Photo: Wikimedia Commons
Since the mid-Nineties, the key difference between Borders and Barnes & Noble was their online strategy (via @edwardnh).B&N invested in online sales and introduced its own e-reader.
It made a pretty big bet in merchandising. [Borders] went heavy into CD music sales and DVD, just as the industry was going digital. And at that same time, Barnes & Noble was pulling back,” says Peter Wahlstrom, who tracks Barnes & Noble for the investment research firm Morningstar…
[I]t expanded its physical plant, refurbished its stores and outsourced its online sales operation to Amazon.
“In our view, that was more like handing the keys over to a direct competitor,” Wahlstrom says.