Tag Archives: competition

Why Barnes & Noble’s Nook Failed

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"I read all of Duane Gundrum's books because he's so dreamy...."
“I read all of Duane Gundrum’s books because he’s so dreamy….”

Unfortunately, it’s been predicted for some time that Barnes & Noble was going to distance itself from the Nook, and thus, the e-book market. So, it seems that moment is coming to pass. Speculators assume that Barnes & Noble will attempt to continue on as a brick and mortar (physical presence only) store and sell off all of its e-book stuff. Well, in case it’s not readily apparent, the problem with that is that without an actual device to continue to hype the market of products, the Nook is going to die out as people are going to see the Kindle as a continuing vehicle and the Nook as dead in the water. Sure, they can survive on apps for awhile, but eventually people are going to see the writing on the wall and choose to go with a platform that looks like it is going to survive the next wave of changes.

But the point of this post isn’t to talk about the future of Barnes & Noble, because to be honest, I have no idea what is going to happen to that company. However, what I can do is talk about what happened to the company, specifically as to why the Nook didn’t become the all-winning vehicle they were hoping it would be. To understand this, we have to use our little go back in time feature and see what was happening when the Nook launched with all intentions of challenging the new kid on the block, the Kindle.

Back then, Barnes & Noble was the big kid on the block. He’d already beat up every brick and mortar store that existed before him, and he was rearing to go after the next challenge. Only, the next challenge wasn’t another physical store, but an online one that promised to lower prices and produce a better shopping experience. Now, I wish to harp on the latter of those intentions because Barnes & Noble stupidly focused only on the first: Lower prices. And unfortunately, Barnes & Noble didn’t handle that one well either.

The Kindle offered books at lower prices than you could buy them at retail stores. This was huge. When the Nook launched, it attempted to “discount” prices as well, but if you held up both side by side (and I used to do this a lot), what you discovered was that most of the time the Kindle price was exactly the same as, or cheaper, than the Nook price for a book. And then you started to see more and more choices being offered on the Kindle, which made having a Nook kind of a stupid purchase because if you couldn’t find everything, and couldn’t find it cheaper, you bought a pretty stupid device.

But the second point is the one I want to talk about the most because that’s where I truly feel that Barnes & Noble failed with its Nook. What Amazon offered with its Kindle was not only lower prices, but it offered a better customer experience, meaning that if you were looking for something, the Kindle actually cared about helping you find it. This meant that as you bought more books, the algorithms that worked within Amazon served to make recommendations to help you find things that you might want in the future. The more you bought and searched, the more likely the device was going to serve to help you find exactly what you might want, even if you didn’t realize you wanted it.

The Nook, on the other hand, basically offered you whatever the publishers were selling, and it put its placement completely determined by the legacy model of the highest bidder (or largest publisher with more prestige). After a few purchases on a Nook, if you were looking for a new book, every new search was like starting out from the very beginning again. In other words, you were screwed. If you didn’t want only the most popular book out there, you had to figure out what you wanted on your own.

The problem B&N made was that it assumed that cheaper prices (less than you’d pay for the hard copy of the book) was more than enough to produce decent profit. But they didn’t take into account that they had to be cheaper than the competition, not just cheaper than their own posted price for the retail version of the hard copy. And then they made the customer experience as bad as an Internet search could be back before Google was invented. You basically had to do a search with the intention of hoping to get lucky in order to find the thing you were looking for. This was great if you were looking for a copy of 50 Shades of Gray, but it wasn’t so great if you were looking for new, independent writers who might be making a splash in an obscure genre, but a genre of which you often spent a lot of money. The Kindle, however, did this extraordinarily well.

So, it shouldn’t come as any surprise which device, and which company, won the battle. The war isn’t over, but quite a few of the initial battles were quite decisive, so the outcome seems somewhat conclusive.

Will the Amazon Kindle Fire Defeat the Powerful Apple Ipad 2?

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I’m reading a lot of blogging that is exactly this subject: Will the Amazon Kindle Fire defeat the powerful Apple Ipad 2? I’m going to go out on a limb and just say no. It won’t. But instead of treating this as an either/or situation, I’m going to talk about why the question shouldn’t be asked in the first place.

You see, the Apple Ipad is in a class of its own, a class to which no tablet has come close yet. The Motorola Xoom was released as the potential “Ipad killer” but it did no such thing. As a matter of fact, shortly after releasing the Motorola Xoom, the Motorola Xoom became the Motorola Xoom killer. It was decently constructed, had no apps made for it and relied on an app market that is woefully inadequate. To this day, I have a Xoom but I don’t use it for anything other than checking email at night (while my Ipad charges). Even when you found an app that might work for it, quite often it didn’t, and instead you ended up having to uninstall something you paid for (and couldn’t get paid back for if it didn’t work).

For months now, the talk has been all about the new tablet that was going to be released by Amazon. And it looks like it’s about to be released. Here are some of the particulars:

It has only wifi, it’s in color, and it has some apps it can run but they come mainly from Amazon’s online app store. It only has 8 gigs of RAM, and they’re not planning to up that on this particular model (although they might on subsequent versions of the model to be released later). Like I said, it has wifi only, so there’s no 3G, like you get for the main Kindle. And it will cost about $199.

Thoughts? The price is great. It serves as a great replacement for a Kindle if you already have one. It will do a few more things than a Kindle can do, like check email, and maybe play some music and videos (not sure on that last one yet, although details seem to point in that direction). What I really like about it is that now I can read books on a Kindle that has color (whereas I was reading my Kindle books on a Kindle app on my Ipad, because it was the only way to see color on a Kindle-bought book).

It’s not a replacement for the Ipad because it’s not as powerful as an Ipad, doesn’t do as much as an Ipad, and well, it’s just not an Ipad. It’s another Kindle, which will do what normal Kindles do, but be more like a Barnes & Noble Nook Color but not as dysfunctional as that product.

I’ll probably buy one. Do I need one? No. Not really. But I have a Kindle, and I like my Kindle. This will be a Kindle capable of doing more things than my current day Kindle, and I sort of like that. But it won’t replace my Ipad, which is still the one device I carry with me everywhere.