Barnes & Noble vs. Amazon.com - Comparative Strategy Analysis

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Transcript of Barnes & Noble vs. Amazon.com - Comparative Strategy Analysis

Evgenii, Roelof & Sjoerd

Content

Mission

&

Vision

Comparative Company Profile

PEST analysis

• E-commerce safety

• Internet Taxation

• Government Investments in ICT

• Books Content Regulations

• Negative economic downturn

• Economic Growth in China & India

• Currency Fluctuations

• Online & Social Networking

• Ethical & Religious Issues

• Social Magnification and Centralization

• Declining Number of Visitors

• Three Dimensional Books Tech

• Virtual Libraries Boom

• E-book wars• Book search

robotics

Porter’s Five Forces Analysis

SUPPLIERS

HIGH MODERATE

MODERATE

HIGH HIGH

MODERATE HIGH

HIGH HIGH

SUBSTITUTEPRODUCTS

BUYERS

INDUSTRYRIVALRY

POTENTIALENTRANTS

Market Life Cycle

Value Chain

Value Chain

Current Corporate Strategy

Marketing Strategy

C Ma o n dv ea ls

Reed Elsevier

Thompson Reuters

McGraw-Hill Education

Paper books

eBooks

eReaders

MusicMoviesGames

All book lovers

RetailPromotionDeveloping

StoresBrand

StoresWebshop

Personal in store service

Rent, HR, logistics Digital technologyWebshop Promotion

Sales (Advertising)

SWOT

Confrontation MatrixGrowth Compe Acquisi Aging Global Retail Books Tablet Crisis Online

Stores ++ + o ++ o -- --Service ++ ++ o ++ o + +Integra ++ ++ + o o ++ oExperie ++ o + o ++ +Scale ++ o + + ++Fixed -- o + o +Inflexi -- + + + +Prices -- + o o --Losses -- o -- o -Investo -- o -- o -

Core Problem

Strategic ChoiceAmazon Barnes & Nobles

FAS AmazonFAS A Market Pen. B Product Dev. C Market Dev. D Service Dev.

Feasibility ✔Skills Present ✔VC ✔Pest ✔VC

Acceptability ✔Shareholder Value

✔High Cost ✔SWOT ✔higher costs

Suitability ✔PEST ✔Competition ✔risky though ✔Pest

A. Penetrate China B. Product Development: Include contact lenses and eyewear into the product rangeC. Market Development: Conquer IndiaD. Greener packaging and delivery

FAS B&NFAS Do Nothing A Market Pen. B Market Dev.

Feasibility ✗Declining Market

✔VC ✔Pest

Acceptability ✗Decreased value

✔High Cost ✔SWOT

Suitability ✗PEST ✔Competition ✔Competition

A. Market Penetration: China & IndiaB. Further develop its online market, BN.com

International strategy

HIGHHIGH

LOWLOW

GeographicallyDispersed

GeographicallyDispersed

GeographicallyConcentrated

GeographicallyConcentrated

Configuration ofActivities

Configuration ofActivities

Coordination ofActivities

Coordination ofActivities

Barns & Noble

Barns & Noble

AmazonAmazon

Strategic Recommendations

Decrease price of NookDecrease price of Nook

Keep stores as USP, find new sources of incomeKeep stores as USP, find new sources of income

Penetrate Chinese, Indian marketsPenetrate Chinese, Indian markets

Continue developing online webshop, make it globalContinue developing online webshop, make it global

Keep focus on booksKeep focus on books

C Ma o n dv ea ls

Reed Elsevier

Thompson Reuters

McGraw-Hill Education

Paper books

eBooks

eReaders

MusicMoviesGames

All book lovers in the US

RetailPromotionDeveloping

StoresBrand

StoresWebshop

Personal in store service

Rent, HR, logistics Digital technologyWebshop Promotion

Sales (Advertising)

C Ma o n dv ea lS +5

Chinese publishers

Indian publishers

Paper books

eBooks

eReaders

MusicMoviesGames

All book lovers in the US, China and India.

Opening up new markets

Chinese & Indian storesBrand

Chinese & Indian storesWebshop

Personal in store service

Rent, HR, logistics Digital technologyWebshop Promotion

Sales AdvertisingLottery tickets Bookclubs