case Barnes and Nobel versus Amazon.com

CASE 2 Industry Analysis-, Barnes and Nobel versus Amazon.com* eonard Riggo, founder, chair, and CEO of Barnes and Noble, had transformed boolaelling into a giant indusbry, relying on the J philosophy that people bought books based on emotion. Shopping, Riggp believed, was a recreational activity. Fortune's-May z00i cover story feat'red Riggio's archrivaf lllfos' Glair' jumping on a kampoline. It remarked that during the Internet bubble, Bezos' 'oversized personality made him seem fun and inspiring," but "$ n-'-...hisbehaviormadehimlookclueless."lTheindusty :in which Bames and Noble and Amazon.com comPetgd was changing rapidly. HoW athactive was this industry? What poCition 5heuld these companies occupy? Tlis-ggse provides an a@industry and the posid;;; i" iL' . THE n fOUSfnY / The Census Bureau, the source of table 2-I below, takes into aecount retail establishments that market general and specialty boola, college texb, and related items such as secondhand books, magazines, apparef and stationary.. Calculations from industry sources add elementary and high school iexts (about $5 billion a year), religious books (about a $I billion per year), books sold on the Internet, books sold by mass merchandiser retailers (such as Wal-Mart, supermarkets, and drugstores), books sold by publishers directly to consumers, and boolcs sold by puboThis case was written by Alfred Marcus, Univenity of Minnesota, Carlson School of Managemenl Copyright @2009 by Marsh Publhati-ons-ttr 9.^{l lthb reserved' l.Fred Vogelstein,-'tvtighty Amaz on! Fortune, May 26, 7007:70. l9CASE 2 Industry Analysis, Barnes and Nobel versus Amazon.com* eonard Riggo, founder, chair, and CEO of Barnes and Noble, had transformed boolaelling into a giant indusbry, relying on the J philosophy that people bought books based on emotion. Shopping, Riggo believed, was a recreational activity. Fortune's-May 200i cover story feat'red Riggio's archrivaf llfos' Glair' jumping on a kampoline. It remarked that during the...