Barnes and Noble is a company in the United States that specializes in the selling of books both through retails and online booking. It is an outlet of educational products and digital media.
The company has an e-commerce website that is strong to allow for online booking. The newly introduced NOOK HD products can compete with the best in the market such as tablets, and the prices are meager.The company has increased its distribution channels to reach as many customers as possible.
The company has been investing heavily in technology in order to remain competitive in the digital world which has drained them a lot of cash. There are also a lot of costs which have increased in maintaining the existing book stores. The amounts of profits have reduced as the company starts to sell more of digital content as compared to when it sold traditional print products.
Barnes &Noble has started a partnership with Microsoft to make sure that they invest in the latest technologies to attract a new market. Another chance is the ever increase in demand of the digital content by the public which represents a ready market for the new products.
As the digital content continues to sweep the whole world, the demand for traditional print products may reduce significantly, hence forcing the company to operate at a loss. The number of e-content providers is increasing each day. Some of the providers are already established companies such as Google which represent stiff competition to Barnes & Noble. Finally, lack of dividend payments may push potential investors in the future leaving the company unable to compete in the market due to lack of financial muscles.
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