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Case Study 7

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  • April 23, 2013
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Discussion Questions
1 .In what ways does Bezos’s decision to develop and sell the Kindle and Kindle Fire show systematic and intuitive thinking? Bezos thought the most reasonable thing to sell over the internet was books. The internet offers customers to review the books, or write a book review, and it also offers them to recommend other books and more. Offering Kindle showed an advanced point of view since digitized media is so widespread today. It is also based on a systematized thinking that readers are bored with just plain old books. Developing the Kindle continues to expand book readers interest not only in digitized books, but other features that the Kindle might be able to offer as well. 2. How do you describe the competitive risk in Amazon.com’s environment as Wal-Mart, Barnes and Noble, and other retailers strengthen their online offerings? As long as Amazon continues to focus on increasing selection of products, availability of the products, lowering prices, and providing a great product and/or service are prime foundations of its long-term growth strategy. 3. Amazon is continuously looking for new markets to exploit. As CEO Bezos addresses the strategic opportunity of delivering streaming video, he calls on you for advice. Amazon's presence and technology are already established in this market. But what decision error and traps might cause him to make the wrong decisions regarding Amazon’s future moves, and why? What can he do to best avoid these mistakes? Delivering streaming video for purchase faces competition from free independent uploaded videos such as YouTube. Also streaming videos can take a long time and have limited playback capabilities, which may cause strict digital rights management limitations. However, as long as Amazon continues to expands and avoid future problems, sales will become large revenue opportunities in the future.