Application of Porter’s Five Forces to Indigo in the Canadian Book Retail Sector Threat of New Entrants The overall threat of new entrants for the book retail industry is medium. According to Heritage Canada, the Canadian book retail sector is highly concentrated. The major issue here has been the shift in market share from independent bookstores to a single national chain, namely Indigo and its affiliated brands, and powerful regional chains in Quebec. This process has unfolded over the past decade or more, and the result has been to place a majority share of the Canadian consumer book market in the hands of a small number of retailers. In Canada, therefore, with fewer competitors, the market is likely very open to new entrants, but at...The end:
....., most of which would have consisted of used books sold outside of Canada. The company competes against Best Buy (18% market share in the CD/DVD market) for CD and DVD sales, and against Shoppers Drug Mart and American Greetings for gift and gift wrap sales (16% of the gift sales market and 4% of the gift wrap sales market respectively). References Heritage Canada. Book Publishing Industry Development Program. Ottawa: Government of Canada, 2009. Indigo Books & Music Inc. Annual Report. May 22, 2010. "Indigo outstrips Amazon." Bookseller 5289 (2007): 18. Porter, M. "The Five Competitive Forces That Shape Strategy." Harvard Business Review 86.1 (2008): 78-93. Watson, Thomas. "The book on Indigo." Canadian Business 81(12/13) (2008): 29-30.