Borders Group Inc has taken a major step towards innovating itself into an E-Books distributer. By filing for Chapter 11 bankruptcy,“[it] will allow Borders, which employs 17,500 people, to access new capital and reorganize its operations. The Ann Arbor, Mich., company has lined up a $505 million loan from GE Capital to fund its operations while in bankruptcy.” The ultimate goal for Borders as a corporation, is to stay afloat among fierce competition, like Amazon and Apple. The only way to do that is by providing more E-Books and E-book services. As of now, the Borders Group Inc. business plan, “is to stay viable by enhancing its customer rewards program, strengthening its e-book business and expanding more into non-book products”.
Once Borders evolves itself into a major competitor among E-Book distributors, its revenue will grow, investors will be less likely to shy away from investing in the company, and the corporation will be able to pay off its debts that it has accumulated within the past couple of years.
After the hit of Amazon Kindle and iPad, it seems more and more similar instruments appearing on the market. Thus, I thinks that as you mentioned, the whole E-book things have huge potential and Borders certainly has chance to squeeze itself in the market.
ReplyDeleteWhile this is a thoughtful post and is linked to a WSJ article, this is not discussing directly anything in the IT industry. Please refer to the GICS code document posted in Blackboard when picking a company to write about. Had this post been focused more on the technological infrastructure which companies are using to go digital, this would have been relevant.
ReplyDeleteOverall - good quality of writing but a poor post as it had missed the industry.