Swot Analysis
SWOT ANALYSIS
Borders Group (or "the company") operates book, music and movie superstores, mall-based bookstores, as well as an online store. Borders Group offers eBooks through its online website, www.borders.com. Online retailing is a growing industry, and by leveraging its presence in the channel, Borders Group can retain its customer base as well as improve its revenues. However, the discretionary spending in the US is highly pressurized due to increased unemployment. As the cautious American consumers cut down on the discretionary spending, the demand for Borders
Group’s products can further decrease.
Strengths Weaknesses
Bankruptcy filing and subsequent liquidation of brick and mortar stores
Presence in the online retail channel
Operating through franchise model in the
UAE and Malaysia
Opportunities Threats
Consumer spending in the US pressurized by high levels of unemployment e-books and e-reader offer significant growth areas
Growing demand for religious books e-reader price wars denting profit margins
Digital piracy
Strengths
Presence in the online retail channel
Borders Group offers eBooks through its online website, www.borders.com.The company’s website was originally launched in 2008. Borders Group re-launched its digital bookstore in 2010 in partnership with Kobo, a global e-reading service and e-reader provider. The new website allows customers access to new state-of-the-art free e-reading applications and e-reading technology, more than 2.3 million books, newspapers, magazines, and a unique social reading experience. This partnership also allows Borders Group to have a share in the profits generated from the sale of all Kobo e-content on devices sold by retailers across the US.
In February 2011, Borders Group filed a petition for reorganization relief under Chapter 11 of the
Bankruptcy Code. Following this, it entered into agreements with some liquidators to conduct an orderly wind down of 200 of its underperforming
Borders Group (or "the company") operates book, music and movie superstores, mall-based bookstores, as well as an online store. Borders Group offers eBooks through its online website, www.borders.com. Online retailing is a growing industry, and by leveraging its presence in the channel, Borders Group can retain its customer base as well as improve its revenues. However, the discretionary spending in the US is highly pressurized due to increased unemployment. As the cautious American consumers cut down on the discretionary spending, the demand for Borders
Group’s products can further decrease.
Strengths Weaknesses
Bankruptcy filing and subsequent liquidation of brick and mortar stores
Presence in the online retail channel
Operating through franchise model in the
UAE and Malaysia
Opportunities Threats
Consumer spending in the US pressurized by high levels of unemployment e-books and e-reader offer significant growth areas
Growing demand for religious books e-reader price wars denting profit margins
Digital piracy
Strengths
Presence in the online retail channel
Borders Group offers eBooks through its online website, www.borders.com.The company’s website was originally launched in 2008. Borders Group re-launched its digital bookstore in 2010 in partnership with Kobo, a global e-reading service and e-reader provider. The new website allows customers access to new state-of-the-art free e-reading applications and e-reading technology, more than 2.3 million books, newspapers, magazines, and a unique social reading experience. This partnership also allows Borders Group to have a share in the profits generated from the sale of all Kobo e-content on devices sold by retailers across the US.
In February 2011, Borders Group filed a petition for reorganization relief under Chapter 11 of the
Bankruptcy Code. Following this, it entered into agreements with some liquidators to conduct an orderly wind down of 200 of its underperforming