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?
Retail hell
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.
Fool’s story
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.