Barnes and Noble business strategy
this, somebody else would.” The publishing industry is ripe for change of this type. Like the music industry and the problems it currently has with the Internet and illegal copying of music, the publishing industry is content to demand high margins despite the cries of its consumers for lower prices. Barnes and Noble identified this customer demand and appropriated the resources to capture this share of the market. If Barnes and Noble succeeds in reconfiguring a new value for itself it will reshape the publishing industry through a reallocation of resources; Barnes and Noble will become the most efficient user of the available resources and thus reconfigure the industry’s supply chain. This will force other publishing companies to follow suit or find other markets and there will be winners and losers. The winners will ultimately be those firms that capture additional profits; the winners will also be the budding authors that are overlooked because of the risk they pose to a quick profit, as well as the consumers who have demanded less expensive books.
Based on this information I am indeed attracted to Barnes and Noble stock at its current price. I believe that the cost leadership and a differentiation strategy is well though out and has been well executed so far. I believe that Barnes and Noble will stand in the winner’s circle; along with budding (if not frustrated) authors like myself and many happy customers.