Case Study: Borders Group Inc.
ABOUT THE ORGANISATION
Borders Group Inc. started in 1971 in the United States of America. The international bookstore chain set up their first store in Singapore in 1997 (Reuters, 2011), bringing in a unique “library culture” practised by few others in the country as the company did not shrink-wrap their books, therefore customers were allowed to browse books freely (Trager Bohley, 2009). This stemmed from the belief that tactile pleasures derived from interaction with the new books would play an important part in customers’ purchasing decisions (Trager, 2005). Borders eventually closed down and withdrew from Singapore in 2011 due to insolvency (National Library Board, Singapore, 2014). THE SINGAPOREAN CULTURE
Singaporeans are often characterised as “kiasu” people which literally means afraid of losing out (Leo, 1995) and being extremely concerned with anything of monetary value (Ho, Ang, Loh & Ng, 1998). As a result, Singaporeans may prioritise their self-interests over communal interests in a bid to be ahead of others, acting in a greedy manner (Ho et al., 1998). PROBLEMS
Due to their unique library culture, Borders was initially able to distinguish themselves from other bookstores and gain the public’s interest. However, subsequent marketing strategies were inappropriate as they were …show more content…
To increase sales, Borders gave out discounts in the form of e-coupons, which is usually an effective short-term marketing strategy. However, the discount strategy was taken too far when discounts up to 40% were offered frequently, encouraging customers to hold off purchases until the discount period came around (Chia, 2011). This compromised members’ loyalty, as the discounts offered to members were far lesser than that offered to the public. customers had little incentive to become members as there were no privileges accorded to set them apart from the general
Borders Group Inc. started in 1971 in the United States of America. The international bookstore chain set up their first store in Singapore in 1997 (Reuters, 2011), bringing in a unique “library culture” practised by few others in the country as the company did not shrink-wrap their books, therefore customers were allowed to browse books freely (Trager Bohley, 2009). This stemmed from the belief that tactile pleasures derived from interaction with the new books would play an important part in customers’ purchasing decisions (Trager, 2005). Borders eventually closed down and withdrew from Singapore in 2011 due to insolvency (National Library Board, Singapore, 2014). THE SINGAPOREAN CULTURE
Singaporeans are often characterised as “kiasu” people which literally means afraid of losing out (Leo, 1995) and being extremely concerned with anything of monetary value (Ho, Ang, Loh & Ng, 1998). As a result, Singaporeans may prioritise their self-interests over communal interests in a bid to be ahead of others, acting in a greedy manner (Ho et al., 1998). PROBLEMS
Due to their unique library culture, Borders was initially able to distinguish themselves from other bookstores and gain the public’s interest. However, subsequent marketing strategies were inappropriate as they were …show more content…
To increase sales, Borders gave out discounts in the form of e-coupons, which is usually an effective short-term marketing strategy. However, the discount strategy was taken too far when discounts up to 40% were offered frequently, encouraging customers to hold off purchases until the discount period came around (Chia, 2011). This compromised members’ loyalty, as the discounts offered to members were far lesser than that offered to the public. customers had little incentive to become members as there were no privileges accorded to set them apart from the general