Barnes & Noble swapping book space for e-readers

A Wall Street Journal article (Oct 29, 2011) describes a plan by Barnes & Noble to double the square feet devoted to e-readers to 2000 sq ft in a 26,000 Sq ft store. The space will be freed up by decreasing books titles in stock as well as DVDs and music. The company expects intense competition as Amazon’s Fire becomes available and in response to the 27 % growth in digital books. Earlier changes at the store freed up space for educational toys and games. Are the shifts at Barnes and Noble an inevitable consequence of the competition with Amazon ? Do these  product mix changes suggest a prisoner’s dilemma outcome where Amazon and Barnes & Noble hurt each others profits ? Or is the competition in the e-reader market, and the lower price points, an attempt to take share away from Apple’s iPad, which has more functionality but a higher price ?

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About aviyer2010

Professor
This entry was posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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