Why Amazon Needs A9
A reader asks, "Why does Amazon have a search engine? Is this to distract Google and Yahoo from ever getting into the business of being a web superstore? Would Google or Yahoo ever get into that business, since they really exist to monetize search?"
I'll address this in two parts. Today, let's look at the reason for Amazon's A9 venture.
Amazon is the web superstore. Search is essential both as the customer entry point for locating merchandise and so Amazon can recommend merchandise. So search technology is a core competency for Amazon. Their A9 R&D venture is primarily intended to assure that they have focus on all aspects of this technology and maximize its potential to drive sales.
Many web sites now have "search the web" functions on their home page. These are usually powered by Google or one of the other popular search engines. The rather lame result is to send the person you want to have do something on your site off to another site.
Amazon's A9 "search the web" box shows the effective way to do this. They take the search query and do two things with it. First, they analyze it to present you with the most relevant Amazon buying opportunities they can, using their search technology. Second, they use a general search engine (currently MSN, previously Google) to get the usual web search results. This is all presented seamlessly.
Bottom line: Amazon's A9 strategy is to use search to drive sales of its merchandise.
Note also that, were Amazon to want to defend against Google or Yahoo, it would not be with A9. Google, Yahoo and MSN own 85% of the search market, as measured by usage. They effectively pin each other down pouring resources into search. A9 is a nit in that regard.
In a future post, we'll look at whether Google and Yahoo are likely strategic threats to Amazon's web superstore.
Copyright © 2006 Philip Bookman
Technorati: Amazon
I'll address this in two parts. Today, let's look at the reason for Amazon's A9 venture.
Amazon is the web superstore. Search is essential both as the customer entry point for locating merchandise and so Amazon can recommend merchandise. So search technology is a core competency for Amazon. Their A9 R&D venture is primarily intended to assure that they have focus on all aspects of this technology and maximize its potential to drive sales.
Many web sites now have "search the web" functions on their home page. These are usually powered by Google or one of the other popular search engines. The rather lame result is to send the person you want to have do something on your site off to another site.
Amazon's A9 "search the web" box shows the effective way to do this. They take the search query and do two things with it. First, they analyze it to present you with the most relevant Amazon buying opportunities they can, using their search technology. Second, they use a general search engine (currently MSN, previously Google) to get the usual web search results. This is all presented seamlessly.
Bottom line: Amazon's A9 strategy is to use search to drive sales of its merchandise.
Note also that, were Amazon to want to defend against Google or Yahoo, it would not be with A9. Google, Yahoo and MSN own 85% of the search market, as measured by usage. They effectively pin each other down pouring resources into search. A9 is a nit in that regard.
In a future post, we'll look at whether Google and Yahoo are likely strategic threats to Amazon's web superstore.
Copyright © 2006 Philip Bookman
Technorati: Amazon
Labels: software strategy
posted by Phil Bookman at 9:52 AM
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