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    Borders Group Case Study

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    Borders Group Incorporated: Too Big & Failed Capitalism is a key component in the strong rooted foundation that the economy has been based off since the inception of this nation and is defined as trade and industry that is owned and controlled for profit by a private owner instead of being controlled by the government (dictionary.com). While the American free market has often been held in the highest esteem by foreign economies as well as ourselves, casualties of the same system have been rampant following America’s Great Recession and the aftermath. One of the most notable casualties was that of bookstore giant Borders Group Incorporated. Founded in 1971, by brothers Tom and Louis Borders of Ann Arbor, Michigan, Borders Bookstore was originally a small used book store that’s rapid growth had it move into its 10,000-square foot flagship store in 1974, an unheard-of feat at the time (CNN.com). Part of their rapid success was the in home developed Book Inventory System which became a separate company selling the computer software to other independent booksellers (CNN.com). Eleven years later, the bookstore opened the second superstore in Birmingham, Michigan. These stores served as the first of five nationwide superstores. In 1992, Borders was valued at approximately $190 million and was a mainstay in early 1990’s bookstore chains (Borders Group Inc.). The rapid expansion, spearheaded by Robert DiRomulado who was hired by Borders in 1988, took place in a year that saw a net…

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