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Barnes & Noble's Smart Strategy

Faced with an eroding core business, most companies seem to do...nothing.

Faced with an eroding core business, most companies seem to do…nothing. In the media and entertainment industry, look at Blockbuster’s lackluster embrace of mail delivery and video streaming, newspapers’ mainly tepid moves into digital publishing, and television networks’ doubling-down on a small number of hot shows. A company in a turbulent industry often seems like a dairy farmer whose herd has been reduced to just one cow, whose only adaptation of his business plan is to milk that heifer extra-hard. The story cannot end happily.

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