Cango Market Analysis

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 50% in 2009. Customer relationship management and information technology support Amazon's business strategy. The company records data on customer buyer behavior. This enables them to offer to an individual specific item, or bundles of items, based upon preferences demonstrated through purchases or items visited. The Amazon brand is recognized worldwide. It was one of the original dotcoms, and over the last decade it has developed a customer base of around 30 million people. It was an early exploiter of online technologies for e-commerce, making it one of the first online retailers. Amazon’s early success began with books, and now has product categories that include electronics, toys and games, and more.

As Amazon continues to add new categories to its business it runs the risks of becoming too large and confusing for customers. Because Amazon is such a large company it has to burden the cost of making first mover decisions. Amazon is innovative and expanding rapidly, therefore it would be difficult to learn from the mistakes of others in the market, as no other competitors produce on the same scale. It is important for Amazon to stay relevant, as there is free entry into the online marketplace and the possibility of losing market share.

CDnow is one of the most...