Amazon.Com

INTRODUCTION

There was a dynamic development in the role of bookshops in South Africa since the early 1980s. The customer’s changing expectation has led to bookshops in South Africa to change their focus and presentation. This has inspired bookshops to reassess their marketing and branding strategy by developing bookshops into destination stores serviced by knowledgeable staff and stylish interiors.

This study will aim to analyse the South African book industry by conducting a Situational Analysis. It will further discuss the pricing strategy, positioning strategy and the reason why Exclusivebooks.Com is so successful.

Analysis of the South African book industry:

INTERNAL ANALYSIS:

The South African book industry comprises of locally published school text books and general book market. This in turn generates huge income to the local South African publishers. The South African general book industry is dominated by three bookselling chains i.e. Exclusive Books, CAN and BMA. This comprises 70% of the market concentration which work to the advantage of multinational publishers who are able to make titles fairly widely available even though they are dealing with three leading book sellers. This allows for low cost entry by small local publishers if their titles are accepted by one of the three leading book sellers. To carry out its core business the South African book industry looks very closely at the core competencies of the organisation which includes resources such as labour, materials, machines, information and energy.

Staff is trained to have in-depth knowledge of the books they sell, which insure that customers receive first class service as “buying a book is a personal experience”.

CUSTOMER ANALYSIS

One of the largest chains of book sellers is Exclusive Books in the South African book industry.   By use of the service quality model the following determinates have been identified and explained.

At start-up, Exclusive Books focused...