a

vi
ed
BOOKOFF AND THE BOOK RETAIL

ar
sh
INDUSTRY IN JAPAN

as
w
Aldi Brian Pratama - 12030117190

m e
co rc
o. ou
er res
dy
tu

https://www.coursehero.com/file/75616639/BOOKOFF-CASE-ANALYSISpptx/
 1. DESCRIBE THE BOOK INDUSTRY IN JAPAN
USING PORTER’S 5 FORCES?

a
vi
• Competitive rivalry, Bookoff have earned a competitive advantage over their competitors by introducing

ed
unique strategies for making revenue by avoids the Saihan system by selling used books to Japanese

ar
consumers at a lower price than its competitors as known that Japan doesn’t regulate the prices of used
books. Bookoff receives less competitive force because its strategy allows it to avoid the Saihan system.

sh
as
• The threat of new entrants is a weak force to Bookoff. Firstly, they have proved to defeat the Saihan

w
system that handcuffs most new entrants in the Japanese bookselling industry. Furthermore, both
Bookoff have already established their brands and have a reputation for selling books cheaper than any

m e
other booksellers in Japan.
co rc
o. ou
• the threat of substitutes might not influence the business of Bookoff. In fact, Bookoff has already
er res

introduced what a competitor might call a substitute – used books. Certainly, Bookoff prides itself to sell
used books to the Japanese consumers at a price half the price set by the publishers for the same new
dy

book.
tu

https://www.coursehero.com/file/75616639/BOOKOFF-CASE-ANALYSISpptx/
 • Bookoff uses technology to renew used books to improve their quality before selling to its customers.
For these reasons, most students prefer the used books to new books because they are relatively

a
vi
cheaper.

ed
• The buyer power would not influence the sales of books in Bookoff. In fact, the Saihan system has

ar
already restricted the buyer from influencing the prices of books in the Japanese bookselling industry.

sh
In short, the buyer or end consumer has no power to dictate changes in the prices of books.

as
• The supply power gives both Bookoff and Amazon a moderate force. Despite the fact that the

w
Japanese bookselling industry comprises over 17000 bookstores, Bookoff navigates the force of

m e
supply power by opting for used books. As other suppliers provide the Japanese consumers with new
co rc
books at the same price, Bookoff sells used books at their own prices
o. ou
er res
dy
tu

https://www.coursehero.com/file/75616639/BOOKOFF-CASE-ANALYSISpptx/
 2. WHAT DO YOU THINK WILL HAPPEN IF THIS
SAIHAN SYSTEM IS ABOLISHED BY THE
JAPANESE GOVERNMENT? EXPLAIN.

a
vi
ed
The Saihan system acts as a barrier to entry and restricts competition with the industry. If the Saihan system

ar
were to dissolve, increased competition would ensue as firms, both large and small, would be able to develop
strategies based on price. There would be an increase in firms adopting a cost leadership strategy which

sh
would result in cost efficiency as well a greater choice for consumers regarding book purchases and may see
price decreases in other substitute products such as ebooks and Iphone/Ipad applications.

as
w
This could result in a “coming wave of mergers and consolidations” while also making market entry more

m e
difficult without a suitable price-focused entry strategy. A power shift may occur with retailers holding greater
co rc
power over suppliers which would increase competition among publishers and distributors. Given recent
o. ou
trends towards substitute products as well as creative alternatives to entering the Japanese market, the
dissolution of the Saihan system may become more desirable in coming years.
er res
dy
tu

https://www.coursehero.com/file/75616639/BOOKOFF-CASE-ANALYSISpptx/
 3. DEVELOP VRIO DIAGRAM FOR BOOKOFF

a
vi
•

ed
As with the value of resources, Bookoff is able to sell used books at a lower price than its competitors
meaning that its books have value because it gains profit even after selling cheaply. For that reason,

ar
Bookoff receives several new customers every day because their products and services are valuable.

sh
Therefore, Bookoff is better than their competitors.

as
• The books are not rare in the Japanese bookselling industry because there are numerous retailers
selling books. However, Bookoff sells used books while other retailers and wholesalers specialize in new

w
books. In this case, Bookoff is safer in the bookselling industry because it provides rare items.

m e
•
co rc
Bookoff is far much better than its competitors because the technology it uses to renew used books is
not imitable. As such, any other company that might attempt to imitate Bookoff by selling used books
o. ou
must also possess the technology used to improve the quality of books.
er res

• Bookoff have experienced employees that bear the potential to utilize the resources properly. For
instance, the organization of Bookoff in all stores is franchised. Secondly, all employees at Bookoff are
dy

trained as entrepreneurs.
tu

https://www.coursehero.com/file/75616639/BOOKOFF-CASE-ANALYSISpptx/
 4 . T H E S U C C E S S O F B O O K O F F I N I T S H O M E C O U N T R Y ( J A PA N ) E N C O U R A G E D I T S
M A N A G E M E N T T O O F F E R I T S F R A N C H I S E I N I N D O N E S I A ( J A K A R TA ) . I N Y O U R
O P I N I O N , W H AT I N T E R N AT I O N A L S T R AT E G Y I S S U I TA B L E F O R T H E B O O KO F F I N
J A K A R TA T O I M P L E M E N T ?

a
vi
ed
A multidomestic strategy customizes products or processes to the
specific conditions in each country.

ar
sh
This strategy is suitable since culture and behaviour of Japanese and
Indonesian are quite different. Bookoff can modify payment methods,

as
facilities, offline store, marketing that adapts in current condition in

w
Indonesia. For example, Bookoff can add coffee shop in front of the
store, and add trade-ins service in Indonesia.

m e
co rc
o. ou
In a company with a multidomestic strategy, overall management is
centralized in the home country but country managers are given
er res

latitude to make adaptations. Companies sacrifice scale efficiencies

for responsiveness to local conditions. Companies benefit from a
multidomestic strategy because country managers understand local
dy

laws, customs, and tastes and can decide how to best meet them.
tu

https://www.coursehero.com/file/75616639/BOOKOFF-CASE-ANALYSISpptx/
 5 . I N YO U R O P I N I O N , W I L L B O O KO F F I N JA K A RTA B E A S
S U C C E S S F U L A S B O O KO F F I N JA PA N ?

a
vi
ed
I think yes, since thrifting is a happening trend in Indonesia, and unique

ar
technologies used by Bookoff is still the pioneer. It will be a huge yet vital
compepetive advantage for Bookoff itself that known as a maintained large,

sh
clean and bright stores like those of large retailers and offers books at low
prices.

as
w
It also followed a franchise system allowing for entrepreneurial spirit among

m e
the retailers. This was new for the industry which mostly bureaucracy-laden.
co rc
The buy-back policy was very simple and provided high margins for Bookoff.
o. ou
er res

So I am sure, Bookoff will have a great success in Indonesia, Jakarta.

dy
tu

https://www.coursehero.com/file/75616639/BOOKOFF-CASE-ANALYSISpptx/
Powered by TCPDF (www.tcpdf.org)