Barnes And Noble Vs Amazon

Introduction
The qualitative services department was hired to provide an in depth analysis of two leaders in their industry, Barnes & Noble and Amazon. The purpose of this report is to provide all the necessary data in an unbiased manner, so that the accounting partners may make their investment decision knowing all the facts and figures about both companies.

Our report was developed as a result of conducting independent and group research about each company’s background, competitors, philosophical differences in management, success stories, challenges (past and future), strategic moves, as well as key comparative statistics. Our research was compiled using a variety of online sources. The analysis of these key areas will provide greater
There is a great degree of markup on college textbooks that is deflected to students, and when students sell books back to colleges, it is at a greatly reduced price. Books repurchased by Barnes & Noble are repackaged and resold for a price greater than cost. Barnes & Noble is set apart from competition in this regard because no other retailer has a similarly structure partnership.

The simple model that Amazon operates under is its key to success. Amazon uses little more than a bare bones online platform to sell its products meaning a minimal cost structure. At the same time, this business model requires no asset investment in physical store locations. Through an online platform, Amazon can offer products from a variety of sellers on a global scale, allowing them to mitigate expensive shipping costs. This online platform also means increased transferability to mobile devices, meaning they can offer the same services through application stores and exchanges.

Amazon’s Kindle product line is a competitive advantage because it was first to market for handheld book readers. Since releasing the first Kindle, Amazon has only increased the Kindle’s capabilities to match that of the iPad, Nook, and Galaxy
Amazons’ chief business model is Internet commerce, but Barnes & Noble is moving towards this realm of commerce with the creation of the Nook. Both companies see business via handheld tablets becoming more prevalent, evident in the ever-increasing capabilities of the Nook (B&N) and Kindle Fire (Amazon). Barnes & Noble has beefed up their online presence while reducing their number of stores as well. Amazon’s vision of the future has more to do with distribution than anything else. Amazon is doing everything in their power to create a shopping experience similar to going to an actual store; including the instant gratification of receiving your purchased goods right as your purchase them. Amazon is moving towards an incredibly automated distribution channel that will reduce time to consumer through revolutionary technology. One of these technologies is drones that will fly purchased goods to a consumer’s home and drops them on the front step. Both companies understand the profit potential of the industry and are taking steps to capitalize on profit