launched a website in
20118, which they hope will promote their bookstores and books through the
Internet.

Their website allows customers to order books they want online, and they can
buy them by phone or by visiting an online store. And they deliver the books
to the customer or they prepare the books for the customer to order and let
the customer pick them up. BookLoversParadise offers a new catalog of books
on the site so that customers can easily select the books they want. They also
decided to update more categories of books to attract more customers. Doing
so will give BookLoversParadise more market share.

However, in the face of declining sales, one solution is clearly not enough. Part
of the management team decided to start with costing reduction. They are
demanding that sales of other low-volume products, except for the top two
categories, be stopped. In addition, senior managers have chosen to close
redundant stores to reduce costs. These are the basics of BookLoversParadise.

2. The Business Performance Review

From the BookLoversParadise data over the past two years, two charts are
available. The first chart shows the total sales volume of BookLoversParadise in
2018 and 2019, and the second chart shows the gross profit of
BookLoversParadise in 2018 and 2019.The analysis of the first chart can be
used to rank and compare the change in sales between 2018 and 2019 for
each category by sales .Fiction and children books are number one and
number two respectively. All the other books had only a small amount of sales
compared to the top two books. In 2019, sales of children books will be up
from 2018, but the rest of the books were down. The analysis of the second
chart can also use the changes in the gross profit of each book in 2018 and
2019 and which books have the highest gross profit. There are four types of
books whose gross profit in 2019 is increasing will compare to that in
2018.The gross profit of other kinds of books in 2019 is reduced compared
with that in 2018.The rest of the categories have a low gross profit for 2019.

The first chart showing sales shows that BookLoversParadise is losing market
share. Except for children books, sales of all other categories are falling, and
some are falling very much. This suggests that sales of BookLoversParadise are
falling off a cliff. The company's proposed method of opening an online
bookstore can attract many consumers. But BookLoversParadise may be too
late to open an online bookstore. By the time BookLoversParadise's managers
realized that an online bookstore was an effective way to does it, it was
possible that other companies had already started online bookstores. As a
result, BookLoversParadise's market share and sales have not increased much.
So my suggestion is to improve BookLoversParadise's own services, such as
amazon's, by drawing on the experience of other companies' online
bookstores. Amazon has added more book categories, better human services,
better sales strategies, and more.

As can be seen from the second chart showing the gross profit, the revenue
situation of BookLoversParadise is not optimistic. This shows that the cost and
profit of books are beginning to change. In 2019, the cost of all kinds of books
will begin to increase, leading to a decline in profits. So some senior managers
are proposing to close other branches of BookLoversParadise, leaving just one
bookseller. This approach reduces land rent, wages and operating hours, but it
does not end up reducing the cost of books. I don't think this approach will
solve BookLoversParadise's declining profits. So I think BookLoversParadise
first needs to sell fewer books where the gross profit is down a lot. In addition,
BookLoversParadise can learn from other, more famous bookstores to arrange
their own categories or listen to their customers, such as amazon's best-seller
categories and market research (Amazon, 2019). As can be seen from
amazon's best-seller list, the types of books that are more popular with
consumers include art, novels, sciences, comics, computers, law and so on
(Amazon, 2019). So BookLoversParadise can learn to add amazon book
categories.

3. Competition and Technological Analysis

Porter's five forces models can be used to analyze the current difficulties faced
by BookLoversParadise. This paper mainly studies the threat of competitors,
new entrants and substitutes of book companies.

For BookLoversParadise, new entrants did affect BookLoversParadise

profitability. Although there will be some well-known merchants such as
amazon, the industry does not have high technical barriers (Cave, 2017). So
new entrants can easily enter the industry and gain some market share (Cave,
2017). The spread of the Internet is rapidly and now are low cost, the new
entrants they can promote themselves through a variety of ways, in video
website to add your own ads, for example, the use of big data to app for
potential customers and text messages reminding and so on (Cave, 2017). But
for BookLoversParadise it's a different story. BookLoversParadise was an old
company, and their profits started to slide. It shows that the company is going
backwards, so they have to figure out how to fix it.

For the BookLoversParadise, the threat of substitute products exists. There are
two alternatives that could hit the traditional book industry (Cave, 2017). The
first alternative is e-books (Cave, 2017). E-books can be easily downloaded on
the Internet, which greatly reduces the time consumers spend searching for
books. On the other hand, e-books are easy to save, find and easy to read.
Because e-books are stored on computers or mobile phones and can be found
by searching for keywords. People can also use their free time to read e-books
saved in computers and mobile phones, which can make use of their
fragmented time. The second alternative is television shows, videos and
movies that provide the same information to people (Cave, 2017). Now
consumers have many choices, so they are no longer limited to going to the
bookstore to buy a book, they can go to the bookstore to buy a novel, they
can also go to see a movie adapted from the novel (Cave, 2017). Besides,
movies, TV programs and videos all have pictures, characters, languages and
so on, which are more interesting than traditional paper books. Therefore,
most consumers choose these alternatives. So BookLoversParadise needs to
change its marketing.

For the BookLoversParadise competition-there are a lot of them, and they are
very competitive because there are very few barriers to entry (Wilson, 2019).
Companies like BookLoversParadise fear more competition because they are
during a decline in gross profit. At this point, BookLoversParadise needs to
learn more about the competitive relationships in the industry and figure out
which ones it can be partner with (Wilson, 2019). This gives them more
options to increase their market share or expand their overall market share
(Wilson, 2019). With teamwork, they can also learn more about other
competitors' marketing strategies and pricing and react quickly to such
changes.

The current state of the book industry can be summed up in one sentence, the
book industry is still slowly developing, but this is generally for new
bookstores and well-known bookstores (Wilson, 2019). For new bookstores,
scale growth is possible because they may use new marketing strategies or
techniques to attract customers. For well-known bookstores, they have mature
marketing strategies, management methods and stable consumers (Wilson,
2019). For mid-tier companies like BookLoversParadise, they don't have a new
marketing strategy and they don't have as many consumers as the established
companies. They can only learn about other people's marketing strategies and
disruptive technology by finding partners and other suppliers. Disruptive and
disruptive technology can reduce buyer power in the book industry.
Sustaining technology can boost consumers' purchasing power from their
behavior (Wilson, 2019). The average consumer doesn't buy a product because
the price exceeds their expectations. This can be used to promote sales,
bundle sales, reading activities such as the traditional means. This will make
consumers satisfied with the price of the book and thus increase their
purchasing power. Disruptive technology has an online bookstore that sells
books alongside movies and TV shows (Wilson, 2019). This can improve the
purchasing power of consumers from the psychology of consumers.
Consumers will be able to buy books they want without leaving their homes,
as well as books, movies and TV shows.

Borders Group was a book and music retailer based in America (Peterson,
2020). In early 2010, it operated 511 Borders stores in the United States
(Peterson, 2020). But in February 2011, Borders filed for bankruptcy protection
(Peterson, 2020). Borders went bankrupt because of a series of management
missteps. Borders failed to anticipate the threat posed by changes in amazon
and consumer spending habits that have put brick-and-mortar bookstores on
the decline (Peterson, 2020). So, for BookLoversParadise, instead of focusing
on selling books in the traditional way, they need to focus on new
technologies and keep up with trends. Online shopping and the rise of e-
readers have made it possible for consumers to buy any book, anytime,
anywhere, for a lower price (Peterson, 2020).

4. Conclusion

In terms of basic information and charts, BookLoversParadise has had a bad

year in 2018 and 2019, but it still has plenty of opportunities to rebuild its
market size and reach enough customers. They need to be good at analyzing
their sales information and charts to accurately analyze their company's
performance. And you can't just analyze your own company, you must ask
consumers what they want. Doing so can better sell what consumers want.
They need to use the porter 5 force model to solve their problems. Their
solution to a brutal market can be to find partners, find other suppliers, learn
marketing strategies from others and use disruptive and disruptive
technology. These methods can get them through the tough times safely, but
they are not enough to become a well-known company. In addition, they want
to avoid the kind of management mistakes that Borders did. They need to
focus on new things, and everything needs to be reformed and innovated, just
like the Internet and the popular e-reader in the book industry.
BookLoversParadise will still be able to achieve enough gross profit in the
future. Generally speaking, the book industry is a cruel one, and all companies
are trying to develop themselves, even famous companies are no exception.

5.Reference:

Amazon, 2019.https://www.amazon.com.au/gp/bestsellers/books

Cave. D, 2017. Australia’s Amazon Book Battle.

https://www.nytimes.com/2017/10/19/books/australias-amazon-book-
battle.html

Wilson. A, 2019. The state of the Australian book market.

https://www.postprepress.com.au/the-state-of-the-australian-book-market/

Peterson. V, 2020. Borders Group History – The Creation of a Bookstore Chain.

https://www.thebalancecareers.com/borders-group-history-the-creation-of-a-
bookstore-chain-2800146