Tag Archives | BusinessWeek

Borders Did Itself In

In an excellent story, Ben Austen of Businessweek confirms that the death of Borders had more to do with bad decisions on its part than e-books rendering dead-tree books obsolete anytime soon:

Nashville’s story is not unique. When Borders declared bankruptcy in February, more than 200 of its 400 outlets were still “highly profitable,” says its final chief executive officer, Mike Edwards. There’s no question that the book industry is in flux, with digital sales last year making up about $900 million of the $28 billion-a-year market and increasing fast. But a sizable portion of the book business is still taking place in actual stores. Barnes & Noble (BKS), the nation’s largest book retailer, hasn’t been forced to close its 700 locations. Thus, it wasn’t Amazon (AMZN) —or Amazon alone—that sank Borders. “When there’s a massive transition in an industry, the strong players make it through to the other side,” explains David A. Schick, a retail analyst who covers booksellers for Stifel Nicolaus Equity Research (SF). “What gets caught up in the change are the weaker players.”

Be the first to comment

Harry Elsewhere on the Web This Week

I’m in chilly New York rather than rainy San Francisco right now. And while I’m here, I’m guesting on two Web video broadcasts you might want to catch:

* At 1pm ET on Thursday, I’ll talk about collaborative tools–their potential and pitfalls–on a BusinessWeek Webcast. You can sign up for it here.

* At 3pm ET on Friday, I”ll join Fox News’s Clayton Morris as one of the guests on his Gadgets and Games show, part of FoxNews.com’s Strategy Room.

Two very different topics–but I plan to have fun discussing both of ’em…

One comment