by Connie J
Amazon.com has always been known as the largest online bookstore however a competitor Google has just joined the competition. Google is also is know as the known very competitive search engine. Looking at Porter’s Five Forces Model it is evident that Amazon.Com is facing the threat of substitute products or services, threat of new entrants, and also rivalry among existing competitors (Baltzan & Phillips, 2009, Identifying competitive advantages, p.21).
Google Book Search already allows users to read excerpts of up to 20% of selected books whereas Amazon.com allows the user to read only the first chapter. Google in the future will allow the reader to read the whole book online by using a reading device including moble phones (http://www.wired.com/epicenter/2009/06/google-books/).
Amazon.com already has copyrightprotection in place has no problem with allowing customers to read certain books online. Google must determine whether users will be able to download the books or be limited to reading them through a Google-controlled web interface. Publisher must determine if the buying public will pay more than $10 per e-book.
Amazon.com must expand promptly in offering e-books on as many devices as possible, to offer downloadable e-books in a more open (more copyable) format, or to reduce prices to compete with Google.
A Google book-sales program spells rivalry with Amazon.com. Google will have access to many more potential customers of Amazon.com’s Kindle program. Google will be able to offer many related e-books to Amazon.com’s millions of customers. The competition will be fierce in the e-book market between Amazon.com and Google.
by Connie J