Barnes & Noble is part of the book retail industry, which includes the sale of both physical and digital books. This industry is broken up into three main segments: general bookstores, college bookstores, and specialty bookstores. The industry is also divided into the different methods of distribution: brick and mortar and online.
Barnes & Noble faces the challenge of competing in a declining industry. The core of Barnes & Noble is its brick-and-mortar retail stores. This distribution channel is declining within the retail bookselling industry due to the increasing popularity of online purchasing and new digital technologies. Online retailers offer a wider selection and lower prices while eBooks have begun to replace the need for physical books. These changes offer greater convenience, thus shifting consumer preferences. Consumers now find in-store purchasing less attractive, causing traditional Barnes & Noble brick-and-mortar stores to become increasingly out-of-fashion.
In order to keep brick and mortar stores solvent, while still expanding and growing their online presence, it is important for Barnes & Noble to establish a distinct brand identity that remains consistent through their physical
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Many of these consumers are buying physical books instead of the e-reader accessories or tablets. However, our new target market will be focused on a wide variety of consumers. Our next target market is the online book reader. These consumers are looking for convenience and accessibility when purchasing their book. The company recognizes the most frequent buyers are in the range of 35-45. However, those under the age of 35 are the most prominent online purchases. The Nook’s goal is to become a more competitive market in the e-Reader industry by demonstrating and differentiating our product to online consumers. This information was gathered from Barnes & Noble’s letter to their shareholders for