Despite a gap in leadership, questions from the industry about its parent's commitment and relatively fewer dollars than competitors, Borders.com is pushing ahead with a strategy of targeted marketing and editorial creativity.
The site, which thrust itself into a world where Barnesandnoble.com and Amazon.com were already fighting for customers, has been perceived by some as little more than a sop to investors. But in recent months, Borders.com has aggressively looked to form new partnerships. After losing Salon.com as a partner, the site forged a pact with portal site About.com. It will soon announce a partnership with the Web site for the PBS music program Sessions at West 54th, and has signed an exclusive affiliate arrangement with Big Planet, a business networking and products site.
Borders.com's actions have been prompted in part by recent changes in the online bookselling industry. Barnesandnoble.com continues to evolve into a unit independent from its parents, with its own budget, staff, vision and pressure to make a profit. More importantly, Amazon.com has expanded its product base--and business model--in previously unfathomable ways that continue, it seems, to de-emphasize books. If ever there was a time for Borders. com to pick up Amazon deserters, this is it. Company officials have shown an acute awareness of this opportunity--"Amazon's moving out of our orb," is how one put it, "and we need to take advantage."
The problem, however, may lie with personnel. Former Borders.com president Ric Vanzura, who was made a key figure in the company in the last reorganization, left over the summer for Dell. Karen Tyree, formerly director of fulfillment, has taken over as v-p of Internet services and assumed many of Vanzura's responsibilities, but speculation persists within the company that the position won't be fully solidified until interim CEO Bob DiRomualdo installs a permanent CEO to replace Phil Pfeffer.
To counter bn.com's deep pockets, Borders.com strategists realize that they must court "the book lover." To that end, the site has added Girl Talk, as well as other features. "We don't want to regurgitate marketing stuff that we get from the publisher," said one official. "There's no co-op. Our site is about building confidence and a kind of level of discourse that people respect."
The company also plows ahead with its clicks-and-mortar strategy. There is no final word on dates, but in-store kiosks that allow online and on-demand ordering could be on tap for many stores in the near future. "It's not necessarily as important to us where customers buy the book, unlike barnesandnoble.com, which has to run a separate company," said the official. "We can do a lot of co-branded things with Borders. The left arm knows what the right arm is doing at all times."
