Question

In: Operations Management

Develop a value chain analysis for Barnes and Noble. Develop one that fits what Barnes and...

Develop a value chain analysis for Barnes and Noble. Develop one that fits what Barnes and Noble does. Then do an internal value chain analysis by providing an assessment based on that analysis of the strengths and weaknesses. This assessment should be based upon metrics as best as you can identify them. In other words for each function in the value chain, how would one measure the effectiveness of that function? For example for HR one metric used to evaluate how strong or weak your HR is might be the turnover rate. Benchmark against a competitor for each function...only when you compare metrics to other companies can you really determine whether that particular function is a strength or a weakness. You might consider building a table like the following.

Metric Competitor or Industry Strength or Weakness?

Primary

Inbound Logistics

Operations

Outbound Logistics

Marketing/Sales

Customer Service

Support

General/Admin

Procurement

Technology

HR

Solutions

Expert Solution

Answer:

Barnes and Noble: Barnes and Noble, Inc., is an American book shop. It is a Fortune 1000 organization and the book retailer with the biggest number of retail outlets in the United States. As of March 7, 2019, the organization works 627 retail locations in each of the 50 U.S. states. In August 2019, Elliott Management Corporation gained the company. Barnes and Noble work predominantly through its Barnes and Noble Booksellers chain of book shops. The organization's central command is at 122 Fifth Avenue in New York City.

SWOT and Value chain:

Strengths

  • Largest Retail Book Seller in the U.S.
  • Brand Recognition
  • Strong Online Presence
  • Starbucks in Store
  • Barnes and Noble College Allows for Sale of Textbooks
  • NOOK Brand Liked and Supported Both Online and in Store
  • New Nooks are Price Competitive
  • Sale of NOOK from Other Retailers
  • NOOK Gaining Investment Interest from Other Companies
  • Affordable Prices
  • Discounts and Specials to Members
  • Owns Sterling Publishing
  • NOOK Cheaper than Most Competitors
  • NOOK is user Friendly
  • NOOK has Page Numbers

Weaknesses

  • Overhead Costs at Retail Locations a Cash Drain
  • Initial Investments into Digital a Drain on Cash
  • Lack of a Significant Marketing Campaign
  • Competitors Cutting into Margins
  • Declining Profit Margins Decreasing Investment Opportunities
  • Only Have a Limited Amount of Suppliers
  • College Textbooks Sales are Moving Towards Digital and Rental
  • Competitors Have Deep Pockets
  • Stop Focusing on All Stores and Focus on Profitable Stores Lack of Marketing NOOK Readers
  • Does Not Stock Competitors Books



Opportunities

  • Number of Competitor Book Sellers Decreasing
  • Branding Retail Stores as a Community Experience
  • Microsoft Investing in NOOK Brand
  • Digital Content Demand Rising
  • College etextbook Sales and Rentals
  • Global Market
  • Make NOOK a Separate Company
  • Flood all Media with NOOK Advertising
  • Keeping Prices Affordable
  • Providing Books and eBooks in More Languages

Threats

  • Price Wars with Competitors
  • Increase of Digital Providers
  • Increase in the Number of eReaders and Tablets
  • Libraries
  • Apple
  • Amazon
  • Operating at Losses Not Keeping up with Current Technological Innovations





Value chain: Barnes and Noble go back to 1873 when Charles Barnes went into the trade-in book business in Wheaton. Illinois. By the to of the century, he was working a flourishing bookselling activity in Chicago. His child William took over as president in 1902. William sold his offer in the firm in 1917 (to C. W. Follett. %%rho manufactured Follett Corp.) and moved to New York City. where he purchased an enthusiasm for built-up course reading wholesalers Noble and Nook. 'the organization was before long renamed, Barnes and Noble. It first sold mainly to schools and libraries. giving course books and opening a huge Fifth Menue shop. Throughout the following three decades. Barnes and Nobk got one of the main book shops in the New York locale. Enter Leonid Riooio. who worked at a New Yolk University book shop to the pay level night school.

In 1971. Riggio paid $1.2 million tor the Barnes and Nook store on Fifth Avenue. He before long extended the store. furthermore, in 1974 he started offering stunning. contender made excursion limits of up to 40% for smash hits. Securing Marlboro Books the burns better. the organization entered the nail-more seasoned and distributing business. By 1986 Barnes and Noble had developed to around 180 outlets (counting 142 school book shops).

With superstore deals blasting. the retailer opened up to the world in 1993. The book shop went online in 1997. also, in 1998 sold a half stake in is Web activity auxiliary to Bertelstratm (which it re-bought in 2003) trying to fortify the two organizations in the fight against ovine benefit Anazon.com. Likewise in 199K Banes and Noble consented to purchase #1 US book merchant Ingram Book Group. in any case, the arrangement was canceled in 1999 in view of the antitrust concept.

In 2003. the organization reinforced its independently publishing endeavors with the nuclease of SterIing

Distributing, a master pack how-to and nail books. Furthermore. Barnes and Noble's half-owned BOOK magazine shut down. The following year saw Baines and Nobk leave the video standard retailing business when it spun olf is remaining offers in GameStop. Barnes and Noble shut the b%t of its little organization B. Dalton book shops in mid-2010. tar in the year fence discovers chief Ackman offered to fund a $960 claw merger of Barnes &Noble and its littler opponent Borders however nothing happened to k. Chief Lynch surrendered in mid-2013 blowing a profit report that underscored Barnes and Noble's drained endeavor at working up its Nook division. CFO Michael Huseby was designated CEO of the Nook division and leader of Barnes and Nook.

Barnes and Noble. Inc. (Barnes and Noble) is a multi-channel retailer. B&N 's earlier buddy bowls are the offer of books, miss riots softcover books, instructive course readings, kids' books, eBooks. furthermore, other computerized content. among different things. 'the differences of books incorporate hardcover, softcover, and advanced adaptations. The organization markets items through retail stores, which incorporate Barnes and Noble College Booksellers. LLC and Skiing Publishing Co.. Inc. It distributes a wide tirade of true to life and outlined books and packs over an assortment of engravings. Barnes and Nook: s a Fortune 500 organization the country's biggest physical book retailer and a top retailer of substance, advanced media, and instructive items. The Companies affirm stock is exchanged on the New York Stock Exchange NYSE) under the image BKS. As of January 31st. 2015. B&N works 717 book shops sparing more than 5 million understudies and more than 250.U employees at schools and colleges over the United States. The organization has three demurely working firms: Barnes and Noble Bookseller, Barnes and Noble school and the niche


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