Faculty of Business and Law
MKT306
Marketing Strategy
Kindle Fire market audit and recommendations for future strategies
Executive summary
This report carries out Amazon Kindle Fire tablets market audit in the UK, evaluates current marketing strategies and subsequently offers recommendations. The report is divided into 2 parts; part 1 examines internal and external business environments as well as the evaluation of Amazon’s competitive advantage. Part 2 proposes future marketing objectives and the corresponding marketing strategies to achieve them. This is followed by conclusions.
The report establishes that the high UK VAT and recent financial crisis impact consumer spending negatively. However technological developments and
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Moreover the diversified nature of Amazon’s digital content continues to grow the company’s revenues as other multimedia such as music, TV shows and Apps continue to grow year on year. This provides evidence of the company’s successful decision to offer their devices at low price and leverage consumption of digital content to grow its revenue collection. However Amazon’s competitive advantage in provision of digital content is under threat as other tablets manufacturers continue to develop bundled services to attract more customers. Nonetheless, the low price of Kindle Fire provides edge over other rivals (Hoelzel and Adler, …show more content…
Marketing mix/ Strategy
The marketing mix is an analytical tool for determining product offer and the relevant service marketing to achieve an intended level of sales. It contains seven elements that can be effectively combined to achieve specific sales levels by addressing the needs of the target market (Kotler & Keller, 2012).
7.1. Product
Kindle Fire is a handheld device that has simplified computing work without the difficulty of handling a whole computer. Moreover it offers users versatility as it couples up mobile phone functionalities. As such the Kindle Fire allows users to perform functions they could have otherwise performed on computers and phones. Most importantly the Kindle Fire comes with an entire ecosystem of bundled services easily accessible on the internet. Consumers can easily download and install these applications through the Amazon Appstore (Segan, 2013). The Kindle Fire offers users versatility to combine both professional and personal computing needs, easy access to wide array of digital content and cloud services. Therefore these features are very appealing to the middle income earners in the UK that have greater need for personal and professional
Kindle Fire follows Amazon’s traditional approach of one-two punch of low margins combined with large-scale delivery. Kindle Fire would be price at cost or slightly lower than hardware cost in anticipation of revenues being generated from content sales. Kindle Fire may also be offered at subsidized pricing or even free in exchange of customers signing up for an enhanced version of Amazon Prime subscription service. This therefore implies that hardware revenues are expected to be low.
1. In what way does Bezos’s decision to develop and deliver the Kindle show systematic and intuitive thinking?
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
Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. The company sells its products directly to customers through its bookstores and on barnesandnoble.com. Barnes & Noble conducts its online business through Barnes & Noble.com, one of the Web’s largest e-commerce sites, which also features more than 3 million titles in its eBookstore. Through Barnes & Noble’s NOOK eReading product offering, customers can buy and read eBooks on the widest range of platforms, including NOOK eBook
demand of the product.The Kindle line has shown wild success, Bezos will once again try to
Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly.
As discussed in the case study, the advertising and marketing strategy of Amazon have been focusing on how the products would gain interest from their target market and how they can be able to generate sales with their products. This is Amazon’s stronghold where it continues to yield strong sales revenue by leveraging off its excellent online shop in different locations, such as in UK and other country, strong brand name and excellent reputation among customers. Amazon has also been continuing to create affiliate websites to expand their business market among various consumers.
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
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
In this advanced era, we, the consumers, want a Smartphone that keeps surprising us with new and unique features that helps in enriching and improving our Smartphone experience. Is it any surprise that Amazon wanted a taste of the market, now that it has conquered the digital retail market?
With the proliferation of communication and information technology, particularly the Internet, most business organizations have been at the forefront to join the e-commerce platform. Amazon is considered as one of the existing and largest e-business platform in the world. This report outlines Amazon’s strategic intent and key resources and capabilities. In addition, the report will also include an analysis of the company 's assets and capabilities that have provided it a sustainable competitive edge as well as, the recommended future strategy of the giant online organization. Amazon defines its line of business operations based on product and service sales, fulfillment, digital content subscriptions, publishing, and co-branded cards. The company 's line of business is defined as an online store, Internet service provision, and the Kindle ecosystem. This project will explore the truth that has made the online company to be considered as the top online retailer, which mainly focuses on strategy. This report also outlines how inventories play a fundamental role in the organization 's business or corporate strategy. The other issues covered in the report include the approach used by the online company deal with the supply chain and the reason behind fast shipping fast. The paper will outline the finance statute of the company and whether the finance effect will bar the organization from developing in future. In order to achieve the answer to the questions
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
Marketing mix is nothing but a critical mix of right amount of efforts and mechanism that is made up of the product that an organisation offers, market segmentation and the marketing strategy, selling the product at the right price and to the right customers through right people.
Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.
Marketing mix is the set of controllable tactical marketing tools which that the firm blends to produce the response it wants in the target market.