Str/581-Strategic Plan Essay

1049 Words Aug 12th, 2012 5 Pages
Strategic Plan Part 3
STR/581
Brian Carter
12-12-11

Strategic planning is a critical element of an organization’s annual business plan. A strategic plan consists of a number of components. In addition to analyzing a company’s strengths and weaknesses, a strategic plan also includes implementation and control techniques. While this may seem easy enough, implementing a strategic plan into an organization can be challenging. Barnes and Noble, like a number of corporations are seeking ways to improve productivity and profitability. This essay will identify business alternatives for the bookseller which will enable them to diversify their product offerings.
The development of a strategic plan consists of many steps. One important
…show more content…
The current pricing is 30% off publishers’ suggested retail prices for hardcover bestsellers and 20% off select feature titles in departments such as children’s books and computer books. Barnes & Noble.com implemented an “everyday low pricing” model that provides a single, low price for each item site-wide for members and non-members and enables the company to offer better value to its customers. (para. 10)
While value is a competitive advantage for Barnes and Noble’s retention of market share, their prices are not low enough to impose a low cost strategy.
Differentiation strategy is generally reserved for companies with a clear competitive advantage. Companies such as Mercedes and Apple employ this strategy. Differentiation strategy is demonstrated when a company provides value to customers through unique unique features and characteristics of a company's products rather than by the lowest price (Open Learning World 2010).
Employing a differentiation strategy at Barnes and Noble is applicable for a few reasons. Currently, Amazon and other non-traditional retailers have lower prices on books, music and movies than Barnes and Noble. It would not make sense for Barnes and Noble to use a low cost strategy model considering the overhead costs that they have. However, Barnes and Noble does have strong brand identity that places them in a leader position in the book selling market.
Barnes and Noble must capitalize on their strong…