Barnes and Noble Strategic Analysis
In evaluating a business strategic positioning, the research approach relates towards Barnes & Nobles’ seven main areas of focus relating towards the company’s annual report, investor relations summary notices, and corporate governance. By reviewing a variety of available public company’s governance, proper research can start to measure strategic approaches effectively. In doing so, the organizational vision, mission, and value statements are from the Barnes & Noble Governance initiative that influences all other strategies, either internally or in the external environment.
The intention behind every organization is to have a successful manifestation of plans and objectives that will elicit equitable control methods and strategies in the company. Barnes & Noble is a multifaceted company that incorporate a number of strategies and planned options to carry out its business entities in the global market. Marketing options involved are rudimentary to the tastes and preferences of the social markets. Organizational existence and establishments are based on the need of having a palatable ground that will feature different features and measures of production, growth, and sustainability. Within a social setup, there are different categories of strategies that are to be incorporated by Barnes and Noble Company. The longevity of goals and objectives thrive the company’s strategic options in the market (Barnes & Noble, 2012).
Barnes & Noble Company are validated on their mission, vision, and objectivity statements that state the intention of existing in the market. Like any other organization, the company is based on the desire to elicit equitable measures of growth and development in the society. The analytic strategies involved range from those based on the strategies and mechanisms of control to immediate plans and decisions being made by the company within a given periphery of growth. The organization exemplifies a number of strategic options that link growth together with development for today and the future. The company exemplifies equitable management of resources in order to arrive at sentimental protocols of growth and development. In order to feature measures of growth and development, it is necessary to have control opportunities and risk contingency measures that ensure stability of the company in its productivity. One of the common features dealing with growth and development of the company is its global strategies that realize the need to have future trends of growth and development.
Part of the strategic options taken by the organization is to have a sound mechanism that ensures growth without having to eradicate cases of specialty and superiority of the company in the market. The company intends to have equitable measures of control that are beyond control and can yield equitable fruits to the growth process in the market. The policies conceived are implemented within a categorical approach of growth and development within the company.
For instance, Barnes & Noble Company strategizes on having avenues of growth and development without having to consider how other agencies are performing in the immediate market. In many cases, the obligations that are supposed to be forwarded to the company are diluted within the measures of expansion involved by the organization. In order to ascertain future existence, Barnes & Noble incorporate inventive mechanisms that assume advanced approaches of establishing change in the society. The basic idea behind every plan in the company is to have a solicited approach of attaining equitable existence and influence in the markets globally. This piece of writing endeavours to exemplify growth and development features laid out by the Barnes & Noble Company in the market.
Company background
External and Internal Environmental Analysis
Barnes & Noble Company was established in 1873 by Charlez Barnes in Wheaton, Illinois and since then became the largest book retailer across the United States. His son William Barnes and G. Clifford Noble set up the first bookstore, in its turn, in 1917 in New York. The website was created in the late 1980 but was not launched until 1997. Currently Barnes & Noble owns more than 717 stores, services nearly 40 million customers, and has reached 27% of electronic books market share. Besides this, it carries over 2 million of book titles on the website and sells approximately 300 million books and 1 million of unique titles each year. The competitive environment for Barnes & Noble entails consistency in redefining the brand that can adapt to the current industry trends. By defining both the internal and external environments associated with the Barnes & Noble, the strategic approach is more defined on identifying strengths and weaknesses.
Organizational mission, vision, and value statements
Barnes & Noble’s business strategy: Validating the organizational vision, mission, and values statements, Barnes & Noble instils values based on customer service for quality, empathy, respect, integrity, responsibility, and teamwork through the actions of employees. Thus, the research in validating the Barnes & Noble organizational vision, mission, and values statement are from the official corporate website for providing an initial source of reference. Further, research will entail reviewing journal articles and literary authors on business strategic approaches by Barnes & Noble for producing a proficiency corporation.
Thinking of Barnes & Noble’s organizational vision relating to the seven main areas of focus provides an opportunity for an analysis on the strategic approaches implemented. Barnes & Noble utilizes customer service throughout their strategic approaches by making sure quality standards are up to par for customers. In measuring the quality management by Barnes & Noble, the actions and personal standards, reflected by employees treat customers with respect and integrity as well as validating their customers’ online feedback. Therefore, the additional research in Barnes & Noble’s identifying their customers and documenting the customer service experience by providing feedback on Barnes & Noble’s website, is for validating that the values, mission, and values statements are conducted accordingly (Ferrell & Hartline, 2012).
The way towards building a strong business operation is demonstrating empathy, respect, and integrity for demonstrating responsibility. In doing so, the business can reach success in any strategy approach for sustaining a sufficient consumer share marketplace. With Barnes & Noble, a value entailing the seven core elements that reinforce their value statement promotes a strong teamwork initiative in which the responsibility for serving the targeted consumers is met accordingly. Barnes & Noble’s commitment in creating an environment through personal employee’s actions that reinforces organizational values for long-term loyal relations with targeted consumers.
The Barnes & Noble annual report of operations sufficiently assists in performing an internal and external environmental analysis due to the breakdown of operation initiatives. The internal environmental analysis relating towards organization processing indicates quality products and innovative initiatives. In doing so, the employees are more adapt in following the internal initiatives outlining the Barnes & Noble values for implementing processing strategies based on corporate governance. By using the Barnes & Noble corporate governance source of identifying their internal environment and strategy approaches, it is possible to provide a detailed assessment to practices implemented.
Barnes & Noble’s decision towards applying required certain standards of operations processes – that entail both business activities and transactions to enlisting a longstanding commitment to their consumers. In outlining the core corporate governance initiatives through the Barnes & Noble official website and annual reporting, it provides the strengths as well as reactions to weaknesses. The key is utilizing available public information from the fortune 500 company, such as Barnes & Noble, to drawing a conclusion of their internal environment.
The external environment bears the best sites for expanding the business. The external and internal environments are rudimentary to the establishment and growth of the organization in the market. Part of the strategic options considered by the organization is linked towards bringing the best mechanisms of growth and development in the external market. The external environment bears the resources, market, and field of display for the products and services from the organization. In the business response to certain external environmental stimuli, it provides an understanding to Barnes & Noble’s strategy for sufficient success.
Therefore, the analysis of the strategy approach to the external environment stimulus by Barnes & Noble is measured by implemented marketing initiatives and restriction organizational framework. For instance, the Barnes & Noble commitment is in creating a longstanding relationship with the young demographic market by bringing in newer consumers with the B&N College program. The bookstore operations on selected campuses promote the brand identity that is an imperative component to responding to any specific external environmental stimuli. When investigating the reasoning to starting up the B&N College program, the sources are thereby related to identifying such programs in response to the external environmental stimulus.
Strategic Choice and Evaluation
In business, the strategic goal is consistency to bringing a product or service that is within the current trends of the targeted consumer audience. Therefore, the value disciplines entails how companies, such as, Barnes & Noble operates based on excellence, product leadership, and customer intimacy. By focusing on a value discipline, that the company has the means for acting upon, a stronger strategic approach that offers market growth will be developed.
The study will present potential alternatives Barnes & Noble must consider in order to realize its growth. The study will also identify the generic strategy, grand strategy, and best value discipline for the organization. This paper will also provide various alternatives, and recommendation of a strategy. It is noteworthy that a growing trend among many businesses is enhanced through mergers and acquisitions. External environment factors play a significant role on how an industry operates. Such factors include remote, industry, and operating environments that affects the level of competitiveness (Pearce & Robinson, 2011). Barnes & Noble monitors and evaluates the causative factors in which the paper will evaluate to determine alternatives for the company’s future growth.
Identification
Action items
Barnes and Noble’s best discipline are found in customer intimacy for sustaining and establishing new relationships with their targeted audience. In choosing the customer intimacy discipline, Barnes & Noble has the means for expanding on future strategic initiatives that continue the brand identity dominance within the marketplace. With a primary value principle of customer intimacy, the bookstore motivation of influence promotes a lasting impression to all stakeholders as the company moves forward on an initiative (Barnes & Noble Annual Report, 2011).
Customer intimacy provides an opportunity for Barnes & Noble to rethink their prior strategies into a more refined and newer concept based on the customer expectations. Thus, the proposed marketing strategy can reach designated goals for brand equity longer when new products and services are released. The marketing strategy is geared around the concept for satisfying the customer, such as, a book buyer that prefers to shop at home rather in the actual store. The marketing strategy will be more refined to the customer that engages on the online store platform. This will be done by providing more interactive tools available for shopping on BN.com. In which, the strategy for marketing is for more genre apps on mobile phones based on the customer’s previous purchases or an online bookseller agent that is designed to assist on book selections.
The goal of customer intimacy is a value concept that leads into the marketing strategy where Barnes & Noble can truly get closer to consumers. In creating a defined generic strategy, like a robust mobile app and online sales, a 3D bookseller agent truly provides the basics concept for strategy implementation. Generic strategy hones on several concepts relating to low-cost leadership, differentiation, focus, and speed for a profound approach that can connect the value discipline into a grand strategy. Hence, the generic strategy offers the proficient means by general concepts that can lead to significant results throughout the business organization. In implementing a generic strategy concept, initially, the foundation is set for expanding onto a more grand strategy later.
Recommendation
In linking the generic strategy of low-cost leadership with the initiatives, such as, online specifications, the ability of offering lower prices to customers provides an outgrowth opportunity strategy. When the business obtains lower costs for customers than competitors, the outcome is a proactive strategy that leads to profitability, when the new initiative is efficient and maintains the strategy. The generic strategy offers concrete areas of focus from low-cost leadership to speed in reaching the targeted market by either lower prices or efficiency in product delivery. Implementation plan
Barnes & Noble remote environment directs the available towards disposable income from the targeted demographic audience. In recent years, the current industry trends entails more targeted consumers using online purchasing to satisfy their direct needs for books, CDs, or specialty products. Thus, the economic impact on the opportunity of consumers’ ability to spend correlates to Barnes & Noble’s pricing strategy on products selling. Moreover, the Barnes & Noble operations are impacted directly on expanding on newer products technology if the remote indicators of growth stagnate on increasing consumers.
Furthermore, the existing of output of products making a leeway towards increasing the consumer share that consumers are more adapt to choosing Barnes & Noble over competitors impacts the remote environment. Within the Barnes & Noble remote environment analysis, the identifiers show that the growing demographic continues in diversification. In order to respond to the calls of diversification, has ensured that has adapted a variance of production methods that do not take sides in production. The organization involves in producing various materials that are customer friendly.
Moreover, the company has ensured that it has established mechanisms of living within the capacity of the preferences in the market. The new products entering into the market continues to increase the Barnes & Noble brand identity within the college and older demographic (BNInc.com 2011). Barnes & Noble, thereby, the last few years adapting to newer technology for purchasing books and specialty products with the “Nook Book” and distribution channels partnerships that provides a cheaper way of purchasing for options (BNInc.com 2011). In doing so, Barnes & Noble is more than capable to adapting to the remote environment restrictions that unfavourably influence the operations. The main driving force of a position aspect within the remote environment is the extraordinary brand identity and brand equity of distributing the highest quality of literary and musical content.
Within the industry environment with Barnes & Noble constantly adapting new business strategies, such as, the usage of an online platform offers an e-book concept with lower prices for literary contact. Further, the reaction to the industry environment by either larger competitor against Barnes & Noble, such as, Amazon.com, creates a constant effort in advancing technology for offsetting newer entry by smaller business entities. Barnes & Noble in the last few years implemented product differentiation relating to the NOOK strategy for reducing an industry threat in losing any advantaged to acquire targeted consumer audience (BNInc.com 2011).
With the size of identified consumer’s growth, the Barnes & Noble targeted marketplace imposes a concentrated effort on product diversification. Thus, the starting of college related programs through the B&N College initiative that is based on incentives and the largest operators of bookstores. By designing a direct connection with the younger demographic within the B&N College environment, the Barnes & Noble strategy is on continuing building the customer base.
The sustainability to expanding capable employees both within corporate and subsidiaries locations promoting incentives, as in, the B&N College program, Barnes & Noble strategizes in composing an interactive online campaign as well as the brick and mortar platform to strengthen their marketing initiatives. Further, the economic conditions impact consumers’ disposable income directly influences the amount of either staffing for expanding store locations or reducing marketing positions. During the last few years, the Barnes & Noble strategy continues on building customer profiles based on their behaviour patterns that impose a need towards advancing technological position (BNInc.com 2011). With competitors utilizing a variety of distributors, the emblematic Barnes & Noble ability in expanding position to the needs of the targeted consumer either on campus, online, or mobile capability.
Objectives
The intention of the company is to have a solicited background where everything will work as planned. Organizational management trends from the mechanisms of growth and development initiated from the first instances of establishment. The supremely fundamental objectives include:
Being the best in the global market
To respond equitably to the needs and preferences of many customers in the market
To be the best choice in production, growth and development
To influence and bring change in the immediate environment
Functional tactics
Barnes & Noble has initiated a number of tactics for operation and establishment in the market. The company intends to have influence at the local and international markets. The trends of development and productivity initiated reflect the immediate requirements and pleas of many customers in the market. For instance, Barnes & Noble takes after the immediate needs of the customers. The organization preys on the opportunities that have been exemplary in the market. Productivity goes hand in hand with identification and response to needs and requirements that appear to make the market fee and full of its growth and development mechanisms.
By designing new business components geared towards getting closer with customers, satisfies the designated discipline of customer intimacy. The new proposed generic strategy of a modern technology using mobile apps and a virtual 3D bookseller agent can present adaptation for satisfying customer needs. In doing so, the company can obtain the value discipline initiatives in a proactive strategy. In presenting a generic strategy of product adaption to the lifestyles of the customer, the goal for customer intimacy is obtained based on customer needs. Thus, the marketing strategies are able to either create new ideas or adapt an older idea into a more current one that is focused on the value discipline, such as, customer intimacy (Surhone et al., 2010).
Milestones
Barnes & Noble intends to be a global force in supply of literature materials. The existing trends of productivity cannot cater for a global perspective and productivity of the organization. Nonetheless, it is easy to denote success when equitable measures have been put in place in order to respond to the immediate changes in the world. The organization intends to dominate for a long period, and overcome the recent deficit of immediate literature materials in the society. Embrace of new technology is a challenge that offers growth opportunities to the organization.
Resource allocation
Barnes & Noble internal strategy is having mortar and brick bookstores than competitors along with a strong online presence bringing in more sales. B&N College program operates 603 traditional college bookstores along with 33 academic superstores for increasing the overall brand identity (BNInc.com 2012). With the proposed strategy, the expanding of electronic textbooks promoted the internal environment strengths for adapting to the current trends needed diversified ways for obtaining academic content. Thus, the B&N College digital platform for the NOOK Study incorporated a suite of textbook options managed within the internal initiatives for improving incoming sales.
Deadlines
The organization functions within peripheries of growth and development. Within these peripheries are mechanisms of establishing best practices and influences in the market. For instance, the organization has objectives and goals set within annual and monthly basis. Production and, marketing are part of the long-term strategies (Mullins, 2006).
Key success factor
Identifying the weaknesses entailed managing proprietary in newer titles as well as rental compared to competitors for forming a more longstanding pursuant – that is for delivering products in a concise effort for increasing consumers. Barnes & Noble managing of staff employees within the many mortar & brick bookstores for sustaining volume of orders that if not on track can create an identified operational weakness. Thus, the Barnes & Noble strategy in infusing online bookstore with consumer using direct checkout capabilities reduces consumers going to competitors due to availability or lower prices costs. Moreover, the balancing of pricing strategies on different product mediums, such as, the Nook provides strategic opportunities for effectively selling by Barnes & Noble to targeted consumers (Ferrell, 2013).
Competitive Position and Possibilities
When assessing the Barnes & Noble organization’s competitive position and possibilities, the approach is on how a continued strategy utilizing brand identity and retail footprint determines competitive position. The customers today still prefer to visit a local bookstore and select books from a shelf for possible purchasing the title. Thus, the Barnes & Noble is a national chain bookstore; however, each store is design with a local feel and depends on that community market share demographic.
The means by expansion for distribution channels promote Barnes & Noble through strategic partnerships in improving operations due to streamlining operations for proficiency. In doing so, the Barnes & Noble organizations competitive advantage increases by adapting to current trends with more innovative technology and diversified staff for serving consumers.
Budget and forecasted financials
Barnes & Noble intends to make use of a million dollar budget in order to dominate the whole world. The entire budgetary terms are dictated by the intention of the organization to have a sound spectrum of controlling growth and development in the market. The budgetary breakdown is subject to the many fulfilments that have to be met by the organization.
Break-even chart:
In order to realize growth and development in the organization, Barnes & Noble has implemented a break-even graph that resembles the following.
Risk management plan
Contingency plans for identified risks
The main intention is to sell the recommendations to the board of venture capital firm, and obtain approval for funding the plan. Risks are common in every progressing organization. The company has incorporated several measures and plans that will be used to alleviate problems that arise due to risk occurrences. For instance, the organization has established a separate department of risk management and control. This feature is directed at bringing equitable solutions and counter-measures that will be incorporated on risk occurrences in the company. Furthermore, the contingency measures incorporate equitable measures of control that are directed at identifying risks. The department seeks to know any possibility of risk occurrence together with solution mechanisms for the risks (Pearce & Robinson, 2011).
Conclusion
The paper has evaluated and identified the various strategic approaches for alternatives for Barnes & Noble. It has also presented a recommendation of low-cost leadership as its strategic alternative to remain at a competitive advantage over its rivals and to remain profitable in the future. Barnes & Noble is a multifaceted organization that is set to exemplify equitable measures of carrying out business activities in the market. Based on the strategies proposed by the organization, most of the features involve customer friendly approaches that are designed to bring change and cohesion to the organization. The present mechanisms of expansion include establishing rudimentary measures that ensure quality and innovativeness. Moreover, the organization banks in exemplifying equitable measures of growth and expansion in the book industry. The Barnes & Noble organization has immediate and future challenges it seeks to involve itself. In future, Barnes & Noble can follow two possible scenarios (Eldring, 2009).
The first is that it can become another mass merchandiser and become a competitor to Amazon.com, E-bay, and Buy.com. In this case, most probably the company will no longer follow the superb quality image and will switch target market to cover lower income groups. Nevertheless, as it is exceedingly hard to compete with these well-established online businesses, the perspective is not hugely obvious if the company does not develop a series of competitive advantages, which are currently in a shortest supply.
Another scenario will take place if Barnes & Noble will try to achieve loyalty of their customers by providing well-designed high quality and sometimes-unique products and establish an effective CRM. However, the best probable approach for Barnes & Noble is to expand the assortment to only a limited extent, appreciate the uniqueness and avoid selling mass-produced items. It should continue organizing events and authors’ appearances and develop the strategy of membership to make their customer base one family. It might not guarantee the greatest profitability for the company, but it will raise loyalty and company’s image. Finally, environmental issues are considered particularly valuable nowadays as the ecological is getting worth every year. Nowadays, all respectful companies try to launch their environmental campaigns and include ‘green’ strategies in their operation. Barnes & Noble should not be exclusion, and it should provide their ecological help (Barney, 2007).
References
Barnes & Noble (2012) Corporate Governance, retrieved from http://www.barnesandnobleinc.com/for_investors/for_investors.html
Barnes & Noble (2012). Retrieved from http://www.barnesandnobleinc.com/jobs/core_values/our_core_values.html
Barnes & Noble Annual Report, (2011). Retrieved from http://www.barnesandnobleinc.com/for_investors/annual_reports/2011_bn_annual_report.pdf
Barney, J.B. (2007). Gaining and Sustaining Competitive Advantage (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Eldring, J. (2009). Porter’s (1980) Generic Strategies, Performance, and Risk. An Empirical Investigation with German Data. Verlag GmbH, Hamburg: Druck Diplomica.
Ferrell, O.C., & Hartline, M.D. (2012). Marketing Strategy (6th ed.). USA: South-Western College.
Ferrell, O.C., (2013). Marketing Strategy, Cengage Learning Publisher
Mullins, John (2006). Marketing Management: A Strategic Decision-Making Approach. Mcgraw Hill/Irwin Series in Marketing
Pearce, J.A., & Robinson, R.B. (2011). Strategic Management: Formulation, Implementation, and Control (12th ed.). Boston, MA: McGraw-Hill/Irwin.
Porter, M.E. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors .USA: Free Press.
Surhone, L., Timpledon, M., & Marseken, S., (2010). SWOT Analysis, BetaScript Publishing
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