Making analysis on any business always suffers with the subjectivity factor but using any model for analysis somewhat eliminates this problem. To diagnose the performance and the change in two companies, Borders Group Inc and Barnes & noble, the model that is going to be used is Six-box model (Thompson, 2011). The factors of both the companies will be evaluated separately through there profile, past performances and the business decisions they have made.
Borders Group Inc.
Borders Group used to be a leading U.S. based operator of books, movie superstores, music stores, having presence with 515 domestic superstores of Borders by 2009. Borders were having a huge online presence also, before their decision to outsource the online business. Borders also operated in around 386 mall-based and store based with different brand names. Along with this Borders were also present in different markets internationally by the brand names of Borders (Jeffrey, 2009). Moreover this company used to have a huge business in United Kingdom also as they were having around 333 domestic superstores-based presence in U.K.
Six- Box Analysis
Six- Box analysis is based on six factors that are as under:
Borders have a business of books retail, music and movies superstores. They were known as the second group in this business.
Borders Superstores: Borders superstores have sold books, stationeries, music, movies and gifts. The major business these superstores had in books.
Waldenbooks (Specialty) Retail Stores: these retails stores were small outlets at mall, airports and other outlet malls. They averaged around 13,500 titles in the store.
International Stores: these were the international stores in different location of Puerto Rico and U.K . Paperchase is a retailer that is operating most of the business for them.
Internet: Borders had a good standing in online book selling business through there website borders.com.
The management of Borders Groups is proactive and they respond to problems with novel solutions. They are flexible to change and bare high cost for any change also, as seen by their decision of outsourcing the online operations (Elizabeth, 2009).
Borders had a second largest business of book retailing and superstores. This surely has a reward linked to it as they can earn high profit because of their brand name and heavy presence.
All the segments of Borders' business is looked after and handled by separate group head as to maintain a harmony and balance in businesses.
With the advanced demands of technology and customers needs, Borders group has advanced in technology as well as in business patterns. Like introduction of coffee shops in superstores and mall stores, and also outsourcing the online business for better customer facilitations.
SWOT Analysis of Borders
The brand name and long business standing
Online franchise presence internationally like U.A.E and Malaysia
Bankruptcy and the issue of liquidation of brick and mortar stores
Unable to manage the operational cost of online business
Weak decisions in real state leasing
The growth rate in e-book readers is high which creates a good opportunities for book retailer businesses.