...Barnes and Noble Problem Identification & Analysis: Barnes and Noble have major issues of concern they need to address immediately to ensure their survival as a company. First issue of concern is that profit margins are decreasing for Barnes and Noble at their brick and mortar stores and their online sales are decreasing. Competitors such as Amazon are currently stealing market share causing all their profits to fall. Barnes and Noble needs to evaluate “key determinants of success in an industry may be used to identify a firm’s internal strengths and weaknesses. By scrutinizing industry competitors as well as customer needs, vertical industry structure, channels of distribution, costs, barriers to entry, availability, of substitutes suppliers, a strategist seeks to determine whether a firm’s current internal capabilities represent strengths or weakness in new competitive areas” (Pearce 180). Barnes and Nobles should reach out to consumers at their brick and mortar stores to help market its eBook to consumers. All employees need to be thoroughly trained with their most popular eReader the Nook to provide customers with a clear understanding of the products capabilities. By marketing these products inside current stores, Barnes and Noble will reach a diverse customer group. Ultimately this will allow the company to gain a competitive advantage over rivals such as Amazon. This competitive advantage will most likely stabilize or even increase...
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...Strategy Recommendation for Barnes & Noble MBA-FP6004 Strategy Recommendation Paper Capella University 2015 Introduction Today the power of the Internet and social media as it pertains to companies is immense. A great strategy to harness the power of both can be the difference between one company’s failure and another’s success. The following essay will first begin by giving a brief introduction and history on Barnes & Noble, Incorporated. Second, existing technologies that exist that management should consider with regard to the Internet and social media will be discussed. Third, an in depth look into how Barnes & Noble is currently utilizing the Internet and social media will be shown, as well as, how their competitors in the same industry are using these tools. Fourth, a SWOT analysis for Barnes & Noble using the Internet and social media will be discussed. Also, the implications discovered in the analysis and how they will affect the future of the business will be explained. Fifth, the ethical impacts that come with the use of these tools will be examined and how they may impact the future of the company. Sixth, an assessment of the use of the Internet and social media will be given as they pertain to the global environment and demographics. Finally, a thoughtful business strategy will be given along with recommendations that Barnes & Noble should consider in moving forward with their Internet and social media use. Barnes & Noble Background ...
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...company grew substantially and soon established a distribution network through which it could ship millions of items to customers all over the world at the lowest costs possible. Operating 10 websites in more than 45 countries now gives Amazon a strategic advantage in its diversity. Amazon was founded in 1994 in the state of Washington DC, USA. It strategically competes internationally by attaining the lowest prices amongst its competitors. With regards to book selling, Amazon’s biggest competitor is Barnes and Noble. While Barnes and Noble enjoys the spoils of selling in the physical world and online, Amazon is stuck in the cyber world (which evidently keeps costs down but doesn’t help with the sales). Side by side with Barnes and Noble, Amazon faces another fierce competition of WalMart and CostCo Sales. It began as the worlds biggest book store and now it’s the worlds biggest everything store. Competition: Amazon competes mainly with Ebay for online commerce and with Barnes and Noble when it comes to books. Since Amazon sells a wide range of products such as movies, books, games,...
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...movies, electronics, toys, and groceries. Amazon also generates some of revenue from other marketing such as online advertising and credit card agreement. Amazon has organized systems in two segments, which are North America and International. Websites are also being individually focused for UK, Germany, France, Japan, Canada, China, and Italy. Other than those countries, Amazon also provides them internationally shipping for some products. Amazon succeeds in its online business, and gains more net incomes than some competitor on ground such as Barnes and Noble, and Borders. Amazon’s e-business strategy is a combination of products. The company started with online books then other products to gain customers in a wide range. However, offering a large product variety, Amazon has still maintained its strong brand. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon plays strategy planning on the growth and diversification which objects to provide a “One Stop Shopping” for its customers. Amazon serves customers through the website focusing on selection, price, and convenience. There are million of unique products across 12 categories to be sold by Amazon and third parties. Amazon also manufactures and sells the Kindle E-book, which so far is the biggest electronic library. Customers can instantly download e-books, music or video from anywhere and anytime...
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...expansion of electronic commerce technologies across the world. In order for organizations to benefit from these new systems and tools it is necessary for them to adapt and implement these new technological advancements. Overall, the role of e commerce is to enable companies to transform the way that they deal with internal information and customer service. The purpose of this case study is to analyze the survival of Barnes and Noble in the inevitable era of e books. Research of this analysis will be drawn form primary sources such as academic journals, articles and books. Introduction Barnes and Noble, is one of the leading retail distributers of books in the U.S, with over, 1300 bookstore all across the United States. The company is comprised of three segments, which include, retail segment, which includes its 661 brick and mortar stores as well as the official company website (bn.com), e book segment which focuses on selling “The Nook,” Barnes and Nobles e book reader and the college bookstore segment. (IBISWorld, 2015). Since its inception, Barnes and Noble helped to put many independent booksellers out of business, and now finds itself fighting fierce battles in the wake of the e book era. The book industry went has gone through drastic changes, which have resulted from the advancement of technology, there has been a radical change from actual print to digital. Recent studies have shown that more and more individuals are inclined to purchase e books over print, for...
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...movies, electronics, toys, and groceries. Amazon also generates some of revenue from other marketing such as online advertising and credit card agreement. Amazon has organized systems in two segments, which are North America and International. Websites are also being individually focused for UK, Germany, France, Japan, Canada, China, and Italy. Other than those countries, Amazon also provides them internationally shipping for some products. Amazon succeeds in its online business, and gains more net incomes than some competitor on ground such as Barnes and Noble, and Borders. Amazon’s e-business strategy is a combination of products. The company started with online books then other products to gain customers in a wide range. However, offering a large product variety, Amazon has still maintained its strong brand. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon plays strategy planning on the growth and diversification which objects to provide a “One Stop Shopping” for its customers. Amazon serves customers through the website focusing on selection, price, and convenience. There are million of unique products across 12 categories to be sold by Amazon and third parties. Amazon also manufactures and sells the Kindle E-book, which so far is the biggest electronic library. Customers can instantly download e-books, music or video from anywhere and anytime...
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...types of products and services for people on the move. One of Drucker’s strategies that I see that Amazon emulates is Hit Them Where They Ain’t – Entrepreneurial Judo. Barnes and Noble along with Borders offer mostly books with few offerings of other items. They each are known mostly for their book offerings and in no way have they begun to tap into other departments; although each offers other purchase opportunities. Amazon has managed to enter into several different arenas successfully by offering everything (in my opinion) that a family may have need of. Amazon listened to their customers and made some changes on what their customers wanted. They also understood that people have varying lifestyles and as Americans we want what we want when we want it. Excluding students and young Americans, older adults are still expanding their internet experiences and being able to shop at one location online versus many others, are what Amazon offers. Barnes and Noble and Borders are operating on what is expected: people will always be interested in books and some are willing to purchase online with the option of visiting an actual store. The one thing that Amazon doesn’t feature is external stores. I can’t go into Amazon, sit down, enjoy a cup of coffee or meet my friends. One thing I like about both Barnes and Noble and Borders is that I don’t have to always sit in front of a...
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...“Assignment #2: Amazon.com’s E-Business Model” Your name here BUS 508 Contemporary Business Professor name here Date here Amazon’s E-Business Model Amazon has broken ground on a new way of doing business. They have become the leader in their industry online and continue to lead the way in innovation and technology. To understand a bit more about the workings of this company and to discuss some key facts about why Amazon is where they are today, this paper will emphasize four key topics: Growth and Diversification; To Split or Not to Split; Can Barnes & Noble or Borders Keep Up; and Online Only. After review of the topics, one will be able to clearly see why Amazon is a company to model. Growth and Diversification (Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.) When asked to discuss the pros and cons of Amazon’s growth and diversification of business and specialization, one finds it difficult to criticize Amazon for anything they have done so far. Amazon is leading the way in terms of growth and diversification. Amazon has a solid business plan and mission statement in place which they strive to adhere to at all times and at all costs. Jeffrey Bezos, founder and CEO of Amazon, is straight-forward in his approach to the shareholders as well as his customers, employees and business partners. Mr. Bezos initially began his company in 1994 with...
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...Differentiating Between Market Structures ECO/365 June 2013 John Ilokwu Barnes and Noble Market Structure Barnes and Noble (B&N) is the ultimate destination for consumers to expand their knowledge or enjoy a quiet getaway with their favorite author or connect with a new author. “Leonard Riggio, the company's chairman, began his bookselling career while attending New York University in the early 1960s, and specializes in books, magazines, video, DVD, and music. As a publically traded company with almost 700 bookstores in the 50 United States,” (Barnes) the largest retail bookstore in shopping malls, colleges and universities, and major strip centers plus on the web provides a strong market structure for B&N. In economic theory there are “four different markets; perfect competition, monopoly, monopolistic competition, and oligopoly” (Colander, 2010). Without different markets there would not be any structure. Therefore, it is important to understand and determine the different market structure, the effect of externalities on market outcomes, the barriers new firms have when entering the market, the effect of government interventions, taxation, and regulation on economic behavior. Also this paper will identify three competitive strategies to maximize profits in the long run, the efficacy of strategies on the organization of B&N, and the three types of merger; horizontal, vertical, and conglomerate. B&N made a vertical merger when they became part of the Waldenbook...
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...contains several concepts including capabilities,resources,sources of revenue and value preposition, so the use right scale providers will consequently widen the market and expand on investments as opposed to Barnes and noble which is hard to online transact and has a limited time offers, on the other hand borders uses the Barnes and noble when opening. DESIGN Amazon is a large electronic site and it is not flashy.It best usability.It has the royal blue bars acrtoss the top and light blue menu box running down,more airy,white bartop and search box.This qualities make it to be liked by many people, Barnnes and noble has atop blue and green bar that shows the number of products under it has a long bar showing the commodities that the site offers,on the left it has a customer favorite followed by the subject and recommendation at the centre it has the products while borders has the two bars under it has a welcoming note of barnes and noble and on the left it has a customer favorite,special values,special formatsand special collection, at the centre it has the categorical products. CONTENTS Amazon Cloud font is a one of the ser vice delivery website, it helps connect with other sevices delievry and easily.It can also be used to deliver to the website,barnes and noble has an upper green icon and the products to be sold which are advertised according to the grade. ORIGINALTY Amazon easily shows the year of writing , the author of a certain...
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...Amazon.com’s E-Business Model Jessica Downing Mary Lind Contemporary Business (BUS 508) 07/23/2011 Discuss the pro and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon.com was founded in 1994; it is one of the largest book retailers online. Amazon.com also started offering different products online as well. Amazon.com had a variety of electronics like video, furniture, toys, and selling music (Amazon.com). Besides, Amazon has a lot of websites across the nation ranging from Canada to China. Amazon also does shipping to certain countries for some of their products. The growth and diversification of Amazon.com is to have a plan for their customer’s that makes it very convenience and making sure the prices of the products is a significant price for the customer’s to order online. The pros of Amazon.com are to influence the customer’s on saving money when ordering products online. Quality of the products making sure it is in good shape before shipment goes out to the customer’s. Another pro of Amazon.com would be seeing a huge market profit: In May 2006, Amazon.com made its grocery website and nearly 1,000 non-perishable items was placed on the grocery shelves (Amazon.com) Another pro would be individuals everyday goes on the website to shop for products. It is very convenience for customers. Amazon.com privacy act is on their website for the customer’s to read...
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...Exective Summary: Research shows there is an excellent opportunity for growth and thus increasing the companies’ revenues tremendously. Majority of the company’s researched showed a 30% or higher increase in sales within 5 years which is great for expansion. Building an exceptional customer service program will Increasing sales and return customers and also expanding to new customers. Some background: On-line gaming in the US and global market increased over the past 5 years has been more than 30%. We also found that CanGo customer satisfaction rate is under 50% which threatens the company poetical for growth. Solution: To Expand into the gaming market using a Strategic planning process as part of company operations utilizing internal personnel with external training to get people qualified where they are needed. Identify the companies’ capabilities through Opportunity analysis by replace communication system with a lean, to the point customer service system with operators as needed then build a return customer base by offering rewards and discounts. Market analysis shows the increase of revenue 38% in the US and 30.8% in the global market. Finically CanGo Return on assets is 2.3% and return on sales is 10.94% , excellent. Capital raised the cost of the online gaming to 30,000. With an increase in the market and customer base, CanGo estimates can exceed the 30,000 yearly. SWOT Analysis: Strengths: The e-service that CanGo has offered its customers is a huge...
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...The Success of Amazon Fully discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and recommendations about what Amazon could have done differently Amazon.com was founded in 1994 as online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon completes in a vast array of markets including: books, movies, digital readers, computers, electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand. Amazon has grown and evolved with the growth of the internet. They market their website to an audience that is typically tech. savvy and educated which typically means that their clientele have the money to spend on their products. One of the biggest pros to Amazon’s diversifications strategy is that they have created a one stop shop that offers almost anything that a person is looking for and have been widely successful. Amazon has made it supper easy for anyone to get started with making money online. The products are easy to find, and the ads are easy to incorporate into any blog or website. And the best part is that they even provide you with step-by step instructions on how to do it. Amazon allows you to open up to 100 Amazon stores which you can link to from your...
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...Amazon.Com E-Business Model Introduction “E-business or Electronic business involves the extensive use of computers, communication technology, networking technology and computerized data to perform business processes. E-business can assist a company in improving their business processes through improved customer service, increased sales, product and company promotion, and modern branding. Question -1 Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently Pros Using Amazon.Com to market products guarantees worldwide reach at a nominal price. Advertising techniques like pay per click advertising ensure that the advertiser only pays for the advertisements that are actually viewed. Affiliate marketing, where customers are directed to a business portal because of the effort of the affiliate who in turn receive a compensation for their efforts meeting with success, has emerged on account of e-business. Affiliate marketing has helped both the business and the affiliates. Amazon.Com engaging in e-business has managed to use cost effective online advertising strategies to their advantage. (Simonyi Business and Joint Ventures, 2011) List below are some Cost Effective Marketing and Promotions: • Confirmation email Except when they're part of a co-branded sale, Amazon's use of confirmation emails keeps users in the loop and increases their trust in the overall...
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...rise of a mega business empire, Amazon.com. From the beginning of just books sales to the current diversified online store and why it has gained world wide recognized by branching out to other sales items besides books. As CEO Bezos stated in their 2010 annual report, “ Amazon.com opened its virtual doors on the World Wide Web in July of 1995 and offers Earth’s Biggest Selection. We seek to be Earth’s most customer-centric company for three primary customer sets: consumers, sells and enterprises” (Bezos, 2010). It is apparent that CEO Bezos understood that customer service and listening to the consumer would separate them for the rest. This paper will also compare and contrast competitors in the book sale market, competitors such as Barnes and Noble ad Borders and what has separated Amazon.com from them. Has the diversification of Amazon.com helped them gained global recognition? Or has a solid understanding of the market and customer needs propelled them to where they are today? The Pros and Cons Amazon.com jumped into the market in 1995 with an effective business tactic of online book sales. Not only did the company launch an English version of the website, but they also launched a Chinese, French, German and Japanese version to gain a global audience quickly. Amazon also receives about 615 million visitors annually according to a survey by complete.com (History of Amazon). Some dare to believe that Amazon.com has the “ideal” business plan for success but what baggage comes...
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