Purdue expert: Borders' filing highlights book industry changes

February 16, 2011

WEST LAFAYETTE, Ind. – The filing for bankruptcy protection by Borders is a sign of the technological and business model changes that have rocked the bookselling industry, says G. Logan Jordan, associate dean in Purdue University's Krannert School of Management.

Booksellers have faced three major waves of change, Jordan says.

"The first wave was the power that came from the Internet, allowing for online shopping and ordering," he says. "The second wave was the power of data and customer relationship management systems to anticipate interests and trends and promote the right books at the right time to the right customer. Now comes the third wave - the electronic or e-book."

Jordan says these cascading technological changes have altered buyer behavior and reduced the value of established brick-and-mortar distribution assets like the stores Borders wants to close.

Writer:  Judith Barra Austin, 765-494-2432, jbaustin@purdue.edu

Note to Journalists: Jordan is available to discuss the Borders situation. He can be reached at 765-494-4370 or jordan@purdue.edu