MobileRead Forums - View Single Post

fjtorres · 12-17-2016, 07:52 AM

B&N is a one trick pony.

And it's gone too lame to perform the one trick.
Their whole business model was based on being bigger, with a bigger catalog and deeper pockets that competitors. So they offered more titles than their smaller competitors at prices their competitors couldn't match. By 2009 (the year of the hardcover price war they sat out) the strategy had lost its luster and they were the high cost player among the big boys and there were no more small fry within reach to fuel growth. Once they bought out and shut down the smaller chains there wasn't much left in their bag of tricks.

By 200k the "big fish" of the 90's had proven to be a small pond bully, unable to keep up with bigger players using the same discount tactics on a more focused scale (Walmart and Target) or even across the board (Amazon):

http://www.masslive.com/entertainmen...rt_and_am.html

http://www.wsj.com/articles/SB100014...83801653144662

http://nypost.com/2009/10/21/barnes-...ook-price-war/

They tried to same thing against Kindle (ca 2010-11), thinking that because Amazon originally sold Kindles at a solid profit they wouldn't go to near-cost pricing. Not only did Amazon go there, they went to "Special deals" pricing *and* leveraged the ads into what is now a billion dollar a year business. (Them boys are tricky.)

They're still looking for a new trick the pony can perform.

12-17-2016, 07:52 AM	#111
fjtorres Grand Sorcerer Posts: 11,732 Karma: 128354696 Join Date: May 2009 Location: 26 kly from Sgr A* Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000	B&N is a one trick pony. And it's gone too lame to perform the one trick. Their whole business model was based on being bigger, with a bigger catalog and deeper pockets that competitors. So they offered more titles than their smaller competitors at prices their competitors couldn't match. By 2009 (the year of the hardcover price war they sat out) the strategy had lost its luster and they were the high cost player among the big boys and there were no more small fry within reach to fuel growth. Once they bought out and shut down the smaller chains there wasn't much left in their bag of tricks. By 200k the "big fish" of the 90's had proven to be a small pond bully, unable to keep up with bigger players using the same discount tactics on a more focused scale (Walmart and Target) or even across the board (Amazon): http://www.masslive.com/entertainmen...rt_and_am.html http://www.wsj.com/articles/SB100014...83801653144662 http://nypost.com/2009/10/21/barnes-...ook-price-war/ They tried to same thing against Kindle (ca 2010-11), thinking that because Amazon originally sold Kindles at a solid profit they wouldn't go to near-cost pricing. Not only did Amazon go there, they went to "Special deals" pricing and leveraged the ads into what is now a billion dollar a year business. (Them boys are tricky.) They're still looking for a new trick the pony can perform. Last edited by fjtorres; 12-17-2016 at 07:56 AM.