From the Motley Fool and BrandWeek comes two updates on a favorite example of mine: Borders. Amazon had been handling Border’s e-commerce and web storefront, until Borders management ended the agreement in early 2007. Now there’s reports that Borders management is considering selling part or all of the company, after the company suspended its stock dividen and took on additional debt.
As both of the 2008 articles point out, Borders has plenty of competition. Warehouse stores sell bestsellers at steep discounts, and that keeps some potential Borders customers from making that extra trip. Barnes & Noble isn’t in great shape, but at least they’re competitive.
As I mentioned on 24 March 2008, the book publishing business is undergoing significant changes. So it’s not surprising that bookstores are struggling.
Tags: Amazon, book, borders, business-model, debt, e-commerce, value-chain
