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audon_ - Manag... Q Can This Bookstore Be Saved? In early 2009, when BN parchased Pictiomwise Waldenbooks rebranded as Bonders Express) oneof the biggest electromic book proprietors irn had already seen the demise of B Since 3993, eleven major U.S. bookstore chains have beem whittled down to sis, and nearly 3,300 stores to other popular e-hooks for less than $10 While puhlishens firented that readers would be reunalitioned devalue de worth of the printnd word and that oftime stores rould he strained to Srd in the lead aher over 20 years of domi driving hoth segional chains and small indepen B&N scrambled. It took until July 2009 (two month Ironically, as early as 1990, had partnered with As smaler chains seugaled to keep pace, suppoet prototype e-reader called the Rocket, but it had nisnd the peoject in 2003 because there didn't appear o be termm, botom-line strabegy wwld come back to haunt BSN kicked aruund the idea of selling books itsef as a seller of e-bookas, e-readen, and apps retail protutype, selling books on Compaserv in the Critically well neceived, the Nuok began to scrape market share from the Kindlie when it sparked a price war a year latex Dropping the price from $259 However It was not until 1997, fully two years atter tered by slashing the Kindle to 5189 eight hours later and neleasing the wiFs-enabled 3G Kindle3 within a Amazon, launched initially as an online bookstoee, With titans auch as Apple (iPad) and Google originally with the ilkiver Story and in 2012 with the had beem tamed on the former bookstore baron. W B&N be ahle to aurvive agairst these bech gianta? including selling 50% of its Internet operation to German gkant Bertelsmann in 1999, kept BSN in the game le estahlished a new industry standard of 750,000 cles on-hand and bragged that it could peo cure over 8 mittion new, out-of print, and rare books for the device. Its closest competihors were already and sexcing up manufacturing and retail operations market, vikctims of both ByN and the e-commence launched its online music store in 1999, several While BEN stll depends on its physical, brick and Chapter 3 eematn Systens, Orgarizasiens, and Stanegy 149 alrx Customers who visit BeN's Web site bay three digital books for every one physical book, but booation of $1.062 bittion; Amaaon's i $121.5 biltion). sellers still make mone money on print books than times higher than ita own (BirN has a market capital a vestnd intereat in BiN's survival. Physical book with the hrowsing effect. Surveya show that just one-thind of bookstore visltors who make a purchase compete with Amazom e-twader hardware t sllto Madcline Mcintosh, Random House president af at or near cost with profits derived from the sale the peotk it could fhom Kindle hardware, it quickly osenial for selling physical books, but a tim- late sales of e-books and audio books, being traftic into malls, and serve as social pathering places. The to adding apps and app fieatrunes and began marketing its ebooks be tablets, smartphones and PCs using Andruid, Windowx, and OS X operst- ers will want to purchase it. With the demise of B Daloon, Ceown Books, and Borders, B5/N is the oely Despite spending hundreds of mittions of dollars to compese with Amazon.com Inc and Apple Inc Without B&N, the likely candidate to the vold happen Amazons goal for ebooks is s0 cut out the publishers and publish books directly, selling books cuntrolland appranimatrhy 27% of the US digital honk at an extmmely steep daacnunt to drive sales of its Kindle devices.Ediors, publicists, and other encities Amazon has held steady, and BN has steadily ceded within the publishing bosiness view Amason as an ground tn Applf. แ12N's digital book markat share has memy Selling books at Amazon's dounted prices is not a tenable business model e publishers in the market share. Analyses estimated in 200E that BN market while Amaan led with 60%. Since them, On June 25, 2013 BN announced that losses at its Nook digital business mone than doubled in the quarler eeding April 27, 2013, wiping out profits able retail stores, develop small, local commanity based shops, espand digital content, lead the digital pany decided to stop producing its orn color tabletseducation market, and develop marketing techniques to drive ebook readers to purchase print books. BN has been experimenting with ways to drive traffic to ts physical stores For eample, f you comnect to a Wi-Fi network in a B6rN store with your Nouk in lavee of co-branded devices made by thied-party unclear hor competitive Barnes & Noble can be long like Angry erds, where you can unlock a bonus character that noemally coses a dollar. BON has also expanded its store space for toys and games, which have higher profr margins, while redacing the range of book titles it socks. There are also plans to experi ment with slightly smaller stores in malls Although thar ศrategy is boosting the company's bortm line, BEN retad store closings contimnd to outpace reducing the total by about 20 stons per year until Amazon com Inc, which says its physical hook sales While 8N has its hack against the wall, it does

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