The bookstore chain has been decreasing in profit in the US over the past 20 years. Most of the books retailers are shutting down their operations and only a few are still operating in the country. Barnes and Noble has become the largest bookseller in the book retailers industry (1). The firm has integrated its business philosophy into web presence though eBook marketplace. This business strategy assisted the firm to be able to reach a large scale customers and remain as a strongest competitor in the book retailing market.
Barnes & Noble was successful on releasing the NOOK tablets, which responsible for major contribution to the company’s digital book sales. These tablets helped ...view middle of the document...
The digital books business eliminated the physical books in the store. Barnes & Noble offered a wide range digital platforms to its customers. The digital system was comparable with Window 8 personal computer and tablets. It also worked well with Apple’s product such as iPad, iPhone and other products like Android smartphones and tablets. The firm continued to stay in a competitive advantage position in the marketplace, even though it had to compete with many powerhouses in the same industry such as Waldenbooks and Crown Books. And yet, Barnes & Noble remains on the top of the leading U.S bookstore chains (2).
Considering with the economic downturn, Barnes & Noble has found the way to offer price discount to all its customers specially price seekers. Since Barnes & Noble was a leading bookstore, it attracted many suppliers and publishers. Barnes & Noble was taking advantage of the situation where it had the ability to access a large customer base to arrange a better price deal from publishers and suppliers. Since it had a power of negotiate the price, it would add more value and strength to its business. The company was able to offer up to 30% off on the actual price from the publishers for hardcover bestsellers and 20% for all children books. In addition, Barnes & Noble offered discount program to its members. All members can receive extra 10% additional on top of 30% to hardcover bestsellers only if they agree to pay a $25 membership fee per year. Barnes & Noble sells its merchandise by offering 10% discount to specific merchandises in store (4). The company was able to offer price discounts to its customers, it is only help the firm to stay competitive advantage in the marketplace. On the same note, it would help to gains more new customers, new business, maintain the existing one. One major successful for Barnes & Noble was selling books to college students, which helped the firm with $3.8 million in revenue (2).
Barnes & Noble has invested heavily in NOOK e-reader business as the result the company did not have a good return in profits. NOOK products could not compete with Apple’s products iPad and Kindle Fire, Amazon. Barnes & Noble made a decision to obsolete one of its own products color tables (4). Instead, the firm decided to join adventure and signed the products right to third parties in exchange of co-branding opportunities. By joining business adventure and giving up the right of branding which sent a wrong signal to other firms in the same industry. The impression was that Barnes & Noble could not compete against the competitors such as Apple, Amazon, and Samsung in the marketplace. As a result, Amazon dominated 25% overall with digital books in the marketplace, which leading by 7% over Barnes & Noble according to Romance Sales by...