Strategic Choice and Evaluation Paper

The development of a strategic plan consists of many steps. One important step is identifying the best strategic alternatives. These alternatives include value discipline, generic strategy, and grand strategy. These three areas are especially important for Barnes and Noble. In recent years, the bookseller has experienced a slide in market share. While Barnes and Noble has been able to rebound over the past year, the company must identify ways to remain competitive.

A generic strategy is very important for Barnes and Noble. According to MindTools, a generic strategy is a basic approach to strategic planning that can be adopted by an organization in any industry to improve competitive advantage. Generic strategy is composed of three elements, differentiation, focus and low cost strategies. Differentiation strategy is the ideal strategy for Barnes and Noble.

Over the past decade Barnes and Noble has faced stiff competition from Amazon and other non-traditional retailers such as Walmart and Costco. The bookseller must identify ways in which to set itself apart from competitors. According to Magloff, value pricing strategy adopted by Barnes & Noble is a key competitive advantage in a market where the consumers are more price sensitive than ever before. While value is a competitive advantage for Barnes and Noble's retention of market share, their prices are not low enough to impose a low cost strategy.

Differentiation strategy is generally reserved for companies with a clear competitive advantage. Companies such as Mercedes and Apple employ this strategy. "Differentiation strategy is demonstrated when a company provides value to customers through unique features and characteristics of a company's products rather than by the lowest price" (Open Learning World 2010).

Employing a differentiation strategy at Barnes and Noble is applicable for a few reasons. Currently, Amazon and other non-traditional retailers have lower prices on books, music and movies than Barnes and Noble. It would not make sense for Barnes and Noble to use a low cost strategy model considering the overhead costs that they have. However, Barnes and Noble does have strong brand identity that places them in a leader position in the book selling market.

Barnes and Noble must capitalize on their strong brand identity. While, Amazon offers lower prices customers cannot get the same shopping experience purchasing books online as opposed to shopping in an actual Barnes and Noble store. Furthermore, Barnes and Noble has also added Starbuck kiosks in many of their locations. This also adds to the shopping experience as readers are able to combine a coffee shop experience with a library feel. Barnes and Noble must use this strategy to cater to consumers who long for this type of experience. There is currently no other bookseller that has these type of options when shopping.

A differentiation strategy at Barnes and Noble will allow the company to employ the