abhishreshthaa
Abhijeet S
Borders Group, Inc. is an international book and music retailer based in Ann Arbor, Michigan. Borders is the second-largest bookstore chain in the United States (after Barnes & Noble), selling a wide variety of books, CDs, DVDs, and periodicals, as well as gifts and stationery.
In 2008, Borders Group's total revenue was US$3.82 billion, of which $2.63 billion came from Borders Superstores, $2.00 billion from books, $480 million from Waldenbooks Specialty Retail, $622 million from alternative markets, $371 million from music/DVDs, and $284 million from periodicals.[2][citation needed]
As of 2009, there are 517 Borders stores in the United States, and approximately 466 stores in the Waldenbooks Specialty Retail segment, including Waldenbooks, Borders Express, Borders airport stores, and Borders Outlet. During the autumn and winter months, Borders also operates calendar stores and mall kiosks under the Day By Day Calendar Company name.
Strengths
* Dominant position in Colombia
* Limited competition. There are few acquisition targets as the food retail sector in Colombia is highly informal (60% mom & pops)
* Diversification in formats and target customer
* Strong brand and format recognition - top of mind
* Geographical coverage
* Corporate governance
* Strategic alliance with foreign partner (Casino)provides exchanges of best practices
* Strong client base in loyalty program
Weaknesses
* Manageability with too many formats and brands
* Duplicated administrative structure with the acquisition of Carulla- Vivero
* Outdated stores in need of remodeling
Opportunities
* Strong economic environment in Colombia boosting the consumer sector
* Increasing purchasing power from families and easier access to credit should increase consumption of higher value-added non-food items
* Population is expected to migrate from shopping in informal to formal retail
* Small portion of the population with access to banking and credit services
* JV with Bancolombia to boost traffic to stores, ticket as well as increase ROE with the introduction of additional products such as insurance and personal
loans.
* Follow-on providing funds to accelerate further
expansion and store remodelings
Threats
* Improving consumer stance in Colombia is attracting
new entrants to the retail sector (Carrefour and Falabella from Chile)
* Brand repositioning could exclude some loyal customers
* Downturn in Colombia's economic stance could limit potential growth of the retail sector
* Diversification of business could divert focus
In 2008, Borders Group's total revenue was US$3.82 billion, of which $2.63 billion came from Borders Superstores, $2.00 billion from books, $480 million from Waldenbooks Specialty Retail, $622 million from alternative markets, $371 million from music/DVDs, and $284 million from periodicals.[2][citation needed]
As of 2009, there are 517 Borders stores in the United States, and approximately 466 stores in the Waldenbooks Specialty Retail segment, including Waldenbooks, Borders Express, Borders airport stores, and Borders Outlet. During the autumn and winter months, Borders also operates calendar stores and mall kiosks under the Day By Day Calendar Company name.
Strengths
* Dominant position in Colombia
* Limited competition. There are few acquisition targets as the food retail sector in Colombia is highly informal (60% mom & pops)
* Diversification in formats and target customer
* Strong brand and format recognition - top of mind
* Geographical coverage
* Corporate governance
* Strategic alliance with foreign partner (Casino)provides exchanges of best practices
* Strong client base in loyalty program
Weaknesses
* Manageability with too many formats and brands
* Duplicated administrative structure with the acquisition of Carulla- Vivero
* Outdated stores in need of remodeling
Opportunities
* Strong economic environment in Colombia boosting the consumer sector
* Increasing purchasing power from families and easier access to credit should increase consumption of higher value-added non-food items
* Population is expected to migrate from shopping in informal to formal retail
* Small portion of the population with access to banking and credit services
* JV with Bancolombia to boost traffic to stores, ticket as well as increase ROE with the introduction of additional products such as insurance and personal
loans.
* Follow-on providing funds to accelerate further
expansion and store remodelings
Threats
* Improving consumer stance in Colombia is attracting
new entrants to the retail sector (Carrefour and Falabella from Chile)
* Brand repositioning could exclude some loyal customers
* Downturn in Colombia's economic stance could limit potential growth of the retail sector
* Diversification of business could divert focus