Summer 2011

1. Presents by
Katy Hui,
Leona Lei
Victoria Huang

3. Key Strategic Issue of Amazon Kindle
Losing
competitive
advantage
Strong rivalry

4. Agenda
Company analysis
External analysis
Recommendations

5. Key Historical Events
August
2007 2010
November Amazon
19 Amazon Kindle 3rd
2005 generation
Amazon Kindle 1st
generation was
bought released
1997 May Mobipocket was released
Amazon
went
public
Founded (AMZN)
in 1914
by Jeff
Bezos
Company Analysis External Analysis Recommendation

6. Vision:
• To be the earth’s most customer centric company; to
build a place where people can come to find and
discover anything that might want to buy online
Mission:
• To influence technology and potential to provide the
best buying experience on the internet.
Company Analysis External Analysis Recommendation

7. Objectives:
• Gaining bigger market share by improving and
diversification of services
Strategy:
• Offering the lowest price while offering great
customer service.
Company Analysis External Analysis Recommendation

8. Kindle’s strengths
Lowest Price: Access to the
Longest-
Kindle& largest online
battery life
E-book e-book store
Brand
Text to speech
Recognition
Company Analysis External Analysis Recommendation

9. Historical Performance
Company Analysis External Analysis Recommendation

10. Comparative Performance
Company Analysis External Analysis Recommendation

11. Industry size & Growth
Company Analysis External Analysis Recommendation

12. Reasons for growth
Company Analysis External Analysis Recommendation

13. Segmentation Analysis
Price
Ipad
Sony
Function
Kindle
Company Analysis External Analysis Recommendation

14. Competitors Analysis
Kindle iPad Samsung Nook
US $114 US$499.99 US$499.99 US$249.99
Black and white Color Color Color
Qwerty keyboard Touch Screen Touch screen Touch screen
Apple store with Barnes and
Amazon Samsung Apps
various apps Noble
For serious Interactive Interactive e-
Interactive tablet
readers tablet reader
Company Analysis External Analysis Recommendation

15. Industry Threats and Opportunities
Environmental
High level of awareness
substitutes
Global expansion
Industry price
compete
Strong growth in
the e-book market
Company Analysis External Analysis Recommendation

16. Recommendations
1. Focus on Differentiation
2. Launch a tablet computer & compete in tablet market segment
3. Globalization
4. Lower Kindle’s price
5. Corporation with schools
Company Analysis External Analysis Recommendation

17. 1. Focus on Differentiation
• Focus on positioning as reading device instead
of a multifunctional tablet computer
• Invest in R&D
• More language
• Touchscreen
Company Analysis External Analysis Recommendation

18. 2. Launch a tablet computer &
compete in tablet market segment
• Separate the e-book reader market with
tablet market
• Higher premium
Company Analysis External Analysis Recommendation

19. 3.Globalization
• Set up a sales center in China
• Eliminate region restriction on e-book
selection
Company Analysis External Analysis Recommendation

20. 4. Lower Kindle’s Price
Company Analysis External Analysis Recommendation

21. 5. Corporation with schools
• Provide discount for students and faculties
• Promote Environmental Friendly
Company Analysis External Analysis Recommendation

22. Thank You!