The Border’s Trilogy. Sponsored by the Oprah Book Club who’s latest pick The Road by Cormac McCarthy…
We won’t get into the possible psychological motives for such a choice but let’s just say that I can’t understand half of what McCarthy writes, he is a bit reclusive and has given one interview in the last 40 years and he is going to Oprahland!
As surprising as this pick is for Oprah is how unsurprising the recent news is from Borders.
New CEO George Jones laid out his blurred strategic vision for the company.
It includes a new and less improved loyalty program
and “significantly reducing investment in segments that have not provided a satisfactory return, including the International segment and Waldenbooks Specialty Retail segment”
Linguistic highlights of the strategic vision press release:
“Focus on Core Domestic Superstore Business”
“urgent need to go on the offensive and drive significant change”
“mission to be a headquarters for knowledge and entertainment”
“Highly aggressive efforts…to right-size the Waldenbooks“
“Reinventing the company by leveraging innovation, technology and strategic alliances to differentiate Borders in the marketplace, including the debut of a new proprietary e-commerce site in early 2008.”
The holes in the machine:
The potential of success for a “domestic superstore” in this country is on borrowed time for most industries and will not be a viable business strategy in a few years. Simply the use of the phrase while talking about a bookstore is flawed.
A company first coming to the e-commerce table in 2008 is at a tremendous disadvantage. Reinventing and leveraging? This is Web 1.0
The story is a familiar one:
company losing money
bring in a CEO from outside the field to turn things around
company keeps losing money
sweeping reforms and changes are announced
some people make a lot of money
The company is sold or goes out of business
Sadly, in this case, there are books involved.
I can’t wait to see where this one goes.
Michael Cairns gives his take on what the strategic version should be
Booksquare take
Related:
my post “Barnes & Noble: Is The End Near” after they reported their 3Q 06 earnings.