Case Study Barnes and Noble
Case Analysis
Barnes & Noble
MBA 520
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 & Noble’s new strategy and if it has been and will be successful.
The internet and e-book technology has changed the way that Barnes & Noble, its competitors and book publishers conduct their respective businesses. Using the Porter’s Competitive Forces model and Value Chain model it is easier to understand how and why that has happened. The competitive forces model is “used to describe the interaction of external influences, specifically threats and opportunities, that affect an organization’s strategy and ability to compete.” (Laudon & Laudon p. G2). The model describes a company’s business environment. Porter uses five competitive forces that help describe the business environment for a company. The internet and e-book technology can be found effecting the business environment in these five forces.
The first force is Traditional Competitors. Barnes & Noble’s competitors are competing for market share. Market share can be gained by the development of new products that help build the brand of the company. The internet has helped Barnes & Noble as well as its competitors develop new products and services. Laudon & Laudon write, “In a sense the internet is ‘transforming’ entire industries,
Barnes & Noble
MBA 520
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 & Noble’s new strategy and if it has been and will be successful.
The internet and e-book technology has changed the way that Barnes & Noble, its competitors and book publishers conduct their respective businesses. Using the Porter’s Competitive Forces model and Value Chain model it is easier to understand how and why that has happened. The competitive forces model is “used to describe the interaction of external influences, specifically threats and opportunities, that affect an organization’s strategy and ability to compete.” (Laudon & Laudon p. G2). The model describes a company’s business environment. Porter uses five competitive forces that help describe the business environment for a company. The internet and e-book technology can be found effecting the business environment in these five forces.
The first force is Traditional Competitors. Barnes & Noble’s competitors are competing for market share. Market share can be gained by the development of new products that help build the brand of the company. The internet has helped Barnes & Noble as well as its competitors develop new products and services. Laudon & Laudon write, “In a sense the internet is ‘transforming’ entire industries,