Case Study – Can this Bookstore be saved?

1. Use the value chain and competitive forces models to evaluate the impact of the Internet on book publisher and book retail stores such as Barnes & Noble

Traditional competitors

The traditional competitors of the B & N are the Amazon and other book stores who are locally and internationally selling books online and even in e-book form. These book stores are becoming more in demand because of the availability and the wide range of publishers on panel that allows readers to have more choices of books to read from. The B & N is a successful book store and publishers however; they had been toying with the idea of selling books and other services online.

New market entrants

The new market entrant strategy is focused on staying in sustainable position so that it is not easy for new entrants to capture the suitable market share when they become part of the market. The business process a strategies are the prominent parts of these resistance. B & N uses the strategies of aggressive pricing that helps it maintain its sales. Also its unbeatable inventory and the endless publishers available on panel make it possible for the bookstore to serve a large customer market. The industry in this regard has high barriers to entry but there are companies that are selling online and developing and establishing new markets.

Substitute product and services

The customers often switch to substitute product if there are issues in the main seller’s products and services. The new technology can create new and improved substitutes that are less expensive and more reliable making it hard for the market players to maintain competition. The customers in case of B & N may use Amazon to buy products and books online since it is easy to use and there is possibility of more access to more books.

Customers

The customers have the bargaining power when they have considerable knowledge regarding the prices and information of the product and services. The B & N may lose customers because they will have more access to technology and also will have knowledge regarding the new technology and buying online features that will affect its market share. The customer’s knowledge of the Amazon patent rights n one-click shopping can be of greater advantage for customers to play by their own rules.

Suppliers

The firm profits and output can be greatly affected by the suppliers. The bargaining price is increased when the partnership with suppliers is stable. The suppliers can enjoy benefits when there are reduced barriers to entry. The suppliers themselves can have the system and remove the entities between them and the users to create direct channel and serve the customers. The supplier sin this case may choose Amazon because Amazon sale is higher than B & N.

2. How did Barnes and Noble change its business model to deal with the Internet and e-book technology?

The B & N changed its business model to deal with the internet and technology to sale e- books online and serve the new market and old markets side by side. They signified that they are also focusing on new methods of sale and improving their technology. The new technologies saw that the in store sales were slightly reduces and the e- book sales and online sales boosted. The B & N are using the application on Nook to establish their customer market online. The effort was done to capitalize their retail stores. The digital content of the book store was also expanded given more opportunities that developed platforms for digital education market and understanding of techniques in sales online. The innovation and attraction factors helped maintain high level of online and offline sales by introducing discounts and other services free of cost. The human resource of B & N are working to develop different experiences for the users and the customers in the store and outside the store while they visit the online store and develop sound and healthy relationships. The activities that are including in the new online and offline system are games and toys along with other exciting services and activities that entertain users. The e- content is attractive and there is also more space in the Nook tablets. B & N are also trying to develop more improved function of technology with e- book retails.

3. Will Barnes & Noble’s new strategy is successful? Explain your answer.

The new strategy of the B & N will be successful because of the new market expectations are met by the book store. The customers in the market expect the books tore like B & N to lead the rest of the market and with the approach on development and leading the online book selling and offers; the B & N is focusing on its customers’ needs and expectations. The strategy is boosting the company bottom line; the publishers attached with B & N are worried that the book lovers would be snatched away by the Amazon. That is why the physical book store sales are also focused to maintain the leader market role in the book store market. The B & N new strategies include opening smaller stores within the malls to help accelerate the sales and functions.

4. Is there anything else Barnes & Noble and the book publishers should be doing to stimulate more business?

The B & N need to capitalize their profitable retail stores to create more channels of visibility fir the products. The more the books are visually available, the more are the chances for it to be sold. There is need to develop small local companies and shops that serve the customers in physical and digital content both. The B & N and its publishers need to develop string marketing structure and display more of its products. Since there is a large physical inventory available in the book store there are a chances that more sales will be created using the right strategy. Similarly the membership cards and the discount cards will promote sales and improve the relationship with customers.