Environment

Barnes and Nobles as a company provides many incentives for their employees in order to nurture the internal component of its micro environment. It provides the employees with discounts, benefits, and the ability to be promoted from within. The external component of its environment may provide the largest challenge for the company as a whole. This is because the publishers of books tend to control the price at which items can be sold. It hinders the company's abilities to adjust prices and compete with other sellers. Barnes and Nobles does have some influence over the publishers, however, because they have a very large market share. Many publishers would rather reduce their prices than not have their book sold at Barnes and Nobles. Citizen actions groups also provide an obstacle because they do not always agree with the content of the books, music, and movies that are being sold by Barnes and Nobles. The company does not sell some material because of its content. The company often donates books to educational organizations to provide service to the community.
The macro environment also plays a role in Barnes and Nobles' plans. When the economy experiences hardships such as tight credit markets, it tends to slow down plans of expansion. Newer technology has begun to cause a shift from paper books to ebooks. Barnes and Nobles has made this transition and Barnes and Nobles online now offers a variety of ebooks for sale. Finally, Barnes and Nobles tends to appeal to many demographics. Barnes and Nobles online was estblished in order to attract the members of the more tech savy gernerations.

Positioning

Barnes and Nobles Online tends to have average quality products and selections at high prices. Although the prices of their books are based on publisher requests, they rarely have sales or offer discounts. Also, the other products they sell including CD's and DVDs are priced higher than they would normally be found for at other stores. They provide a wider selection than typical stores which allows them to charge such high prices. Also, the quality of the products purchased on Barnes and Nobles online are is no different than a book you would find else where. It is, however, presented in a more convenient manner.