Barnes & Noble
City University May 2013
Barnes & Noble is the largest retailer of books in the United States. They operate nearly 700 stores in all 50 states (barnesandnobleinc.com). Having the most bookstores in the United States was a competitive advantage for Barnes & Noble in the past. With the rise of Internet and e-book technology Barnes & Noble has had to change its business model. In this case study I will use Porter’s Competitive Forces and Value Chain models to analyze how these technologies have affected Barnes & Noble and its competitors. I will also write about how Barnes & Noble is changing its business model to compete in a changing industry. Lastly I will at Barnes …show more content…
117). Borders did not adapt to the change in technology. The impact for them was big enough that they went out of business. Barnes & Noble was able to see that their primary activities have to focus on using internet and e-book technology to drive their competitive advantage. The impact for Barnes & Noble is that they have to change the way they do business. They had to shift their focus from their retail stores to their more e-content type products.
Because internet and e-book technology has impacted the way Barnes & Noble is doing business, it has also had an effect on the publishers. The success of the publishers and their businesses are closely related to what Barnes & Noble and its competitors are doing. “Publishing companies have been forced to adjust their allocations of printed books and new titles for stores, and books are beginning to be released as apps in addition to physical books.” (Laudon & Laudon p. 117). Although printed books are more profitable for publishers, they have had to change their primary activities to keep their competitive advantage as suppliers. The publishers need Barnes & Noble for their long term success. Internet and e-book technology has made if more difficult for Barnes