What was borders business model

For years, Borders outsourced its online book-selling to Amazon. So anytime you visited borders. And when you walked into a Borders, you barely knew that they sold e-books for devices like the Kobo and Cruz. Have you even heard of those? When the recession hit in , Borders was already carrying a huge debt load. But Borders could never get out of the hole that its inefficient business practices had put itself in.

Borders needs a new business model, not just a new brand. Otherwise, change will consist solely of the smoke and mirrors of advertising rather than the real transformation required to win a profitable share of the market. Barnes and Noble Booksellers won the retail store war.

Which leaves Borders with higher relative costs per book sold, lower profits and therefore a new controlling investor. Borders is stuck with a high-cost position in what has become a commodity market — the selling of books. No wonder on-line book sales are growing so rapidly they have a lower cost structure and Kindle, IPad, etc. My advice to Borders leaders is to redefine the business Borders is in, broadening far beyond bookseller while still remaining focused on book lovers.

In most commodity situations, expanding the scope of the business is a key way to remain in a market of one. For six years, Borders Group Inc. But with online sales capturing an ever-increasing share of the book business, the No. Today, Borders announced its intention to reopen its own branded e-commerce Web site in early , ending an alliance with Amazon. At the same time, it announced it is giving up on a decade-long effort to expand its own book-superstore concept internationally and will sell or franchise most of its 73 overseas Borders stores.

The company also plans to close nearly half the Waldenbooks outlets it owns throughout the U. You may change your billing preferences at any time in the Customer Center or call Customer Service. You will be notified in advance of any changes in rate or terms.