How Barnes & Noble Can Take a Bite Out of Amazon

Barnes & Noble’s strategy is to do everything that Amazon does, but to do it later. It’s rare in corporate America that a management fights so hard to be #2. This is not the same thing as the Avis car rental company’s media strategy of old: “We’re #2, so we have to try harder.” At the time of the Avis campaign, Avis was in fact tied for #2 with National Car Rental, behind #1 Hertz. Avis’s target was National, not Hertz. It was a winner. But the B&N strategy is of a different kind, a deliberate effort to be second best.

I happen to believe that B&N’s position is better than many pundits would have it. Comparing B&N to Borders is a mistake; Borders was a shipwreck even in a strong economy. B&N has displayed great skill in managing its bricks-and-mortar stores and has surprised everyone by coming from behind and grabbing 25% of the e-book market. B&N has also attracted investment from Liberty Media, which could help in getting the kind of media properties it feels it needs for the Nook tablet, though that in itself may not help it with its book business.

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