Barnes And Noble Case

[BARNES & NOBLE CASE ANALYSIS]

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A Case Analysis of Barnes & Noble By: Sidney Best Jack Zeigler Charlie Smith Jessica Whitley Josh Cornwell Dr. Prati Mgmt 4842 November 17, 2010

[BARNES & NOBLE CASE ANALYSIS]

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Table of Contents Executive Summary.………………..….……………………………………………..page 3 Industry definition & SIC/NAICS Code….…………………………………………page 4 Mission and Vision Statement Analysis……....……………………………………..page 4-5 Strategic Objectives.………………….………………………………………………page 5-6 Financial Objectives …………………………………………………………………page 6-7 Competitive Analysis.…………………..…………….………………………………page 7-8 Driving
There are two groups of competitors that pose a threat against Barnes and Noble. These two groups are bookstores and specialty stores. Bookstores that compete against Barnes and Noble are Books-A-Million and Borders. Barnes and Noble have surpassed these bookstores and solidified themselves as the number one bookstore in the nation. “Specialty stores that compete against Barnes and Noble are Amazon.com, Wal-Mart and Costco.[I]”Barnes and Noble have not solidified as high of a market position when it comes to this group of retailers. This is due to having little pricing power unlike the specialty stores which are known for providing discount pricing that most companies would struggle to
By offering the eBookstore and its corresponding software, Barnes & Noble has gained a digital foothold and hopes to increase its market and industry share in the digital market. Barnes and Noble lunched The Nook, an electronic book reader, in 2009 and have attracted customers into the eBook sales niche. Even though eBook sales compete with and replace bookstore sales, loyal Barnes & Noble customers have increased their spending with the company by 17%. The Nook has also attracted new customers to Barnes & Noble which translates to successful online marketing strategies. • Strength 3- Due to the recent economic decline, Barnes & Noble has seen a trend in its consumers becoming more price conscious. The dominant market position held by Barnes & Noble allows the company to negotiate lower prices which are then passed on as savings to its customers. Incentives such as The Barnes & Noble Member program allow members to receive larger discounts on almost everything within the company. Additionally, the company employs an assertive discount pricing policy which discounts many items within its inventory. These savings draw in new customers and encourage existing customers to increase their spending. Strength 4- Barnes & Noble recognizes the need to attract, retain, and maintain its customers. B&N have been offering incentives to attract customers to its stores in hopes that revenues would increase due to the likelihood that purchases