Google Sets Sights On Amazon’s E-Commerce Empire
While Google (NASDAQ:GOOG) claims it doesn’t find competition with competitors interesting or rewarding, it has been copying Amazon.com’s (NASDAQ:AMZN) every move in a battle to compete with Amazon’s success in e-commerce.
Most recently Google has followed Amazon in launching an e-commerce site for industrial goods like cable ties, AC-DC adapters, radiation detectors, and similar items. Google started testing out Google Shopping for Suppliers in January, which it started to compete with Amazon’s AmazonSupply.
But business-to-business industrial goods sales aren’t the only arena in which Google has copied Amazon recently. In the last year Google has launched 3 other services to directly target Amazon, including corporate computing, same-day delivery and offering lockers for consumers to receive e-commerce orders. Last June Google released a cloud-computing service called Google Compute Engine to compete with Amazon’s similar Amazon Web Services. In November Google purchased BufferBox, a company that provides lock boxes where people can have items ordered online delivered when away from home. Amazon has been installing similar lockers around the country since 2011.
Google has been targeting other rivals as well. The company launched its social networking service Google+ in 2011 to compete with Facebook (NASDAQ:FB). Both Google and Amazon have been focusing on the tablet industry to compete with Apple‘s (NASDAQ:AAPL) incredibly successful iPad devices.
Chief Executive Officer and co-founder of Google, Larry Page, has said that he doesn’t find competing with other companies “interesting” and that doing so can actually cause “decay,” because it leads to concentration on smaller improvements rather than bigger risks that can lead to bigger pay-off.
Despite those statements, Google has been copying Amazon frequently and in a variety of sectors. Both companies are trying to become the primary destination for online shopping. Amazon currently dominates e-commerce, handling three to seven times more product searches than Google Shopping.
Amazon is set to encroach onto Google’s territory as well, with a line of smartphones that would compete with Google’s Android devices in the works. One analyst summed up the competition we will continue to see between Google and Amazon, saying, “Those two companies are going to duke it out for a long time in just about everything.”
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