Borders: How Leadership Failures Led to its Decline

Feb 17

Written By Mallory Porcelli

Brands from Yesteryear: Borders

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Week 10 of 13

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Brands from Yesteryear: Borders | Week 10 of 13 |

I wasn't an avid reader growing up. However, I had big feelings about which of the two bookstores I preferred, and it was always Borders. When Borders closed in 2011, I remember thinking I was lucky I was already out of undergrad because the thought of utilizing Barnes & Noble didn't sit well with me.

Borders' downfall wasn't just about shifting markets—it was about leadership missteps that left the company unable to compete.

Outsourcing Online Sales to a Competitor

One of the biggest mistakes? Borders outsourced its online sales to Amazon in 2001, effectively handing a growing market to a competitor. Meanwhile, Barnes & Noble and Amazon doubled down on e-readers, while Borders lagged, failing to build its own digital strategy.

Betting on the Wrong Products

Leadership also bet big on physical media like CDs and DVDs, just as streaming services were taking off. They locked up capital in declining products instead of adapting to consumer trends.

Overexpansion and Costly Real Estate

Borders expanded aggressively with large, expensive stores that became liabilities when foot traffic dropped, draining valuable resources for innovation.

Lack of a Strong Brand Identity

Another issue? Borders lacked a strong brand identity. While Barnes & Noble created a community-driven experience with cafes and events, Borders failed to differentiate itself. The brand lost its edge without a reason for customers to stay loyal.

Final Thoughts

Borders' decline highlights the need for leadership to anticipate and stay ahead of market trends, embrace change, and lock in a unique value proposition. The companies that survive are the ones willing to evolve.

References

Noguchi, Y. (2011, July 19). Why Borders failed while Barnes & Noble survived. NPR. https://www.npr.org/2011/07/19/138514209/why-borders-failed-while-barnes-and-noble-survived

Sanburn, J. (2011, July 19). 5 reasons Borders went out of business (and what will take its place). Time. https://business.time.com/2011/07/19/5-reasons-borders-went-out-of-business-and-what-will-take-its-place/

Mallory Porcelli

I help businesses build resilient leadership and develop effective branding strategies that foster long-term growth. With expertise in optimizing workflows, managing creative projects, and strengthening brand identities, I guide organizations in creating high-impact marketing initiatives. My approach emphasizes leadership development, team empowerment, and strategic branding to drive sustainable brand performance and ensure companies remain adaptable.

https://www.malloryporcelli.com