Can This Bookstore Be Saved 
CAN THIS BOOKSTORE BE SAVED?
Case Study
By Vladimir Pimentel
Barnes and Nobles is one of the biggest bookstores that has a brick-and-mortal store concept. In the past they were know as a “big bully” that drove small book stores to close down because of their aggressive tactics to have competetetive advantage over them. Nonetheless, with the evolving circle of technology they have had a hard time in keeping up with the E-book era. In 2014 E-books increased its reader subscription by 28% compared to 23% in 2013. This number will continue increasing because 50% off American’s have access to devices that are either an e-reader or a tablet. B&N changed its business model to adjust to this new setting before it suffered a similar fate as some of its competitor’s had encountered, which is closing down shop. B&N developed a Nook e-reader and tablets and in the mist of the change of the e-book era they have dedicated themselves not only sell actual books in their store chains, but to also be marketable with accessibility to selling e-books, devices to read them on, and attaching an app enhancement for a better reading experience.
The company has had success gaining market share but with a cost and in order to stay afloat it will need to contend with increased competition from Amazon, Apple and Google. Its top competitor is Amazon with a 98 billon capitalization and B&N has a market of capitalization of 1 billion, which puts B&N in a competitor disadvantage. Even thought Amazon might have a bigger capital, B&N has been able to grab a significant market share from Amazon and Apple but with a steep cost. B&N has incurred a loss of millions of dollars in 2011 and most of the loss is due to investment that the NOOK required for launching. It’s been questionable because they don’t know if the NOOK will eventually bring in revenues that justify its steep development and marketing cost, as well as bring traffic back into the B&N stores. Customers who
Case Study
By Vladimir Pimentel
Barnes and Nobles is one of the biggest bookstores that has a brick-and-mortal store concept. In the past they were know as a “big bully” that drove small book stores to close down because of their aggressive tactics to have competetetive advantage over them. Nonetheless, with the evolving circle of technology they have had a hard time in keeping up with the E-book era. In 2014 E-books increased its reader subscription by 28% compared to 23% in 2013. This number will continue increasing because 50% off American’s have access to devices that are either an e-reader or a tablet. B&N changed its business model to adjust to this new setting before it suffered a similar fate as some of its competitor’s had encountered, which is closing down shop. B&N developed a Nook e-reader and tablets and in the mist of the change of the e-book era they have dedicated themselves not only sell actual books in their store chains, but to also be marketable with accessibility to selling e-books, devices to read them on, and attaching an app enhancement for a better reading experience.
The company has had success gaining market share but with a cost and in order to stay afloat it will need to contend with increased competition from Amazon, Apple and Google. Its top competitor is Amazon with a 98 billon capitalization and B&N has a market of capitalization of 1 billion, which puts B&N in a competitor disadvantage. Even thought Amazon might have a bigger capital, B&N has been able to grab a significant market share from Amazon and Apple but with a steep cost. B&N has incurred a loss of millions of dollars in 2011 and most of the loss is due to investment that the NOOK required for launching. It’s been questionable because they don’t know if the NOOK will eventually bring in revenues that justify its steep development and marketing cost, as well as bring traffic back into the B&N stores. Customers who