“In desperate need of strong leadership” was a closing line in a MarketWatch story about Borders and the announcement that President and CEO Ron Marshall had jumped ship. Marshall who was tapped to head up the book retailer a little over a year ago and had announced sweeping changes simply didn’t get the results. A 14.4% drop in sales in 2008 (prior to Marshall arriving) and a 14.6% decline in sales in 2009 under Marshall’s watchful eye.
Marshall stated less than 10 days ago, “We are disappointed with holiday results and must intensify our focus on creating and delivering a shopping experience that drives profitable sales.”
But what happens when strong leadership simply isn’t enough? What happens when the business model no longer works? What happens when the previous success formula based on bricks and mortar no longer are valued by the consumer? What happens if it simply couldn’t be fixed - kind of like a worn out car?
I can state that not only is Borders under seige, its the total print and music industry (which includes books, magazines, newspapers, records…) that is under seige. Google, Apple, Amazon, Netflix and others are leading the way and changing the way consumers interface with media. The game has changed, and its never going to return to the good old days. My guess is when it comes to Borders, Strong Leadership Will Never Be Enough. My guess is, it’s only a matter of time.
