Borders was founded in Michigan, as an independent secondhand bookshop. Louis and Tom Borders opened the store in 1971. Serving the University of Michigan’s booming academic community as well as smaller universities. The company managed to grow to over 500 locations globally before declaring bankruptcy in 2011.
Size used to be an advantage. Borders developed its reputation by stocking tens of thousands of book volumes in a single location at a time when most bookstores could only afford a fraction of that. However, by the mid-1990s, Borders had lost its competitive advantage. This huge bookstore chain, once known as a retail juggernaut had to face bankruptcy. What went wrong?
Late to the internet
Consider Barnes & Noble as an example. They invested in increasing its online sales. They eventually created their own e-reader, the Nook.
Borders, however, did not. Borders instead enlarged its physical facility. They remodeled their locations, and outsourced its internet sales to Amazon. Borders suffered as a result of so many people purchasing books online.
Failed expansion strategy
It was the mid-90s when Amazon began as an online book store, and Borders committed what was, in retrospect, a major strategic blunder. Instead of launching its own projects on the fledgling Internet, Borders expanded internationally, establishing a sizeable presence in the United Kingdom and adding outlets as far afield as Malaysia and Singapore. This global growth appears to have distorted the emphasis on Borders’ US operations. The international plan ultimately failed.
Outdated marketing techniques
Borders was also slower than it should have been in adopting new marketing strategies. They decided to make a significant investment in merchandise. The problem is, Borders invested heavily in CD and DVD sales at a time when the industry was transitioning to a digital era, people were starting to use MP3’s and iPods instead.
Is this a reflection of the type of world we live in now?
Do physical bookstores still serve relevance in our technology driven lifestyles?
It’s safe to say that already there isn’t much need for physical bookstores. You can get any book you want from online merchants. Some may argue that browsing among the alternatives is an important part of the “book buying experience.” Being able to go down an isle and allowing the book cover or title capture your eye. There is, however, an online alternative: LibraryThing.
We don’t believe that customers of a bookstore will go bereft of books and places to acquire them if bookstores would close down. A couple clicks and a credit card can bring books from almost any corner of the world right to your doorstep.
Our world is constantly evolving and technology will continue to play a significant role in the changes we make. We as consumers have to learn to adapt to technology quickly and keep up with the momentum.
What about in 20 years?
The younger generations of right now hold the key to the future of reading and book culture. In 20 years they will be the ones in charge. However, the reading culture amongst the younger generation is undoubtedly dwindling, but those who maintain the culture seek convenience, and online buying is the most convenient option.
So, in 20 years there probably won’t be physical bookstores. Maybe there won’t even be physical books. With the way the younger generations would rather read content from Twitter and Instagram on a digital device, it wouldn’t be surprising if we transition to full e-reading only.
All we know for certain is that technology has made our lives easier, faster, and more enjoyable. E-reader devices, in particular, have made it simpler to read while on the go. An e-reader gadget may store hundreds of books while taking up no physical space. It’s a terrific approach to have a variety of selections on hand.
So, one day, it may be deemed that both physical bookstores and books have online equivalents that everyone prefers, and the physical options will cease to exist. We’ll just have to wait and see.
Sources: Reference For Business, NPR, The Wall Street Journal
