Kindle Fire was the key to Amazon’s future In the hardware space. Market seems agree Analysts were concerned about the Kindle product line’s economics because Amazon was selling the hardware at cost, betting that content and commerce revenue would make up for the hardware price subsidy. Bonze’s questions with Kindle Fire strategy: How should Amazon modify the positioning of the device In response to the new entrants in the tablet market since its launch?
What was the most promising target market for the Kindle Fire How should it be positioned against competing products? How could Amazon turn the sales success of the Kindle Fire Into business success Would revenues and profits from commerce and content Justify selling the hardware at cost What were the likely responses of the competition? History of Amazon: In 1999 Amazon accomplished its founding mission of becoming the world’s largest online bookstore. Year later It turned its flirts profit By 2011 , Just 15 years after the company started out of Jeff Bozo’s 400 square foot garage, Amazon had 25 M square feet of warehouse space, reported BIB in revenues, and controlled 10% of the North American e-commerce market While everyone trudged Amazon had repeatedly been at the forefront In the e-commerce market. Pioneer of use user-based reviews for products comparisons to its development of 1 Click ordering on its website.
Amazon had continues to innovate The company’s marketplace for third -party vendors, introduced in 1999, helped grow its selection rapidly Company long-term interest: invention, go with shareholders and customers needs and wants Drawback In content calculation for customers from early competitors As the e-reader market matured, price pressure on the devices slowly grew. Prior competitors such as Sony, Iris, Hamlin released updated, cheaper devices, UT importantly Barnes& Noble Jumped into the field as well.
Each generation of the Kindle had focused on Improving the user experience, lowering the cost, and growing the general adoption of Amazon e-books and other Amazon content. However, the newer entrants forced Amazon to begin to discount its devices considerably Amazon Web Services, Prime, Kindle, instant video streaming, and the app store By leveraging its considerable cloud based resources, Amazon packed numerous unique features and services Into Its new product. The Kindle Fire featured Amazon Silk a cloud- accelerated web browser.
By handling much of the computation necessary to render 1 OFF whoopees In ten cloud, Amazon nope a Tanat Amazon KICK wool the Kindle Fire Page 12: Kindle Fire content e a Transliteration Tort Despite its strong sales numbers, Kindle Fire faced numerous challenges. Initial criticisms of the device focused on its sometimes lagging display, shorter-than advertised battery life, and a number of smaller feature-set complaints. Although firmware update would resolve the first 2 of the problems, the feature-set compliant h=would have to wait until a new version of the Kindle Fire was released