Comparison Report – Facebook communication strategies between
Amazon and Barnes & Nobles
Johnny R. Polanco
DeVry University
MGMT-550 Managerial Communication
January 25, 2015
Facebook communication strategies between
Amazon and Barnes & Nobles
The scope of this project is to analyze similar or comparable organizations like Amazon and Barnes & Noble, and compare their communication strategies on Facebook. The gathered and analyzed information will explain and help to understand the way these organizations have been performing their social media strategies and the different results obtained to stay ahead of business.
Amazon, Inc.
Amazon.com, Inc. (NASDAQ: AMZN) is an American e-commerce company with
…show more content…
The company operates in three segments:
a) B&N Retail,
b) B&N College, and
c) NOOK (Tablets eReader devices).
Barnes & Noble provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. The company sells trade books, including hardcover and paperback consumer titles; mass market paperbacks, children’s books; eBooks and other digital content; NOOK products and related accessories; bargain books; magazines; gifts; cafe products and services; educational toys and games; music; and movies. It also sells textbooks and course-related materials, emblematic apparel and gifts, school and dorm supplies. Through a proprietary digital platform called “Yuzu”, the company provides new and used textbooks; and textbook rental services, digital textbooks, and other course materials.
The company sells its products directly to customers through its website barnesandnoble.com, and its bookstores. As of May 3, 2014, the company operated 1,361 bookstores, including 661 retail bookstores under the Barnes & Noble Booksellers trade name; and 700 college bookstores at colleges and universities across the United States (Yahoo Finance, 2014).
Comparison and Contrast of the Two Companies
What is a Communication Strategy? A communication strategy can be define it as a communication plan, where the organization write down what it needs to be accomplished (objectives), what are the
Still, the company has been facing many external environmental issues in the recent years which have caused financial net losses of 27.2 million for quarter three of 2016 and closed more than 70 stores around the country as shown in Appendix A). Barnes & Nobles has always been known for its mega bookstores, so changing brad identities will be difficult to do. Starting in Fall 2016, Barnes & Noble is introducing a new store concept in several locations across the country featuring a contemporary aesthetic where books remain the hero, an expanded food and beverage offering, including wine and beer, and a major commitment to hospitality featuring table-side service. The new stores will also include a special mobile experience for both booksellers
Social media has become an essential channel for corporations to build a two-way relationship with their customers. However, having a social media account cannot solve everything. To make the best use of social media in keeping a positive relationship with their customers, corporations ought to seek and maintain influence among their followers in social media, and participate in communications with them.
Barnes & Noble was created by Charles Barnes and opened the first store in 1917 in New York City. Barnes & Noble is the largest retail bookseller and a leading retailer of digital media and educational products. The company operates 640 bookstores in 50 states. Barnes & Noble’s mission statement is to “operate the best omni-channel specialty retail business in America, helping both our customers and booksellers reach their aspirations, while being a credit to the communities we serve (Booksellers, 2012).
Barnes & Noble are taking different tacks with regard to agreements with authors agents, and publishers. Amazon is pulling content off the market and padlocking it to their Kindle. In response, Barnes & Noble is refusing to stock Amazon published titles in its brick-and-mortar stores. Barnes & Nobles' investment in the well-received, well-reviewed Nook appears to have been a solid business decision, the ripples of which will continue to be felt for some time. In fact, the Nook is the proverbial finger in the dike as the waters of Amazon continue to threaten the very infrastructure of the publishing business by eroding the relationship between publishers and bricks-and-mortar stores.
The Kindle website (https://kindle.amazon.com/) and the competing Nook website (http://nook.barnesandnoble.com/u) are both trying to get you to do one thing: go digital. Technology is an ever-changing area, and it has somehow made its way into almost every aspect of our lives. Improvements have been made to make it possible to read thousands of books on one device. The only catch? There are multiple companies who are competing for the consumer’s purchase of their version of the device.
The digital books business eliminated the physical books in the store. Barnes & Noble offered a wide range digital platforms to its customers. The digital system was comparable with Window 8 personal computer and tablets. It also worked well with Apple’s product such as iPad, iPhone and other products like Android smartphones and tablets. The firm continued to stay in a competitive advantage position in the marketplace, even though it had to compete with many powerhouses in the same industry such as Waldenbooks and Crown Books. And yet, Barnes & Noble remains on the top of the leading U.S bookstore chains.
Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. The company sells its products directly to customers through its bookstores and on barnesandnoble.com. Barnes & Noble conducts its online business through Barnes & Noble.com, one of the Web’s largest e-commerce sites, which also features more than 3 million titles in its eBookstore. Through Barnes & Noble’s NOOK eReading product offering, customers can buy and read eBooks on the widest range of platforms, including NOOK eBook
The most recommended distribution network suited for highly differentiated products would be drop-shipping network. It is the process where shipping avoids the retailers, meaning the retailer isn’t informed to hold any type of inventory for the customers, and instead, the products are directly delivered to the end customers from the manufacturers. In this network, the supply chain can divert and expand low level of inventory to a higher level of availability. It also gives an opportunity for manufacturers to reschedule the customization when necessary. This is excellent for sellers that are able to build to order, and for end customers who wants highly-differentiated products that are in low-demand but are highly valued and are willing to wait for delivery.
In the 2015 annual report, the company stated their multiple distribution centers “enable it to maximize available discounts and enhance its ability to create marketing programs with many of its vendors” (“Barnes & Noble Inc.”, 2015, p.12). That is crucial as Barnes & Noble has around 600 publishers. The company also has extensive marketing capabilities to connect with their customers. They created partnerships with Samsung, the producer of the NOOK, to increase marketing funds and be able to customize emails to consumers (“Barnes & Noble Inc.”, 2015, p.16). Therefore, they are capable of reaching a large audience of book readers and enticing them to purchase more items.
The use of social media marketing has become a standard way in which organizations advertise their products or services. Social media marketing allows consumers to have immediate access to other consumers reviews or to post a review about a product or service. There is engagement between the company and the consumer (Evans, Dave 2010). Social Media emerged in the late 1980’s when websites such as Prodigy, Compuserve and America Online. Prodigy was first of it’s kind and was known as a ”consumer online service”. Half of the page is devoted to advertising. Facebook, Twitter, Myspace, Hi5, Bebo and Orkut are all social media platforms that are utilized as platforms today.
Barnes & Noble's beginnings can be traced to 1873, when Charles M. Barnes started a book business from his home in Wheaton, Illinois. In 1917, his son, William, went to New York to join G. Clifford Noble in establishing Barnes & Noble. During the height of the Great Depression, what later became the Barnes & Noble flagship store was opened on Fifth Avenue at 18th Street in New York City. This store developed a worldwide reputation for excellence by serving millions of customers with its comprehensive selection of general trade books, academic titles and textbooks, and medical books. Barnes & Noble, Inc. (NYSE:BKS) is a Fortune 500 company, the nation’s largest retail bookseller and a leading retailer of content, digital media and educational
Social media is not new. Facebook has been around since 2004, YouTube since 2005, and Twitter in 2006. What is new is how social media sites like Facebook, YouTube and Twitter are affecting the way businesses market their products and services. Never before in our history have consumers been able to communicate so effortlessly with each other and with the businesses they frequent. Never before have businesses been able to interact and react to customer feedback so quickly and efficiently. However, just because businesses have the ability to use social media for their marketing and advertising efforts, does not necessarily mean they should. This paper intends to
Barnes & Noble does business -- big business -- by the book. As the #1 bookseller in the US, it operates about 650 superstores throughout 49 states and the District of Columbia under the banners Barnes & Noble, Bookstop, and Bookstar, as well as about 200 mall stores using the names B. Dalton, Doubleday, and Scribner's. The company's GameStop subsidiary is the #1 US video game retailer with about 1,500 stores under the names Babbage's Etc., GameStop, and FuncoLand. Barnes & Noble owned about 75% of online book seller barnesandnoble.com after purchasing Bertelsmann's interest in 2003; Barnes & Noble then purchased all remaining shares and took the company private in May 2004.
For this paper, assuming that I am a small business owner, I will examine the power of doing so through various means of social media. Each site I use will be broken down, and I will give an in-depth look as to what techniques and approaches used for promoting my brand. Let’s take a look, starting with the company and its mission.
Barnes and Nobles is one of the biggest bookstores that has a brick-and-mortal store concept. In the past they were know as a “big bully” that drove small book stores to close down because of their aggressive tactics to have competetetive advantage over them. Nonetheless, with the evolving circle of technology they have had a hard time in keeping up with the E-book era. In 2014 E-books increased its reader subscription by 28% compared to 23% in 2013. This number will continue increasing because 50% off American’s have access to devices that are either an e-reader or a tablet. B&N changed its business model to adjust to this new setting before it suffered a