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Chapter 3 Information Systems, Organizations, and Strategy 149

are also plans to experiment with slightly smaller “Blowing Up the Book,” The Wall Street Journal, January 20, 2012;
stores. Rick Newman, “4 Lessons from the Demise of Borders,” U.S. News
and World Report, July 20, 2011; Chunka Mui, “Borders and Kodak
These promotional campaigns probably won’t be
are Facing Doomsday: Who’s Next?” Forbes, July 22, 2011; and
enough to stop B&N’s dwindling in-store sales. What Jeffrey A. Trachtenberg and Martin Peers, “Barnes and Noble:
will the future hold? Will B&N be able to succeed as The Next Chapter,” The Wall Street Journal, January 6, 2011.
a digital company, and is there a future for its brick-
and-mortar stores? Is there a way for e-books to help
sell print books, just as print books have stimulated CASE STUDY QUESTIONS
demand for their digital versions? Although B&N has 1. Use the value chain and competitive forces
made a spirited effort to revamp its business and go models to evaluate the impact of the Internet on
toe-to-toe with several tech titans, it’s possible that it book publishers and book retail stores such as
B&N.
might be too tall an order for the storied bookseller.
2. How are B&N and the book publishers changing
Sources: Michael J. De La Merced and Julie Bosman, “Microsoft
Deal Adds to Battle over E-Books,” The New York Times, May 1, their business models to deal with the Internet
and e-book technology?
2012; Shira Ovide and Jeffrey A. Trachtenberg, “Microsoft Hooks
Onto Nook,” The Wall Street Journal, May 1, 2012; Julie Bosnan, 3. Will B&N’s new strategy be successful? Explain
“The Bookstore’s Last Stand,” The New York Times, January 29, your answer.
2012; Paul Vigna, “E-Books, Apple, Amazon: The Deadly Hallows
4. Is there anything else B&N and the book
for Publishers,” The New York Times, April 11, 2012; Brian X. Chen,
“Barnes & Noble Uses Apps to Lure Customers Into Stores,” publishers should be doing to stimulate more
The New York Times, January 27, 2012; Alter, Alexandra, business?

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