Amazon vs Barnes & Noble 2

Topics: Online shopping, Retailing, Pages: 5 (1157 words) Published: October 29, 2011
Amazon vs Barnes & Noble
The Battle of the Bookstores and the Future of Electronic Commerce

Amazon opened to the public on the World Wide Web in July 1995 -Offers a variety of items from books, electronics, computers, music, movies, apparel, toys, computers, etc… -Amazon. has six global websites:,,,, and -Amazon was incorporated in 1994 in the state of Washington and reincorporated in 1996 in the state of Delaware -Has been available to the public on the stock market since May of 1997 works with companies such as Nordstrom’s, Gap, Eddie Bauer, Urban Outfitters, Osh Kosh, Footlocker

Barnes & Noble
1873: From his home is Wheaton, Illinois Charles M. Barnes starts a small book business 1917: William Barnes, Charles’s son travels to New York to negotiate with G. Clifford Noble and from a partnership, then opening the first Barnes and Noble 1987: Barnes and Noble acquires B. Dalton

1991: Barnes and Noble pioneers the super store concept that has huge location, wide selections of titles, experienced bookstore staff, warm atmosphere and cafes in stores 1993: Barnes and Noble goes public on the stock exchange on September28, 1993 In May 1997 Barnes and Noble opens it public site on the world wide web 1999: goes public on the stock exchange and raised $468 million and unprecedented amount for an internet company

Business Models’s business model is still being proven to this day -Barnes & Noble’s business model is called Brick-and-Mortar retailing -Brick and mortar retailing is when a company expands their business to the internet and by doing this develop new business and increase their profits’s Advantages
-Customer Focused
-Virtually Efficient

Barnes & Noble’s Advantages
-Many retail stores that can connect with customers
-Have and established brand name
-Many years of industry knowledge’s Disadvantages
-Focused on way too many products
-Unable to physically connect with customers
-Business model is not proven

Barnes and Noble’s Disadvantages
-Late to put their products on the internet (e-commerce)
-Lack of Customer focused innovation
-Unable to respond to Strategic operations’s Business Model is not viable
-Amazon is in long-term debt, that fluctuates to about 1.2 billion dollars -They have yet to reach profitability

Barnes and Noble’s Business model is viable
- they have become very profitable business

Value Chain of Barnes and Noble
-Traditional ways of selling books– physical bookstores exist: Authors --> Publishers --> Distributors --> B&N --> Customers

Value Chain of
On-line sales-no physical bookstores exist:
Authors --> Publishers --> Distributors --> --> Delivery --> Customers

Competitive Five Forces Model (Porter)
New Entrants
The online bookstore industry that has pioneered in was, at first, very hard to penetrate. There were different barriers such as distributing capabilities and the variety of the selection offered that are supposed to be hurdled. Amazon successfully solved the tricky parameters as being the first one to get into the whole idea of online retail. With being the first, they had the luxury to set what were the norms for the industry. Factors that may lower these barrier tactics would be a wider selection and the ability to go to an actual bookstore to exchange or return books or other products. This network of "actual" retail spaces makes it easier for the consumer to return or exchange the products they were not satisfied with. These handicaps of Amazon were the basis for the emergence of book retail giants Barnes and Noble and Borders in the online shopping industry.

Industry Competitors
The major competitors of Amazon are Barnes and Noble and Borders. Barnes and Noble is a retail giant offering books and CDs both in their...
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