Warning to bricks and mortar merchants
Microsoft’s new investment in Barnes & Noble’s Nook division pegs the value of that “virtual” division at twice what B&N is worth. That ought to give every established business reason to pause.
Perhaps your business has spent decades building physical facilities? It’s tempting to think these assets provide your firm with an advantage. The reality may be the opposite; that investment may limit your flexibility, and serve more as an anchor than a strong foundation.
B&N is in a unique position, and no one – including me – knows how the publishing industry will sort itself out.
I do know, however, that all bets are off. Not just in publishing, but in all industries. Most businesses are radically underestimating the degree of change that is approaching.