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Barnes & Noble

In: Computers and Technology

Submitted By mqadda
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Barnes & Noble
Case Study

1- A. Use the Value chain Model and competitive force model the impact of the internet on book publishers and retail stores such as B&N.

Value Chain

Porters’ Competitive Forces

For the book selling industry, the information technology which the e-book arose from has affected the five forces in the Porter’s five forces’ model. * The introduction of substitute is strong * The customer has more information available that strengthen the customer force. * The competition is high as all other companies started to use the technology available to achieve competitive advantage. * The barriers to enter the industry have been weakened
Book Publisher: * Reduce the printed books * Increase the cost of the investing in technology (support Activity in the value chain) in order to produce electronic books and enhance the technology associated with it. * Change the pricing strategy. * The new market entrants of electronic books (i.e Amazon, Apple..etc) caused a decrease in the demand for the physical books.
Book retail Stores (B&N): * Reduction in the demand for the physical books * Reduce the cost of shipment, distribution..ect. (Outbound logistics) * Reduce the space using in the bookstores. * Adopt new technologies in promoting the sales of books. (Invest in technology to improve value chain) * Increase the cost of technology investments. * Adopt new strategies in marketing. * Reduce the publisher effect on the business.
For the book selling industry, the information technology which the e-book arose from has affected the five forces in the Porter’s five forces’ model. * The introduction of substitute is strong * The customer has more information available that strengthen the customer force. * The competition is high as all other companies started to use the technology available to achieve competitive advantage. * The barriers to enter the industry have been weakened
Book Publisher: * Reduce the printed books * Increase the cost of the investing in technology (support Activity in the value chain) in order to produce electronic books and enhance the technology associated with it. * Change the pricing strategy. * The new market entrants of electronic books (i.e Amazon, Apple..etc) caused a decrease in the demand for the physical books.
Book retail Stores (B&N): * Reduction in the demand for the physical books * Reduce the cost of shipment, distribution..ect. (Outbound logistics) * Reduce the space using in the bookstores. * Adopt new technologies in promoting the sales of books. (Invest in technology to improve value chain) * Increase the cost of technology investments. * Adopt new strategies in marketing. * Reduce the publisher effect on the business.
Answer:

2- How are B&N and the book publishers changing their business models to deal with the internet and e-book technology?
Answer:
The B&N and book publishers are now investing heavily in technology which became the main driver for the competitiveness in the industry for the last decade.
In order to be able to compete with the companies like Amazon, google and Apple B&N is trying to improve its current position by changing its business model to adopt technology.
To attract more customers and inter to new and wide market, B&N is: * Creating websites and online stores * Producing e- book with high technology feature * Enhancing the experience of reading * Creating books applications * Manufacturing tablets (Nook)
The B&N and book publishers are now investing heavily in technology which became the main driver for the competitiveness in the industry for the last decade.
In order to be able to compete with the companies like Amazon, google and Apple B&N is trying to improve its current position by changing its business model to adopt technology.
To attract more customers and inter to new and wide market, B&N is: * Creating websites and online stores * Producing e- book with high technology feature * Enhancing the experience of reading * Creating books applications * Manufacturing tablets (Nook)

3- Will B&N’s new strategy be successful? Explain your answer.

Answer:
Yes, since this strategy is focused on adopting technology that will allow B&N to compete with its rivals and will enable it to gain its market share, but this is not enough, B&N should always look for rooms of improvement though all stages of its value chain and always to be the leader in creation of technology.
Also B&N has learnt a lesson from its chief rival, boarders which refused to adopt to the internet and ended up collapsing. B&N does not want to follow the same fate and was determined to change its business model to reflect adopting new technology and achieve its competitive advantage and sustain it.
Technology is a vital supporting element of any firms value chain and should be invested it.
Yes, since this strategy is focused on adopting technology that will allow B&N to compete with its rivals and will enable it to gain its market share, but this is not enough, B&N should always look for rooms of improvement though all stages of its value chain and always to be the leader in creation of technology.
Also B&N has learnt a lesson from its chief rival, boarders which refused to adopt to the internet and ended up collapsing. B&N does not want to follow the same fate and was determined to change its business model to reflect adopting new technology and achieve its competitive advantage and sustain it.
Technology is a vital supporting element of any firms value chain and should be invested it.

4- Is there anything else B&N should be doing to stimulate more business?

In our opinion, * B&N should pay attention to its customer purchases and preferences and analyze it to be able to predict the customer needs and provide these needs and requirements to achieve customer retention. * Try to be ahead in adopting technology and innovation, in order to become a leader instead of a follower. * They should adjust their high prices comparing with their competitive like Amazon. * Establish merchandising with exclusive content. * Develop their online experience and costumers services.

In our opinion, * B&N should pay attention to its customer purchases and preferences and analyze it to be able to predict the customer needs and provide these needs and requirements to achieve customer retention. * Try to be ahead in adopting technology and innovation, in order to become a leader instead of a follower. * They should adjust their high prices comparing with their competitive like Amazon. * Establish merchandising with exclusive content. * Develop their online experience and costumers services.

Answer:

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