Borders, Losing its Edge
The book store Borders and been closing its doors in many locations. Borders the once great bookstore thrived on the experience that it gave its customers, but the experience isn’t enough anymore. Besides the experience, Borders prided itself on its enormous inventory of books. Because of the collection of books, the bookstore needed large stores which incur huge overhead costs.
Borders has been making some bad investments in media and technology. It invested heavily in CDs, DVDs and stationary when the world was moving towards MP3s, Blurays, and electronic communication. Borders was also a late bloomer getting into the online book sales which has been hard to make up. In hindsight, the right choices are quite obvious.
With many of its locations closing, smaller ma and pa bookstores are supplying the demand for books now. Although this is quite unusual, experts believe that it is normal for the book industry.
In what situation do you think we would see the dissolution of Walmart? Armageddon?