Amazon Kindle Case Analysis : Amazon

Based on the initial sales of the Kindle Fire, it is recommended that Amazon move forward in positioning with Apple’s iPad and targeting its consumer segment to “media junkies”. An extensive financial analysis was then conducted to have found that a pricing strategy at

Amazon.com was founded as an online bookstore in July, 1995 and went public in May 1997. In June, 1998 Amazon.com launched its music store. Since then Amazon.com has become the most prominent Internet retailer. Over time Amazon.com has added several products including electronics, health and beauty products, house wares, kitchenware’s, music, tools, toys, videos, and several services such as auctions, 1-Click ordering, and zShops. Amazon.com has expanded nationally and internationally and now operates several customer service and distribution centers in the United States and international web sites that

Amazon.com has successfully managed to make its customers to feel that anything they could possibly want could be found on their website. Additionally, its products are marketed at a competitive price. Another important factor is their speedy delivery with their usage of UPS and FedEx (United States) and Royal Mail (United Kingdom). The company also caters for people that prefer online shopping with extra services such as Amazon Prime - a service with a yearly payment, customers are eligible for free next day delivery. Even though Amazon.com is known to be an online seller of most things, it still excels in its original market of book selling. Evidence of such is

Amazon is the world’s largest online retailer that was launched in 1995 (Rouse, 2014). Amazon was mainly a book selling company that has enlarged its’ business by selling a variety of goods. The company sells all types of technology devices such as cell phones, games, televisions, movies, cameras, computers,

As a Millennial and frequent user of many devices, I find that technology has drastically improved over the years, which directly correlates with the increase in its usage. Technology has become an essential piece in our generation’s functionality and therefore it is not likely to go away anytime soon. The thought of newer and better technology is usually appealing to the average consumer for obvious reasons; better entertainment, research and medical advances, etc. However, our progress as a society does not depend on technology, rather to some extent, it inhibits our ability to grow mentally.

Like Amazon, Barnes & Noble, has recently launched its own version of a Kindle, called the “Nook.” It is still too early to determine if they will be able to “catch up” with Amazon, and other offerings in the marketplace like IPAD, and the Sony Reader.

Later, the launch of the updated Kindle Fire combined an e-book reader, music player, video player, and internet browser into one convenient, compact tablet. Although the Kindle Fire's selling price of $199 did not seem to cover the costs at first, Bezos was still confident in it. (Anders, “Jeff Bezos Gets It” 2012) The reason for this confidence was because he knew that he was selling customer's another way to get to Amazon.com, and now many purchases are made on Amazon through tablets and mobile devices.

The new product introduction (new version of Kindle Fire) maybe faced by a number of potential risks from its production initiatives. The first risk is associated with costs that were not expected. In every project that is initiated, planning encompasses expected costs; the rise of unexpected costs can hamper the continuity of such a project. The new version of Kindle Fire may be hampered by costs that were not planned for yet essential for the completion of the project. Such costs may be due to aspects such as development of new version of operating systems that calls for additional hardware. Such hardware might not have been planned for hence delivery of a product with such hardware may not be appealing in the market. The next risk is associated with increased features that may make it complicated to operate (Kim, 2011). In the new world of rapid dynamism, it is required to develop a complex technology yet simple to use. In a situation where the new Kindle Fire version has complicated features and still complicated to use, it is possible to have the introduction of the new product successful. There are also the risk of new marketing and financial strategies. The new Kindle Fire might require a different approach in terms of marketing and financial moves that might not be the norm for Amazon. Amazon will thus be faced by the risk of developing the new financial and marketing strategies. Another probable risk is delays that weaken the continuity of the project such as

Tablets: Those with touch-screen innovation become so noteworthy that companies begin to compete for the dominance of this new field.

Amazon is an online retailer focused on selection, price and convenience. Incorporated in May 1996, Amazon.com offers programs that allow sellers to sell products on the website and have the fulfillment performed by the seller. In addition to the online marketplace, Amazon also manufactures and sells Kindle devices. Through the different programs offered by Amazon, the company has the edge over their competitors. They are able to secure the lowest price, fastest shipping and offer incentives to the customer, such as Amazon Prime (Amazon, 2014).

Amazon strives to provide customers with the best possible online shopping experience by leveraging their powerful and innovative technologies. Part of the company’s competitiveness lies in their proprietary technology, which is licensed to companies like Target to run their e-commerce site. Its patented portal technology allows the customer to customize their on-line experience with personalized home page,

Retailers have adapted to the online marketplace out of necessity and opportunity. The great recession placed many retail companies in financial hardship and while some failed, others innovated and became some of the largest companies in America such as Amazon. A recent trend is consumers are buying more products online than ever before. As a consumer, I enjoy shopping in the convenience of my home and having the items delivered to my doorstep in 48 hours or less. Global internet access continues to increase, with mobile devices and affordable internet for the home, consumers will continue to shift and buy products online rather than in retail brick and mortar locations. Online sales in the United States have increased over 250% in the last ten years, accomplishing $250.0 billion in 2012 (Tehrani, 2014). Therefore, Amazon is in a solid market position to capitalize on the future trends and booming ecommerce

The company has many strengths. First, Amazon is the world’s leading online retailer. According to the 2016 Annual Report, Amazon had total net sales of US $135, 987 million in 2016. These total net sales include three segments which are North America, International, and AWS. Second, in comparison to many companies, Amazon has a superior logistics and distribution system, which allows the company to actualize improved customer fulfillment. Third, with its prolonged strategic drive on low-cost, differentiation, and focus, Amazon offers a wide range of product at low prices to customers. Fourth, Amazon enjoys global recognition from its customers. As stated earlier, Amazon built a strong brand in very little time. Finally, the

Amazon is a company that sells many open product categories online by allowing customers to take the time to search and shop through the product offerings. Many product categories that are offered on Amazon may include device accessories, kindle devices, beauty, books, electronics, health & personal care, etc. The foremost product category that can offer the greatest advantage compared with a retail store chain is most definitely the books category. Reason to this is that the company has expanded the customer’s online shopping experience by offering such a wide range of physical and electronic books, depending on the preference of the customers. They are able to search for the top-rated selling

The Amazon Kindle is an e-book reader which you can download readable and audible content into. The most innovative idea of Bezos about the Kindle was the use of the “E Ink” technology to reduce battery consumption and to provide a more legible display. The Amazon Kindle’s successors were the tablets Kindle Fire and Kindle Fire HD. Amazon priced the Kindle Fire with just $199 as a strategy to boost its revenue from content sales. Amazon’s latest example of diversification includes the launch of the Amazon Fire TV in order to compete with Apple TV and Chromecast. Bezos also entered the highly competitive smartphone industry by releasing the Fire Phone in 2014. An economic advantage diversification provides is economies of scope. Economies of scope refer to a reduction in unit cost based on the idea that the total cost of producing two different goods or services together is less than the total cost of producing them separately. Amazon makes use of the distribution side of economies of scope by shipping a wide range of goods together rather than separately. This gives Amazon the chance to negotiate more lucrative deals with freight companies. Geographic