Barnes and Noble - Analysis and Assessment of the Company's Internal Environment

Executive Summary

This internal analysis fine points B&N's existing condition and strategies to place itself for the prospective. For a better understanding and for the ease of the reader, it is divided into five appropriate parts. A value chain analysis, a strategic analysis, financial analysis of the company, SWOT analysis and some tables, charts and figures relevant to financial analysis and other aspects of this research paper merge to create a vital set of strategic hypotheses as B&N looks to a competitive perspective. B&N locate itself as an original global competitor to survive and thrive. The main problem is decreasing profit margins for B&N. One of the major reasons involve competitors like Amazon are presently pinching market share and causing profits to descend. Another major problem experienced is decrease in physical book sales. These problems should be swiftly responded to assure the future triumph of B&N. The main goal of the company is to find a suitable buyer for itself. Till the time, the company finds a buyer, it is imperative to alleviate or enhance these significant business concerns (Best, et.al, 2010).

EXECUTIVE SUMMARYII

OVERALL COMPANY ANALYSIS1

Value Chain Analysis2

Analysis of B&N2

Pressure of New Players2

Buyers and Customers Negotiating Power2

Suppliers Negotiating Power3

Pressure of Substitutes3

Competition in the Market3

Technology related Key Success Factors4

Analysis of Competitor: Amazon.com5

Customer's Approach towards Amazon.com5

Key Strategy of Amazon.com5

Strategic Issue Analysis6

Business Level Strategy7

Financial Analysis8

Financial Ratios8

Interpretation of Financial Ratios9

Valuation Analysis10

Growth Analysis11

SWOT Analysis11

Strengths11

Weaknesses11

Opportunities12

Threats12

Table and Figures13

REFERENCES16

Barnes and Noble - Analysis and Assessment of the Company's Internal Environment

Overall Company Analysis

One of the media reports publishes that the gigantic however stressed; Barnes and Noble, a bookstore chain intends to be sold, did not receive a single vote of confidence from a chief proxy-advisory firm. This incident strongly hurt current management's opportunity of maintaining control over the board (Moore, Market Watch, 2010). In this context, B&N needs an inclusive internal analysis of the company to intercede the issue. In order to fulfill this inquisitive demand, I am developing a complete report, as a management consultant; hired by the company, to analyze give an honest and thorough assessment of the company's internal environment and competitive situation.

Increased government legislation on the retail segment of retail books is also boosting the cost of online sales. In order to counter this problem, B&N should recognize its stores as the chief advantage to the company. The company needs to market its eBook sector by utilizing its bookstores. Employees working in the bookstores should have a unique quality of demonstrating 'Barnes and Noble Nook' effectively to attract new customers and to provide a crystal clear understanding of the products features and capacities. Extensive marketing of Nooks with the help of current stores will provide B&N a varied customer market. Consequently, the company will achieve a competitive advantage against competitors like Amazon. Like B&N, amazon.com doesn't possess bookstores and is incapable to offer head to head communication and dealings. This advantage of bookstores selling eBooks will possibly alleviate or even boost present profit margins (Best, ...