Strategy Integration and Synthesis

Strategy Integration and Synthesis

Capella University

Strategy Integration and Synthesis

Introduction

Before the mid 90’s, Barnes and Noble was king of the bookstore. Their iconic stores were everywhere across the country, and they excelled at what they did. The advent of the internet was not kind to Barnes and Noble, and in their attempt to catch up, they have lacked a clear strategy and direction for the future.

Importance of Strategy

Many companies strive to have a similar shopping experience, or omni channel, with their online and in store shopping. Similar products and feel, and many companies are moving to allowing in store pick up for purchases made online. Barnes and Noble does not have this. Its website feels like an add on to its regular stores, and frequently you can find more product in store than you can online, which is backwards to most other businesses.

Barnes and Noble struggles with a long-term plan that involves technology. This is in no small part related to its difficulty in keeping a CEO, but even before that, Barnes and Noble struggled to incorporate its website in an effective manner and develop a comprehensive way to leverage it in its existing business.

In 2004, Barnes and Noble spun off its Gamestop business, but now it looking to rising game sales in stores to seek to increase sales. This speaks to a poor long term vision to get rid of a successful business but then try and do the same thing again. In 2009 Barnes and Noble launched the NOOK tablet and digital content, but then never did much with it. The company keeps making large decisions but then going the opposite direction.

This lack of strategy is hurting them as consumers are moving to competitors such as Amazon who offer an integrated experience that is less painful to use. Until Barnes and Noble sets a long term strategy and executes, they will continue to fumble from idea to idea and will continue their downward spiral.

Formulating Strategy

In formulating a strategy, it is important to have the right people in a position of leadership to set the right vision. A good leader isn’t just a visionary, but also someone who knows how to get a business to execute that vision.

Barnes and Noble struggles to retain top leadership, probably due in large part to their declining business. Because of cyclical nature of the situation, it will be difficult to break out, but if Barnes and Noble can find the right leadership with experience in turning around a struggling business, they may be able to break out of this cycle.

Strategy comes from the top, and so it is important that the right strategy is set at the highest level so that all divisions and groups and marching to the same drum beat. If Barnes and Noble can set this strategy and get employee buy in, they can turn their company around by all working towards the same goal and long-term vision.

Integrating Strategy

There are several business units across Barnes and Noble. The company consists of their physical stores, eCommerce site, NOOK content, publishing house, and educational book distribution. To get all of these divisions to work together, it’ll be important to have a comprehensive strategy that covers all aspects of the business in a way that allows each to excel, and boost the others. For example, a strategy that would support a seamless shopping experience between Physical and eCommerce sales, but also have both push NOOK content, would be important.

Strategy Informs

By laying down a strategy across the entire business, this will set the direction for all activities. Marketing campaigns can be built to encourage shoppers online and in the store, Sterling Press books can be highlighted prominently in both places in marketing ads. NOOK content can be heavily advertised across both platforms, and NOOK itself can advertise to both.

Finance planning decisions can be made based on the goals that are set to support the strategy. Without a doubt the eCommerce site needs improving and funds spent on it. In addition, more inventory should be carried online. There is no reason that best selling books would not be available online when Amazon can carry them. Better relationships can be built with book distributors to allow more to be sold online, without requiring additional warehouse capacity.

Every decision that is made in the company should be based off the strategy. Hire more employees? Only if needed for the strategy. Expand globally? Only if it supports the strategy. New office space? Strategy. This is why it is so important and crucial for a clear, all-encompassing strategy to exist, because it has the potential to impact every element of the day to day business.

Conclusion

With sales declining, and the business market changing, it is more important now than ever, to have a clear strategy in place. Strong leadership, can drive strong results. With a good, business encompassing strategy, company wide buy-in, and the ability to execute, Barnes and Noble will be able to recover from this bout, and come back stronger than ever.

References

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