The Value Chain And Competitive Forces Model

781 Words Feb 19th, 2016 4 Pages
Use the value chain and competitive forces model to evaluate the impact of the internet on book publishers and book retail stores such as B&N.

“IT may be strategically important, not because it gives you a strategic advantage, but because failing to attend to it results in strategic disadvantage.” (Klemons and Kimbrough, 1986) Much like this quote, Barnes & Noble and book publishers face an important decision in the Internet age. Barnes & Noble’s traditional competitors, bookstores such as Borders and Crown Books, have not embraced the technological advancements and, for the most part, are now out of business. Barnes & Noble have fared much better than other retail book stores. Barnes & Noble’s new competitors include Amazon and Apple. Compared to before, B&N are no longer the leaders in their industry thanks to the Internet. Enhanced e-books and e-books have become a substitute for printed books. This leaves Barnes & Noble and book publishers at a disadvantage. Barnes & Noble is a brick and mortar company in a time where the demand for printed books has decreased significantly. Book publishers are at a disadvantage in that they make more money off of printed books than e-books, which sell for a lot less. Amazon also wants to cut out publishers altogether and publish books directly. Due to this shift in demand, Barnes & Noble is embracing the Internet and proceeded in developing the Nook, an e-reader, to acclimate with the changing times. In a 2011 analysis, B&N…
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