The article emphasizes the fact that once Google launches its “Google Editions”, the online service to sell e-books, it would be in direct competition with another behemoth in the area of digital books, Amazon. The main issue analyzed here is the competition from Amazon and their pricing strategy along with the distribution channels both companies will adopt to market their services since the real winner will be the product that reaches the customer in the most convenient way possible. It is a well known fact that Amazon is the leader in the space for selling books and accessories online. It was one of the first companies to set up a website for selling books and accessories online. The success of the model pioneered by Amazon spurred many companies (Barnes and Noble, Borders etc) to enter the area of selling books online.
The article clearly highlights the potential for rivalry between Google (once it launches Google Editions) and Amazon as both the companies are essentially targeting the same market i.e. the consumers of e-books. Further, the article discusses the possibility of a “price war” where each of the competitors would be going in for a “race to the bottom” in search of the consumers for their products. The Implications of this strategy would be discussed in due course.
This section analyzes the case from the 4P’s of the marketing mix, namely: Price, Product, Place and Promotion. These are the cornerstones of any marketing strategy and the successful execution of these in a combination or individually would determine the success of the venture as is being undertaken by Google. The marketing mix is the “set of controllable, tactical marketing tools that the company blends to produce the response it wants in the target market.” (Kotler, 2009 63)
To take the first component of the Marketing mix, the biggest advantage that Google has is its competitive pricing. Since the