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Five Forces Model for Industry Analysis New Entrants The online bookstore industry that Amazoncom has pioneered in was at first very hard to penetrate There were different barriers such as distributing capabilities and the variety of the selection offered that are supposed to be hurdled Amazon successfully solved the tricky parameters as being the first one to get into the whole idea of online retail With being the first they had the luxury to set what were the norms for the industry Factors that may lower these barrier tactics would be a wider selection and the ability to go to an actual bookstore to exchange or return books or other products This network of actual retail spaces makes it easier for the consumer to return or exchange the products they were not satisfied with These handicaps of Amazon were the basis for the emergence of book retail giants Barnes and Noble and Borders in the online shopping industry Industry Competitors The major competitors of Amazon are Barnes and Noble and Borders Barnes and Noble is a retail giant offering books and CDs both in their outlets all over the country It opened their online industry in 1997 and has become the fourth largest e-commerce sites today Focused largely on the sale of books music software magazines prints posters and related products the company has capitalized on the recognized brand value of the Barnes Noble name to become the second largest and one of the fastest growing online distributors of books Their advantage to Amazon is the brand name and the availability of actual retail outlets in which consumers could go in to exchange or return products easily They also have an established book selection based in their retail operations Borders is another multi-media retail store found in major cities around the country Started out as a small bookshop in the college town of Ann Arbor Michigan it has since expanded into one
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