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Indigo Case
Date: January 30, 2013

Subject: Indigo’s options regarding entering the e-reader and e-book market

Heather Riesman and Michael Serbinis, CEO and CIO of Chapters.Indigo, are tasked with the decision of entering the e-reader and e-books market and must decide whether they will manufacture their own e-reader or negotiate a contract with an existing company to carrying their product. After analyzing Chapters.Indigo’s core strategy and the current market conditions, we will aid both Riesman and Serbinis with coming to a decision regarding entering the e-reader and e-books market.

Core Strategy:

Indigo was first founded in 1996 with a goal of dominating the Canadian market by mimicking the actions of successful bookstores in the United States. After their merger with Chapters in 1998, they cemented their position as a dominant player in the Canadian market and were viewed as a virtual monopoly. They maintained their dominant position by offering their customers the widest variety of books and products. Their mission statement includes, “To provide our customers with the most inspiring retail and digital environments in the world for books and life-enriching products and experiences` . Currently, Chapters.Indigo has over 96 large format stores and over 150 smaller stores all across Canada.

Their core strategy consists of:
-To be the number one retailers of books, both paper books and e-books, for customers. They remain as the largest selection of different genre books in Canada, and they`re continuously growing their online selection of a different variety of books.

- To remain as the dominant firm in the industry. Their acquisition of Chapters and Coles Books cemented their role as a monopoly in Canada, all the while constantly attempting to expand both their in store operations and their online market share.

With the occurrence of globalization, and the constant increase in popularity with the internet, the market for online books is

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