Sample Thesis Paper
Competition in the industry of online retail especially for books is increasing. This increase pertains to sale of new as well as old books. (‘Online Business, Used Book Sales Increase At Independent Bookstores’, 2004). The main reason for this is the presence of Amazon.com in the industry who has become the market leader. (Wiener, 2002) The company has a 69 percent share in the online book retail market (Teather, 2007). Aside from this other brick and mortar also entering the online medium (Terrero, 2008), therefore increasing the competition in the market.
The threat of substitute products is limited for the time being and can be controlled by copyrighted and patented technology. Threat of new entrants is significant as there are low barriers to entry ion the online medium for book retailing. Additionally “more competition led to lower prices and to lower price dispersion” (Clay et. al, 2001) However the network of suppliers and publishers required and the supply chain can be used to increase these barriers to entry.