Amazon Kindle

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Product –Amazon Kindle Fire

Products are not only the physical goods that we typically think of them; they also include services – sometimes as a different product and many a times as an extension of the product itself. At the heart of every product (or service) is providing value to consumers and getting value in return from them in the form of profits. With virtually every attractive market flooded with numerous competitors, service as an extension of the product offered sometimes becomes the point of differentiation (Zappos.com) and some other times becomes the USP of a product (Dell computers and Southwest Airlines). This extension of the concept of a product which strives to add value to the core product benefit encompasses what we can call as an ‘augmented product’. The concept of the augmented product can be better illustrated with the diagram shown in Appendix 1.

Even while competing with hordes of similar products, the Kindle Fire is much more than just another ‘Me too’ tablet. It is a media device, not a substitute for the ipad or the PC. It is simply a device you can use to read books, watch videos, listen to music, play simple games and connect to the web. It is a platform to make Amazon products and services easily accessible. Amazon is a global online retail behemoth which I feel it can leverage very well to spur the growth of a host of its product offerings placed on its Kindle Fire platform. Thus, it really is a bundle of a variety of products and this combination makes it an interesting concept. However, will this strategic move really have any effect on Amazon’s bottom line is still to be seen. Interestingly, the sales numbers of the device don’t say anything about the success of the strategy, the effect of these sales on the bottom line (if people spend on the website services) will hold the key for the company.

There are mainly 2 types of Kindle Fire devices available – advertising subsidized and the one without advertising on it....
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