Case Study 3
Can This Bookstore Be Saved?
Use the value chain and competitive forces models to evaluate the impact of the Internet on book publishers and book retail stores such as B&N.
Competitive Forces:
1) Competitors – old competitors like Borders is gone now and B&N is the only big player left in the physical book market. However, new market has been created now. Therefore, a new playing field now holds competition.
2) New Market Entrants – new competitors like Amazon, Apple have entered the market and changed the playing field. There is no barrier to entry. However, tremendous capital is required for new entrants to make it big in this industry and also links with the publishers. Therefore, not many new entrants.
3) Substitute products and services – e-books and other digital media
4) Customers – are switching more towards e-books. However, B&N has no competition in traditional books market.
5) Suppliers – same suppliers or book publishers as before.
Value chain for internet is improved a lot by fast outbound and inbound logistics through the internet only. In case of B&N, it happens physically and is time consuming. Operations is prevalent in IS but it is taken care of through the logistics. B&N on the other hand has multiple modes of Sales & Marketing, web and traditional. Also, increasing the size of their play centers and adding services to their tablets that are only enabled through Wi-Fi in their building only. The Service part of B&N will be a lot more than its web-based competitors.
How are B&N and the book publishers changing their business models to deal with the Internet and e-book technology?
The book publishers require stored like B&N because they provide a way to market their books due to the fact that they have such inventory and places to display books and for readership to view and browse through. This is of benefits to publishers compared to the bad deals they have to go through with e-books giants like Amazon and Apple.
B&N is also improving
Use the value chain and competitive forces models to evaluate the impact of the Internet on book publishers and book retail stores such as B&N.
Competitive Forces:
1) Competitors – old competitors like Borders is gone now and B&N is the only big player left in the physical book market. However, new market has been created now. Therefore, a new playing field now holds competition.
2) New Market Entrants – new competitors like Amazon, Apple have entered the market and changed the playing field. There is no barrier to entry. However, tremendous capital is required for new entrants to make it big in this industry and also links with the publishers. Therefore, not many new entrants.
3) Substitute products and services – e-books and other digital media
4) Customers – are switching more towards e-books. However, B&N has no competition in traditional books market.
5) Suppliers – same suppliers or book publishers as before.
Value chain for internet is improved a lot by fast outbound and inbound logistics through the internet only. In case of B&N, it happens physically and is time consuming. Operations is prevalent in IS but it is taken care of through the logistics. B&N on the other hand has multiple modes of Sales & Marketing, web and traditional. Also, increasing the size of their play centers and adding services to their tablets that are only enabled through Wi-Fi in their building only. The Service part of B&N will be a lot more than its web-based competitors.
How are B&N and the book publishers changing their business models to deal with the Internet and e-book technology?
The book publishers require stored like B&N because they provide a way to market their books due to the fact that they have such inventory and places to display books and for readership to view and browse through. This is of benefits to publishers compared to the bad deals they have to go through with e-books giants like Amazon and Apple.
B&N is also improving