Marketing Analysis and Strategy
The General Environment
Currently the inflation rate is stable at three percent or less per year, and the consumer price index is steady with approximately 1.5-2 percent change per year. A stable economy without significant inflation will likely maintain the strong spending power of the consumer. The consumer’s dollar will be stretched further allowing them to purchase more goods. Low inflation rates will also persuade the Federal Reserve Board to keep rates low allowing free economic growth as rates increase.
Copyright law infringement and lawsuits are on the rise for online providers, particularly those relating to music and print. CanGo has a product line heavily weighted with music and …show more content…
Because of their academic ebook offerings, they have expanded their market to appeal to students and those in the educational profession. With the rising cost of textbooks, less expensive ebooks can easily gain popularity. Ebooks offers consumers a variety of choices. They have many different book formats and support several different types of devices. Ebooks 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.
Macroenvironmental Factors 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,