Final answer:
True, both Barnes & Noble and Amazon were more effective than Borders in employing the strategic management process, embracing e-commerce to outperform traditional retail bookstores and generating above-average returns.
Step-by-step explanation:
True, Barnes & Noble and Amazon were more effective than Borders in utilizing the strategic management process to secure strategic competitiveness and above-average returns. The opening case indicates that Barnes & Noble and Amazon successfully adapted to changing markets by leveraging online book sales, while Borders did not fare as well. Amazon revolutionized the industry by introducing a new production model and cost structure that enabled it to offer lower prices, which included significant economies of scale and the use of highly automated distribution centers. Borders, on the other hand, was unable to adapt and subsequently went out of business while Barnes & Noble struggled to compete.
Amazon's strategy to transform the book selling industry involved transitioning from physical bookstores to an online marketplace with vast inventory and quick shipping. This approach not only reduced costs related to retail space but also allowed for greater efficiency and scale. The shift to online sales catered to consumer preferences for convenience and selection, enabling Amazon to outcompete traditional bookstores and ultimately lead to the decline of competitors like Borders.According to the provided information, it is true that Barnes & Noble and Amazon were more effective than Borders in using the strategic management process as the foundation for their commitments, decisions, and actions to pursue strategic competitiveness and above-average returns. Amazon transformed the book selling industry by offering almost any book in print, convenient purchasing, and prompt delivery. It also benefited from significant advantages of economies of scale by holding inventories in huge warehouses in low-rent locations, computerizing operations, and employing low-skilled workers to reduce costs per sale.