Throughout the history of mankind literature and books have played a very important role in our history. The use of words for writing was invented by the Sumerians about 5000 years ago and the first books used Papyrus or parchment as writing surfaces (E-book, 2010). Ever since the Chinese invented printing books have become a mainstream artifact in our society. Books have played a very important role because they have helped society document their cultures and traditions. Books serve as the foundation for our educational system. Throughout the 20th century books represented a huge industry. The market leader in the book industry in the United States is Barnes and Nobles. The purpose of this paper is to analyze the internal and external environments of Barnes and Nobles.