Magee, David. "Borders Closing: Why the Bookstore Chain Failed - International Business Times." International Business News, Financial News, Market News, Politics, Forex, Commodities - International Business Times - IBTimes.com. David Magee, July-Aug. 2011. Web. 08 Sept. 2011. <http://www.ibtimes.com/articles/182815/20110719/borders-closing-why.htm>.
Borders is a very well known store but has had to make some drastic cuts in their business. The Kindles, as you know, are used for reading electronic books purchased online. Since Borders only sell books offline and are not incorporated with any sort of electronic reading device, their profits sank. The outcome of Borders losing so much income, was they had to close up shop in over 200 stores around the nation.
I feel this can incorporate many economic ideas because Borders had to make a trade-off. Since they were losing so much money, their opportunity cost would be to close shop to save money. Hopefully their business could run more efficiently but they will lose many labor workers in the process.
Borders is a very well known store but has had to make some drastic cuts in their business. The Kindles, as you know, are used for reading electronic books purchased online. Since Borders only sell books offline and are not incorporated with any sort of electronic reading device, their profits sank. The outcome of Borders losing so much income, was they had to close up shop in over 200 stores around the nation.
I feel this can incorporate many economic ideas because Borders had to make a trade-off. Since they were losing so much money, their opportunity cost would be to close shop to save money. Hopefully their business could run more efficiently but they will lose many labor workers in the process.