Industry Background/Competitor Analysis/Marketing Analysis
Some of CanGo’s major competitors include Amazon, CDNow, and eBooks. Background information on CanGo’s competitors is provided below, highlighting their strengths and weaknesses.
Amazon is a profitable organization. Net sales increased 28% year-over-year to $24.51 billion in 2009. This is 15 times higher than net sales 10 years ago when they were $1.64 billion in 1999. Free cash flow increased 114% year-over-year to $2.92 billion in 2009 and more customers are taking advantage of Amazon Prime, with worldwide memberships up significantly over last year. The number of different items available for immediate shipment grew more than ...view middle of the document...
CDnow is one of the most well-known online music brands in the U.S. Offering customers more than 500,000 items, including CDs, videos and DVDs, CDnow consistently ranks within the top five online music retailers. CDnow is part of BeMusic along with the world`s largest record club, BMG Music Service. CDnow formed an alliance with Amazon to enhance customer experience while providing familiarity. Customers can navigate the site with ease; however, programs to demonstrate loyalty to the customers should be revisited.
E-books offers consumers an easily searchable variety of eBooks. Because of their academic eBooks offerings, they have expanded their market to appeal to students and those in the educational profession. With the rising cost of textbooks, less expensive eBook’s can easily gain popularity. E-books offers consumers a variety of choices. They have many different book formats and support several different types of devices. E-books also offers the convenient option of purchasing gift certificates. In addition, their mailing lists help keep their customers informed of the latest releases based on their preferences.
Although eBooks is convenient, there are some disadvantages. They do not offer music, videos or games. When dealing with downloading a purchase, errors can and do occur. Their refund policy is vague and refunds are only issued at the discretion of a manager. Also, the U.S. based website does not cater to international consumers.
The eBook market currently makes up six to eight percent of U.S. book sales. The eBook market is to reach 15 percent by 2015. Amazon is a competitor in the eBook market currently has approximately70 to 80 percent of the eBook market share. Amazon offers not only eBooks but also an eReader, Kindle, used to read eBooks. Another competitor, Barnes & Noble offers an eReader, The Nook. Barnes & Noble currently holds approximately 20 percent of the eBook market share. Sony is another competitor also has an eReader, the Sony Reader, and holds approximately five percent of the eBook market share. Google is an upcoming competitor and plans to launch Google Editions allowing thousands of publishers to sell their book across their platform. Google launching Google Editions will bring a lot of competition to the eBook market. As eBooks become more popular, there is a growing concern of digital piracy.
CanGo is a company that has been successful by luck and has a staff that has the experience and qualities that are needed to bring this company to a much greater success, however, CanGo does have a large amount of competition within the online sales industry, but it tends to market its products to a specific consumer group. There are companies that fall into the same market as CanGo in regard to marketing online sales to the Generation X consumer base. Due to the low barriers of entry for companies to enter the online sales market CanGo must understand that there will be others entering...