Executive Summary and Introduction4
Focus on media6
Drive Customers to the Amazon Store6
Strategies Followed to Retain the Current Customers7
Content is King7
Barnes and Noble10
Amazon Inc. SWOT Table Analysis12
High Level of Risk?19
Executive Summary and Introduction
The Kindle Fire is a competitively priced tablet that uses the Google Android operating system. Current Amazon customers are the primary target market. Convenience makes this brand attractive and Amazon.com product purchases are easily completed using the Kindle Fire. It has a powerful processor and large amounts of storage space available when you consider the unlimited free cloud storage, although storage space on the actual tablet is limited. In order to increase the Kindle Fire’s popularity, Amazon has focused on providing excellent customer service and creating user friendly interfaces. Their online payment system competes with PayPal for market share, while striving to make purchasing from Amazon.com a simple process. Macro-environmental factors will continue to drive the sales of Kindle Fire, giving Amazon the ability to reach a diverse market. Focusing marketing strategies on an international market will improve cultural relationships, while the primary target market for the Kindle Fire remains their current Amazon customers. Social concerns such as privacy controls are increasingly important to consumers requiring lawmakers to pass new legislation, changing the regulatory environment. In addition, rapidly changing technological advances require constant foresight to remain ahead of the competition. Although the economic downturn has decreased the level of disposable income that most consumers have available to spend on products like the Kindle Fire, Amazon has remained viable and ahead of market trends by keeping the price of their tablet low in this extremely competitive market. The Kindle Fire has two types of competitors. At the lower priced-end of the market are the Barnes & Noble, Sony, and Kobo. On the higher priced-end is Apple. The Kindle Fire dominates the lower end of the market due to the availability of content on Amazon, its reasonable price, and cloud based storage system. Although the Kindle Fire is currently holding a large portion of the lower end market share, the Windows 8 Reader may pose an imminent threat to the Kindle Fire’s advantage. However, if Amazon continues to develop their segmentation strategies, they will remain a market leader in the future. This segmentation strategy that Amazon has employed includes taking advantage of the brand loyalty that already exists and extends it to larger market segment. The secret to the Kindle Fire’s success in its competition with Apple’s I-Pad is that they have not tried to directly compete against the I-Pad, but they have cultivated their own value based segment of customers.
The Kindle Fire represents an excellent option for cost-conscious consumers who want to experience this new tablet technology without the requirement of a large investment. Although Amazon has priced their tablet below their actual production cost they are still able to realize a profit due to the sales of media that are promoted on the Kindle Fire through the use of Amazon’s website. Through continual innovation the Kindle fire will continue to see an increase in their sales, not...