Borders Group Inc. Case Study
Borders Group Inc.
Professor: Simon Dekker
Student: Yanhui Zheng
Student ID: 021244231
Date: 02- -2010
Introduction
Borders Group Inc. is one of leading and well-known retailers of books, CD, and other educational items. Its idea is “To create richer, more satisfying lives through knowledge and entertainment.” In order to accomplish its mission, Borders provide additional services to make its customer enjoy spending in the store. Borders’ store is not just a bookstore that people go in, buy books, and leave. More likely, it is a place that people can relax and learn knowledge at the same time. Despite the stores throughout nationwide, Borders also has stores in Australia, Malaysia, New Zealand, Oman, Singapore, and United Arab Emirates, and in total approximate 600 stores. Its headquarter is located in Ann Arbor, Michigan. Borders Group Inc.’s history can be traced by two brands: Borders and Waldenbooks.
Lawernce Hoyt ran a rent library in 1933. Later in 1962, Hoyt opened first independent bookstore named Walden Book Store. In 1971, an 800-square-foot used bookstore named Borders Book shop was opened. In 1984, Waldenbooks was purchased by Kmart Corporation, and in 1992 Kmart Corporation also merged Borders and named them as Borders-Walden Group. Three years later, it was renamed as Borders Group Inc., and moved headquarter to Ann Arbor.
Recent years, Borders can not compete with online sellers, especially Amazon.com. It starts to lose business, and has to close stores in order to cut its expenses. Now, it is close to bankruptcy, and is preparing the files.
As-is Condition
According to Moneycentral.com, from 2001 to 2006, Border Group Inc. made approximate 100 million dollars every year. Later it started to lose money. In year 2009 and 2010, it boomingly lost 184.7 and 110.2 million dollars. Borders as a leading traditional bookstore, its experience is a live example that shows the industry life cycle for the tradition bookstore industry. Following char
Professor: Simon Dekker
Student: Yanhui Zheng
Student ID: 021244231
Date: 02- -2010
Introduction
Borders Group Inc. is one of leading and well-known retailers of books, CD, and other educational items. Its idea is “To create richer, more satisfying lives through knowledge and entertainment.” In order to accomplish its mission, Borders provide additional services to make its customer enjoy spending in the store. Borders’ store is not just a bookstore that people go in, buy books, and leave. More likely, it is a place that people can relax and learn knowledge at the same time. Despite the stores throughout nationwide, Borders also has stores in Australia, Malaysia, New Zealand, Oman, Singapore, and United Arab Emirates, and in total approximate 600 stores. Its headquarter is located in Ann Arbor, Michigan. Borders Group Inc.’s history can be traced by two brands: Borders and Waldenbooks.
Lawernce Hoyt ran a rent library in 1933. Later in 1962, Hoyt opened first independent bookstore named Walden Book Store. In 1971, an 800-square-foot used bookstore named Borders Book shop was opened. In 1984, Waldenbooks was purchased by Kmart Corporation, and in 1992 Kmart Corporation also merged Borders and named them as Borders-Walden Group. Three years later, it was renamed as Borders Group Inc., and moved headquarter to Ann Arbor.
Recent years, Borders can not compete with online sellers, especially Amazon.com. It starts to lose business, and has to close stores in order to cut its expenses. Now, it is close to bankruptcy, and is preparing the files.
As-is Condition
According to Moneycentral.com, from 2001 to 2006, Border Group Inc. made approximate 100 million dollars every year. Later it started to lose money. In year 2009 and 2010, it boomingly lost 184.7 and 110.2 million dollars. Borders as a leading traditional bookstore, its experience is a live example that shows the industry life cycle for the tradition bookstore industry. Following char
References: About Us. (2010). Borders.com. Retrieved on Feb. 21, 2010 from http://www.borders.com/online/store/BGIView_bgiabouthistory Amazon.com, Inc. (2011). Finance.yahoo.com. Retrieved on Feb 21, 2010, from http://finance.yahoo.com/q?s=AMZN&ql=1. Amazon.com, Inc. (2011). Money. msn.com. Retrieved on Feb 21, 2010, from http://investing.money.msn.com/investments/stock-price?Symbol=AMZN Brohan, M. (2010). Borders jumps into the e-books fray with a new online bookstore. Internetretailer.com. Retrieved on Feb. 21, 2010 from http://www.internetretailer.com/2010/08/01/borders-jumps-e-books-fray-new-online-bookstore Weinman, S. (2010). Amazon 's E-Book Market Share May Plummet: Great News for Amazon. Dailyfinance.com. Retrieved on Feb. 21, 2010, from http://www.dailyfinance.com/story/company-news/amazons-e-book-market-share-may-plummet-great-news-for-amazon/19361847/