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the rebirth of Barnes and Noble

Nir Levy
March 23, 2012

the rebirth of Barnes and Noble

Emory University Undergraduates studying under Joey Reiman of BrightHouse.

Nir Levy

March 23, 2012
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  1. 1
    Bryan Fedner, Tyler Feinerman, Nicky
    Henderson, Vitaliy Kats, Nir Levy
    t h e r e b i r t h o f
    Copyright 2012 Bryan Fedner, Tyler Feinerman, Nicky Henderson, Vitaliy Kats, and Nir Levy
    of Emory Goizueta BBA “Ideation” Course by Joey Reiman of BrightHouse

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  2. today
    more than ever,
    OUR WORLD
    demands us.

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  3. P RO C E S S M A P
    Founder’s
    Journey
    History & Purpose
    MASTER IDEA
    & MASTER ACT
    Present
    Position
    Market
    Difficulties
    Ethotic
    Themes
    Illumination
    sharing knowledge
    Process
    Explanation
    Incubation

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  4. ethos culture values strategy tactics
    M A S T E R I D E A P RO C E S S
    w h y
    A Master Idea articulates the unifying theme that aligns a company’s
    ideals, values, goals and objectives. It distinguishes the organization’s
    purpose and helps guide it towards an inspirational and authentic brand.
    The Master Idea drives the organization in the direction of realizing its
    maximum potential. It both empowers and transforms
    individuals to revolutionize the world around them.


    w h a t h o w

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  5. M A S T E R I D E A P RO C E S S
    _ A master idea teaches
    _ A master idea is timeless
    _ A master idea is a battle cry
    _ A master idea is transformative
    _ A master idea articulates a possibility that inspires
    _ A master idea is derived from the ethos of a company
    _ A master idea is born not from data but from absolute conviction
    _ A master idea fulfills a desire fundamental to each and everyone of us
    I N V E S T I G AT I O N
    I L L U M I N AT I O N
    I N C U B AT I O N
    I L L U S T R AT I O N
    {
    g o a l s
    E T H O S
    M A S T E R
    I D E A & A C T

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  6. 2


    Visionary that started selling books from his
    home in Wheaton, Illinois.
    So motivated to spread knowledge, he sold
    books out of a wheelbarrow at the train station.
    As a true intellectual, he was inspired by his
    mentor, Wheaton College President, Jonathan
    Blanchard to promote education.
    Determined to reach more people, he moved to
    Chicago to sell textbooks, stationary, and
    school supplies too.

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  7. Serve Human Kind: Distribute and share knowledge in a! its forms!
    Our founder payed special attention to Jonathan Blanchard, following him all the
    way to Wheaton. His noble act of sharing continues to evolve. We became society’s
    largest book shelf. People flock for our guidance, our collections, and the
    illumination we gift to society.
    Building character with characters, Barnes and Noble continues to make stories
    more and more available, to more and more people.
    Inspired by educators to educate others!
    It’s up to us to hand words
    from one generation to the next.
    It’s noble work to transfer and house knowledge.
    E T H O S E XC AVAT I O N
    C H A R L E S M . B A R N E S

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  8. - Annual Report
    “We have transformed our company $om being the nation’s largest bookse!er, into one of
    the world’s fastest growing providers of digital content.”
    “Barnes & Noble has repositioned its business $om a store-based model to a multi-
    channel model centered in Internet and digital commerce”.
    “A true passion for book selling in all its forms.”
    “Customers te! us they prefer... our stores because of the outstanding service and
    navigation we provide”.
    C U R R E N T C U LT U R E

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  9. To what extent is B&N a divided
    firm chasing money rather than
    executing on purpose?
    Fewer adults are buying books as gifts.
    eBook sales are not rising as rapidly as expected.
    Piracy and rapid cannibalization of paper backs
    reduce market size.
    Infrequent consumers are buying less.

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  10. Given today’s challenges,
    themes from the past
    illuminate future success.
    1995 2000 2005 2010
    $20
    $30
    $40
    Should we spin NOOK
    into an independent company?
    Why are book sales
    falling so steeply?
    What is inhibiting further
    internal innovation?
    Are we positioned to benefit
    from market forces?
    Are NOOKS captivating
    consumers like we
    envisioned?
    Innovation or stagnation?
    What is the future
    of textbooks?

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  11. UNCERTAINTY
    our answer to
    is history
    “OUR SPINE”

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  12. 5000 years ago - Mesopotamians unknowingly started human history by scratching bookkeeping symbols on clay 5,000 years ago.
    The written word is the fundamental record for human knowledge.
    1440 - Germany, Johann Gutenberg invented movable type with cast metal characters and a wooden press.
    1690 - America’s first paper is published in Boston.
    1873 - Charles M. Barnes starts selling books in a wheelbarrow in Wheaton, Illinois.
    1876 - Business expands to Chicago
    1894 - Business is reorganized as C. M. Barnes Company
    1894 - Founder’s son sells his interest in the firm and acquires a stake in Noble & Noble. Renamed Barnes & Noble.
    1917 - Noble withdraws but the name sticks.
    1929 - Flagship retail location opens on Fifth Avenue and 18th Street.
    1932 - Founder’s grandson, John, dies and the company is sold to Amtel, Inc.
    1969 - Leonard Riggio purchases Barnes & Noble.
    1871 - Acquires B. Dalton Bookseller Chain
    1986 - Acquired B. Dalton Bookseller Chain
    1990 - Barnes and Noble superstore is introduced. Rapid retail expansion and growth.
    1993 - Barnes and Noble goes Public
    1997 - Barnesandnoble.com is launched
    1998 - Beterlsmann AG acquires a 50 percent stake in barnesandnoble.com
    1999 - BarnesandNoble.com files for IPO
    2003 - Sterling Publishing Co. is purchased
    2009 - NOOK e-reader is launched
    2010 - Google estimated that since the invention of printing, about 130,000,000 unique titles have been published.
    Growth through restructuring with new business units.
    Multimedia & multi-platform distribution of knowledge.
    Despite several considerable
    changes in ownership structure,
    we’re a 139 year old name
    born $om 5,000 years of written words.

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  13. S P I N E
    o u r
    We solicit wide and curious eyes not pennies and dimes. We’re the
    force behind the flow in the river of knowledge, where people come
    to learn and share ideas. Our community keeps us afloat.
    Re-Invent the
    Wheelbarrow
    Tip of the Tongue
    Mentor Every Mind
    Community Over Sales
    Encourage visitors as well as peers to perform at their best. Help
    them acquire the very best sources, ones that last lifetimes.
    Be the Spine of Society
    Continue to record and preserve all noble works, to link
    generation to generation, century to century. After all, books are
    humanity in print.
    We must offer whatever it may be that answers the quests of
    our guests.
    Live Your Story Coming to Barnes & Noble is an experience. Take the opportunity to
    build a story each time a customer comes through our doors.
    From book to nook, constant innovation to share knowledge in
    different forms and media is our calling.
    r e m e m b e r o u r s p i n e

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  14. Gutenberg
    Printing Press
    Neighborhood
    Coffee Shops
    World
    Wide Web
    Big Box
    Retailers
    Digital Ink Spills
    Through Society
    1960s
    Internet
    Retail
    1990s
    1980s
    University
    Bookstores
    Electronic
    Readers
    Online Social
    Networks
    2020s
    “Big Box”
    Bookstore
    Education &
    Knowledge
    Selling Books
    Locally
    Online
    Bookstore
    1440s
    purpose
    society 1550s 2010s

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  15. I L L U M I N AT I O N
    I N V E S T I G AT I O N
    I L L U M I N AT I O N
    I N C U B AT I O N
    I L L U S T R AT I O N
    E T H O S
    M A S T E R
    I D E A & A C T

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  16. b e c a u s e
    s h a r i n g
    k n o w l e d g e
    i s t h e M O S T
    N O B L E W O R K .

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  17. new footprints
    for the written word.
    Forge
    handheld devices and apps
    the world wide web
    colleges & universities
    Charles Barnes’
    journey continues:
    No matter the struggle, the
    company brings the written
    word to new horizons.
    By wheelbarrow, by train,
    in massive stores and right
    online. In hard cover, soft
    cover and now even in
    digital ink.
    Who will trek if we do not?

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  18. building
    character with
    characters
    Even in our
    modern
    busy world
    filled with animated stories
    and digital creations
    neighbors,
    guests,
    and children
    join us
    as regulars
    for storyte!ing.
    Live and in person
    to bring life
    to curious minds.
    There’s nothing like making a group
    of parents and their children
    smile and laugh
    From one generation
    to the next, our work continues.

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  19. Educate
    In
    Every Media
    For
    Every Mind

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  20. find
    your
    story

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  21. Be the
    soul of
    society

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  22. Shepherding
    knowledge into
    every NOOK
    and cranny.

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  23. I N C U B AT I O N
    I N V E S T I G AT I O N
    I L L U M I N AT I O N
    I N C U B AT I O N
    I L L U S T R AT I O N
    E T H O S
    M A S T E R
    I D E A & A C T

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  24. “Listen to your
    employees, we have a
    wealth of experience and
    knowledge to share, if
    you actually listened”.
    - Jan 24, 2012
    “Unbalanced level of
    productiveness amongst
    managers (one manager does
    everything, while others stay
    in the back office). Product
    prices are so marked up, it is
    difficult to sell without
    regrets” - Feb 1, 2012
    Campbell CA
    “Management does
    not stick up for you,
    it’s always about their
    jobs on the line”
    “Good camaraderie among booksellers
    and middle management... customers are
    usually good, overall a fun retail environment
    with good perks. The corporation is good and
    wants great things for store level employees.
    Drama is very strong there, upper
    management not great at relating to
    floor workers or holding themselves
    accountable.
    Observation: Inconsistent and Broken Leadership in Stress Mode. Isolated Retail Arm.
    “Seems to be less and less credible communication from store
    management and headquarters office. The real precarious position that the
    company is in, is never discussed i.e.: it’s big drop in the value of its stock,
    termination of employees, and store closing. Be more open in plans for
    Barnes and Noble future. Loyal employees will help you attain store goals
    when they know exactly what needs to be done.” -March 12, 2012
    [ I N S I D E R S ]
    Anonymous Employees on www.glassdoor.com (current fiscal year)

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  25. “Cuts in hours have destroyed good customer service ability to do job thoroughly. Almost complete
    lack of training new hires. On your own to figure things out. Lots of emphasis on selling Nook and membership and kids club
    cards.” -March 12, 2012
    C O N S T R A I N E D S TA F F
    “Very demanding work environment. Lots of responsibility.
    Better train staff and encourage promotion within” - Feb 10, 2012
    “The negative corporate culture, including a clear lack of loyalty of most mid-management level employees, reflects upper-
    management’s disregard for anything other than the bottom line. There is absolutely no discussion of career advancement or
    relationship-building that supports employee morale and retention. A number of key players have resigned in the past few
    weeks. There is constant shake-up and turbulence as Barnes and Noble struggles to redefine itself in the digital age. Show
    more respect and appreciation for your current employees. Be more competitive in attracting and retaining top talent.” -
    March 18, 2012 (NY, NY)
    “There is also a lack of initial training for many employees, bringing the production down significantly. There needs to be better
    communication with staff and a clear place where important, upcoming dates can be posted.” -March 4, 2012 (Chicago, IL)
    “They can’t afford to pay the management team as much as the work the are doing warrants. Constant change in the
    workplace because of financial struggles as a company.” - Jan 21, 2012 Houston TX
    Anonymous Employees on www.glassdoor.com (current fiscal year)

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  26. T O R N B Y C H A N G E
    “A good place to work unnerved by its placement
    in the market -- The website, after years of no
    change, has become a product invested in, and the
    work the business and technology folks put into it is
    lately more appreciated. Constant change creates
    uneasy feeling. There’s definitely a David and
    Goliath vibe with respect to Amazon... BN
    management does not hesitate to let people go,
    but decisions that lead to who goes and who stays are
    sometimes personally motivated and suspect” -
    Jan 16, 2012 in New York, NY
    “Company is changing for the worse” -Feb 2, 2012
    (New York, NY)
    “There is no room for personal growth within an
    individual store. Promotions are scarce and pay is low.
    Reduce the amount of managers on duty. There
    have been times when 6 managers and 2 employees
    have been on the floor.” - Feb 20, 2012
    “About sales only, not people or supporting
    literacy. No support from management,
    little to no training, customers receive little if
    any help because hours have been cut
    back.” (Feb 16, 212)
    “Poor communication between company
    management and store employees.”
    “There is a disconnect between
    corporation and store-level management.
    Be more cognizant of what’s going on in your
    stores. You have some EXCELLENT
    employees who are hard-working and smart.
    Don’t take for granted that your upper level
    managers are always doing what they should.
    District Manager involvement is the best way
    to curb store manager complacency. Miss you
    guys though!” - Feb 14, 2012 Frenso CA
    Anonymous Employees on www.glassdoor.com (current fiscal year)

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  27. [ I N S I D E R S ]
    sales rep
    A struggling artist on the side that was very concerned with orderly cleaning, even while we talked he
    tended to the items on the shelves. Store arrangements are clearly a creative expression, especially
    the isle end caps where store staff have considerable freedom. He noted with pride that the children’s
    reading attracts regulars. Even as a college store staffer, he mostly serves neighbors. He formerly
    managed a Borders store, a company that turned into everything it stood against: “big and nasty”.
    Same thing happening at B&N? Clearly, he felt distant from other company devisions.
    {
    Chris
    “The whole store is a family. The managers (at my store, at least) go out of their way to support their
    employees. I genuinely feel that they care about me as an individual and want to support me. The
    store is fun, the managers are up-front with the employees, problems are resolved quickly, everyone
    is friendly, and they generally recognize that their employees are intelligent and have important
    things to add to the business Continue the in store contests! It really got us fired up about our jobs.”
    - December 16, 2011
    “Sometimes it is an amazing place to work and you have the opportunity to surround yourself with
    knowledge”. - Jan 12, 2012
    }hidden spark

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  28. L U M I N A R I E S
    Librarian
    The future of books is in embedded media objects, applications, and even spreadsheets. It presents
    “a new narrative zone”. As a result of a discussion of the functions of libraries, we can identify what
    will keep libraries relevant and apply concepts to Barnes and Noble. Libraries preserve things, they
    house readers and staff, they keep historical pieces, they are clean, well-lit and comfortable places,
    they promote study by individuals and groups, they promote social exchange, they are places people
    know they can get help in this one zone of intellectual exploration and they are homes to exhibits
    that excite the mind.
    {
    Michael A.
    Kelle
    at Stanford University
    << conclusion
    We must actively search for innovation through forging new paths for the written word. We must focus on the
    fundamental experience of learning to foster the sharing of knowledge in the most inspiring and encompassing
    way by creating a creative atmosphere that promotes learning through every form of distribution.

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  29. L U M I N A R I E S Poet
    15 years ago B&N was evil among scholarly readers because they were killing small
    bookstores. Bruce ran a small bookstore in Connecticut at the time. B&N and Ingram
    (large publisher) tried to team up, which people thought was the end of the world. Wal-
    Mart-esque evil. They had tons of publishing power. If they chose not to carry a book, a
    publisher may choose not to put a book out because it was no longer worth it.
    B uc
    Cove Emory University
    Now, B&N is suddenly the only hope that scholarly readers have left for the existence of books.
    Cody's (in San Fran) closed.
    Gotham bookstores in NYC is doing terribly.
    If NYC can't support bookstores then?....B&N has turned over a new leaf.
    “THEY'VE TAKEN UP THE CAUSE OF READING”
    They work to stock local authors, support small presses.
    Reflecting on Barnes and Noble Brand and History

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  30. L U M I N A R I E S Poet
    B uc
    Cove Emory University
    Reflecting on B&N’s Role in Society
    The way that we process knowledge has changed. Facts have become fast -- faster than print? We've moved
    from the book being the source of knowledge, to considering what kind of knowledge needs to be
    sourced in a book. The more specific a topic, the more likely it exists on the web. Exceptions: Art
    books, CHILDREN'S BOOKS.
    Larry Sawyer of the Chicago school of poetics (Bruce's colleague) said that the book itself is now a
    commodity -- books are no longer read; they are consumed. In other words, the fact that the info is IN
    A book is part of the commodity.
    What we love about physical bookstores/books:
    SENSE OF DISCOVERY, different sensory experience (touching, holding the book), being around
    readings/readers, it’s NOT A SOLITARY EXPERIENCE. Book becomes an emblem of the human. A
    test case is poetry -- despite the "death" of books, poetry books are now selling more than ever because
    the creation of a physical book is a part of the commodity that the author makes. IT'S ABOUT THE
    AUTHOR JUST AS MUCH AS THE READER - they want to know that they have MADE
    SOMETHING. We love physical books for FOR THE COINCIDENCES: walking around, finding
    someone/something that you like amongst a pile of other things. IT'S LIKE SOMEONE TALKING
    TO YOU. The tactile process is INHERENTLY HUMAN..

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  31. I L L U S T R AT I O N
    I N V E S T I G AT I O N
    I L L U M I N AT I O N
    I L L U S T R AT I O N
    E T H O S
    M A S T E R
    I D E A & A C T
    I N C U B AT I O N

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  32. 1
    Bryan Fedner, Tyler Feinerman, Nicky
    Henderson, Vitaliy Kats, Nir Levy
    w e t u r n t h e p a g e
    t o g e t h e r

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  33. w e t u r n t h e p a g e
    t o g e t h e r
    DESERTED
    RETAIL STORES
    WEAK
    NOOK SALES
    FRUSTRATING
    COLLEGE BOOK STORES
    CENTERS FOR
    COMMUNITY
    HUBS OF THE
    FUTURE
    NOOKS FOR
    DISCOVERY
    I N T E R N E T
    R E TA I L
    D E V I C E S
    E X P E R I E N C E
    A N D A P P S
    C O M M E RC E

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  34. A C T
    M A S T E R
    Let’s break the world record for number of communities reading together. Live,
    streaming on the web, on millions of devices, in millions of Nooks. Everyone, as
    one reading, a timeless paragraph such as the introductory paragraph of “A Tale
    of Two Cities”.
    BREAKING WORLD RECORDS

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  35. _ Neutral distraction free space for students to explore and for adults to learn.
    _ Close partnerships with universities across the nation.
    _ Unique tactile interaction with local neighbors.
    _ Human touch and personal care to guide all.
    _ Innovation of purpose driven devices for reading.
    I L L U S T R AT I O N
    M A S T E R
    I D E A & A C T





    CAPABILITIES
    BUILD A
    BOOK
    }
    { SHARING
    STATION
    }
    {
    INITIATIVES
    INCUBATION
    ROOMS
    }
    { STUDY
    NOOKS
    }
    {
    RETAIL & TECH
    WHEEL IN
    KNOWLEDGE
    }
    {

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  36. View Slide

  37. STUDY NOOKS
    I L L U S T R AT I O N
    M A S T E R
    I D E A & A C T
    SOCIAL SPACE FOR GROUPS

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  38. promote coincidences and discovery: dig for books in a wheelbarrow
    inspire the underprivileged: share books with troubling school districts
    swipe through pages of
    DIGITAL INK
    with your book club
    G I F T O F K N OW L E D G E
    G I F T C A R D
    $50
    N O O K B O O K
    track your readings. 10 days to exchange your
    purchase as many times as you want.
    I L L U S T R AT I O N
    M A S T E R
    I D E A & A C T

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  39. ?
    then ask us anything.
    http://www.youtube.com/watch?v=THE5n1x_Zt0

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  40. H I S N A M E WA S
    C H A R L E S M . B A R N E S
    A N D H I S W H E E L B A R ROW I S N OW & F O R E V E R

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  41. W E A R E
    A N D T O G E T H E R
    WE TURN THE PAGE

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  42. I N V E S T I G AT I O N

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  43. O N C E U P O N A
    T I M E

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  44. a y o u n g m a n
    A R R I V E D
    i n t h e s m a l l t o w n o f
    W H E AT O N , I L L I N O I S

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  45. I N S P I R E D
    T O F O L L OW
    H I S C O L L E G E
    M E N T O R

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  46. H E H A D
    P U R P O S E
    P U R P O S E

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  47. T O S P R E A D
    P U R P O S E
    K N OW L E D G E

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  48. T O A L L OW &
    P U R P O S E
    E N C O U R A G E
    O T H E R S T O B E T T E R
    T H E M S E LV E S

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  49. H E C O L L E C T E D
    P U R P O S E
    B O O K S
    & S O L D

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  50. w i t h o n l y a
    P U R P O S E
    W H E E L B A R ROW
    a t t h e l o c a l
    T R A I N S T O P.

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