Barnes and Noble Business Assessment

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  • Topic: E-book, Barnes & Noble, Books
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  • Published : November 30, 2012
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Barnes and Noble Booksellers
MGT 499
Barnes and Noble was acquired by Leonard Riggio in 1974 after they had fallen into decline. He started his career selling books early in his college career when he founded the Student Book Exchange or SBX. Once purchasing the rights to the name he quickly began transformations on the once giant retailer, making it into his dream, the worlds largest book store. In addition to all the Barnes and Nobles around today, Mr. Riggio also owns an operates over 600 college campus bookstores, like the one at Wright State University, which is where over 4 million students and 250,000 faculty members buy their books. Internal Environment

Barnes and Noble has many strengths which are quickly fading in the ever changing book market. When individuals think of a bookstore these days, typically two come to mind first, Barnes and Noble and their now dead competitor Borders. They had and still have the great strength of partnering with College Campus’s to operate their bookstores which allows them to connect with the consumers who typically spend the most on books (textbooks). With this being said, we also need to point out Barnes and Noble’s weaknesses. This can be summed up by saying that their lack of innovation failed to keep up with consumer trends and the changing market. Barnes and Noble is now trying to compete in the technology market by the creation and selling of their Nook, which is essentially an IPad where you can download and read books electronically. Barnes and Noble’s current leadership team consist of: Leonard Riggio- Founder and Chairman

William Lynch - CEO
Michael P. Huseby - Chief Financial Officer
Chris Trola - Chief Information Officer
Mary Ellen Keating- Senior VP of Corporate Communication and Public Affairs

Competitive ConsequencesPerformance ImplicationsValuableRate Non SubstitutableCostly to Imitate Sustainable C. A.AARNoYesNoYes
Temporary C. A.Avg - AARYesYesYes/NoYes
Competitive ParityAvg ReturnYesYesYes/NoNo
Competitive DisadvantageBelow Avg ReturnNoNoYes/NoNo

Mergers and Acquisitions
Barnes and Noble has had several mergers and acquisitions, but only a few are extremely important when we look at the financial impact and operations impact they had on the company. In 1987, it purchased B. Dalton Bookseller from Dayton Hudson. This acquisition of 797 retail bookstores made it Barnes and Nobles largest acquisition and opened consumers eyes across the nation to the then second largest bookseller in the United States. Another major one that hit news headlines was in 1999 when Barnes and Noble acquired Babbage’s Ect., which is now known as GameStop. Barnes and Noble had control of GameStop until 2004 when the game store bought back 6 million shares from the bookstore to gain its independence.

The next and most important acquisition occurred in March of 2009 when Barnes and Noble acquired a company called fictionwise which is now known as eBook marketplace. This was the first step they made into the digital world of books with their Nook. This was by far their most important acquisition because it was an attempt to meet the demands of the ever changing market by inserting themselves into the digital book market place. The External Environment

When talking about the external environment in terms of Barnes and Noble, the company has many strengths and weaknesses. Starting with the demographics, Barnes and Noble attracts a wide range of consumers, from students to elderly for either educational purposes or recreational purposes. The wide range of demographics is because most consumers either have to read for school or like to read for recreation or entertainment. Today, the retail stores draw mainly an older audience while the stores on college campuses attract mainly just college students. The economics of Barnes and Noble go hand and hand with the sales of the company. Not to...
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