NATIONAL BOOKSTORE

SWOT
Strengths
 Exceptional client satisfaction
 Strategic branch location
 Motivated employees
 Exceptional branding and goodwill
 Economies of Scale
 Strong supply chain
Weaknesses
 Lack of advertisements
 Expensive products
 Lack of Information System (Automated Purchase)
 Strongly dependent on its suppliers
 Limited human resource
Opportunities
 Innovation and technology development
 Lower product cost
 Globalization
 Reduction of competitors (substitutes)
 Marketing for younger consumers
Threats
 Substitute products
 Online bookselling (Lazada, etc.)
 Lack of implementation of Anti-Piracy Act
 Shift of consumers pastime preferences
 Increases in price inputs can cause upward pricing
PORTERS 5 FORCES
A. Rivalry among Competing Firms - Weak Rivalry among competing firms is considerably low since
NBS has maintained its position on being the largest and top bookstore and distributor of the
country.
B. Bargaining power of buyers – Moderate - The bargaining power of buyers of NBS is rated
moderately since buyers can easily buy from other suppliers
C. Bargaining Power of Supplier – Strong - The bargaining power of supplier for NBS is strong since,
its core business is on trading office and school supplies. Hence, in dire need for reliable suppliers
is promoted.
D. Threat of new entrants – Low - The threat of new entrants is Low because no company in the near
future has the capacity and resources to compete with NBS in the national market level.
E. Threat of substitution – Strong - The threat of substitution is strong because NBS products are not
rare, valuable, or difficult to imitate.
 Strengths Weaknesses

Excepti Strategi Motivat Exceptio Econom Strong Lack of Expen Lack of Strongly Limited
onal c branch ed nal ies of supply advertis sive Inform depende human
client location employe branding Scale chain ements produ ation nt on its resource
satisfact es and cts System supplier
ion goodwill s

Opportunities

Innovation and  Online app for mobile shopping  Additional online ads
technology  Better customer services during peak season  Social media ads for little to no cost
development  Venture outside the country starting in Southeast Asia  Using internationally famous artists as
 Put up branches in cities with little to no competition promoters
Lower product  Additional administration and management training  Venture in purchasable audio books
cost overseas  Outsource information system at a lower
 Negotiate terms with discounts to suppliers cost
Globalization 
 Exportation of Filipino authored books Negotiate terms with discounts to
suppliers
Reduction of
competitors
Marketing for
younger
consumers

Threats

Substitute  Promote awareness about piracy  Utilize social media pastimes

products  More programs and projects promoting the value of  Venture in trial version online novels or
Online books manga
bookselling  Utilize social media pastimes  Additional online ads
(Lazada, etc.)  Enter into trade agreements with suppliers to ensure  Social media ads for little to no cost
Lack of just pricing
implementation
of Anti-Piracy
Act
Shift of
consumers
pastime
preferences

Increases in
price inputs can
cause upward
pricing
 IFAS

Strengths Rating Weight Weighted Score

Exceptional client satisfaction 0.08 3 0.24

Strategic branch location 0.1 4 0.4

Motivated employees 0.05 3 0.15

Exceptional branding and goodwill 0.15 4 0.6

Economies of Scale 0.07 4 0.28

Strong supply chain 0.05 3 0.15

Weaknesses

Lack of advertisements 0.07 2 0.14

Expensive products 0.2 2 0.4

Lack of Information System 0.05 1 0.05

Strongly dependent on its suppliers 0.13 2 0.26

Limited human resource 0.05 1 0.05

TOTAL 1 2.72
 EFAS

Opportunities Rating Weight Weighted Score

Innovation and technology
0.12 3 0.36
development

Lower product cost

0.18 3 0.54

Globalization
0.15 3 0.45

Reduction of competitors 0.02 1 0.02

Marketing for younger consumers 0.03 1 0.03

Threats

Substitute products 0.15 4 0.6

Online bookselling 0.08 3 0.24

Lack of implementation of Anti-Piracy

0.12 4 0.48
Act

Shift of consumers past time

0.1 4 0.4
preferences

Increases in price inputs can cause

0.05 3 0.15
upward pricing

TOTAL 1 3.27
 NBS GE Matrix

4
Industry Attractiveness (EFAS)

1 4 3 2 1

Strength of Business (IFAS)

Grow and Build
Hold and Maintain
Divest and Harvest
 NBS BCG Matrix

Relative Market Share Position

High 1.0 Medium 0.50 Low 0.0
High
+20
Industry Sales Growth Rate

STARS QUESTION MARKS

Medium
0

CASH COWS DOGS

Low
-20

NBS Relative Market Share = 0.75 (Medium-High)

NBS Industry Sales Growth Rate = +20 (High)