"In all of Amazon’s commercials and advertisements for the Kindle Fire, the word 'tablet' is conspicuously absent. The only place one can find the word 'tablet' is embedded in the html code for the title of the Kindle Fire page on Amazon’s web site."
So, is the Amazon Kindle Fire a tablet or an overpriced e-reader?
The purpose of this paper is to use several predominant technology strategy frameworks to determine whether Amazon’s market strategy will allow the Kindle Fire to break into the tablet market or just become a higher priced version of its e-reader predecessors. In other words, what is Amazon’s go to market strategy and can it work?
I wrote this paper in 2011 for a Technology Strategy course in my MBA program. We were limited to ten pages, but I got little over zealous as you can see.
The document presents an analysis of Amazon Kindle's key strategic issues and recommendations. It provides an overview of Amazon Kindle's history and performance. It also analyzes Kindle's strengths and competitive advantages against rivals like iPad, Samsung, and Nook. Some threats and opportunities in the industry are discussed as well. Recommendations include focusing on differentiation, launching a tablet computer, global expansion, lowering Kindle's price, and cooperating with schools.
The document provides an analysis of the Kindle e-reader including its history and mission, current users, purchase cycles, strengths, weaknesses, opportunities, threats, and competition. It details Amazon's launch of the Kindle in 2007 and subsequent models, examines Kindle user demographics and geographic coverage. The analysis also includes a SWOT analysis and overview of competitors in the e-reader market.
Colgate Precision - Harvard Business Case AnalysisUsha Vijay
Colgate is facing increased competition in the toothbrush market and a decline in market share for its Classic and Plus lines. The introduction of the super premium segment has been successful, accounting for 35% of the market. Colgate is considering launching a new toothbrush, Precision, targeted at the super premium segment to focus on gum health. Precision has the potential to increase Colgate's market share to 7.4% in the first year and generate a profit of $14 million in the second year with $15 million spent on advertising. Positioning Precision as a mainstream product could gain an even higher market share and contribution margin for Colgate compared to a niche strategy.
Online Retailing, Amazon is the place where you can buy books or any other things through online. The case talks about EDN system which needed to be built by the Amazon's Europe to improve their business process in those Areas.
Amazon Web Services SWOT & Competitor AnalysisBessie Chu
The document provides an analysis of Amazon Web Services' (AWS) position in the cloud computing market, including a SWOT analysis of AWS and competitor analyses of Rackspace, Google Compute Engine, and Microsoft Azure. It finds that AWS has a large infrastructure and client base but risks from outages and complexity. Competitors like Rackspace focus on customization but lack AWS's scale, while Google and Microsoft's cloud offerings are still in early stages.
This marketing plan aims to use social media and digital advertising to encourage more millennials to shop at Whole Foods Market. The plan focuses on creating informative video content for Instagram and TikTok to grow followers by 20% in the first month. It also aims to post 24 videos on TikTok by the end of the campaign. Advertising will be done on Amazon to target the 57% of millennials who are Prime subscribers, as well as on billboards which 71% of Americans look at. The budget allocates around $70,000 for Instagram and TikTok content creation and boosting, $20,000 for Amazon ads, and $120,000 for billboards. The goal is to inform millennials
See how Amazon leverages its supply chain as a critical flywheel in its success. Included in the report are value chain analysis, inventory, transportation and fulfillment, cash conversion cycle, and fulfillment space.
The document presents an analysis of Amazon Kindle's key strategic issues and recommendations. It provides an overview of Amazon Kindle's history and performance. It also analyzes Kindle's strengths and competitive advantages against rivals like iPad, Samsung, and Nook. Some threats and opportunities in the industry are discussed as well. Recommendations include focusing on differentiation, launching a tablet computer, global expansion, lowering Kindle's price, and cooperating with schools.
The document provides an analysis of the Kindle e-reader including its history and mission, current users, purchase cycles, strengths, weaknesses, opportunities, threats, and competition. It details Amazon's launch of the Kindle in 2007 and subsequent models, examines Kindle user demographics and geographic coverage. The analysis also includes a SWOT analysis and overview of competitors in the e-reader market.
Colgate Precision - Harvard Business Case AnalysisUsha Vijay
Colgate is facing increased competition in the toothbrush market and a decline in market share for its Classic and Plus lines. The introduction of the super premium segment has been successful, accounting for 35% of the market. Colgate is considering launching a new toothbrush, Precision, targeted at the super premium segment to focus on gum health. Precision has the potential to increase Colgate's market share to 7.4% in the first year and generate a profit of $14 million in the second year with $15 million spent on advertising. Positioning Precision as a mainstream product could gain an even higher market share and contribution margin for Colgate compared to a niche strategy.
Online Retailing, Amazon is the place where you can buy books or any other things through online. The case talks about EDN system which needed to be built by the Amazon's Europe to improve their business process in those Areas.
Amazon Web Services SWOT & Competitor AnalysisBessie Chu
The document provides an analysis of Amazon Web Services' (AWS) position in the cloud computing market, including a SWOT analysis of AWS and competitor analyses of Rackspace, Google Compute Engine, and Microsoft Azure. It finds that AWS has a large infrastructure and client base but risks from outages and complexity. Competitors like Rackspace focus on customization but lack AWS's scale, while Google and Microsoft's cloud offerings are still in early stages.
This marketing plan aims to use social media and digital advertising to encourage more millennials to shop at Whole Foods Market. The plan focuses on creating informative video content for Instagram and TikTok to grow followers by 20% in the first month. It also aims to post 24 videos on TikTok by the end of the campaign. Advertising will be done on Amazon to target the 57% of millennials who are Prime subscribers, as well as on billboards which 71% of Americans look at. The budget allocates around $70,000 for Instagram and TikTok content creation and boosting, $20,000 for Amazon ads, and $120,000 for billboards. The goal is to inform millennials
See how Amazon leverages its supply chain as a critical flywheel in its success. Included in the report are value chain analysis, inventory, transportation and fulfillment, cash conversion cycle, and fulfillment space.
Amazon.com - Company Analysis (OD & HRM)Nikhil Saraf
This document provides an overview of Amazon.com, Inc. including its business description, products and services, global presence, financials, competitors, and recent milestones. It also analyzes Jeff Bezos as the entrepreneur who founded Amazon and established its culture of metrics, low prices, and continuous innovation. The document discusses Amazon's shift to using software-based recommendations and its focus on proprietary technology and infrastructure to gain a competitive advantage.
best buy case study sample presentationiWriteEssays
Best Buy was losing customers and sales to online-only retailers because customers would visit Best Buy stores to see and test products before purchasing them online from other retailers. This practice is known as "showrooming." Best Buy's shareholders and local communities were negatively impacted by store closures. However, Best Buy has implemented strategies like permanent price matching and improving their website to better compete with online retailers.
Amazon started as an online bookstore in 1995 and has since expanded into many other business areas. It began selling other products like music and videos in the late 1990s. Amazon launched Amazon Web Services in 2002 which has become a major revenue driver. The company also enables third-party sellers on its marketplace and acquired Whole Foods in 2017. Amazon continues to grow through acquisitions and expanding into new services and devices.
Samsung is a South Korean conglomerate and the second largest smartphone company in the world. It has captured a 21.6% share of the global smartphone market as of 2018. Samsung has achieved competitive advantage through effective market leadership, new product development, and high-quality smartphones across a wide price range. It faces intense competition from rivals like Apple but has adopted strategies like launching new models at competitive prices and expanding product lines like the Note series.
Porter's 5 forces model on e books retail industryMd Golam Rabbi
Michael Porter described a concept that has become known as the "five forces model". Using this model, business leaders can develop a strategic edge over rival firms by better understanding. Porter’s approach takes an industry vista helping you to assess, at a corporate strategy level, the attractiveness of the industry to potential entrants at a given time.
This is the Analysis of How Porter's Five Forces Model are going to impact on E-books industry.
Dropbox it just works-case study solutionMustahid Ali
Dropbox was founded in 2007 by Drew Houston and Arash Ferdowsi to provide easy file sharing across devices. While entering a competitive market with established players like Mozy and Carbonite, Dropbox differentiated itself with local file storage and background syncing. After launching a beta version and using guerrilla marketing, Dropbox saw rapid growth. However, Houston faced challenges around user segmentation, funding, partnerships, and high customer acquisition costs. He considered creating separate products for power users and businesses to better monetize Dropbox's diverse user base.
This presentation covers a wide variety of topics such as:
- Brief History of Amazon
- Product, Customers, and Competitors
- Sourcing
- Manufacturing
- Layout
- Inventory
- Operational Strategies
By reading this presentation, you can be well-prepared for any operational management session.
Amazon's strategy is driven by leveraging technology as a source of competitive advantage and benefiting from economies of scale. It focuses on offering maximum value to customers at low prices through a cost leadership strategy. Amazon diversified from an online bookstore into selling various products globally using localized portals and logistics platforms. It collects and analyzes big data to understand customer behavior and improve targeting. Amazon regularly enters new market segments and strengthens its ecosystem of merchants, developers, and reviewers to further its strategy.
Dropbox is a file hosting service founded in 2007 that allows its over 5 million users to automatically save and sync files across computers, phones and tablets. It focuses on product innovation, ease of use, privacy and reliability while storing customer files on its own servers. However, Dropbox faces challenges around high acquisition costs, unclear product strategy and updates, lack of customer data, and needs to conduct more extensive usability testing and market research to improve.
The document provides an overview of the smartphone industry. It discusses the history and evolution of smartphones from basic phones to advanced devices. Some key points:
- Smartphones now have more computing power, connectivity, and ability to install apps compared to basic phones. Major platforms include Android, iOS, Windows, Blackberry and others.
- The global smartphone market reached $150 billion in 2014, doubling from 2009. Android and iOS dominate global sales. Asia Pacific is a major market, led by China and India.
- The industry faces competition between OS platforms, hardware manufacturers, and content providers. Barriers to entry are high due to technology and manufacturing requirements.
The document discusses the "voice wars" between Google Assistant, Amazon Alexa, and Apple Siri. It focuses on Google's strategy with Assistant and how it fits into their broader product portfolio. By 2018, voice assistants were common in many devices. Google launched Assistant across Pixel phones, books, and speakers. The document discusses various questions around the voice assistant market including which company is best positioned (Google), business models, and who is best positioned to win the connected home (Amazon looks strongest).
Amazon was founded in 1995 in Seattle as an online bookstore. It has since expanded to become the largest online retailer in the US, offering e-commerce and cloud computing services. Jeff Bezos serves as CEO and has instilled a culture of innovation, risk-taking, and long-term thinking. Amazon overcomes obstacles to innovation through encouraging new ideas, establishing an innovative environment, and having visionary leadership that supports continuous innovation. It identifies new opportunities by meeting consumer needs, considering necessary resources and market factors like location and pricing. Amazon's culture emphasizes a pioneering spirit, continuous learning, and giving employees opportunities to think big and create new things, though it also demands hard work with an emphasis on customer obsession over work-life
Colgate Palmolive developed a new toothbrush called Colgate Precision and the product manager must recommend a marketing strategy. There is a conflict over the advertising budget between Colgate Precision and Colgate Plus. The product manager proposes progressively increasing the total budget and allocating 25% more to Precision each year. Analyzing pricing and sales projections, niche positioning earns $1.79 million in profit Year 1 and $19.96 million Year 2, showing increased volume leads to higher profits.
Procter & Gamble operates in over 80 countries worldwide selling over 300 brands. The document analyzes P&G's external environment through a PESTEL analysis covering political, economic, social, technological, environmental and legal factors. It then discusses key driving forces for P&G including a focus on product innovation through consumer research and connecting with consumers, as well as regulatory influences from consumer protection groups concerned with chemicals in cosmetic products.
Industry Attractiveness For Mobile MarketZoeb Hasan
The mobile handset industry in Bangladesh is growing rapidly. Local brands like Symphony are dominating the market, along with international brands like Samsung, Huawei, and Oppo. The objective of the study is to analyze the attractiveness of the mobile industry in Bangladesh using Porter's Five Forces model. This will identify whether the competitive environment is attractive, ideal, or unattractive for potential profit. The analysis will look at competitive rivalry, threat of new entrants, threat of substitutes, supplier bargaining power, and buyer bargaining power.
Analyzed Amazon.com Business Structure. EFE Matrix, IFE Matrix, IE Matrix, SWOT Analysis, Quantitative Strategic Planning Matrix, Recommended Strategy, Organizational Structure, Organizational Culture, Product Positioning Map, Target Marget, Strategy Evaluation Report.
I gained knowledge and experience to consult for Strategic Business Management. I am very interested in mergers and acquisitions.
Amazon has built an extensive global distribution network to support its e-commerce business. It operates numerous fulfillment centers worldwide that use highly automated processes to pick, pack, and ship a large volume of small parcels. Amazon obtains inventory through various channels, including direct purchases from publishers/suppliers, dropshipping, and third-party sellers. It aims to collaborate closely with suppliers and partners to increase efficiencies and optimize inventory levels through just-in-time and vendor-managed approaches. Amazon's distribution network is key to providing customers with a wide selection of products and a plethora of delivery options.
Launching Amazon Go
What, how and where should we communicate to resonate with our target audience and get the biggest spread, for the lowest cost, with the highest impact?
The document provides a situation analysis and marketing strategy for Amazon's Kindle e-reader and tablet products. It analyzes Amazon's internal strengths such as pricing strategy and brand recognition, as well as weaknesses like hardware quality. Externally, opportunities include growing tablet demand while threats include strong competitors. The document outlines Amazon's goals of selling more products at lower costs. It proposes a marketing strategy focused on Kindle's target consumers and competitive advantages in pricing, content, and customer experience.
The document provides a situation analysis and marketing strategy for Amazon's Kindle e-reader and tablet products. It analyzes Amazon's internal strengths such as pricing strategy and brand recognition, as well as weaknesses like hardware quality. Externally, opportunities include growing tablet demand while threats include strong competitors. The goals of Amazon are to sell more products at lower costs through the Kindle brand. Segmentation targets heavy readers, travelers, and media consumers. The marketing strategy focuses on competitive pricing, quality products, and customer service to dominate the e-reader market.
Amazon.com - Company Analysis (OD & HRM)Nikhil Saraf
This document provides an overview of Amazon.com, Inc. including its business description, products and services, global presence, financials, competitors, and recent milestones. It also analyzes Jeff Bezos as the entrepreneur who founded Amazon and established its culture of metrics, low prices, and continuous innovation. The document discusses Amazon's shift to using software-based recommendations and its focus on proprietary technology and infrastructure to gain a competitive advantage.
best buy case study sample presentationiWriteEssays
Best Buy was losing customers and sales to online-only retailers because customers would visit Best Buy stores to see and test products before purchasing them online from other retailers. This practice is known as "showrooming." Best Buy's shareholders and local communities were negatively impacted by store closures. However, Best Buy has implemented strategies like permanent price matching and improving their website to better compete with online retailers.
Amazon started as an online bookstore in 1995 and has since expanded into many other business areas. It began selling other products like music and videos in the late 1990s. Amazon launched Amazon Web Services in 2002 which has become a major revenue driver. The company also enables third-party sellers on its marketplace and acquired Whole Foods in 2017. Amazon continues to grow through acquisitions and expanding into new services and devices.
Samsung is a South Korean conglomerate and the second largest smartphone company in the world. It has captured a 21.6% share of the global smartphone market as of 2018. Samsung has achieved competitive advantage through effective market leadership, new product development, and high-quality smartphones across a wide price range. It faces intense competition from rivals like Apple but has adopted strategies like launching new models at competitive prices and expanding product lines like the Note series.
Porter's 5 forces model on e books retail industryMd Golam Rabbi
Michael Porter described a concept that has become known as the "five forces model". Using this model, business leaders can develop a strategic edge over rival firms by better understanding. Porter’s approach takes an industry vista helping you to assess, at a corporate strategy level, the attractiveness of the industry to potential entrants at a given time.
This is the Analysis of How Porter's Five Forces Model are going to impact on E-books industry.
Dropbox it just works-case study solutionMustahid Ali
Dropbox was founded in 2007 by Drew Houston and Arash Ferdowsi to provide easy file sharing across devices. While entering a competitive market with established players like Mozy and Carbonite, Dropbox differentiated itself with local file storage and background syncing. After launching a beta version and using guerrilla marketing, Dropbox saw rapid growth. However, Houston faced challenges around user segmentation, funding, partnerships, and high customer acquisition costs. He considered creating separate products for power users and businesses to better monetize Dropbox's diverse user base.
This presentation covers a wide variety of topics such as:
- Brief History of Amazon
- Product, Customers, and Competitors
- Sourcing
- Manufacturing
- Layout
- Inventory
- Operational Strategies
By reading this presentation, you can be well-prepared for any operational management session.
Amazon's strategy is driven by leveraging technology as a source of competitive advantage and benefiting from economies of scale. It focuses on offering maximum value to customers at low prices through a cost leadership strategy. Amazon diversified from an online bookstore into selling various products globally using localized portals and logistics platforms. It collects and analyzes big data to understand customer behavior and improve targeting. Amazon regularly enters new market segments and strengthens its ecosystem of merchants, developers, and reviewers to further its strategy.
Dropbox is a file hosting service founded in 2007 that allows its over 5 million users to automatically save and sync files across computers, phones and tablets. It focuses on product innovation, ease of use, privacy and reliability while storing customer files on its own servers. However, Dropbox faces challenges around high acquisition costs, unclear product strategy and updates, lack of customer data, and needs to conduct more extensive usability testing and market research to improve.
The document provides an overview of the smartphone industry. It discusses the history and evolution of smartphones from basic phones to advanced devices. Some key points:
- Smartphones now have more computing power, connectivity, and ability to install apps compared to basic phones. Major platforms include Android, iOS, Windows, Blackberry and others.
- The global smartphone market reached $150 billion in 2014, doubling from 2009. Android and iOS dominate global sales. Asia Pacific is a major market, led by China and India.
- The industry faces competition between OS platforms, hardware manufacturers, and content providers. Barriers to entry are high due to technology and manufacturing requirements.
The document discusses the "voice wars" between Google Assistant, Amazon Alexa, and Apple Siri. It focuses on Google's strategy with Assistant and how it fits into their broader product portfolio. By 2018, voice assistants were common in many devices. Google launched Assistant across Pixel phones, books, and speakers. The document discusses various questions around the voice assistant market including which company is best positioned (Google), business models, and who is best positioned to win the connected home (Amazon looks strongest).
Amazon was founded in 1995 in Seattle as an online bookstore. It has since expanded to become the largest online retailer in the US, offering e-commerce and cloud computing services. Jeff Bezos serves as CEO and has instilled a culture of innovation, risk-taking, and long-term thinking. Amazon overcomes obstacles to innovation through encouraging new ideas, establishing an innovative environment, and having visionary leadership that supports continuous innovation. It identifies new opportunities by meeting consumer needs, considering necessary resources and market factors like location and pricing. Amazon's culture emphasizes a pioneering spirit, continuous learning, and giving employees opportunities to think big and create new things, though it also demands hard work with an emphasis on customer obsession over work-life
Colgate Palmolive developed a new toothbrush called Colgate Precision and the product manager must recommend a marketing strategy. There is a conflict over the advertising budget between Colgate Precision and Colgate Plus. The product manager proposes progressively increasing the total budget and allocating 25% more to Precision each year. Analyzing pricing and sales projections, niche positioning earns $1.79 million in profit Year 1 and $19.96 million Year 2, showing increased volume leads to higher profits.
Procter & Gamble operates in over 80 countries worldwide selling over 300 brands. The document analyzes P&G's external environment through a PESTEL analysis covering political, economic, social, technological, environmental and legal factors. It then discusses key driving forces for P&G including a focus on product innovation through consumer research and connecting with consumers, as well as regulatory influences from consumer protection groups concerned with chemicals in cosmetic products.
Industry Attractiveness For Mobile MarketZoeb Hasan
The mobile handset industry in Bangladesh is growing rapidly. Local brands like Symphony are dominating the market, along with international brands like Samsung, Huawei, and Oppo. The objective of the study is to analyze the attractiveness of the mobile industry in Bangladesh using Porter's Five Forces model. This will identify whether the competitive environment is attractive, ideal, or unattractive for potential profit. The analysis will look at competitive rivalry, threat of new entrants, threat of substitutes, supplier bargaining power, and buyer bargaining power.
Analyzed Amazon.com Business Structure. EFE Matrix, IFE Matrix, IE Matrix, SWOT Analysis, Quantitative Strategic Planning Matrix, Recommended Strategy, Organizational Structure, Organizational Culture, Product Positioning Map, Target Marget, Strategy Evaluation Report.
I gained knowledge and experience to consult for Strategic Business Management. I am very interested in mergers and acquisitions.
Amazon has built an extensive global distribution network to support its e-commerce business. It operates numerous fulfillment centers worldwide that use highly automated processes to pick, pack, and ship a large volume of small parcels. Amazon obtains inventory through various channels, including direct purchases from publishers/suppliers, dropshipping, and third-party sellers. It aims to collaborate closely with suppliers and partners to increase efficiencies and optimize inventory levels through just-in-time and vendor-managed approaches. Amazon's distribution network is key to providing customers with a wide selection of products and a plethora of delivery options.
Launching Amazon Go
What, how and where should we communicate to resonate with our target audience and get the biggest spread, for the lowest cost, with the highest impact?
The document provides a situation analysis and marketing strategy for Amazon's Kindle e-reader and tablet products. It analyzes Amazon's internal strengths such as pricing strategy and brand recognition, as well as weaknesses like hardware quality. Externally, opportunities include growing tablet demand while threats include strong competitors. The document outlines Amazon's goals of selling more products at lower costs. It proposes a marketing strategy focused on Kindle's target consumers and competitive advantages in pricing, content, and customer experience.
The document provides a situation analysis and marketing strategy for Amazon's Kindle e-reader and tablet products. It analyzes Amazon's internal strengths such as pricing strategy and brand recognition, as well as weaknesses like hardware quality. Externally, opportunities include growing tablet demand while threats include strong competitors. The goals of Amazon are to sell more products at lower costs through the Kindle brand. Segmentation targets heavy readers, travelers, and media consumers. The marketing strategy focuses on competitive pricing, quality products, and customer service to dominate the e-reader market.
The document analyzes the Kindle Fire HD brand. It provides an inventory of the brand elements including the Amazon and Kindle names and logos. It describes the Kindle Fire HD products, pricing, packaging, website, distribution, and taglines. Key points made include that the Kindle Fire enjoys strong brand equity through its association with Amazon but has opportunities to further leverage this. It is positioned as a lower-cost alternative to the iPad.
1. Sketching and prototyping are design techniques that can help in creating an interactive system to encourage people to take walks.
2. Sketching aids the creative design process by allowing designers to explore different ideas and get the design right.
3. Prototyping helps test designs and determine the right design by allowing designers to see how a product would look and behave before fully developing it.
4. The document explores how sketching and prototyping techniques can be applied to the process of designing an interactive system intended to motivate walking.
Amazon.com Inc is the leading internet retailer in the US and worldwide. In 2011, it had net sales of $21.9 billion and a 16.9% share of the US internet retailing market. Amazon launched its Kindle e-reader in 2007 and has since expanded its private label offerings to include electronics accessories and home goods. While facing competition from retailers like Walmart and Barnes & Noble, Amazon maintains its leading position through continuous innovation, expanding product selection, and customer-centric services like free shipping.
Apple computers has produced many innovative products over the years that have helped them gain a competitive advantage in the computer market. This document discusses Apple's newer product lines, competitors, and recent events. It outlines how Apple has incorporated new technologies to develop products like the iPhone, iPad, and Apple Watch. It also discusses how Apple has expanded its employee base and brought on new investors to support its growing product lines and market dominance through competitive advantages.
Zillow's new iPhone app was a major relaunch of the company, so CEO Richard Barton and president Lloyd Frink flew to Apple's headquarters to meet with representatives and try to get their app featured in the App Store. While it may seem odd for former Microsoft employees to visit Apple, getting on Apple's good side is important since the App Store drives so much traffic. The App Store has become hugely successful, with over 1 billion apps downloaded, and developers want prime placement to catch Apple's eye. However, Apple's app review and communication process is opaque and approval can be slow. Ultimately, great apps tend to rise to the top on their own merits without needing special placement from Apple.
This document summarizes several mobile applications related to accessing digital content on Apple devices. It discusses the Kindle app which allows iPhone and iPod Touch users to read Kindle ebooks and periodicals. It also describes the Questia Library app which provides access to Questia's collection of books, journals and articles. Finally, it mentions the arXiview app which enables browsing recent submissions to the arXiv preprint repository. All three apps help expand the capabilities of Apple mobile devices for accessing digital reading materials and scholarly resources.
This document summarizes several mobile applications related to accessing digital content on Apple devices. It discusses the Kindle app which allows iPhone and iPod Touch users to read Kindle ebooks and periodicals. It also describes the Questia Library app which provides access to Questia's collection of books, journals and articles. Finally, it mentions the arXiview app which enables browsing recent submissions to the arXiv preprint repository. All three apps help expand the capabilities of Apple mobile devices for accessing digital reading materials and scholarly resources.
This document discusses how systems thinking can enable innovation. It provides examples of companies like Polaroid and Blackberry that failed to take a systems view and remained focused on individual products. In contrast, companies like Apple and Samsung that were able to view their products as part of a larger system were better able to drive innovation. Systems thinking allows companies to consider relationships among components, competitors, and customer needs to develop innovative solutions. The document argues this approach provides strategic advantages over linear thinking focused solely on products.
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Apple Computer sued Microsoft and Hewlett-Packard for copyright infringement related to visual elements in the Apple Lisa and Macintosh operating systems that were similar to elements in Microsoft and HP's systems. The district court found that Apple had licensed Microsoft to use certain elements, so infringement could not be based on licensed similarities. The court also found that unlicensed similarities arose from common ideas or their logical extensions, not substantial copying of Apple's expression. Therefore, the court ruled against Apple's infringement claims.
Apple has been very successful in revolutionizing technology through products like the iPad. The iPad was launched in 2010 and combined the functionality of devices like computers, books, cameras and phones into a single device. It has features like a high resolution touch screen, thin and light design, and can run apps. The iPad is highly versatile as it works with other Apple products and older devices through iTunes. This created an "Apple Ecosystem" that expanded their customer base and led to the iPad capturing about 80% of the tablet market share. Apple targets various consumer groups with the iPad, including households where multiple tablets per home are now common. Through simple visual advertising focusing on the user experience, Apple has been very successful in marketing the iPad to
This document discusses Apple, Google, and Microsoft's battle for dominance in the mobile computing experience. It provides an overview of each company's business model and strengths. Apple focuses on proprietary hardware and a closed software ecosystem. Google's model centers around online advertising and open platforms. Microsoft has traditionally focused on Windows and Office but is now developing its own mobile hardware and platforms. The document examines why mobile is important to each company and assesses their mobile platform offerings. It discusses the significance of mobile apps, app stores, and open vs closed platforms. The author argues that Google's business model and focus on apps positions it to ultimately prevail in this competition, though it faces challenges from the other companies.
This document discusses Apple, Google, and Microsoft's battle for dominance in the mobile computing experience. It provides an overview of each company's business model and strengths. Apple focuses on proprietary hardware and tightly controlled software. Google's model centers around online advertising and open platforms. Microsoft has historically focused on Windows and Office but is expanding into mobile hardware and software. The document examines why mobile is important to these firms and evaluates their mobile platform offerings. It discusses the significance of mobile apps, app stores, and open vs closed platforms. The author argues Google's business model and focus on apps will allow it to prevail, though it faces challenges from Apple's brand strength and Microsoft's enterprise relationships. The document considers the implications of one company dominating
The document discusses 9 key mobile trends for 2009, including:
1. App stores becoming digital innovation bazaars fueling app development and new business models.
2. Cloud services storing and sharing digital content from mobile devices.
3. Netbooks connecting youth through social networks and online content.
4. Mobile devices gaining capabilities to watch TV anywhere through streaming and downloads.
5. Some users carrying companion mobile devices for specific purposes like music or messaging.
6. Microblogging evolving from social updates to a platform for news, messaging and sharing.
7. Growing adoption of Android as an open source mobile operating system.
8. Increased competition in low-cost mobile devices to connect more of the
Fjord is the one of the world's leading digital design firms, with clients including the BBC, Nokia, and Yahoo!
I work with Fjord to help turn their designs for mobile products and services into reality.
These are their mobile predictions for 2009.
1. Apple remains the top global brand of 2012 due to continued strong demand for products like the iPhone and iPad.
2. Google holds the second position from its dominant search engine and growing businesses in mobile operating systems and video.
3. Microsoft ranks third based on the strength of Windows and Office, though it faces threats from losing market share in browsers and search.
Try to name an industry that is not threatened by tech disruption. Our 2020 vision for consumer, media and technology trends is centred in our belief that the marketplace is increasingly converging around the global tech-giant ecosystems.
Many of the trends that we will comment upon are the ripple effects of the diversification of these platforms away from their original specialism.
The more lines of business the big platforms develop the more complex they become – and the further the ripple effects travel into the economy and society.
Our driving trend for 2020 is entitled ‘Colliding Ecosystems’. It reflects the points made above about the expansion of and ultimately heightened competition between the big tech-platforms.
Similar to The Kindle Fire: Amazon's Go To Market Strategy (2011) (20)
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
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The Kindle Fire: Amazon's Go To Market Strategy (2011)
1. Kikuyu Daniels
MGSM 830 – Technology Strategy
October 25, 2011
THE KINDLE FIRE: AMAZON’S GO TO MARKET STRATEGY
On September 28, 2011, Amazon.com, Inc., the world’s biggest online retailer, officially
announced its latest introduction to the tablet computer market – the Amazon Kindle Fire. 1 2
Despite careful marketing to position the Kindle Fire as a Kindle e-reader and not a tablet,
Amazon’s ploy to take market share from Apple and other tablet providers with the Kindle Fire
is apparent; however, are they well positioned to do so? The purpose of this paper is to use
several predominant technology strategy frameworks to determine whether Amazon’s market
strategy will allow the Kindle Fire to break into the tablet market or just become a higher priced
version of its e-reader predecessors. In other words, what is Amazon’s go to market strategy
and can it work?
Background and History
Amazon is not known for producing hardware and software. It is best known for selling
media products such as books, CDs, apparel, and household items. Since its founding in 1994, it
has expanded to offer a whole host of other services such as storage and digital media.3
Amazon introduced its first Kindle, an e-reader, in 2007.4 The Kindle was followed by the Kindle
Touch, Kindle Keyboard, and 3G versions (others including Kindle Fire are WI-FI only.) Now,
1
“Amazon's 4Q Validates Sales Growth Estimates, but Also Margin Concerns; Shares Look Overvalued,” Morning
Star Equity Analyst, January 28, 2011.
2
“Introducing the All-New Kindle Family: Four New Kindles, Four Amazing Price Points”, September 28, 2011.
Business Wire. http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1610968&highlight=
(accessed October 1, 2011).
3
www.Hoovers.com (accessed October 1, 2011).
4
http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1079388 (accessed October 1,
2011).
1
2. Amazon has introduced the Kindle Fire for “web, movies, apps, games, reading and more”. 5 It
provides access to Amazon content which includes: 18 million movies, TV shows, songs,
magazines, and books. Its features include such innovations as: Amazon’s App store for
Android games, Amazon Silk web browser (newly developed for mobile devices), and free cloud
storage for Amazon content.
Analysis
In all of Amazon’s commercials and advertisements for the Kindle Fire, the word “tablet”
is conspicuously absent. The only place one can find the word “tablet” is embedded in the html
code for the title of the Kindle Fire page on Amazon’s web site. Even Barnes & Noble advertises
its latest e-reader, the Color Nook, as “the Reader’s Tablet.” 6 Part one of this analysis will
discuss the positioning of the Kindle Fire using frameworks such as the Ansoff Matrix,
Architectural Innovation, and Technology Lifecycles. It will answer the question of whether the
Kindle Fire is a tablet. Part two of this analysis will discuss the entry of Amazon into the table
market using frameworks popularized by Michael Porter, D.J. Teece, and Michael Cusumano
among others. It will answer whether Amazon can effectively compete in the tablet market.
PART ONE
Ansoff Matrix
Amazon is introducing the Kindle Fire as a new product into an existing market.
Following the Ansoff Matrix, Amazon should be focused on product development in order to
successfully launch the new product in its existing market of e-readers. Indeed, its careful
attention to product development is captured in the many new and different features of the
5
6
See note 2.
http://www.barnesandnoble.com/nook/index.asp (accessed October 25, 2011).
2
3. Kindle Fire. For example, the Kindle Fire has a full color, multi-touch display and dual processor
for speed in web browsing using Amazon’s newly developed Amazon Silk browser. 7 The
company is using vertical stretching, rather than horizontal stretching, and has positioned the
Kindle Fire as its premium e-reader. Kindle Fire’s premium status is reflected in its $199.00
price tag which is at least $50.00 more than any of the other Kindle models.
Architectural Innovation
Kindle Fire is significantly different from Amazon’s other kindle models in that it, unlike
the others, was not built by E Ink, Corporation (now E Ink Holdings) a startup founded on
Massachusetts Institute of Technology’s Media Lab technology. 8 9 Instead, it was developed by
Amazon’s own R&D organization called Lab126. 10 Its innovation is best classified as an
architectural innovation since it builds on components of the earlier Kindle models such as its
display, but does so in a whole, new architecture designed by Amazon including its own
modified version of the Android mobile operating system (OS). While it is possible that despite
investing heavily in developing the Kindle Fire, Amazon mistook the product for an incremental
advance on the existing Kindle technology, this is highly unlikely. Given that the company is
rolling out Kindle Fire with its new Amazon silk web browsing (promoted exclusively on the
Kindle Fire) and is bundling it with a free 1 year subscription to Amazon Prime, its content
services platform, Amazon appears to have put quite a bit of thought into its marketing and
positioning.
Technology Life Cycle and S-curves
7
www.amazon.com (accessed October 1, 2011).
http://www.zdnet.com/news/e-ink-writes-its-future-on-e-paper/104934
9
Email, dated September 30, 2011, from Ana Lopes, E Ink Business Development Strategist confirms E Ink’s
involvement in the Kindle Fire.
10
See note 9.
8
3
4. Amazon must realize Kindle Fire’s disruptive potential and is quietly planning to leverage it to
gain entry into the tablet market. According to an article on Geekwire dated August 21, 2011, a
U.S. trademark application was filed by Amazon for the name and logo of its Lab126 under the
classification “design and development of computer hardware and software.” The article, went
on to say that shortly thereafter Amazon began advertising jobs for Android developers in
Cupertino, California where both Lab126 and Apple are located. Given the Kindle Fire’s web
browsing capabilities and free, unlimited capacity for storage of Amazon media content
including movies and TV shows in the cloud, it is much, more than a higher priced, color ereader. The Amazon Kindle Fire is clearly a tablet and likely was developed as such. As a tablet,
Kindle Fire represents a leap off the e-reader S-curve into a new S-curve of its own. Amazon
has very likely disrupted itself with the introduction of Kindle Fire. The device is remarkable. A
quick search on any social media site (like Facebook or Twitter for example) will reveal
conversations occurring about the Kindle Fire. Media and tech bloggers, especially, cannot
seem to get enough of it. There is pronounced sentiment that the Kindle Fire is a tablet that
was developed to challenge Apple’s iPad2.
PART TWO
Porter’s Five Forces
To understand whether the Kindle Fire can effectively compete in the tablet market, it is
important to analyze Amazon’s fit within the tablet market as a whole using Michael Porter’s
Five Forces framework. The key players in the tablet market are: Competitors such as: Apple,
Barnes & Noble, Rim Blackberry, Samsung, HP, Sony, Acer, Dell, HTC, Motorola, LG, Lenovo,
4
5. NEC; 11 New entrants which include: Barnes & Noble’s Color Nook, ViewSonic, Kobo Vox; 12 13
Makers of substitutes or other products that potential buyers might use instead of tablet such
as: Laptops (Apple, IBM & Lenovo, Dell, Sony, Acer, etc.), Notebooks (HP and Lenovo – these
devices are laptops with touch screens and styluses), Netbooks (Acer, Toshiba, HP – these
devices are ultraportable laptops with flash memory and no hard disk storage which provides a
smaller footprint), Smart phones (Apple, HTC, Dell, Samsung, Nokia, Motorola, Blackberry,
Palm, etc. ); 14 Suppliers include: CPU and chip manufacturers such (Intel, Micron, and AMD),
display manufacturers (such as Samsung and LG), and operating systems (like Google Android,
Apple OS, and Nokia Symbian); Buyers include mostly Individual consumers and some retailers
such as Amazon and Best Buy.
Given the sheer number of companies that are now starting to produce tablets, threat
of new entry at first glance appears high. 15 This is demonstrated in the ease at which
companies such as HP, Lenovo, Sony and Acer developed tablets to compete with Apple’s iPad
(although none of the others have been as successful.) Counter to initial appearances, threat to
entry for a company that is just starting with a tablet as its first product is extremely low given
that Apple already has over half of the tablet market share and enjoys both economies of scale
and very high brand recognition. 16 Thus, a true analysis of barriers to entry to the tablet market
requires a careful definition of the term “new entrant.” Consider that none of the recent
11
http://phandroid.com/tablets/ (accessed: October 25, 2011).
http://www.zdnet.com/blog/gadgetreviews/viewsonic-announces-200-viewpad-7e-androidtablet/28042?tag=content;search-results-river (accessed: October 25, 2011).
13
http://www.zdnet.com/blog/gadgetreviews/kobo-to-take-on-amazon-with-the-7-inch-200-voxtablet/27977?tag=content;search-results-river (accessed: October 25, 2011).
14
http://reviews.cnet.com/cell-phone-reviews/?sa=1000036&tag=topPanelArea.0 (accessed: October 25, 2011).
15
See note 11.
16
http://www.forbes.com/sites/greatspeculations/2011/09/19/apple-takes-bigger-bite-of-tablet-market-androidslips/ (accessed October 25, 2011).
12
5
6. entrants to the tablet market produced a tablet as a first product and all are companies that
have been around for some time. The vast majority of recent entrants were already producing
substitute products such as a laptops, e-readers, netbooks, or smart phones. For example,
ViewSonic produced LCD displays and consumer electronics and Kobo was first an open source
licensor of e-books and e-reader retailer. 17 Because such “new entrants” have already
established themselves in a similar market, they can utilize the same component suppliers and
infrastructure as used for the substitute product. Their outlay of capital for producing a tablet
then likely resides in producing a hardware design that is compatible with a licensed mobile
operating system (such as the open source mobile OS Android) and in getting users to adopt
the product through marketing. Because the barrier to truly new entrants (those without
substitute products) is extremely high and the barrier is significantly lower for entrants who
already make substitute products, characterization of the threat of new entrants is likely to fall
between the two and can best be described as moderate.
Buyer power is low because tablets for the most part are sold directly to end-user
consumers18 and there too many of them with diverse preferences to have a great deal of
collective influence on the market. End-user consumers could experience cost associated with
switching from and iPad to a Kindle Fire such as loss in compatibility of music files since Apple
products, by default, use a proprietary mp4 format rather than standard mp3 formats.
Conversion from one file format to another could cause some users enough pain not to switch,
but this is likely to have little effect on overall buyer power. Moreover, If only Android based
tablets are considered, there is little differentiation among these tablets and buyers have many
17
18
http://www.viewsonic.com/company/index.htm (accessed October 25, 2011).
Worldwide and U.S. Media Tablet 2011-2015 Forecast Update. (IDC# 230896, October 2011).
6
7. choices. Consequently, demand is elastic and the prices of the Android devices have fallen as
more Android based tablets are introduced. Apple is the outlier here, but it too has
demonstrated that through product differentiation it can demand a higher price. Buyers are
willing to pay more for an Apple tablet. There is some demand for tablets by other members in
the value chain such as businesses for commercial use, but probably not enough to shift power
to commercial buyers. IDC market research forecasts that the primary commercial use of
tablets will be for education purposes and that sales of tablets to commercial users overall will
grow modestly from 4.2% of the overall tablet market in 2010 to 14.3% in 2015. 19 Finally,
tablets are sold through certain retailers. For example, both Amazon and Best Buy sell the
Apple iPad2, but no retailer is selling the device at price that is different from that of Apple in its
stores or online. This suggests limited buyer power even on the part of retailers.
If we assume that suppliers to the PC industry, such as chip and CPU manufacturers, will
also supply to the tablet market, then supplier power should be similar to the PC industry.
There are few CPU suppliers, but the PC industry is a large buyer of CPUs reducing these
suppliers’ power of the industry. Similarly there are few mobile operating systems such as
Windows Mobile, Symbian, and Android, but the manufactures of these few are still in the
process of trying to get their OS adopted by mobile devices makers. Once adopted, the OS does
have a powerful affect on the tablet manufacturers’ final products. Weighing these factors,
supplier power is likely best described as medium to low.
Finally, threat of substitution is high as consumers can very easily switch to laptop or
smart phone usage instead of using a tablet – they have choices and switching costs are
19
See note 18.
7
8. minimal. Research shows that consumers do not hold tablets out to be laptop replacements
and because of the personal nature of tablets and consumers would be unlikely to use a work
issued tablet for personal content consumption. 20 Apple recognizes this and touts its iPad as
“new way of computing.” 21 Tablets will likely primarily be used as media consumption devices.
Further, because the same media can be enjoyed on substitute devices such as laptops, tablet
users will switch and use substitutes whenever and as much as they want.
The foregoing factors all contribute to a very high competitive rivalry in the tablet
market and extreme price wars. For example, Samsung dropped the price of its table to
$299.00 where it was previously closer to the iPad’s $499.00 price tag. Furthermore, HP left
the tablet market altogether and sold off its inventory at the clearance price of $99.00. The
Kindle Fire’s $199.00 sale price places it well below the cost of Apple’s iPad2, which sells for
$499.00 and is the current best seller in the tablet space.22 23 The Amazon Kindle Fire is well
positioned push out the other Android tablets from the market at this price. It is even
positioned to put some pressure on the sales of Apple iPad2 which at $499.00 is a luxury
product that many tablet seekers cannot afford.
Teece: Appropriability, Dominant Design, and Complementary Assets
Appropriability in the tablet market is likely moderate to weak. The difficulty in
protecting the design of the tablet hardware from imitators is a big factor in this. This is
apparent in recent law suits between Apple and Samsung where Apple has accused Samsung of
copying its iPad design. As for the dominant design, it is clearly the Apple iPad family. The shift
20
See note 18.
http://www.apple.com/ipad/videos/#guided-tours-ads (accessed October 25, 2011).
22
http://www.amazon.com (accessed: October 1, 2011).
23
http://www.appleinsider.com/articles/11/09/22/gartner_projects_apples_ipad_to_maintain_50_market_share_
through_2014.html (accessed: October 1, 2011).
21
8
9. of focus from design to price among tablets was apparent as tablet makers reduced prices in
order to keep up with Apple even before Amazon introduced the Kindle Fire. Given Apple’s
brand, first mover advantage, operating system and continued focus on innovative design,
Amazon’s Kindle Fire is unlikely to disrupt the iPad as the dominant design. It very well may
become the dominant design among Android-based tablets, given its modified Android
operating system, newly designed browser (Silk) and ease of access to Amazon content in the
cloud. Moreover, Amazon’s strength lies in its complementary assets such as Amazon Prime
(free shipping on merchandise and subscription based access to 10,000 movies and TV),
Amazon Apps including Android Apps, and free, unlimited storage of Amazon media content in
Amazon’s cloud. 24 These assets are tightly linked and integrated into the Kindle Fire. Each
Kindle Fire ships with a year free subscription to Amazon Prime and users will pay to continue
to access the content with their Kindle Fire. Thus, even if Amazon sells the Kindle Fire device at
a loss, it can recoup its costs by selling its content. This is very likely the crux of Amazon’s
market strategy. Amazon can easily leverage these complementary assets and use its low price
content delivering device, the Kindle Fire, to compete with Apple and gain market share in the
tablet space.
Platform Strategy
There is some potential for Amazon to create a platform especially given the strength of
its complimentary assets. In his book Staying Power, Michael Cusumano describes a platform
strategy as one that encourages innovators external to the company to adopt the company’s
24
www.amazon.com (accessed September 30, 2011).
9
10. platform as their own and to design complementary innovations. 25 For example, Microsoft,
Google, and more recently Facebook have each opened their application programming
interfaces (APIs) to allow others to develop applications that interact with their products. 26
Apple did this too most notably with the iPod, iPhone, and iPad by leveraging iTunes. Each
hardware product is made much more valuable with the external media content offered
through iTunes. Moreover, Apple shares revenues with the content owners. Given declining
prices of hardware and software products due to commoditization, Cusumano predicts that
“the most valuable part of the Apple franchise might end up being iTunes.” He further predicts
that “hardware products may simply become platforms to sell high-margin automated digital
serves, including music and video content.” Amazon may not be able share its revenues with
content providers to the same extent as Apple especially if, as some industry experts suggest, it
loses money in manufacturing the KindleFire. 27 Amazon can and has, however, amassed a good
amount of external content to offer on the device. A May 2010 NPD market research report
indicates that while Apple’s iTunes led music retailers in 2009 with 28% of all U.S. music
purchases, Amazon grew in both CD and digital music sales during the same period and tied
with Walmart in second position with 12% of U.S. purchases. 28 Moreover, Apple’s iBook App
which carries over 200,000 digital books already trails Amazon’s Kindle Fire at over one million
books. 29 30 Given Cusumano’s predictions, Amazon’s ability to turn Amazon Prime and the
25
Cusumano, M.A. (2010). Staying Power: Six Enduring Principles for Managing Strategy & Innovation in an
Uncertain World. (Oxford: Oxford University Press). Ch. 1.
26
See note 25.
27
http://blogs.wsj.com/digits/2011/09/30/two-views-on-the-cost-of-amazons-kindle-fire/ (accessed October 25,
2011).
28
https://www.npd.com/press/releases/press_100526.html (accessed October 25, 2011).
29
http://www.apple.com/ipad/built-in-apps/ibooks.html (accessed October 25, 2011).
30
http://www.amazon.com/Kindle-Fire-Amazon-Tablet/dp/B0051VVOB2 (accessed October 25, 2011).
10
11. Kindle Fire into platforms to deliver its vast array of digital media content could be a major
advantage for it in the tablet market. The next few subsections will discuss some additional
steps Amazon could take to become a platform.
Scope and Relationship with Complementors
Cusumano introduced four strategies called “levers” 31 for pursuing platform leadership,
two of which are discussed here. These are scope of the firm (or what it makes in-house) and
its relationships with external complementors. Amazon has defined its scope to enhance the
performance and user experience with Kindle Fire. Instead of using the Android browser, it
created its own browser for the Kindle Fire called Silk to allow delivery of flash content, higher
speeds, and smoother integration with the device. Amazon Silk is one example of a
complement that Amazon produced for its own platform. It also produces an app called
Amazon Kindle for virtually every operating system of mobile device including Apple OS. The
app allows users of other devices to purchase digital books available only on the Kindle. Apple
allows the Amazon Kindle app because it increases the amount of books to which iPad and
iPhone users have access. By becoming a platform for the delivery of its own creations and for
others and by maintaining beneficial win-win relationships with complementors, Amazon is
potentially one-step closer to creatng a platform. To become a platform leader, it will have to
continue to create economic incentives for companies to add their complements to the
ecosystem that it is building.
Open v. Closed
31
See note 25.
11
12. The openness of the platform’s API is also important in a platform strategy. 32 The Kindle
Fire smartly uses a modified version of the Android OS and controlled gateway to the Android
App market. The former allows Amazon to control the distinctiveness of user interface look
and feel and to keep it more tightly integrated with the hardware (namely memory and
processing speed) features of the device. The latter allows Amazon to 1) vet Android Apps for
smooth operability with its device, 2) readily offer the better Apps as a main feature in the UI,
and 3) still provide users with a way to access any Android App through the Android market.
While it is too early to tell how well the modified OS and controlled gateway will work
technically and feel to a user, such a strategy is likely a smart one because it allows the Kindle
Fire to be both open and somewhat closed at the same time. Amazon may have taken clues
from Apple here as much of the iPad’s popularity can be attributed to tight integration of user
interface and hardware. For example, many users in the iPad forum on apple.com comment on
its smoothness and speed such as no lag time between typing and the letters appearing on
screen. In a rush to get a tablet to market to compete with the iPad, many early Android
tablets just ran with Android OS seemingly almost “out of the box” which offered little
differentiation between these early products. This combined with a poorly reasoned attempt to
match the market leader (Apple) in price is likely the reason for their often quick demise.
Coring and Tipping
Cusumano indicates that successful coring often requires resolution of “a major
technical problem affecting a system-like product with industry platform potential.” 33 Although
Amazon’s creation of its own mobile browser is excellent for its product strategy, it likely did
32
33
See note 25.
See note 25.
12
13. not solve a major technical problem for the tablet industry. A search in the U.S. Patent and
Trademark database for patent applications filed since 2009 revealed two Amazon patents that
provide insight into the company’s R&D plans. The first patent solves a problem with electrical
grounding of micro USB receptacles caused by the slim profile of certain devices like portable
media players. 34 The second patent describes a method for annotating digital works such as
digital books and music and sharing the annotations with others.35 The patents' subject matter
indicates that Amazon is focused on creating better (perhaps slimmer) devices and new ways
that users can interact with its content. Such innovations still may not solve an industry-wide
problem, but if Amazon continues in this direction with R&D it could produce a “must-have”
feature or application that could effectively tip the market in its favor.
Network Externalities
Finally, Amazon may increase its potential to become a platform by creating and
leveraging indirect network effects like Apple did. Apple secured the largest digital music
library for iTunes and then leveraged it to get consumers to use its devices. Once its devices
had a critical mass of users, Apple could enjoy indirect network effects from app developers
who created content for Apple’s platform primarily to get access to its many users. Amazon
should position itself to do the same. It must first figure what type of content or must-have
feature will bring a critical mass of users to its platform, then it can enjoy the indirect network
effects of app developers, content providers, and advertisers bring as they develop for the
Amazon platform. Additionally, Amazon should leverage whatever social media aspects it can
build into the delivery of content on its platform since social media has proven itself as a vehicle
34
35
U.S. Patent No. 7901221. Filing date: Jan 9, 2009.
U.S. Patent Publication No. US 2011/0184828 A1
13
14. for direct network effects. The patent for annotating digital medium and sharing ones’
annotations may be a starting point for this. Other ideas would be to leverage its rating and
review system used on amazon.com and gathering of information on user purchases to deliver
unique user experiences.
Summary and Predictions
Kindle Fire is more than an e-reader. It is a tablet and tablets are for content
consumption. It is clear that Amazon developed a clever vehicle in the Kindle Fire to deliver its
content to the masses. While it may not be a dominant design, the Amazon Kindle Fire already
has a few good things going for it -- namely Amazon’s Silk browser and its modification of the
Android operating system to work seamlessly with delivering content to the Kindle Fire. It is
also clear that among other Android-based tablet makers, Amazon as the world’s biggest online
retailer is best positioned to compete with Apple in the U.S. tablet market. It is likely that the
Kindle Fire may rid the tablet market of many other Android based tablets given its price point
and massive amounts of content available to it through the Amazon Prime service. In this way
Amazon Kindle Fire could become a major player in the tablet market, as this would split the
U.S. tablet market between Apple iPad on the high price end and Amazon Kindle Fire as its
affordable alternative. To effectively compete with Apple in this market, Amazon must pursue
a platform strategy. Amazon must aggressively pursue collaborative relationships with
complementors, maintain an open API and retain enough control over it to produce innovative
must have features in its devices. By becoming a platform for the delivery of its own content
and that of others, Amazon could compete with Apple and Google platforms. It is a lot and
Amazon likely realizes that it is a lot. Perhaps this is the reason behind Amazon’s marketing the
14
15. Kindle Fire as an e-reader and not a tablet? We may never know. But if anyone can effectively
compete with Apple in the tablet market, Amazon can.
15