Because of the strong competition in the “e-book” market, Borders Group Incorporated has decided to lower its prices on two of its electronic books. For instance, its Kobo reader will drop to $129.99 from $149.99 and its Aluratek Libre reader will go to $99.99 from $119.99 each. There exists strong competition with offerings like Amazon.com Inc.'s Kindle, Barnes & Noble Inc.'s Nook, and the Apple Inc. iPad. Given this poor economy, Borders has had difficulty with their sales and is hoping to attract more costumers with their more affordable prices.
This would allow for a lot more people to access these devices because now more individuals can afford them. Thus, Borders would create a bigger industry, and in turn, generate more income. Also, by integrating these goods through a global network of communication, everyone around the world can access these e-books. Borders’ strategy is to lower the price of its devices to make them more attractive. This would create a bigger customer base with the ultimate goal of increasing its market share.
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Posted by Tania Dabdoub
Is this new approach unique for Borders or is this a common practice among other players in the industry? What do you think?
ReplyDeleteI believe it is also a common practice among other companies, for they realize that they will attract more customers by lowing their prices. The players in the industry also make their goods a lot more affordable because they are trying to compete with other companies. Lowering prices has become a great strategy to succeed in increasing profit.
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