This Apply It continues using the Barnes and Noble case study video from earlier in this module. The video is included below in case you want to refresh your memory about specific details, but if you have already watched it, you don’t need to watch it again.
Strategic Pivot
Remember that Barnes & Noble implemented a new strategy allowing individual store managers more autonomy in selecting and displaying merchandise based on local customer preferences, shifting away from their standardized superstore approach.
How would you characterize Barnes & Noble’s current approach in terms of strategic, tactical, operational, and contingency planning?
Barnes & Noble’s current approach demonstrates a thoughtful integration of multiple planning levels. At the strategic level, they’ve implemented a fundamental shift from standardized superstores to locally-tailored experiences, which represents a long-term vision to differentiate themselves from online retailers. This strategy addresses their core identity as a physical bookseller by emphasizing the in-store experience.
At the tactical level, we see medium-term planning through their store downsizing initiatives and relocations to smaller spaces. Operationally, they’ve empowered local managers to make day-to-day decisions about inventory selection and display arrangements based on community preferences, such as featuring romance books prominently in stores where they’re popular.
Their contingency planning appears in how they’re gradually testing this new approach across their 600+ locations, allowing them to adapt if certain elements aren’t successful. The CEO’s previous experience successfully implementing this model at Waterstones suggests they have backup plans based on lessons already learned.
What external threats in Barnes & Noble’s SWOT analysis likely prompted their shift from standardized superstores to locally-tailored smaller locations?
The most significant external threat that prompted Barnes & Noble’s strategic shift was clearly Amazon’s dominance in online book sales. This direct competition undermined Barnes & Noble’s previous competitive advantage of extensive inventory and lower prices compared to independent bookstores.
Additional external threats likely included changing consumer preferences toward more authentic, personalized shopping experiences, and the growing resurgence of independent bookstores that provide unique, curated selections. Barnes & Noble’s revenue had been declining since 2012, indicating that their standardized superstore model was no longer resonating with customers in the digital age. Their failed attempt to keep pace digitally through the NOOK e-reader business further highlighted that competing directly with Amazon on digital platforms wasn’t a viable strategy, forcing them to reconsider their value proposition and leverage their physical presence in a way online retailers couldn’t match.
Try a SWOT analysis on one of your own goals! You can simply use a sheet of paper divided into four quadrants or use one of many templates available on the Internet.