Analysis Of The Book ' Half Price Books '

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Half Price Books is a family-owned chain of new and used bookstores founded in 1972 in Dallas, Texas. The CEO of the company is Sharon Anderson Wright, daughter of Pat Anderson (cofounder of the firm), and It is a store that has survived the hardships and tribulations over the last decade in the book industry because of e-tailers like Amazon, e-readers and tablets, by diversifying and amplifying its products and preserving a comfortable in-store experience, while reducing fixed and variable costs and remaining debt-free as it continues growing and expanding beyond its 120 retail locations in 16 states. The output market structure for this business is monopolistic competition, what means that it is in a market in which many firms…show more content…
Another significant factor that attributes to its position as a monopolistic competitive firm is that it enjoys some brand loyalty that keeps costumers returning with an illustrious attitude, in part because of the prominent in-store experience and the fact that nowadays the stores still honor their founding promise: They will buy virtually anything that is printed (or recorded), excepting newspapers. Many people believe that bookstores are a dying industry, however due to all its business strategies, Half Price Books keeps growing and expanding, it opens about five stores a year and revenues had increased dramatically from $50 million in 1995 to $240 million in 2013. Nevertheless the number of firms that are surviving and still profitable is decreasing everyday in the consequence of the new era of digital choices available in websites such as Amazon.com; today bookstores are aware of the fact that people can get any book that they desire while resting in their own homes. As the result, the demand for printed books has decreased, what has caused prices to decline and sales at bookstores to impressively drop, bookstores are shuttered and the industry revenue in United States
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