Question

What are the two major strategic group competitors for Better World Books and what are the significant future actions of each competitor?

Answer 1

Better World Books was formed when competition already existed in the form of none less than Barnes & Noble, Alibris and Amazon. However, look at their growth and their sustainance on a shoe string budget with scant offerings of investment, and one will believe the adage where there is a will there is a way. Firstly, let us understand the strategy of Better World Books. Firstly, it was a company which was formed with a for profit philanthropist aim social resposibility being a prime aim. In spite of hardships, the company never sacrificed its social and charity aims. They came up with innovative and out of the box approach and managed to survive in a highly competitive environment alongwith living up to the promise in their name Better world.

The procurement strategy of Better World was what can be said to be the major factor in it's success. They asked people to donate books which they would throw away, or no longer needed. It was very successful not only because people could get rid of unwanted books easily, all their donors got a sense of satisfaction as they were fulfilling two social responsibilities firstly, of recycling and secondly of charity by providing the opportunity of a better life through reading to the underprivileged. Better World Books promised to donate a book for every one they sold. They put up collection centers for the used books at the most advantageous locations to facilitate maximum collections with minimum effort for the donors. They got into partnership with non-profit organisations to widen their resource input network.

They were unable to attract investors as they refused to change the charitable side of the business and maximise profits which was the condition put by most investors. To survive, manage their charitable activities and post profits at the same time the company tried to cut costs wherever possible. Multitasking and no frills management with only essential departments. Their global outreach was helped by their helping low literacy, poor nations. It was like being associated with a social cause to donate to them. A major cause of concern is e-books. Technology that may prove books redundant.

Their competitor Amazon is a giant in the business and when the world books sector thought that growth and profitability in books was no longer possible, they were proved wrong. Used or new paperbacks may not have amny takers in a small targeted area, but when the world is your playground the outcome can be very different. Take another competitor Alibris which, unlike Amazon, specialises only in books. Used, new, rare buy or sell. There we have it. The buy or sell option provided by all the major competitors of Better World Books. They are buying old books and in the current economical climate everybody can do with some extra money, especially the hard up students or the single parents. As a competitor of Better World Books I would like to add their social responsibility angle and provide an option to the seller to give the book as a donation and it shall be given in charity to the under-privileged. So as to combine the best of both the strategies and ensure every seller gets adequate satisfaction whether monetary or moral. As a competitor we need to not always attack the weakness of the enemy but at times, taking away their strengths serves just as well with a more satisfactory outcome.

Another major strength of Better World Books is their customer satisfaction. They are very focussed on their customers and provide valuable service, always making people feel they matter through small personal gestures. It becomes tough for the competition. They should enhance customer satisfaction by offering to shovel part of the proceeds from book sales towards promotion of literacy. The main strength of Better World Books is it's mass appeal as an organisation with a cause. It's the organisation with the halo around it's name tough to take that away and that is why it has succeeded against all odds. What Better World Books lacks is adequate staff and infrastructure considering their reach and activity. Also their appeal to the moral conscience of humans through their YouTube Videos and Facebook content as also their website has their charitable activities cleverly embroidered into the web pages so even if you buy from them you get this feel good emotion like you have actually donated to charity. They sell new books also and nothing is heavily discounted but they get an excellent rating from their customers averaging 4.8 on 5. The only way to beat them would be to copy their model work par excellence and pass on part of the returns for that to make this world a better place. Another option, which is already available is e-books and KIndle but for some time yet in parts of the world untouched by or unused to technology the smell and feel of books will win.

The unique structure and aims of Better World Books will always ensure they are never put out of business as they don't have competitors in the true sense. There is no other company like theirs which gives charity and social obligation towards the world at large equal importance as profits. I hope they never have strong competitors, I definitely want the world to be a better place and anyone doing that should not be stopped. Let's hope Better World Books just gets better and bigger.