Can E Books Replace Print Books And Kill The Chain Bookstore?

666 words - 3 pages

Kobo is a Toronto based e-book reader firm that was established in May 2010. It has an internal rechargeable battery that can last for about two months and it can store up to 1000 books (1 GB). Globally in the e-book industry, by the year 2013, 20% of the e-books shipped were from Kobo, 55% were from Amazon, 10% were from Barnes and Noble and 6% from Sony. By August 2013, Kobo became the number two retailer in Japan and it owns 3% of the market in the United States. Considering that the company has only been in the market for three years and within these three years, its main competitors are Amazon and Sony suggesting how well the company is doing among consumers. Through their market research and development stage of production, it was determined that the new device would need to be highly ergonomics so that the users could hold the device for a long period of time comfortably.
Marketing mix consists of the 4Ps (product, price, place and promotion) which are the controllable set of actions that a firm uses to respond to the wants of its target market. The product part of the marketing mix involves creating value of the product by developing a variety of offerings, including goods (items that can be physically touched), services (performance or effort that cannot be physically possessed) and ideas to satisfy consumer’s wants. In this case, for Kobo it is the e-book reader. The price part of the marketing mix involves capturing value for the product. Price is the thing that the buyer gives up in exchange for the product and marketers must determine the price of a product based on the product’s value. The perfect price would be the price the customers are willing to pay so that they are satisfied and at the same time sellers achieve a reasonable profit. In this case, the cost of the Kobo reader is $79.99. The third element of the marketing mix is the place which represents all the activities required to...

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