Barnes & Noble vs. Amazon.com - Comparative Strategy Analysis

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Barnes & Noble vs. Amazon.com - Comparative Strategy Analysis

  1. 1. Evgenii, Roelof & Sjoerd
  2. 2. Content
  3. 3. Mission & Vision
  4. 4. Comparative Company Profile
  5. 5. PEST analysis • E-commerce safety • Internet Taxation • Government Investments in ICT • Books Content Regulations • Negative economic downturn • Economic Growth in China & India • Currency Fluctuations • Online & Social Networking • Ethical & Religious Issues • Social Magnification and Centralization • Declining Number of Visitors • Three Dimensional Books Tech • Virtual Libraries Boom • E-book wars • Book search robotics
  6. 6. Porter’s Five Forces Analysis HIGH SUBSTITUTE PRODUCTS MODERATE POTENTIAL ENTRANTS MODERATE HIGH BUYERS HIGH MODERATE SUPPLIERS HIGH HIGH INDUSTRY RIVALRY HIGH
  7. 7. Market Life Cycle
  8. 8. Value Chain
  9. 9. Value Chain
  10. 10. Current Corporate Strategy
  11. 11. Marketing Strategy
  12. 12. CM a o n d v e a l s Reed Elsevier Thompson Reuters McGrawHill Education Retail Promotion Developing Paper books Personal in store service eBooks All book lovers eReaders Stores Brand Stores Webshop Music Movies Games Rent, HR, logistics Digital technology Webshop Promotion Sales (Advertising)
  13. 13. SWOT
  14. 14. Confrontation Matrix Growth Compe Acquisi Aging Global Retail Books Stores ++ + o ++ o -- -- Service ++ ++ o ++ o + + Integra ++ ++ + o o ++ o Experie ++ o + o ++ + Scale ++ o + + ++ Fixed -- o + o + Inflexi -- + + + + Prices -- + o o -- Losses -- o -- o - Investo -- o -- o - Tablet Crisis Online
  15. 15. Core Problem
  16. 16. Amazon Strategic Choice Barnes & Nobles
  17. 17. FAS Amazon FAS A Market Pen. B Product Dev. C Market Dev. D Service Dev. Feasibility ✔Skills Present ✔VC ✔Pest ✔VC Acceptability ✔Shareholder Value ✔High Cost ✔SWOT ✔higher costs Suitability ✔PEST ✔Competition ✔risky though ✔Pest A. Penetrate China B. Product Development: Include contact lenses and eyewear into the product range C. Market Development: Conquer India D. Greener packaging and delivery
  18. 18. FAS B&N FAS Do Nothing A Market Pen. B Market Dev. Feasibility ✗Declining Market ✔VC ✔Pest Acceptability ✗Decreased value ✔High Cost ✔SWOT Suitability ✗PEST ✔Competition ✔Competition A. Market Penetration: China & India B. Further develop its online market, BN.com
  19. 19. International strategy Amazon Amazon Barns & Barns & Noble Noble HIGH HIGH Coordination of Coordination of Activities Activities LOW LOW Geographically Geographically Dispersed Dispersed Configuration of Configuration of Activities Activities Geographically Geographically Concentrated Concentrated
  20. 20. Strategic Recommendations Decrease price of Nook Keep stores as USP, find new sources of income Penetrate Chinese, Indian markets Continue developing online webshop, make it global Keep focus on books
  21. 21. CM a o n d v e a l s Reed Elsevier Thompson Reuters McGrawHill Education Retail Promotion Developing Paper books Personal in store service eBooks eReaders Stores Brand Stores Webshop Music Movies Games Rent, HR, logistics Digital technology Webshop Promotion Sales All book lovers in the US (Advertising)
  22. 22. CM a o n d v e a l S +5 Chinese publishers Indian publishers Opening up new markets Paper books Personal in store service eBooks eReaders Chinese & Indian stores Brand Music Movies Games Rent, HR, logistics Digital technology Webshop Promotion Chinese & Indian stores Webshop Sales Lottery tickets All book lovers in the US, China and India. Advertising Bookclubs

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