question archive A well-articulated and substantiated discussion about indigo books and music company's competitive position drawn from a strategic group map

A well-articulated and substantiated discussion about indigo books and music company's competitive position drawn from a strategic group map

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A well-articulated and substantiated discussion about indigo books and music company's competitive position drawn from a strategic group map. Examples provided to support your argument.

 

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In the book shop market in Canada, Indigo Books maintains a near monopoly. Heather Reisman was born, in 1996, in Toronto, Canada. Now known as Indigo Chapters, Indigo Books and Music. Reisman already had years of experience in entrepreneurship through its growth and other initiatives before it had formed Indigo.

In 1979, she founded Paradigm Consulting, where she spent 17 years. Reisman subsequently became Cott Beverages' President in 1992. The U.S. library giant tried to penetrate the Canadian market in 1995 in Chapters. Reisman pursued cooperation with them but the Canadian government could not gain their regulatory approval. Reisman wanted to strike out as Canada's first major book retailer and formed Indigo Books and Music on its own.

Reisman started Indigo and opened up its first store by 1997, with the help of Onex Corporation, a private equity company founded by her husband. The first Indigo place in Toronto was in Burlington, Ontario. Due to its mixtures of sensitivities with large retailers and sizes, the new store gained greater interest. Because of his merger with Smith Books and Coles, Chapters succeeded to become the biggest book retailer in Canada.

By 1999, Chapters formed an online distributor that was then transformed into a separate publicly traded company. By 2000, Indigo had also joined the online retail market, expanding its physical presence to over 14 shops in Canada. The same year the company was acquired by Trilogy Retail Enterprises. In 2001, Indigo acquired chapters that enabled the book retail market in Canada to become a dominant force. By 2003 Indigo began shipping music from its online stores. Indigo was awarded MediaCorp in 2006 as one of Canada's 100 biggest employers.

In 2009, with the launch of Kobo Inc, Indigo entered the e-reader business. In the following year, their first product was released. Later on, Kobo sold 315 million dollars to the Japanese corporation Rakuten. The company reported over $1.017 billion in annual sales in 2011.

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