There is a price-war going on between the online retailers; Amazon.com, Wal-Mart, Target and the American Booksellers Association (ASA) who defends the independent bookstores. The 3 retailers are selling bestsellers like Stephan King’s “Under the Dome” for really low prices. The ASA will do everything to protect the independent bookstores against this ‘predatory behaviour’. They have already called for an investigation for these anti-competition acts. According to the ASA, the real reason why these online retailers offering books for low prices is because they want to attract new customers so that they will buy additional sales. The ASA say that Amazon.com, Wal-Mart and Target have a secret plot to eliminate competition. They want to have the control of the market for bestsellers. Those acts are devaluing the concept of the book and the book industry will become a danger of collateral damage in this war. That is often be said when more efficient or productive competitors challenge them in the marktplace. But like in all other industries, innovation and technology change the way of selling and buying books en there always will be winners but also losers.
The online retailers brought a chance in the industry but also increased the appetite for books. Even in the middle of the financial crisis more books have been bought. ASA counters it.
The ASA say that the can not compete because of the price advantage Amazon.com and co have but they can offer other advantages like attentive and knowledgeable service, a reader- and- author- friendly atmosphere,…
Instead of painting them as helpless victims they would better release that. Prices are important but also other things like these other advantages can be important for some people.
In the article they said that the independent book stores can offer other advantages than the price advantage that online retailers can bring. In the text you can read: ‘Prices are important but they aren’t all-important. I think that the price advantage will be the most important advantage and the only advantage for many people that they will take into account especially people who do not read much. Only a small group of book lovers will not buy their book online because of the other advantages and perhaps also on principle.
The online retailers even loose money by offering books for these low prices and it is not right that behind the strategy of it the only goal they have is that new customers would buy more. They are creating a monopoly and that is not good for the competition.
JACOBY, J.( October 28, 2009 ), Latest battle in book price wars. Retrieved from http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2009/10/28/latest_battle_in_book_price_wars/
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(By Bieke Demeester)
There is a price-war going on between 3 online retailers and the American Booksellers Association (ASA). I must say this doesn’t surprise me. I think many people buy stuff online, because it is cheaper than f.i. in a bookshop. Amazon.com is an American online retailer, but I think they have a lot of customers in Europe. The fact that european customers buy stuff online, indicates that the prices, accumulated with the shipping costs, are lower than the prices in smaller shops. I agree with Hanne that most of the people first think of prices and then of other advantages, like knowlegeable service and a reader-friendly atmosphere.
The American Booksellers Association say that the 3 mentioned online retailers have a secret plot to eliminate competition and that they want to have control of the market for bestsellers. I understand the point of view of the American Booksellers Association very well, but of course: they have to prove it. They have to prove that there is a secret plot of price-fixing and after that, these companies can be punished. Otherwise, it will stay the way it is now. Selling books at predatory prices is not good for the competitiveness in our free market economy.
(Reaction by Ben Van Laere)
I totally agree with Hanne and Bieke about this topic. In every business sector there has to be competition. Competition keeps companies sharp. In sectors with much rivalry, companies must constantly look at their competitors. When a company launches a new product, rivals will take action and will for instance lower their price of a similar product.
Competition is also very important for us, the consumers. Companies are keeping their prices “low” to compete with other companies. In a monopoly, a company can price their products much higher.
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