Business Strategy

 

Table of the five forces analysis of Kean University Bookstore.

    Based on this analysis, Team A argues that it is a profitable industry as the partnership with Kean University should provide a steady income since college courses require certain textbooks. They also offer school supplies and convenience products, which are ideal for students who dorm. They do face some challenges in terms of profitability, since they have a high rivalry. However, we would determine that it is a moderately profitable industry.

Porter's Four Competitive Strategies Diagram

    The Kean University Bookstore leverages a focused differentiation strategy to maintain its competitive advantage within the university bookstore market. Focused differentiation is defined as offering a better product or service within an industry segment. This strategy centers on providing unique value by offering a diverse product and service portfolio tailored to the Kean University community. As the official campus bookstore, it offers exclusive Kean-branded merchandise, a comprehensive selection of textbooks (new, used, rental, and digital), and essential academic supplies, creating a convenient one-stop shop for students, faculty, and staff. Its prime on-campus location and easy access to required course materials further enhance its appeal. Moreover, Kean Bookstore cultivates customer loyalty through active participation in campus events, personalized promotions, and exclusive partnerships, fostering a sense of community and school pride. By emphasizing these unique offerings, customer convenience, and engagement, the bookstore differentiates itself from online competitors and other retailers, ensuring its continued relevance and profitability in a competitive marketplace.

    With this competitive strategy, the KU Bookstore can effectively address different threats from the five forces. Although customers may have alternative purchasing options, such as digital resources, the bookstore provides value through exclusive Kean-branded, convenience for Kean students and faculty, and campus integration; this helps increase loyalty from customers. This strategy also aids in countering threats from the highest ranked forces, the threat of substitutes and rivalry. The bookstore remains competitive despite the high threat of substitutes by providing unique Kean merchandise; it also stands out in the face of high competition and rivalry since it caters to Kean courses and students specifically. While these challenges remain, these approaches enable the Kean Bookstore to sustain its profitability and relevance in the evolving university bookstore landscape.

Table of the task descriptions for primary activities of the value chain.

    Sales Process (Structured): The sales process at the Kean University Bookstore is very organized and follows the same steps each time. First, students visit the bookstore, either in person or online. They choose the books, supplies, or merchandise they need. Then, they pay using methods like Flex Dollars (financial aid), credit cards, or other payment options. The payment is then processed through the CMA - POS system, if an in-store purchase, or the OMS system, if an online purchase. Once payment is complete, the bookstore gives them the items or ships them if purchased online. This process is reliable and convenient for students.

    Marketing Process (Dynamic): The marketing process at the bookstore is more flexible and changes based on the situation. For example, the bookstore promotes Kean merchandise during campus events or at the start of the school year when students are looking for school spirit items. For textbooks, they focus on reminding students to buy their required materials at the start of a new semester. Promotions and discounts are often promoted through social media posts and subscription emails to attract more students to shop at the bookstore.

               

OMS system for online orders.                                                            Kean Bookstore Instagram account.

    An information system is defined as a combination of hardware, software, and people working together to produce information. Some examples of information systems that the Kean University Bookstore use can be related to their sales processes, such as: CMA - POS system for in store transactions and OMS, Order Management System, for online orders. The bookstore also uses Instagram to promote any sales, new products, and any events they may be attending, such as Kean Homecoming, football games, and book signings. They also use Microsoft Teams for quick communication between the store and headquarters/corporate offices; for example, if the store has a question regarding store processes, they can quickly contact the upper management for a fast reply rather than wait for a response through email, which usually results in a longer response time.

Principles of Competitive Advantage chart.

  

 The Kean University Bookstore has many strong competitive advantages, and we can assess these by looking at two aspects: Product and Process. These strategies make the bookstore more appealing to students and help it stand out against competitors. One way the bookstore enhances its products is by offering unique Kean merchandise that students cannot find anywhere else. This creates a sense of pride and connection to the university, making the bookstore a significant place in student lives. Moreover, through their effective use of technology, the bookstore benefits from process implementations that lock in customers. For example, by accepting Flex Dollars both in store and online (through OMS), it is easier and more convenient for students to shop there instead of other stores. Additionally, the bookstore’s inventory management system, managed with Oracle, allows for real-time updates on product availability, which allows for an optimal shopping experience. On the supplier side, the bookstore creates advantages. Using the CMA - POS information system, they negotiate better deals with publishers and suppliers by showing them a sales report of the most popular sales; this allows for stronger supplier relationships and leads to discounts for bulk purchases.