Better World Case Analysis

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Threat of substitutes is Google possibly replacing BWB through their e-books and focus on including out-of-print books, orphan works, and copyright protected books in their digital copies of books. As for rivalry among the existing competitors, some competitors and critics are questioning whether BWB is misusing the word “donation” since they are a for-profit company.

4). Perform a VRIO analysis. What are BWB’s resources and capabilities? What core competencies do they have to help them compete in the used book industry?

VIRO is an initialism for the four question framework asked about a resource or capability to determine its competitive potential: the question of value, the question of rarity, the question of imitability which is the ease or difficulty to imitate, and the question of organization or ability to exploit the resource or capability. BWB valuable competitive advantage is supplying their own raw materials and eliminates production waste by collecting and reselling used books. BWB’s operations management with customized software to manage its inventory and track market data. Determining whether books still have market value, suitable for donation for a nonprofit partner or if it needs to be recycled. Their ability to supply their own raw materials through donations and book drives is rare. Great customer service. BWB’s “no shipping costs” is a way they seek to differentiate themselves because is very expensive to imitate. Costly to imitate is the in house exclusive procedure determining whether a book still has market value. Organized to capture value partnerships with community, libraries, booksellers, university, and business groups to conduct book drives which in turn provides the raw materials for BWB profitability.

5). Perform a SWOT analysis for BWB.

SWOT, which stands for strengths, weaknesses, opportunities and threats, is an analytical framework that can help companies face their challenges and find its most promising new markets. In a business, the SWOT analysis enables organizations to identify both internal and external influences. SWOT's primary objective is to help organizations develop a full awareness of all the factors involved in a decision. For BWB, the SWOT analysis is as follows:

SWOT Analysis:

Strength: The Company’s main strength lies in its Business Model

- BWB has Triple Bottom Line (Economic value, Social Perspective and Environmental aspect)

- Goodwill of BWB.

Weakness:

- Risk is not diversified (books and books only)

- No long term strategy (lack of a vision statement)

Opportunity:

- Have a global identity due to partnerships worldwide.

- An advantage as it builds its inventory through donation.

Threats:

- Rely on donations.

- Advancement of technology.

- High Number of competitors.

- Consumers can purchase books online.