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Amazon.com, Inc. (AMZN) Facing Familiar Problem in China

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The fact that Amazon.com, Inc. (NASDAQ:AMZN) has recently decided to enter the China e-book market is no surprise. After all, this is a big opportunity for the company to break in and make some major waves.

Unfortunately for Amazon, there are others who are looking to do the same. There are other companies who see the potential, and for this reason the competition is going to be stiff.

Amazon.com, Inc. (NASDAQ:AMZN)The good thing for Amazon.com, Inc. (NASDAQ:AMZN) is its brand recognition. Just the same as Apple, to a certain extent, people know what Amazon is all about. From the United States to China and many places in between, consumers have an idea that Amazon is a top player in the e-book space.

With Amazon.com, Inc. (NASDAQ:AMZN) now a major player in China, companies currently doing business in the country are looking to lower their prices as a means of competing on a more even playing field.

Digitimes recently took a look at this story, adding the following:

“China-based Hanvon has recently released a new e-book reader for the domestic market, priced at only CNY849 (US$138), while another local e-book reader vendor Dangdang also launched a CNY699 e-book reader to defend its market share.

Although Hanvon and Dangdang are both aggressively defending their shares, they are also hoping that competition from Amazon will help stimulate China’s e-book reader market.”

As you can see, this is sort of a two way street for Chinese manufacturers. On one side of things, these companies are working hard to stave off advancement being made by Amazon.com, Inc. (NASDAQ:AMZN). On the other side, they hope that the addition of Amazon will help the market grow to new heights.

Whether or not Chinese companies are able to hold Amazon.com, Inc. (NASDAQ:AMZN) off is something we will have to keep an eye on in the future. Amazon does a great job pricing its readers to sell, so pricing is not something that will be a major advantage to the competition.

The piece finished up by saying “sources are concerned that e-book reader sales in China are unlikely to get much extra momentum from Amazon.”

There is no denying at this point that Amazon is looking to make up ground in China and grab onto as much market share as possible. This could spell doom for the companies that already have a stronghold in the country.

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