Barnes & Noble - Business Analysis

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E-business Analysis

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1. Value Proposition

Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. The company sells its products directly to customers through its bookstores and on barnesandnoble.com. Barnes & Noble conducts its online business through Barnes & Noble.com, one of the Web’s largest e-commerce sites, which also features more than 3 million titles in its eBookstore.  Through Barnes & Noble’s NOOK eReading product offering, customers can buy and read eBooks on the widest range of platforms, including NOOK eBook Readers, devices from partner companies, and hundreds of the most popular mobile and computing devices using free NOOK software.  As of June 28, 2012, the company operated 691 bookstores in 50 states, as well as 641 college bookstores serving approximately 4.6 million students and faculty members at colleges and universities in the United States.

2. Revenue Model

Barnes & Noble is referred to as a “brick and click” model of commerce, so their operation is the mixture of tradition and e-commerce. They try to compete for the market via the Internet beside the chain of brick and mortar bookstores. Sales: Barnes & Noble, Inc. generate revenue from selling books, magazines, newspapers, and NOOK – eReading product through its multi-channel distribution platform including its outlets and its website barnesandnoble.com. • Online sales:

o Quantity landing pages – call to action
o Advertise exclusive online offers in text and ad copy such as free shipping and discount on large orders. • In store sales:
o Offer options to pick up products in stores at the same day o Appeal to local crowds by marketing local stores
o Advertise for in-store events.
Advertising fees: B&N charges advertisers for providing them with unique targeting into specific interest verticals at all points in the sale cycle, from research and discovery to card-in-hand purchases.

3. Market Opportunity

Barnes and Noble's marketplace opportunities are plentiful because of their unique business strategy focusing on penetrating five very profitable markets: selling books, music, movies, gifts, toys and games as well as NOOK – eReader. They use the Internet as a source to lure customers into store locations.

4. Competitive Environment

Looking at the entire book retail industry, competition is quite diverse. A consumer could purchase books from a bricks and mortar store, which could be a large chain, a non-book retail store, or a small independent store. A consumer could also choose to buy their books online. With the onset of Internet bookstores, price is even more of a factor in consumer book purchasing. The large chain bricks and mortars have established Internet e-commerce sites to satisfy all the needs of their consumers. Two of Barnes & Noble’s largest competitors are Borders Group, Inc. and Amazon.com. Other competitors are locally owned bookstores.

5. Competitive Advantage

Barnes and Noble is a Fortune 500 company that offers many products, such as books, music and movies, through many stores as well as online. As the world's largest bookseller, Barnes and Noble locations strive for a comfortable ambiance accomplished through their use of cafes such as Starbucks. These are seven advantages Barnes & Noble has in the bookseller wars. • Good management with deep bench strength

• The market for digital media devices is exploding and so is the demand for digital media to run on those devices • Liberty Media’s John Malone and Gregory Maffei are betting that Barnes & Noble is a winner • The college store business marches profitably on

• The Nook product family is competitive...
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