Posts Tagged ‘Barnes & Noble’

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DOES COST CUTTING WORK?

March 12, 2014

When a business is losing money, instead of investing in solving a broken business or marketing model, many businesses rush to cut costs, starting with marketing.  This can work for a while. Barnes & Noble returned to profitability in their recent third quarter, “thanks to new steps taken by its cost-conscious CEO, but a decline of its e-book sales and stagnant retail performance renewed questions about its future,”  reported the Wall St. Journal. Best Buy also returned to a profit in their fourth quarter and topped Wall Street expectations as it cut costs to offset declining sales. 

Now, why should you care about Best Buy or Barnes & Noble?  Because it is a classic tale of businesses focusing on short-term profits (thanks to the power of the stock market), than long-term solutions. Are you just trying to make a profit without regard to long-term strategies to make your business grow? If so, as Bob Newhart said in a classic TV skit, “Just stop it!”.

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WHAT’S THE VALUE OF AN INDEPENDENT VIEW?

November 29, 2012

When I work with clients in helping evaluate their marketing efforts, I always caution them that most of their markets are changing right in front of them, but often they are too busy to notice. That’s why an outsider’s view is important. An example of this is the book-selling business. Barnes & Noble returned to a profit for the second quarter, which might lead Barnes & Noble to feel good about book sales. Well, their bookstore revenue declined 2.9%, but sales of their digital Nook reading device rose 5.6% and digital content sales climbed 38%. The book-selling industry continues to rapidly change as readers move to an array of digital devices from Barnes & Noble, Apple, Google, Amazon, and Kobo.

How fast is your industry changing? More importantly, are you responding to these trends? I offer a “Quick Look – Marketing Tune Up” service (starting at just $500) in which I will review your marketing effort and recommend changes. It is a pretty low-cost investment for having an outsider look at your efforts to ensure you are working on your business, not just in your business. Give me a call (541-488-4925) or email me (Mark@dennettgroup.com) to discuss your needs.