Another quarter, another huge loss for Barnes and Noble, Inc. This time it is in the tune of 118.6 million dollars. The book titan is losing steam fast and feels the Nook is the main culprit of their money woes. Despite the eReader/tablet combating some of the loss in their physical stores have sustained, it still has not done as well as expected since it came to the market back in 2009.
“They have yet to articulate a vision for what Nook Media is supposed to be…Pulling the device would hurt the momentum of the Nook Media brand.” –Analyst Allen Weiner Gartner research firm.
Since its inception, the Nook has caused nothing but problems for the largest book retailer. I believe senior management failed to capitalize on the technology that would have helped leverage their dying brick and mortar stores. As the years passed it seems as if BN fell asleep at the wheel losing its touch, fumbling not knowing where to take their eReader/tablet/Android based device. Instead, the one-time retail giant became complacent to their demise allowing other devices to take center-stage taking the spotlight right from under their feet.
In my opinion BN just got too big for their britches. Their too big to fail attitude showed up to a tablet party late expecting to be the headline while other non-book entities with better, more accessible, more manageable, low-cost devices performed better than expected and knocked them out of the box.
Over time instead of being quick on their feet and acclimating to the technological changes happening before them, they seemed to have cowered away and failed by
Calling the Nook a tablet yet failing to provide users with app access
Not having the foresight to realize it needed to go back to the drawing board to fix the problems they were facing
Not investing the time or investigating the power of the mobile market
Lacking productivity insight to provide customers with seamless easy-to-use device
By stepping up and realizing they might have chewed off more than they could swallow, Barnes and Noble would have fared better if they
Thought of their customers instead of alienating a growing market by only providing select expensive apps on the device
Used the brick and mortar stores to their advantage by marrying one with the other possibly providing deeper discounts on ebooks and e-Magazines
Possibly partnered with Microsoft early on to create a fully integrated tablet and marketed the device to a wider demographic
As the company continues to hemorrhage money. Do you have any ideas as to what they should do to stay afloat?