for William Lynch (William Lynch), Barnes &noble CEO three years, may be the most painful to retail business, he had had for so many years, the most difficult time. Despite his foresight in an attempt to make this one hundred – year – old Barnes (140) for transition, but the pay was not equal return, is to make the situation even more severe. In order to preempt the mobile reading terminal, Barnes burned for about $1 billion, can be in addition to its e-readers perfunctory, from Barnes tablet has not been recognized by the market. After years of huge losses, lynch in February this year, said: “Barnes will abandon the Nook series production of hardware products.” (detailed)
him to take a tumble. June, lynch announced a set of data: more let investors chilling by the end of the April this year, the Nook department has already reached the losses of $475 million, much higher than the previous year. Only two weeks later, on July 8, foreign media revealed lynch announced his resignation as Barnes &noble chief executive. Since then, Barnes &noble’s largest shareholders and the company President, Leonard, gonow (Leonard Riggio) took just 30 praise words to express the lynch.
the 43-year-old lynch gloriously became Barnes & noble and amazon and apple the two giants in the battle for victims. Beat him, however, was none other than his own ambition and high morale. as Simba Information company (Simba Information, a market research company), a senior analyst Michael Norris (Michael Norris) puts it: “he was dazzled by his blind confidence and overly optimistic (lynch) mind, like a drink too much” number “of the drunk. When the company inside a lot of people are worried about the prospect of Barnes, lynch has always been in accordance with their own ideas. He is both the largest bookstore chain, head of the dreamer in silicon valley. Lynch wants to change the Barnes, want to bring fresh blood to the old. Television interview as early as in 2012, he has expressed this idea: “I now have basically stopped reading paper books.” “
Barnes &noble, founded in 1873, has been 140 years of history. From Illinois, a publishing company developed into the largest bookstore chain, Barnes, master, have change. Barnes is to provide services to all 50 states, operates 717 stores, also operates 637 college campus bookstore. Since 2013, Barnes &noble sales of $4.6 billion, down 6% year-on-year. Through optimizing resource integration, however, Barnes &noble 95% of the business is still in a profit. Maybe he really don’t see print books, but Barnes of traditional business still has a lot of customers.
although Barnes hasn’t released its future planning, to sell the Nook the “drag” seems certain. The Nook for the one hundred – year – old, is a great disaster. We can’t blame too much lynch change plan, because the digital revolution is upending traditional publishing industry rules. Barnes to become a fish, while reform must usually go through it. In this regard, lynch reform seems to be right. But the final result shows that such a fact that undoubtedly lynch, at the right time, made a wrong choice.
actually, Barnes, like most of the one hundred – year – old, has made many policy mistakes. As early as the early 90 s of the last century, it is because in and Borders (the first global expansion of the American book retailer) market battle and unable to extricate themselves, missed the opportunity to become the global price of online bookstore. Until 1997, Barnes his bookstore on the Internet, and this time than two full years behind the amazon. Although Barnes was launched in 2001 the first “e-book reader”, but after amazon launched the Kindle in 2007, strong market competition pressure, let Barnes had to choose a talented person, to make the management of the mobile devices business. At this moment, lynch reimbursing, became a Barnes &noble helm of change.
lynch: pretentious reformer
lynch, born and raised in Houston, the confidence is born with the texans. After graduating from Columbia business school, lynch with this their MBA diploma, blend into the marketing field, and accumulated a wide range of contacts and credentials. In 2000, the age of 30, he became a Palm electronic Commerce Department general manager. Four years later, he started his own business. In combination with others to create a Gifts.com (a e-commerce sites, the main holiday gift trade, etc.), lynch in NSN (family shopping website) for a short stay. Work with lynch, all think that he is a has a strict on their future career planning, no company, anyone can keep lynch paused.
in early 2009, he served as Barnes &noble, head of the online business, then the Nook (the code for Bravo) plans are in the offing. Working with lynch and Robert brenner (Robert Brunner), the latter was at apple, and participated in the amazon Kindle product development work. In this way, including lynch, a group of designers, software engineers and hardware at Palo Alto (Palo Alto, silicon core region) in a small bakery started the Nook product development work.
in October the same year, the Nook e-reader (E – book reader) came out. This brand new equipment far beyond the expectation of Barnes, market sales once no one can enemy. However, after just three months, the Nook is encountered huge market. Because jobs for the people to serve on the revolutionary product – the apple.
in March 2010, for lynch and Barnes &noble is a red-letter day. To alleviate conflicts between investors and, Ryan ray gonow (len riggio) appointed lynch CEO, Steve ray gonow instead of his brother became the “main” Barnes &noble. Thus, on the one hand, lynch won greater autonomy, on the other hand also accelerate the process of the transformation of the Barnes. Ryan again public speech pointed out: “in the past for some time, our company like a undigested open square, now in the face of rapidly changing era, Barnes will expand their business in other directions roadmap.”
once a short-lived success make lynch fearless, and made a wrong decision, and the largest and most cost competition. Ray gonow’s ability to fully trust lynch, as he and his Nook project invested more money and more autonomous space. In order to fight for market share, Barnes has even launched a similar to the apple store “school” the inn in inn, to sell the Nook products. Besides the Nook counters, consumers can also (Warmart), Target at wal-mart and Best Buy (Best Buy) to Buy the Nook.
in October 2010, lynch push highlighted Barnes first tablet – the Nook Color. Although lynch put this product to become “a strong offensive weapon” of the market, but bad performance, but let everyone down. Compared to the device, the Nook Color smaller volume, lighter weight, the price is slightly lower. But at the same time, the small size also brings more short range, poor entertainment applications, no shooting device, even doesn’t even have a basic app store. Not only that, the Nook also face the grim problem of channels. Barnes is not like apple and amazon, offer the Nook corresponding partners, suppliers, financial support and professional talents. As a traditional book publishers, in either technology or idea, Barnes are huge differences with the other two competitors.
by 2011, Barnes had mastered the global e-book market share (about us $2 billion) of a quarter. At that time in silicon valley in the Nook sector has grown into a team of 300 people, lynch to office a few days there every week. Jack (Jack Perry Perry) has been carried out on the Barnes and meticulous research, he points out: “at that time the Barnes is like a schizophrenic. New York headquarters not sure division in silicon valley are doing, and the Nook department also don’t care about the development of the headquarters.”
in Norris (simba information, an analyst at) view, lynch didn’t balance the Barnes &noble CEO and Nook team leader role relationship between the two. He one-sided pursuit of transformation, and ignored the Barnes &noble in planar traditional advantages in the field of book publishing. Originally the Nook and Barnes &noble can form a benign interaction between traditional business and promote, unfortunately, lynch autocratic make the one hundred – year – old miss the opportunity. Lynch the greatest of faults is that he didn’t realize that, although people’s lives in toward the digital development, but at present there are still many users will be out of the habit for many years, and insist on buying books.
actually, at that time, not everyone like lynch by hot heads. Once there were two engineers, because the pursuit of flowery in lynch function superposition, and expressed different opinions. Before the two unnamed Barnes engineers to the failure of the Nook summed up in three words – not focus. On the one hand, lynch to Nook can compete with apple, amazon and other tablet products, and constantly add functionality. Many functions for the copy of the newcomers, and let the Nook products lost their dominant position. In 2012, on the other hand, Microsoft investment ($300 million) to build NookMedia subsidiary, dispersed the Nook department of a large number of original product developers. In the agreement, Microsoft requires the Nook with production is suitable for WP8 system application.
slowly, lynch is becoming more and more conceited arbitrary, he even didn’t listen any different opinion. This kind of centralized type management mode, began to let the Nook has lost the original innovation ability, and are responsible for a large number of brain drain. Current NookMedia consultant brenner (Brunner) once said, “lynch will also listen to others’ advice, but he won’t allow anyone to interfere in their own work, make decisions. Although he doesn’t like jobs, absolute, and even crazy dictatorship, but the style of the decision making process is no democracy.”
with the approach of the holiday shopping season war in 2012, he launched two new Nook tablet. However, when the tablet market has the strong lineup, in addition to old rivals apple and amazon has launched the mini version and upgrade the Kindle Fire, Google also launched the Nexus 7 for the first time to join the “tablet wars”. Fortunately, lynch lobbying to move Pearson (multinational, training company), let its NookMedia for $89.5 million, or the Nook in the first quarter of losses would be more than $156 million. However, with the traditional business and the Nook Media, Barnes was then still achieve the profit.
the decline of the Nook seems to help the company to change the market strategy. Barnes, the founder of Leonard Riggio to buy back all the retail business of the company. After the holiday shopping season, is also in February 28, 2012, Barnes &noble announced that in the past three months, the Nook sales fell by 26%, compared to the $6 million loss. For this, he said: “in multifunctional tablet market competition, the Nook products do not have a wide range of market influence, we need to make a change.”
over the next four months, is that most investors and the confused time. In early march (2012), became the general manager of NookMedia, lynch and separated from Barnes of the retail sector. In addition, lynch citing retention bonuses, earn the $1.5 million from the company’s wealth. Later in their was a key figure in on Microsoft and Pearson, investment, and collect the intermediary fee of $1.8 million. In may, Mr. Lynch signed a deal with Google, allows the Nook devices installed in the Google Play, Gmail, Chrome and other applications. In lynch’s opinion, this will become the world’s most “versatile” let the Nook tablet. The lynch will feel this confidence too, perhaps because the Nook while carrying is Android, original but never install any Google application.
in six weeks Barnes published 2013 years ago the financial report, Barnes &noble’s overall earnings of $6.8 billion, down 4.1% year-on-year, a net loss of $150 million. Among them, the traditional book business revenue of $374 million, up 16% from a year earlier. The Nook department total revenue of $777.62 million, a net loss of $475 million.
if NookMedia is a technology company, then investors and executives may be more tolerant about it, even not too dispute existing huge losses. But the reality is that NookMedia only as Barnes of the traditional book of a shrinking market supply department, in a way but also a drag on the growth of Barnes. In order to reduce the risk of the Nook, lynch said, he decided to cooperate with other tablet manufacturers. But at that time, but he said even the name of a specific partner.
the irony is that the great reformers in the case of has not fulfilled his promise, just resigned. nullnullnullnullnullnullnullnullnull