Bill Hanifin

Barnes & Noble Considering Options for Nook

January 12, 2012

FROM RETAILWIRE:
Barnes & Noble said last Thursday that it was weighing spinning off its Nook business. The move would enable B&N to focus more closely on its aging bookstore business and e-commerce operations while capitalizing on the value created in its successful e-book venture. Do you think Barnes & Noble should spin off its Nook business?      [more...]

On the surface, the question here might evoke a response that selling the Nook business makes sense as it is a tall task to compete with Amazon, Apple and even makers of notebooks in this space.

Reading, however, that Nook has grabbed about a quarter of the U.S. e-book market, the answer has to be considered more carefully.

Using the old razor blade example, I wonder if B&N should further reduce the Nook price, even effectively giving them away by packaging coupons and future discounts on e-book purchases, in order to capture future book purchases from customers.

Viewing the Nook as a "hook" for B&N sales might yield better results than seeing it as a standalone business.