The story of the Barnes & Noble
The plot thickens
In order to put up a decent fight with Amazon.com’s
In the middle of 2010, B&N released an Android app for the Nook reader for use on Google’s
But how useful are all these gimmicks when it comes to the bottom line?
While trying to load up the Nook with all of the state-of-the art features and invest in its online operations, B&N’s net income suffered in the third quarter. At the same time, competition has not been standing still. Online retailers like Amazon, Apple, and Wal-Mart
For consumers, the landscape is pretty rosy. It has become easier for consumers to compare prices from various stores before buying products. And we’re looking at a wider selection of more widely nuanced products. This has certainly not helped anyone on the business end of the spectrum -- and certainly not investors of B&N, either.
It is evident that Barnes & Noble means business when it comes to stabilizing its position in the e-reader market. It is willing to take a fall in net income to get a footing in the battle of book retailers. This aggressive strategy seems to make sense, especially as the physical component of the business becomes less attractive.
In a world where the consumer is on a constant lookout for better shopping and consumption experiences, launching a full frontal attack with better services will probably get results. The only problem here is that with falling earnings, investors are probably going to be apprehensive about B&N’s stock. But if the company can turn the tide, there might just be good profits on the way. But be careful: first, a lot of things have to go right.
Arunava De does not own the shares of the companies mentioned here. Google and Wal-Mart are Motley Fool Inside Value recommendations. Google is a Motley Fool Rule Breakers choice. Apple and Amazon.com are Motley Fool Stock Advisor recommendations. Wal-Mart is a Motley Fool Global Gains pick. Wal-Mart is a Motley Fool Income Investor pick. Motley Fool Options has recommended a bull call spread position on Apple. Motley Fool Options has recommended a diagonal call position on Wal-Mart. The Fool owns shares of Apple, Google, and Wal-Mart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.