Case Summary Barnes & Noble Refocuses

Case summary Barnes & Noble Refocuses

Application case" Barnes & Noble Refocuses" is about successful assertion in economic competition. Barnes & Noble, company which sells and deals in books, had to compete with modern company which uses new trends in business, distribution and sale. Despite of the fact that Barnes & Noble had a strong competitor - Amazon.com, this company is on the top of bookselling industry because of hardworking and flexible top management. Nowadays, according to BarnesandNobleinc.com, this company is one of the largest bookselling corporations. But before this success was a long way with several important breakthroughs.

One of the most important factors for economic growth in Barnes & Noble was tradition in bookselling business. The first bookstore was opened 1965. Next advantage was wide distribution chain and finally strong economic power. Although Barnes & Noble was successful company, the managers made a lot of mistakes in the era of internet sale. The biggest fault was a lack of innovations in the internet sale. Moreover, Barnes & Noble did not focus on sustainable improving of distribution their products.

On the other hand the Amazon.com for own success applied several ways. Amazon.com takes advantage of new technologies of distribution. Next advantage over Barnes&Noble was positive approach of managers to the new trends. Finally, Amazon.com applied new business model of supply „just in time "which was very effective.

From other point of view, there were other reasons which caused that Amazon.com did not succeed in the competition with Barnes & Noble. First off all, the Amazon.com was a new company without experience with bookselling. Furthermore this company did not have enough economic power in comparison with Barnes & Noble. Amazon.com had one more handicap. Amazon.com did not have any other distribution way besides internet sale.

Top management of Barnes & Noble built a strong company with an impressive economic background but they did not promptly react on the new distribution ways as a internet selling. Amazon.com introduced very effective system of distribution and selling. This system was based on the internet orders. It means that the Amazon.com did not need to have a huge capital because they did not need to have books in stock.

Barnes & Noble became aware of necessity to have a similar distribution and selling system. Subsequently, Barnes & Noble launched new internet store. However, the new internet store did not meet the requirements of customer. The new internet did not offer any special service in comparison to the competitor. For this reason was the internet store refocused. The result of this process was a new complex sale and distribution system which involved advantages of internet sale