Border Inc. was a market leader and had been able to gain immense brand equity. The company had the required infrastructure but the key management decisions caused the company to fail. The shift in focus from the online to retail sales was the major error by the company. It caused a cascade effect. The people in the company made wrong decisions about the company. For making this decision, there should be a newer management. The company failed because the rivals had inside knowledge of the working of the company. They can build on the existing brand image to entice more consumers. The company has the potential to grow and it can grow if it has a better management policy in place and newer innovative techniques of enticing the consumers.
The company by shifting focus to older systems has gained an image of being traditional and old. This is simply considered to be boring by the younger generations. They should focus on promotions in social media to increase the brand equity. Operational costs of social media are very less and it would also create personalized communication with the consumer (Ucbasaran, et al., 2013).
Borders need to have a better consumer support and provide something more in terms of services to the consumers. Amazon has already established itself that they need to find better ways of connecting with the consumers.
The company should also invest in promotional activities and focus more on the youth demography. They should sell books that the people actually want and promote the individual authors in order to tell the people the importance of the works of the individual authors.
Social influences should be identified and the academic communities should be better organized and the company should focus on these promotional activities
Issue 3: Amazon and joint ventures
The company when they ventured with Amazon, they did not realize that the company would become a competitor. They had a general complacence given the size of the company. Owing to this, the complacence attitude by the management and the knowledge that Amazon had gained about the company is an issue. They need to change their operational style of management in order to connect with the consumers Ucbasaran, et al., 2013).