{"id":19070,"date":"2016-11-18T17:03:14","date_gmt":"2016-11-18T22:03:14","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/finding-a-cozy-nook-in-the-ebook-world\/"},"modified":"2016-11-18T19:06:36","modified_gmt":"2016-11-19T00:06:36","slug":"finding-a-cozy-nook-in-the-ebook-world","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/finding-a-cozy-nook-in-the-ebook-world\/","title":{"rendered":"Finding a Cozy Nook in the eBook World"},"content":{"rendered":"

Barnes and Noble launched the Nook eReader in November 2009 2 years after competitor Amazon launched and sold about 3 million Kindles.\u00a0 7 years later, the Nook has 2 million active users, but is deemed by many to be a platform nearing extinction.\u00a0 Of Barnes and Noble\u2019s 2016 financial results, Nook accounted for some $98 million in operating losses and retail fared just as poorly at $113 million in operating losses[i]<\/a>. \u00a0 Can the bookstore giant regain its retail position in the digital age?\u00a0 Are print books dead!?<\/p>\n

To understand Barnes and Noble\u2019s path ahead, it is valuable to revisit its business model for books: deliver a wide variety of titles for every kind of reading enthusiast.\u00a0 It delivers value by sourcing millions of titles from centralized distribution centers in New Jersey and Nevada. The in-store shopper can choose to explore the average 26,000 sqft store or access \u201cambassadors\u201d who help navigate to the perfect read[ii]<\/a>.\u00a0 Similarly, online customers can explore over a million titles but only have reader reviews to guide their journey.<\/p>\n

Ripe for Disruption<\/strong><\/p>\n

\"Exhibit<\/a>
Exhibit 1<\/figcaption><\/figure>\n

Barnes and Noble has seen significant disruption from technology since the launch of Amazon\u2019s Kindle.\u00a0 The Nook started out solely as an eReader and has reactively adapted to match the smart phone and tablet capabilities that users crave.\u00a0 Where Barnes and Noble is also getting disrupted is in ecommerce. \u00a02015 sales show that Amazon is clearly dominating in print books and eBooks (see exhibit 1), with Apple at a distant second[iii]<\/a>.\u00a0 Adding to Barnes and Noble\u2019s disadvantage, is the lack of continuity in customer experience in the digital space.\u00a0 Apple\u2019s iBooks and Amazon\u2019s prime membership more efficiently capture the user while performing non-book related tasks.\u00a0 Unfortunately, previous historical subpar performance has plagued Nook and its ebookstore as depicted by the stark downward trend of Nook sales in exhibit 2.[iv]<\/a><\/p>\n

 <\/p>\n

\"Exhibit<\/a>
Exhibit 2<\/figcaption><\/figure>\n

Digital Reincarnation<\/strong><\/p>\n

As outlined in Barnes and Noble\u2019s \u201cInvestor Day\u201d strategies, the company needs to occupy the omni-channel retail space in an effective manner.\u00a0 Unfortunately, the company cannot simply kill the Nook and move into the software only space.\u00a0 It should leverage the diehard readership base and gather more data on spending habits from its membership of 6 million users to better serve them.\u00a0 Better service will likely be manifested in a higher performing smart phone and tablet app with features like location notification – similar to how Starbucks informs a user if they are nearby a store.\u00a0 Also, the company will need to improve on the subpar application performance for Nook users.\u00a0 The app needs to smoothly transition user bookmarks from device to device in order to make seamless customer interactions.<\/p>\n

The original move to digital was very much a disjoint venture for Barnes and Noble but moving forward, synergizing the in-store customer experience online will drive more traffic.\u00a0 \u00a0B&N should capitalize on and translate their expertise into the digital world.\u00a0 For one, B&N has to stay ahead of the digital movement by listening closely to customer complaints and anticipating areas of improvement.\u00a0 \u00a0\u00a0The amount of traffic on barnesandnoble.com driven by social media is a minor 2.71%[v]<\/a>. \u00a0Barnes and Noble should create virtual book clubs so users can share in the reading experience.\u00a0 The added social media attention may even drive more traffic.\u00a0 Also, the community events at retail stores including book readings, new title releases, and author signings should be accessible via BN.com and through the B&N app to alert customers and drive them into stores.\u00a0 The retail space has really become a beacon for communities and the website does little to entice the online user.\u00a0 Finally, the BN ambassador is so crucial in helping people find books in the retail space.\u00a0 The online space is an even more vast expanse and users would benefit from a chat platform where consumers can tap into the knowledge of these book experts to locate the next best read.<\/p>\n

\"Exhibit<\/a>
Exhibit 3<\/figcaption><\/figure>\n
\"Exhibit<\/a>
Exhibit 4<\/figcaption><\/figure>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

I think it is safe to say that print books are not dead.\u00a0 Readers in America still love the feel of a book in their hands and the scent of fresh pages ready to be poured over, earmarked, and scribbled in. According to Pew Research, of the 73% of Americans who read books over the last 12 months, 38% read print books only (see exhibits 3 and 4)\u00a0[vi]<\/a>.\u00a0 Now more than ever, Barnes and Noble should reassert its dominance in the print world.\u00a0 Smoothly integrating in-store and online access will give them the customer experience edge that set them apart decades ago.<\/p>\n

(Words ~740)\"love-boks\"<\/a><\/p>\n

____________________________________________________________________________________________________________<\/p>\n

[i]<\/a> Business Wire: A Berkshire Hathaway Company. \u201cBarnes and Noble Reports Fiscal 2016 Year-End Financial Results.\u201d http:\/\/www.businesswire.com\/news\/home\/20160622006404\/en\/Barnes-Noble-Reports-Fiscal-2016-Year-End-Financial<\/a>, accessed November 2016.<\/p>\n

[ii]<\/a> \u201cInvestor Presentation.\u201d Barnes and Noble conference webcast. June 23, 2016. http:\/\/files.shareholder.com\/downloads\/BKS\/3251755140x0x905430\/F0FC19D8-7DB2-4166-91A0-22FF00544A8E\/2016_6_23_bn_fy2016_investor_day_present.pdf<\/a><\/p>\n

[iii]<\/a> \u201c2016 Digital Book World Keynote Presentation.\u201d AuthorEarnings.com, March.2016. http:\/\/authorearnings.com\/2016-digital-book-world-presentation\/<\/a> accessed November, 2016.<\/p>\n

[iv]<\/a> Coleman-Lochner, Lauren and Matthew Townsend. \u201cBarnes and Noble Tumbles Following Loss, Plunging Nook Sales.\u201d Bloomberg Markets, Dec 2015. http:\/\/www.bloomberg.com\/news\/articles\/2015-12-03\/barnes-noble-posts-loss-as-nook-e-reader-unit-weighs-on-sales<\/a>, accessed November, 2016<\/p>\n

[v]<\/a> \u201cBarnesandnoble.com.\u201d Similarweb.com, Oct 2016. https:\/\/www.similarweb.com\/website\/barnesandnoble.com<\/a>, November 2016.<\/p>\n

[vi]<\/a> Perrin, Andrew. \u201cBook Reading 2016.\u201d Pew Research Center, Sept 2016. http:\/\/www.pewinternet.org\/2016\/09\/01\/book-reading-2016\/<\/a>, accessed November, 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

As the Nook tablet fades into oblivion, can Barnes and Noble reinvent reading in the digital world and regain its former glory?<\/p>\n","protected":false},"author":2401,"featured_media":19585,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-19070","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"\nFinding a Cozy Nook in the eBook World - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/finding-a-cozy-nook-in-the-ebook-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finding a Cozy Nook in the eBook World - 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