A major shareholder of Borders suggested that the smaller bookseller should acquire its much bigger rival Barnes & Noble. Both booksellers are now threatened by Google, which launched its Google eBookstore yesterday.

Borders and Barnes & Noble have struggled for a number of years after Amazon and other online booksellers gained market share. A merger of the two could lead to large cost savings through economies of scale.

The book selling business has definitely evolved over the years. When Borders and Barnes & Noble started creating their superstores in the 1990s, many small bookstores, unable to compete on price and selection, had to close. Once Amazon turned up, the fortunes of Borders and Barnes & Noble started to change. Both are now struggling retailers trying to survive.

Steve Jobs definitely knows how to put on a show. Apple unveiled their newest creation, the iPad yesterday. Aside from being a very nicely designed tablet computer, Apple’s iPad will also serve as an e-book reader.

Apple’s entry into the e-book market is a direct challenge the Amazon’s Kindle which has dominated the e-book market over the past couple years. Now it looks like Amazon has some catching up to do.

Apple’s iPad works like a regular computer. You can browse the internet, listen to music and read books. You can think of it as an entertainment hub. Amazon’s Kindle is a more simplified device. The Kindle basically only does one thing, but it does it really well. It allows you to read books on the go. The Kindle makes it very easy to get books from Amazon’s store (wirelessly with no internet fee). (more…)