Market Analysis and Strategy for Amazon Kindle Fire

First, Bezos has shown his intuitive thinking in the decision of unveiling Amazon Kindle, a new device that is completely outside Apple’s catalog though Amazon still sold Apple’s iPod. Furthermore, he introduced to Medias his product, it seemed like a declaration to Apple. Because Apple is a giant of technological industry, so the situation would be complex to be its competitor. However, it was the only way to make a technological evolution by Kindle. As a result, this situation required Bezos to have a quick and broad evaluation for making the decision.

In contrast to Borders Group, Barnes & Noble which is a leading bookstore in the US recorded an 11% increase in their share value in the past year with the introduction of their e-book reader “Nook”. It is clear that Barnes & Noble were not “Myopic” in their approach and were able to retain and even grow their customers as well as profits by embracing a new product.

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.

1. If the price is set low and Amazon can not meet the break-even point, then Amazon will undertake the great financial burden and might even lead to bankruptcy.

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

While value is a competitive advantage for Barnes and Noble’s retention of market share, their prices are not low enough to impose a low cost strategy.

The Kindle website (https://kindle.amazon.com/) and the competing Nook website (http://nook.barnesandnoble.com/u) are both trying to get you to do one thing: go digital. Technology is an ever-changing area, and it has somehow made its way into almost every aspect of our lives. Improvements have been made to make it possible to read thousands of books on one device. The only catch? There are multiple companies who are competing for the consumer’s purchase of their version of the device.

Barnes and Nobles is one of the biggest bookstores that has a brick-and-mortal store concept. In the past they were know as a “big bully” that drove small book stores to close down because of their aggressive tactics to have competetetive advantage over them. Nonetheless, with the evolving circle of technology they have had a hard time in keeping up with the E-book era. In 2014 E-books increased its reader subscription by 28% compared to 23% in 2013. This number will continue increasing because 50% off American’s have access to devices that are either an e-reader or a tablet. B&N changed its business model to adjust to this new setting before it suffered a

Many consumers go for what appears to be cheapest and most convenient. The reality is, Amazon’s increasing dominance comes with high costs. “These consequences have gone largely unnoticed thanks to Amazon’s remarkable invisibility and the way its tentacles have quietly extended their reach” (LaVecchia, 2016). It is vital that consumers are aware of this superpower that is taking over.

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Not that I did not know it, since it affected me personally in such a profound way, but I wasn’t really “aware” of it, until I read it on Wednesday morning in the Thomas Friedman’s column in The New York Times: “In 2007, Apple came out with the iPhone, beginning the smartphone/ apps revolution; in late 2006 Facebook opened its doors to anyone, not just college and high school students, and took off like a rocket; Google came out with the Android operating system in 2007; […] Amazon came out with the Kindle in 2007.” As I affirmed so many times, KBR, the publishing company I started in 2008, was based upon the Kindle to such an extent that is was originally named “KindleBookBr,” until Amazon asked us to change it. Just for the record, the “K” in “KBR” still accounts for our beloved “Kindle.”

adding to its monopoly. Many authors are discouraged by this due to the fact that

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).

demand of the product.The Kindle line has shown wild success, Bezos will once again try to

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