Application of Information Systems

Running head: COMPETITIVE ANALYSIS OF A BOOKSTORE
COMPETITIVE ANALYSIS OF A BOOKSTORE
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COMPETITIVE ANALYSIS OF A BOOKSTORE1
Table of Contents
1. Introduction............................................................................................................................2
2. Business Performance Review...............................................................................................2
3. Competitive and Technological Analysis..............................................................................5
4. Conclusion..............................................................................................................................7
References..................................................................................................................................8
Appendix..................................................................................................................................10

COMPETITIVE ANALYSIS OF A BOOKSTORE2
1. Introduction
Application of Information Systems in any business sector contributes to the
enhancement of the processes and increment of sales and productivity in the organization
(Pearlson, Saunders and Galletta 2019). Information Systems allow the executives to capture
real-time data, generate reports using analytical tools on those data and take strategic
decisions that will help to make the necessary changes (Cassidy 2016). In this way, the
companies can improve their revenue and acquire a customer base to gain the market
competition.
The ‘BookLoversParadise’ is one such organization in the book industry that has been
suffering a decline in their sales revenue since 2013. In spite of launching a website to reach
out to their customers online in 2018, the bookstore has been failing to increase their sales
and is thinking of revamping their collection to increase customer interest. This paper will
provide an insight about their business performance. With the help of the Porter’s Five Forces
Model, it will analyse the current competitive landscape of the stores and suggest further
recommendations.
2. Business Performance Review
The ‘BookLoversParadise’ of Australia is a bookstore that incorporates four chain of
stores in Australia in regions of Melbourne, Sydney, Brisbane and Adelaide and specialises in
selling books apart from educational purpose. Although the bookstore sustained their
business since their foundation in 2007, the company noticed a severe failure in their business
since the year 2013. Their business started experiencing a random decline in their sales count
across all the four stores of the nation. The company decided to take advantage of the current
technologies and build a website in 2013 to start their business online and gain a wider
horizon of customers with the help of the Internet. In spite of providing ample facilities to

COMPETITIVE ANALYSIS OF A BOOKSTORE3
their customers such as online ordering of books, pick-up and delivery options, and the
management failed to match up to their previous sales count.
Travel Escapes
Autobiography
Home and Gardening
Cookbooks
Childrens Books
Health & Fitness
History
Fiction
BookLoversParadise
Sales 2018-2019
Kristian Ortigas
2019 Sales
2018 Sales
Figure 1: Sales Report
(Source: Created by Author)
Digging deeper into the business performance it is clearly seen that the book store of
‘BookLoversParadise’ categorised their collection of books into 8 sections that are ‘Travel
Escapes’, ‘Autobiography’, ‘ Home and Gardening’, ‘Cookbooks’, ‘Children’s Books’,
‘Health and Fitness’, ‘History’ and ‘Fiction’. From the sales chart, it is revealed that the
books on ‘Travel Escapes’ experienced a rapid drop in their sales that is -58.90% in between
2018 and 2019 (Siegel 2016). Similarly, the books on ‘gardening’ and ‘health and fitness’
also were sold at a much lesser rate and the drop in sales were -57.98% and -53.35%
respectively. The other categories although sold at a better rate than the above-mentioned
categories, did not experience growth in the sales from 2018 to 2019 (Jaggia et al. 2016). The
only exception was the category of ‘Children Books’ that were sold at a positive rate in 2019
than the previous year and experienced increase in sales of 8.33%.