Barnes and Noble VS Amazon

Assignment type Coursework / Assignment
Discipline Business
Description Please answer the following questions regarding the attached case. 1. Based on your own experience of traditional bookselling and your exploration of online bookselling, compare willingness-to-pay for books supplied by these two business models. 2. Compare the forecast long-run cost position of a successful online bookseller to Barnes and Noble’s traditional business model. (Assume that Exhibits 4 and 7 in the case reflect average discounts of 10% off list price for Barnes & Noble’s traditional bookstores and 25% off list for the online bookseller.) 3. Assess Barnes & Noble’s response to the substitution threat from Amazon. How did Amazon respond in turn, and to what net effect? 4. Who will be the online leader? Will it ever make much money selling books (as opposed to selling stock)?