Barnes & Noble: Struggle to survive?

Barnes & Noble has been too slow to react to the sort of “outside the box” competition provided by Amazon…both in terms of printed books and now in terms of e-books. While B&N claims that the Nook e-reader is a big success, the company still stakes its future on traditional bookselling in an era when Amazon has already migrated over half its sales from hardcovers to e-books and continues to promote the Kindle very aggressively. B&N seemed to be satisfied with the slow decline of Borders instead of eyeing the true competition.
Regardless of the outcome of the battle for control of B&N stock, the company has a lot of work to do. The model of megastores with massive assortments may be harder to support — and there is evidence in the growing number of out-of-stocks. Other companies are developing smaller-format concepts in order to provide more focused assortments in a more flexible and cost-effective real estate model…Best Buy Mobile and SA Elite (from Sports Authority) are just two that come to mind. So it’s time for B&N to reinvent its bricks & mortar experience at the same time that it continues to push e-book sales.
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