Is it news that Borders finally jumped into the online bookstore business? Only as a footnote demonstrating how behind the times the once mighty bookseller has become. The book market is shifting with the suddenness of an earthquake and, very shortly, all the old models will be relics. With this in mind, Borders continues to forge “behind” and invent new ways to be seen as an also ran.

There is nothing wrong with their online book store, having the desire to allow multiple format downloads and sell an eReader. The problem is that Borders has not come to grips with the real problem: Its brand has no meaning.  They are just like everyone else and less so.

Yesterday, Borders tried to differentiate itself by being almost as good as everyone else that it believes it competes with. So, how is Borders better? Well, it has lots of books available (just like Amazon and Apple and, soon, Google). Its bookstore has a nice interface (just like Apple). It has reasonable prices (just like everyone else). And let’s not forget that it has a coffee shop in its stores, sells music and DVDs, and has a loyalty program. Take that to all of you that scoff “so what?” when Borders claims to be different and better.

Borders needs brand work if it is going to survive, let alone thrive. It needs to look at the future market it hopes to engage and understand the market’s aspirations and preceptive fabric better then anyone currently does. Only then can it innovate on a delivery of services that the market covets. The strategy will dictate the offer and, maybe, Borders will look less reactionary.

In the meantime, I could see Borders unveiling the earth-shattering announcement that it accepts credit cards as a form of payment. Now that would set it apart.

Last night I witnessed first hand the slow death of a company. On my way home from work, I passed a Borders book store. Ordinarily, I am accustomed to going to Barnes and Noble to search for my next book. But convenience being what it is at that moment, I checked it out.

I pulled into a mostly empty parking lot. That’s not too shocking because it was snowing. But it was a bit disconcerting nonetheless. I walked into the store and immediately felt like I had been transported to a wake.

The store was void of the quiet hustle and bustle of Barnes and Noble. In fact the only other consumer in the store kept eying me suspiciously as if to say, “So what are you doing here?” The store was laid out like a Barnes and Noble, but it was more like a $10 knockoff of a Gucci bag at the Silk Market in Beijing. Merchandise seemed to be stacked up all over the place with books intermingled in random categories. I only saw a single employee, a woman lazily standing in the checkout area, hoping me or the other suspicious shopper would bring a book up to checkout.

Borders is in serious trouble. Its stock is basically worthless, and it is going on its fourth CEO in five years. It is hemorrhaging cash. The situation is so bad that last month a major investor said on CNBC that a bankruptcy at Borders a was a “low-probability event” and that bad news caused its stock to rise 37% (granted it was only trading for about $1.00 a share so it rose $0.37).

What Borders has failed to do is give consumers a reason to shop there. (From my experience last night, I will not go back unless something drastically changes.) Although many believe Barnes and Noble to be the death knell and bane of the “local bookstore,” it have given consumers reason to use it, even if it is only the availability and diversity of titles. Moreover, B&N has also managed to change with the times, modifying its business model to account for changing consumer preferences and methods of delivery.

If Borders is to survive, it must give me and the rest of the book shopping market a reason to shop there. A reason that is both different and better than Barnes and Noble. Not simply a $10 knockoff.