cable robert presentationdraft
TRANSCRIPT
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Copyright © 2014 CDR all rights reserved
CDR INC.
Galaxy NookJune 22 2014
Presented by Carl Kutschke Robert Cable
Derrick GreenDavid Gomes
Strategic Business Proposal
CDR INC.
Wednesday, June 18, 2014
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Copyright © 2014 CDR all rights reserved
CDR INC.
Strategic Business Proposal
• Integrity
• Teamwork
• Skillful Planning
• Innovative thinking
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Galaxy Nook
CDR is a team of strategic consultants that assists executive managers with planning how to determine to employ the company’s resources to increase profits and revenue.
CDR incorporates:
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Internal Analysis External Analysis
Organizational Strengths Competitors
Organizational Weakness Business Climate
Business Opportunities
Business Threats
Galaxy NookStrategic Business Proposal
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CDR INC.
Internal Analysis
• Barnes & Noble INC. is the largest book retailer in the United States. According to resources, Barnes & Noble is the largest retailer in content, digital media, and educational content in the country. As of January 2014, Barnes & Noble 663 retail stores, as well as 696 bookstores in all 50 states.
• Customer service: Make every customer a “ customer for life. Above and Beyond customer serviceQuality: deliver desired results within a certain time frameEmpathy: care for one another through actions and words. Thankful for customers and booksellers. Impact communities
through art, literature and educationRespect: treat each other and customers with dignity and respectIntegrity: have highest standards of ethics and Integrity.Responsibilities: Take action with sense of urgency. Match day-to-day decisions with company goals. Teamwork: create environment that nurtures open communication. Feedback in a constructive manner. Follow up with
everyone in a timely manner.
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CDR INC.
Organizational Strengths
• January 2009, Barnes & Noble promoted 38-year-old William Lynch to President of its online division store. Lynch brought Barnes & Noble much needed online marketing skills. March of 2010, Lynch is promoted to CEO of Barnes & Nobles’ Online, College, and Trade retail divisions.
Demand for digital books is growing fast. Barnes & Noble with its popular devices and sales and marketing engine is in an excellent position to capitalize on this growth.
• Liberty Media is the largest Mass Media Corporation in America. Liberty Media made a $204 Million dollar investment in Barnes & Noble in 2011. Liberty Media is known for it legendary returns on the investments its made.
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College store business is still profitable: This is Barnes & Nobles most profitable part of its operations. Made twice as much money for Barnes & Noble then its retail stores did.
Nook is competitive in a strong market: Barnes & Noble’s Nook is in a heated battle with Amazon’s Kindle Fire. They are always head to head with each other.
Kid’s Books and Women’s romances are successful for Barnes & Noble: These 2 areas are Barnes & Nobles strongest suites. Barnes & Noble store is more user friendly to kids then Amazon’s Kindle store.
Barnes & Noble stores are showcases for physical books and hubs for communities: Barnes & Noble is basically the last man standing. Books a Million is Barnes & Nobles only Brick & Mortar retailer competition at a distant 2nd with only 200 stores. It is the only place for publishers to showcase newly printed books.
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CDR INC.
• Kid’s Books and Women’s romances are successful for Barnes & Noble: These 2 areas are Barnes & Nobles strongest suites. Barnes & Noble store is more user friendly to kids then Amazon’s Kindle store.
Barnes & Noble stores are showcases for physical books and hubs for communities: Barnes & Noble is basically the last man standing. Books a Million is Barnes & Nobles only Brick & Mortar retailer competition at a distant 2nd with only 200 stores. It is the only place for publishers to showcase newly printed books.
•
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CDR INC.
Organizational Weaknesses
• Authors Love Amazon: Most Authors prefer using Amazon over Barnes & Noble. More then 75,000 titles are available on Amazon Kindle then they are on Barnes & Nobles Nook.
No International Presence: Barnes & Noble has no stores outside the U.S. According to the Article, there are no plans for Barnes & Noble to expand outside the U.S. Amazon is in Europe and Asia and is expanding even further.
Network of stores too costly: The demand for books in retail stores is going down. In order to compensate for that lose, Barnes & Nobles had to add toys and games.
No One has succeeded in competing with Jeff Bezos at Amazon.com: Barnes & Noble worth a small fraction of Amazon. Barnes & Noble has to worry about making money-selling books. Amazon could care less. Bezos has an original vision that keeps people from competing with him.
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CDR INC.
Customers
• Barnes & Noble caters to thousands of people in all 50 states. Most of the people Barnes & Noble cater to are: Children, Teens, College students, and women. The Age ranges are from 1 to 45 years old. Most of Barnes & Nobles business comes from college students and women who love to read. In fact, College Students make up the most business for Barnes & Noble. Barnes & Noble makes double its sales from college students.
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CDR INC.
Collaborators
• As of 2014, Barnes & Noble is the largest book retailer in the U.S. They operate over 600+ stores in all 50 states. Barnes & Noble caters to every customer’s wants and needs. As I mentioned above, the majority of Barnes & Noble’s business comes from college students. Barnes & Noble has 600+ college bookstores in all 50 states for students to get books. Also stated above is the fact that Barnes & Noble has huge success with children’s books and women’s romance. Barnes & Noble carries a huge variety of children’s books and women’s romance novels. Barnes & Noble’s distribution channels are: Their Brick & Mortal retail stores, Barnes & Noble.com, Barnes & Noble college book stores, and their Nook. Barnes & Noble frequently orders books so they are always stocked with the latest titles.
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CDR INC.
External Analysis
• Amazon INC: Amazon is Barnes & Nobles biggest competitor. Amazon is a direct competitor. These 2 companies have been waging wars with each other with the Kindle Fire and the Nook. Amazon is out gunning Barnes & Noble because its Kindle Fire sells more then the Nook.
Apple INC: Apple INC is an indirect competitor of Barnes & Noble. While Apple does have The IPad, there is a reason why it is an indirect competitor. Barnes & Noble and Amazon have millions of book titles available for its Kindle Fire and Nook. Apple does not since it does not sell book. Apple has to let Amazon & Barnes & Noble sell Ebooks on its Ipad.
Books a Million: Books a Million is Barnes & Nobles second competitor when it comes to brick and mortal retail stores. Books a Million is a distant second competitor with 200 brick and mortar stores. Book a Million is a direct competitor.
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CDR INC.
Sales Objective
• Hire and train top sales people to understand their strengths and have a well-‐defined plan to reach prospects.
• Build customer rela9onships with customers by crea9ng a customer database.
• Add several online pay op9ons such as PayPal (all-‐in-‐one online payment), and Interac online (make payments directly from customers bank accounts).
• Focus and understand more on how the compe99on is promo9ng their tablets.
• Sell a million units by the fourth quarter report.
• Sell the Galaxy Nook at the low end to aJract bargain-‐conscious customers.
•
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CDR INC.
Business Climate
• P: E-Commerce Safety, Internet Taxation, Book Content Regulations
• E: Economy Downturn, Amazon growth in China and India, Value on money Fluctuation.
• S: Online & Social Networking, EThical & Religious Issues, Declining number of visitors
• T: E Book Wars, increasing virtual libraries, 3D book Tech
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Business Opportunities
• Increase in Demand for Digital Products
• Dwindling number of booksellers and Independent chains
• B & Noble College is biggest money maker for Barnes & Noble
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CDR INC.
Business Threats
• Weak Economy
• Competitors Like Amazon Slashing prices
• Competitors Coming out with tablets to compete with Nook
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CDR INC.
ORGANIZATIONAL CHALLENGES
• Barnes & Noble has created, and released, their tablet known as the Nook. The Nook was created to offer Barnes & Noble’s extensive library of books, apps, and movies/TV shows. Unfortunately, the Nook was unable to compete with its’ biggest compe9tor, Amazon’s Kindle Fire, subsequently leading to the resigna9on of then CEO William Lynch (Smith, 2013). The challenges that have risen, and are s9ll significant today, for the Nook are as follows:
•
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CDR INC.
• Barnes & Noble has created, and released, their tablet known as the Nook. The Nook was created to offer Barnes & Noble’s extensive library of books, apps, and movies/TV shows. Unfortunately, the Nook was unable to compete with its’ biggest compe9tor, Amazon’s Kindle Fire, subsequently leading to the resigna9on of then CEO William Lynch (Smith, 2013). The challenges that have risen, and are s9ll significant today, for the Nook are as follows:
• Barnes & Noble is tremendously lacking in innova9on; if the Nook were to compete with compe99on, newer technology would have to have been used, including, but not limited to, a camera (to host video chat or simply to take pictures).
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CDR INC.
Proposed Solution
• What we are attempting to accomplish with this proposal, is boost marketing for the nook and for Barnes & Noble. In order to boost sales for the Nook, Barnes & Noble will need to enlist help from an outside party. For This we are suggesting samsung take control over how the nook is recreated and what will be added: example additions are at a front and rear facing camera
• Marketing will need to be heavily focused on in order to promote the Nook’s presence on the market. DataXu is an ideal candidate in assisting with marketing. DataXu is ranked five among marketing companies reviewed by inc. (Mansueto Ventures, 2014). Barnes & Noble also has a detailed outline on how they approach marketing. Whats considered a trade secret. Barnes and noble advertising budget is outlined in the Annual Reports ( Barnes & Noble, 2013)
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CDR INC.
Marketing Objective
• Focus on Barnes and Noble prospects by analyzing Nook tablet owner’s key traits they share and retain loyal customers by offering trade-‐in discounts.
• Promote the new features to showcase its ability to func9on as a mul9media device.
• Implement a tac9c to salvage poten9al customers with an effec9ve follow up system.
Enhance the in-‐store experience by se_ng up product displays to clearly define the differences
• and features.
• Manage digital signage to improve communica9on with interac9ve displays on billboards and web ads.
• Use pay-‐per-‐click adver9sing like Google Ad, Business.com, and Yahoo to reach a larger market. This will insure to receive top visibility for driving more customers to Barnes and Noble website.
• Expand to new markets like, filmmakers, music producers, and video editors.
• Create a tagline (“Experience, Innovate, Vision”). Create stunning graphics and catchy jingles for adver9sing.
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Copyright © 2014 CDR all rights reserved
CDR INC.
Sales Objective
• • Hire and train top sales people to understand their strengths and have a well-‐defined plan to reach prospects.
• Build customer rela9onships with customers by crea9ng a customer database.
• Add several online pay op9ons such as PayPal (all-‐in-‐one online payment), and Interac online (make payments directly from customers bank accounts).
• Focus and understand more on how the compe99on is promo9ng their tablets.
• Sell a million units by the fourth quarter report.
Sell the Galaxy Nook at the low end to aJract bargain-‐conscious
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CDR INC.
Appendices and References• Barnes & Noble (2013). 2013 Annual Report. Retrieved from http://www.barnesandnobleinc.com/for_investors/annual_reports/2013_bn_annual_report.pdfBarnes & Noble Booksellers. (n.d.). Barnes & Noble Booksellers. Retrieved June 6, 2014, from http://www.barnesandnobleinc.com/our_company/history/bn_history.html
Barnes & Noble Booksellers. (n.d.). Barnes & Noble Booksellers. Retrieved June 6, 2014, from http://www.barnesandnobleinc.com/jobs/core_values/our_core_values.html
Barnes & Noble and the limits of digital innovation. (n.d.). Modus Associates Digital strategy and design agency. Retrieved June 7, 2014, from http://modusassociates.com/barnes-noble-and-the-limits-of-digital-innovation/
Barnes & Noble Booksellers. (n.d.). Barnes & Noble Booksellers. Retrieved June 8, 2014, from hJp://www.barnesandnobleinc.com/our_company/our_main_businesses/our_main_businesses.html
Educa9onal Partners. (n.d.). Barnes & Noble @ School. Retrieved June 8, 2014, from hJp://www.barnesandnoble.com/u/BN-‐educa9onal-‐partners-‐organiza9ons/379000209/
Edmunds, Sam A. (n.d). Sales Strategy Examples. Retrieved from, hJp://yourbusiness.azcentral.com/sales-‐strategy-‐examples-‐12312.html
Greenfield, J. (2003, January 12). Seven Advantages Barnes & Noble Has in the Bookseller Wars. Digital Book World. Retrieved June 6, 2014, from http://www.digitalbookworld.com/2012/seven-advantages-barnes-noble-has-in-the-bookseller-wars/
Greenfield, J. (2013, January 12). Four Disadvantages for Barnes & Noble in the Bookseller Wars. Digital Book World. Retrieved June 7, 2014, from http://www.digitalbookworld.com/2012/four-disadvantages-for-barnes-noble-in-the-bookseller-wars/
Mansueto Ventures (2014). Top Adver9sing & Marke9ng Companies on the Inc. 5000. Retrieved from hJp://www.inc.com/inc5000/list/industry/adver9sing-‐marke9ng.
Market Watch (2014). AAPL Annual Income Statement. Retrieved from hJp://www.marketwatch.com/inves9ng/stock/aapl/financials.
Market Watch (2014). AMZN Annual Income Statement. Retrieved from hJp://www.marketwatch.com/inves9ng/stock/amzn/financials.
Market Watch (2014). BKS Annual Income Statement. Retrieved from hJp://www.marketwatch.com/inves9ng/stock/bks/financials.
Marshall, J. (2013). What Online Ads Really Cost. Retrieved from hJp://digiday.com/publishers/what-‐online-‐ads-‐really-‐cost/.
Peckham, M. (2014). Samsung, Barnes & Noble to Launch Co-‐Branded Nook. Time.Com, 1. Retrieved from, hJp://web.b.ebscohost.com.oclc.fullsail.edu:81/ehost/detail?sid=4ecba62b-‐cb3f-‐43c9-‐92e3-‐a1bf4d13ecfc%40sessionmgr110&vid=8&hid=125&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=96414563
Rocco, M. (2014, June 5). Barnes & Noble Partners With Samsung to Make Nook Tablets. Fox Business. Retrieved June 8, 2014, from hJp://www.foxbusiness.com/industries/2014/06/05/barnes-‐noble-‐to-‐develop-‐tablets-‐with-‐samsung/
Shanklin, W. (2012). Nook HD vs. Kindle Fire HD. Retrieved from hJp://www.gizmag.com/kindle-‐fire-‐hd-‐vs-‐nook-‐hd/24959/.
Smith, P. (2013). The war between Nook & Kindle is over and Amazon has carried the day | ITworld. Retrieved from hJp://www.itworld.com/personal-‐tech/364414/war-‐between-‐nook-‐kindle-‐over-‐and-‐amazon-‐has-‐carried-‐day.
Tablet Rocket (n.d.). Barnes and Noble Nook HD+ vs Amazon Kindle Fire HDX 8.9. Retrieved from hJp://tabletrocket.com/tablets/Barnes-‐and-‐Noble-‐Nook-‐HD-‐vs-‐Amazon-‐Kindle-‐Fire-‐HDX-‐8.9.
Tax, D. K. (2012). Microsox Invests $300M in Barnes and Noble, SeJles Patent Flap. Eweek, 7. Retrieved from, hJp://web.b.ebscohost.com.oclc.fullsail.edu:81/ehost/detail?vid=4&sid=4ecba62b-‐cb3f-‐43c9-‐92e3-‐a1bf4d13ecfc%40sessionmgr110&hid=125&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=91658144
Yahoo Finance (2014). AAPL Income Statement. Retrieved from hJps://finance.yahoo.com/q/is?s=AAPL+Income+Statement&annual
Yahoo Finance (2014). AMZN Income Statement. Retrieved from hJps://finance.yahoo.com/q/is?s=AMZN+Income+Statement&annual.
Yahoo Finance (2014). BKS Income Statement. Retrieved from hJps://finance.yahoo.com/q/is?s=BKS+Income+Statement&annual.
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