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4) Move away from costly superstores, expanding with more small, community-oriented niche stores. With less overhead, the Barnes and Noble name will do well in high-population, high-net worth communities that don't have any bookstore at all. The company does not need a superstore in such markets, but lower-overhead niche stores that focus on diversified product, customer relationships, and value-added propositions such as paid author events and books sold at prices above the deep discounts Barnes and Noble has employed in recent years, reducing important margins.

3) Establish exclusive distribution deals with leading publishers and authors. Since Barnes and Noble has a strong online presence, the strongest brick-and-mortar store presence, and a strong presence in eBooks and eReaders with its Nook device, the company has an opportunity in a less-competitive environment to forge signature, exclusive publishing deals with leading authors and publishers. Want to read Nora Roberts? Come to Barnes and Noble, online or to a store, because that's the only place you can find those works -- is one example. Barnes and Noble doesn't have many deals like that, yet. But the company will have to forge such exclusive relationships into the future to survive, much less thrive.

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The History of the Barnes and Noble Nook and eBook Ecosystem

America's second-largest bookstore chain is closing, and all eyes are now cast upon Barnes and Noble -- the nation's largest bookstore chain, with more than 700 stores -- to see if the company can avoid the same fate.