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.
The firm has been very innovative throughout its history including becoming the first book store to advertise on television. At the turn of the 21st century Barnes and Nobles realized that ecommerce was a major trend that affected everyone in the retail industry. The firm today is the internet’s largest bookstore with a product selection of over 1 million titles. Two years ago the company also became leader in e-books with over 1 million e-books to choose from. The management of the firm is highly qualified and over the years they have made a lot of smart decisions that have helped the firm become the best in the industry. The product selection in both the e-books and printed books is beyond what any other company can provide. The dominance in the e-book marketplace was achieved through the 2009 acquisition of Fictionwise (Barnesandnoblesinc, 2011). The tremendous selection of books has helped the company retain a lot of customers because the firm can satisfy the customer’s reading needs. Another strength of the company is its branding value. The firm was able to capitalize on its ability to generate customer traffic by diversifying into other products. The firm offers its customers a selection of over 60,000 blue ray DVD titles. The firm’s music store was categorized as the best on the net by Forbes (Barnesandnoble, 2011). The location of the firm’s bookstores is another strength the company has. Barnes and Nobles operates 705 retail bookstores strategically located in regional shopping malls, major strip centers and other freestanding location, and the firm also owns 636 college bookstore placed near major university campuses (Barnesandnobleinc, 2011). One of the strengths of the college book operation is