Essay about Maintaining Competitive Advantage in the E-Reader Industry

1474 Words Mar 29th, 2011 6 Pages
Maintaining Competitive Advantage in the
E-reader Industry

Amazon’s competitive advantage in the e-reader industry due to their top selling ‘Kindle’ electronic reading device, still in its infancy, will be difficult for any rival in the industry to achieve. While electronics design and manfacturing are not Amazon’s core competency by any means, Amazon’s Kindle e-Reading device has beat out its biggest rival, electronics heavy-weight Sony, by an estimated 30% higher device sales in 2008. What’s more is that the Sony Reader has been available since 2006, while the Amazon Kindle (only available from amazon.com) just launched in late 2007 and was hugely popular from the start, selling out in the first 5 and ½ hours. Why does Amazon have
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Sony also applied their core competencies in manufacturing, design, and technological quality to their e-reader however, they haven’t been able to advance their product into the top market position in the e-reader industry. Sony has a bigger customer base in general than Amazon, and the Sony Reader can be purchased for $50 less than the Kindle on the Sony store, Amazon, Target, Borders, and soon other locations, and unlike Kindle, it is never out of stock. Many e-reader users have compained about Kindle 1’s poor design and key placement, noting that Sony Reader was superior in this area. With the exception of a sleek design, the Amazon Kindle and the Sony Reader have so many similarities, including the use of E-ink technology, the same screen size, and a variety of ‘extra’ features, that it becomes even clearer that it is the customer centric experience and innovative delivery method, which really gives the Amazon’s e-reader the competitive advantage in this market.

Application of Strategy Group Mapping & Strategy Canvasing to the e-Reader industry:
Several technology companies before Amazon, developed and sold e-readers (most are still on the market), but none of them achieved the success of the Kindle. We can apply strategy canvasing to illustrate how Amazon set themselves apart strategically, from other corporations, and analyze how their approach makes their Kindle product the most successful in the industry.
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