Michael Porter provided a framework that models an industry as being influenced by five forces: risk of potential entrants, bargaining power of buyers and suppliers, threats of substitutes and intensity of rivalry among established firms.
At this paper will be analyzed books sales industry.
I. Threat of Potential Entrants-
Barriers to Entry
1. Brand loyalty – the risk is low, because of the large assortment and broad choice of the books at every book-shop. Intensity of the risk can be described by 8 points.1
2. Absolute cost advantage – risk is not high, because mostly the assortment is the same in the shops. …
