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Str/581-Strategic Plan

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Strategic Plan Part 3
STR/581
Brian Carter
12-12-11

Strategic planning is a critical element of an organization’s annual business plan. A strategic plan consists of a number of components. In addition to analyzing a company’s strengths and weaknesses, a strategic plan also includes implementation and control techniques. While this may seem easy enough, implementing a strategic plan into an organization can be challenging. Barnes and Noble, like a number of corporations are seeking ways to improve productivity and profitability. This essay will identify business alternatives for the bookseller which will enable them to diversify their product offerings. The development of a strategic plan consists of many steps. One important step is identifying the best strategic alternatives. These alternatives include value discipline, generic strategy, and grand strategy. These three areas are especially important for Barnes and Noble. In recent years, the bookseller has experienced a slide in market share. While Barnes and Noble has been able to rebound over the past year, the company must identify ways to remain competitive. A generic strategy is very important for Barnes and Noble. A generic strategy is a basic approach to strategic planning that can be adopted by an organization in any industry to improve competitive advantage. Generic strategy is composed of three elements, differentiation, focus and low cost strategies. Differentiation strategy is the ideal strategy for Barnes and Noble. Over the past decade Barnes and Noble has faced stiff competition from Amazon and other non-traditional retailers such as Walmart and Costco. The bookseller must identify ways in which to set itself apart from competitors. According to DataMonitor (2010) Value pricing strategy adopted by Barnes & Noble is a key competitive advantage in a market where the

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