Amazon Baidu Deal Is Win Win Situation
Amazon partnership with Baidu will be beneficial for both parties in a long run.
Amazon Inc. announced a partnership with a Chinese tech company ‘Baidu’ in the beginning of December. During the holiday festival season, it received positive reviews for its Fire tablets from customers and its sales significantly increased, which motivated the online retailer to move ahead with the same momentum.
The partnership deal was signed so that Amazon can introduce its Fire-line products in China easily with the help of Baidu. In return, it said to make Baidu, which is regarded as the Chinese Google, as the default search engine for its Amazon Kindle and Fire tablet in the region.
This seems as an alliance that will likely continue for a long time. This is a type of strategic partnership where Baidu will be offering its search and apps feature to all Amazon Kindle and Fire tablets available for purchase in China. Furthermore, there will be an exclusive online video streaming option as well for all the tablet users in China. Forbes stated that this healthy and long lasting alliance would benefit both parties.
Baidu can use this alliance as a catalyst to bolster its position in the already leading search engine market in China while gaining further edge in the e-commerce market in the country. Moreover, it is not only Amazon Kindle or Fire tablet, which the company wants to expand across the globe, but it is trying to expand its global footprints in the second biggest economy as well. It is indeed constantly growing in the region and with the help of this partnership, it can receive an appropriate push needed to succeed in the country.
Forbes reported that the online retailer has millions of Amazon Kindle users in the mainland, according to the number revealed by the company. Hence, it is very much confident to easily succeed in China with both of its products. The firm never discloses its actual numbers regarding anything, therefore the exact count of Kindle e-readers is still unknown.
Amazon mentioned receiving millions of orders from the Chinese customers when it launched its Fire tablet. Forbes added, “The partnership with Baidu will provide Fire users access to a wider range of mobile apps and this can make them more popular. If Amazon succeeds in capturing a significant chunk of the Chinese market, it could introduce other services such as Amazon Prime in the region.”
Amazon is thrilled about this partnership due to the growth potential and opportunity to enter in Chinese market.