BS in Industrial Technology
The bookstore industry has been changing in recent years with the growing popularity of e-books and self-publishing. The publishing houses are losing their grip on the industry because a greater portion of books are being sold by companies who don’t need to sell books to stay afloat, and overproduction is rampant, with 40% of all printed books being pulped. Bookstores have been suffering because of the high costs associated with the current value stream. E-books aimed to reduce these costs but have been cannibalizing their print counterpart and do not generate enough revenue to offset the loss of print sales. That being said, demand for books has not decreased in recent years and physical books purchased in bookstores are still the most common form of purchased literature. For the sake of consumers and the industry as a whole, there is a clear need for change.
“The Lean Bookstore” seeks to change the way books are sold by creating a new kind of bookstore that leverages point-of-sale printing and a simpler value stream to bring customers the best combination of price, selection, and customer service on any book, at any time. Currently, online is cheaper but you must wait; in store you can browse but you’ll pay more; online has better selection but is difficult to browse; independents might have better service but less selection. Customers won’t have to compromise anymore as all of these strengths are brought under one roof.
Through developing and analyzing four different bookstore models, the airport bookstore has the greatest potential because it reaches the largest market and has the most compelling value propositions. Our business is different from current airport bookstores because we have increased our selection of books by storing all of them digitally, reduced transportation and inventory costs, and will be able to provide better service through our reduced store footprint.