Distribution: Channels & Logistics

PRODUCT DISTRIBUTION STRATEGIES

DISTRIBUTION: CHANNELS &; LOGISTICS

TRIDENT UNIVERSITY INTERNATIONAL

AVIE MARIE JOHNSTONE

STRATEGIC MARKETING

MKT501 MODULE 4 CASE ASSIGNMENT

DR. FRANCISCA NKADI

MAY 21, 2012

The most recognized bookseller in the US, Barnes & Noble (BKS) has entered into a strategic alliance with Microsoft to further enhance its footprint within the e-reading market place. With its NOOK reader holding roughly 25 percent of the US e-book market share in 2011, compared to Amazon’s 60 percent, the company has seen increased growth within its .com and college segments while the traditional bookstore segment is facing a decline in revenues. Now, Barnes & Noble will spin off these two successful segments and work with Microsoft in an attempt to take market share from its main competitors, Amazon’s Kindle and Apple’s 9 percent market share. (Sverrir Sverrisson). (May 01, 2012).

Due to both economic conditions, and increased competition in digital markets, the traditional retail segment of Barnes & Noble saw a decline in revenues last year. The college and .com segments, now transferred into a new subsidiary where Microsoft holds a 17.6 percent stake, have been the only reason behind Barnes & Noble’s 20.5 percent revenue growth in 2011. Increased growth in these segments will for sure continue in the near future, as consumers are increasingly transferring their preference from physical delivery to digital delivery. Now Barnes & Noble has to share these digital revenues with Microsoft. (Sverrir Sverrisson). (May 01, 2012).

Was Amazon wise to get into publishing in addition to its very strong position in retailing new and used books?  Explain your answer.

Barnes & Noble chose not to sell books from Amazon’s new print publisher in its brick-and-mortar stores, so in an attempt to cut off access...