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Internal and External Environmental Analysis: Barnes and Nobles - Essay Example
Throughout the history of mankind literature and books have played a very important role in our history. The use of words for writing was invented by the Sumerians about 5000 years ago and the first books used Papyrus or parchment as writing surfaces…
Throughout the 20th century books represented a huge industry. The market leader in the book industry in the United States is Barnes and Nobles. The purpose of this paper is to analyze the internal and external environments of Barnes and Nobles. Company Profile Barnes and Nobles was founded by its chairman, Leonard Riggio, back in the 1960’s. He began the operation back in the 1960’s when he realized he could provide a better service to the college community he attended. He created his first book store to compete directly with the college bookstore of New York University. Barnes and Nobles began trading in the New York stock exchange on September 28, 1993 under the symbol BKS. A transcend business transaction that provided the firm tremendous growth was the acquisition of Dalton Bookseller. The transaction gave the firm an additional 797 bookstores. At the time the firm was able to move into the number two position in the bookstore marketplace. Today the firm is the market leader in the industry with revenues of $7 billion in fiscal year 2011. The company has both traditional bookstores and an online sales operation. Barnes and Nobles has taken advantage of its popularity and has implemented a product diversification strategy that has allowed the company to sell other items such as DVDs, toys, music and video games. The mission of the company is to operate the best specialty business in America, regardless of the product they sell.
Barnes and Nobles is the industry leader in the book industry. Being the market leader in any industry is considered a strength due to the fact that the market leader generates the most amounts of revenues.