Barnes Noble Could Succumb to The Retail Apocalypse Article

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A.Format:3 pages maximum, double-spaced using standard font (11 or 12 pt.) and page format, and page numbers. Write Your Full Name, Course Section and Class Time/Day similar to the sample analysis, (- 3 points for a different format)

B.Make sure to use section (Background, Problem Statement.. Metrics) and subsection titles (Strength, Weakness… Core Competence, Intermediate Metrics)

• 5 points deduction if missing any.

C.Make sure that strength and weakness are internal (Skills/Something the company is good/bad at)

•5 points deduction if not internal

D.Make sure that opportunities and threats are environment driven (PEST Analysis, Porter Model).

•Discuss how the environment is changing.

•Do not focus on what the company could do.

•5 points deduction if content is not about changes in the environment

E.At Least Three Citations Required (-2 points per missing citation)

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Explanation & Answer

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Barnes & Noble Analysis

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Background: There are many changes in the retail industry that have occurred in the past few
years. Moreover, people are no longer preferring visiting physical stores to acquire items like
books when they can have them brought to their doorstep. In this vein, Barnes & Noble is left in
a very risky situation where it could fail to attract the attention that it used to from its customers.
While Barnes & Noble’s stores are still admirable and attractive to a considerable number of
customers, they need to rethink their business model.
Strengths: One thing that makes Barnes & Noble still a strong business is that it has relatively
low debt. At $129 million of debt, it means that the company is still not in a financial situation
where it cannot redeem itself and regain success. The company also has strong brick-and-mortar
establishments that can be capitalized on as it seeks to explore options of competing effectively
with other retailers, particularly Amazon. Moreover, the company has grown its games business
and educational toys in the recent past.
Weaknesses: The most disastrous weakness facing Barnes & Noble is that sales revenue and
profits are on the decline. From 2016 to 2017, the sales went from $4.2 billion to $3.9 billion.
They furth...


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