Essay on Case Study Barnes and Noble

3053 WordsJun 3, 201313 Pages
Case Analysis Barnes & Noble MBA 520 City University May 2013 Barnes & Noble is the largest retailer of books in the United States. They operate nearly 700 stores in all 50 states (barnesandnobleinc.com). Having the most bookstores in the United States was a competitive advantage for Barnes & Noble in the past. With the rise of Internet and e-book technology Barnes & Noble has had to change its business model. In this case study I will use Porter’s Competitive Forces and Value Chain models to analyze how these technologies have affected Barnes & Noble and its competitors. I will also write about how Barnes & Noble is changing its business model to compete in a changing industry. Lastly I will at Barnes…show more content…
Porter’s Value Chain model “highlights specific activities in the business where competitive strategies can best be applied (Porter, 1985) and where information systems are most likely to have a strategic impact. This model identifies specific, critical leverage points where a firm can use information technology most effectively to enhance competitive position.” (Laudon & Laudon p. 101). The Value Chain model helps a company determine what business practices and strategies it can use to gain a competitive advantage. Companies like Barnes & Noble can compare what they are doing with what their competitors are doing to identify what is working in the industry. They are also able to pinpoint what business activities should be focused on to increase their competitive advantage. Laudon & Laudon write, “Using the business value chain model will also cause you to consider benchmarking your business processes against your competitors or other in related industries, and identifying industry best practices.” (p. 103). The internet and e-book technology has changed business environment. Barnes & Noble has used benchmarking in a couple of different ways. They have looked at what has not worked in the retail book industry and they have also looked at what has worked. In the retail bookstore business Borders was Barnes & Noble’s biggest

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