B&N CEO Fired

Originally Posted by fjtorres

You are assuming that Riggio and the Board are absolutely right and Mr. Boire is absolutely wrong.

Considering how screwed up B&N has been for most of the decade, long before he was hired, might it not be that the board didn't like what he had to say after seeing how the company really works on the inside?

Not every fired exec is fired for actual incompetence. Sometimes the exec is competent and trying to do the right thing but the rest of the company is refusing to take its medicine. Howard Stringer's tenure at Sony is a classic example.

Companies have internal cultures and when outsiders come in and try to change that culture the pushback can be fierce. Sometime the exec wins, sometimes the exec loses. Quite often the exec is eventually proven correct, which is one reason we hear so much about the few that truly screw up.

Since most of those contracts come with NDAs we'll probably never know what really went on there. Unless B&N implodes or somebody tries to scapegoat him.

I guess humor just goes right past you, unnoticed...

[fjtorres]

Originally Posted by GA Russell

fjt, I would like to hear your Howard Stringer story!

It's a long and ugly story but in short:
Until Stringer came along, Sony never sunset any business they entered. Cheap lead acid batteries for boom boxes, 60's style transistor radios, $5 earbuds, they had a hundred business that had long since stopped making money so the board put him in charge. But the corporate VPs and unit managers ignored their marching orders and kept on keeping on.

It was so bad that the Playstation chief, Kutaragi, lied to the board about the build cost of the Playstation three and on his own authority added a $499 model that was barely $10 cheaper to build than the $599 model. The first Stringer and the board heard of it was at the PS3 introductory presser. Some reports said the first PS3's cost $900 to build and Sony lost over $2B on PS3 the first year alone. By the time they got build costs to breakeven PS3 lost them more money than PS2 ever made.

In Japan, no exec ever gets fired. They just get reassigned to an irrelevant post in the company. Kutaragi got fired. Officially he was heading up a Sony funded standalone subsidiary but he was gone from Sony. That is a fired as a japanese exec gets fired.

http://www.gamespot.com/articles/wsj.../1100-6166821/

http://www.forbes.com/2007/04/26/kut...acescan01.html


Thinking the corporate types were ignoring Stringer because he was a foreigner, the board brought Kaz Hirai back from the US to be Stringer's Deputy and downwards interface. Still no improvement. In the end the board bought Stringer out, promoted Hirai, and sold off a bunch of units just to get out of those businesses. They're still bleeding but at least PS4 is cash positive and the TV business is no longer a sinkhole. I think they even made a profit for the first time in ten years.

They were trying to run a 21st century consumer electronics company by 1950 rules. Not unlike B&N trying to run 1990's style book warehouses in today's environment. Not a good fit.

Considering that by B&N financials they have somehow managed the feat of never ever making money off ebooks I don't think Boire or Leach are necessarily the bad guys. Maybe they are but there's deeper issues at play there.

[GA Russell]

Thanks. It's my recollection that I never read anything good about Stringer.

[fjtorres]

Originally Posted by GA Russell

Thanks. It's my recollection that I never read anything good about Stringer.

Oh, like most high level execs he never left a horde of fans behind. Anywhere.
But Sony was a mess when he arrived and that it was a mess when he left wasn't his doing. It took Sony 50 years to build up that silo culture and Stringer barely had seven years to try to change the it.
Leaders need followers and good leaders need good followers. Some companies are too dysfunctional for even the best leaders. Which isn't to say Stringer (or Boire) was close to great. But both conpanies are seriously screwed up. Still.

[MikeB1972]

Originally Posted by GA Russell

I disagree with the BBC's point quoted in post #29 above that people buy from Amazon because their prices are lower.

I believe that people shop at Costco (and their competitors) because of their lower prices.

I believe that people buy from Amazon because

a) you can count on Amazon's books to be cleaner (as in, relatively germ-free), and

b) one-stop shopping is easier.

I'm obviously not paranoid enough, not once did I think a book may be infested with germs

Not prepared at all, I'm going to be in so much trouble during the zombie apocalypse.

The other reason to shop at Amazon, of course, is that they have everything. I can no longer find anything if I try to sort by price but that's a different story.

[murg]

Originally Posted by GA Russell

I disagree with the BBC's point quoted in post #29 above that people buy from Amazon because their prices are lower.

I believe that people shop at Costco (and their competitors) because of their lower prices.

I believe that people buy from Amazon because

a) you can count on Amazon's books to be cleaner (as in, relatively germ-free), and

b) one-stop shopping is easier.

Originally Posted by kennyc

c) I don't have to leave my house.

d) I can shop for books in my underwear (or less).

[Connallmac]

Originally Posted by Teyrnon

Can't it be saved? It seems to me that there is still a future for brick and mortar bookstores though not in their current form. It'd take forward thinking, creativity, a passion for book selling, and a willingness to embrace changing paradigms. Granted we're unlikely to see those qualities coming from a big corporate chain.

The model that B&N built is no longer competitive. Sure they can stock a lot of books, but they can never stock as many as Amazon. Is there a new model that could work in today's retail environment? Possibly, but who would be willing to invest in with what's happening with B&N?

The best thing B&N could do is take a trip through Chapter 11, lose a lot of it's bigger real-estate, and build a smaller floorplan completely focused on books. I can buy a big best-seller at Wal-Mart or Costco or any one of a number of other places that sells a small selection of books. Focus in on the core business of books and go after readers who read beyond the best-seller list.

[fjtorres]

Originally Posted by Connallmac

The model that B&N built is no longer competitive. Sure they can stock a lot of books, but they can never stock as many as Amazon. Is there a new model that could work in today's retail environment? Possibly, but who would be willing to invest in with what's happening with B&N?

The best thing B&N could do is take a trip through Chapter 11, lose a lot of it's bigger real-estate, and build a smaller floorplan completely focused on books. I can buy a big best-seller at Wal-Mart or Costco or any one of a number of other places that sells a small selection of books. Focus in on the core business of books and go after readers who read beyond the best-seller list.

Or, like B. Dalton did, focus on the bestsellers and go very small. Then use POD to expand the in-store catalog and modern logistics for ship to store online sales and next day special order home delivery. Whatever one may think of the Amazon B&M store it is clearly an extension of their online operations not a separate disconnected effort like B&N online, Nook, and the storefronts.

B&N already has a fairly decent logistics system but it isn't as good as it needs to be and it needs to be better integrated with online and digital.

Essentially, for B&M to prosper the meaning of the term needs to change from Bricks & Mortar to Bits & Mortar. Less real estate and more tech.

[shalym]

Originally Posted by fjtorres

Or, like B. Dalton did, focus on the bestsellers and go very small. Then use POD to expand the in-store catalog and modern logistics for ship to store online sales and next day special order home delivery. Whatever one may think of the Amazon B&M store it is clearly an extension of their online operations not a separate disconnected effort like B&N online, Nook, and the storefronts.

B&N already has a fairly decent logistics system but it isn't as good as it needs to be and it needs to be better integrated with online and digital.

Essentially, for B&M to prosper the meaning of the term needs to change from Bricks & Mortar to Bits & Mortar. Less real estate and more tech.

I would LOVE to go into a book store that has, in addition to a small selection of paper books, cards with book covers and blurbs, and the buyer can choose to either buy in Kindle format, (bookstore gets a kickback from Amazon) buy in epub format, (bookstore can be affiliated with Kobo or another epub seller so they don't have to have their own ADE server) or POD. Ideally, this book store will also have a coffee shop with comfy chairs, a few small tables, and a variety of music playing.

Someday, I may open this store.

Shari

[kennyc]

Just like Libraries are changing: http://denver.cbslocal.com/2016/08/1...ublic-library/

[fjtorres]

Originally Posted by shalym

I would LOVE to go into a book store that has, in addition to a small selection of paper books, cards with book covers and blurbs, and the buyer can choose to either buy in Kindle format, (bookstore gets a kickback from Amazon) buy in epub format, (bookstore can be affiliated with Kobo or another epub seller so they don't have to have their own ADE server) or POD. Ideally, this book store will also have a coffee shop with comfy chairs, a few small tables, and a variety of music playing.

Someday, I may open this store.

Shari

Or, instead of cards, touchscreens cycling through genre specific covers that can let you surf that genre's catalog and buy right there. Your choice of Kindle, epub (if available) print in a variety of size formats including large print for POD or home delivery. The screen could even be used to solicit recommendations based on a form listing examples of books (or book traits) you like.

It's not hard to imagine a modern book store that can compete with online on features and services. You just have to think of what readers need/want instead of what publishers want.

[shalym]

Originally Posted by fjtorres

Or, instead of cards, touchscreens cycling through genre specific covers that can let you surf that genre's catalog and buy right there. Your choice of Kindle, epub (if available) print in a variety of size formats including large print for POD or home delivery. The screen could even be used to solicit recommendations based on a form listing examples of books (or book traits) you like.

It's not hard to imagine a modern book store that can compete with online on features and services. You just have to think of what readers need/want instead of what publishers want.

Or cards on shelves like books, AND touchscreens at the end of every aisle. Someday.

Shari

[kennyc]

Originally Posted by fjtorres

Or, instead of cards, touchscreens cycling through genre specific covers that can let you surf that genre's catalog and buy right there. Your choice of Kindle, epub (if available) print in a variety of size formats including large print for POD or home delivery. The screen could even be used to solicit recommendations based on a form listing examples of books (or book traits) you like.

It's not hard to imagine a modern book store that can compete with online on features and services. You just have to think of what readers need/want instead of what publishers want.

But why would I go to a store like that when I can do it from the comfort of my home.

[shalym]

Originally Posted by kennyc

But why would I go to a store like that when I can do it from the comfort of my home.

This is for the people who LIKE to go to the book store and see the covers on the shelf. I picture a place like this in a town/city where people walk a lot, like Northampton MA or Port Townsend WA. (two of my favorite places )

Shari

[kennyc]

Originally Posted by shalym

This is for the people who LIKE to go to the book store and see the covers on the shelf. I picture a place like this in a town/city where people walk a lot, like Northampton MA or Port Townsend WA. (two of my favorite places )

Shari

Not gonna work.

I can see the covers on the shelf, the descriptions, the reviews, etc. right here on the screen.

I walk (usually) twice a day, to the park, through nature, along the canal or creek.