A little over 3 months:
Amazon has sold nearly 5M Kindle Fires and had capture ½ of the non-Apple tablet market share. Worldwide sales of e-book since the introduction of the Kindle product line had grown from less than 1% of all books sold to 15% in 2012 Amazon has to refine its strategy fir Kindle Fire because of IPad 3 New entrants such as Samsung, Motorola, and Google were beginning to wnter the tablet market Amazon’s long-time competitor in the E Ink-based readers, Barnes& Noble, was now selling a device nearly identical to the Kindle Fire called Nook Bezos had told investors that the 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. Benzo’s questions with Kindle Fire strategy:
How should Amazon modify the positioning of the device in response to the newe 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. 2 year later it turned its first profit
By 2011 , just 15 years after the company started out of Jeff Bezos’s 400 square foot garage, Amazon had 25 M square feet of warehouse space, reported 50B in revenues, and controlled 10% of the North American e-commerce market While everyone struggled 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 1Click ordering...
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