KINDLE FIRE AMAZON HEATED BATTLE FOR THE TABLET Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

KINDLE FIRE AMAZON HEATED BATTLE FOR THE TABLET Case Solution

Amazon Kindle Strategies and positioning

Amazon Kindle is divided into three segments, higher education, Low to middle income, and travellers. Amazon kindle divided these three segments based on affordability, consumer interest and education level. People with low-income look for products that can come into their affordability range, whereas the consumers with higher education always look for several books for their study purpose. Travellers are the ones who read books and prefer to read during travel. So Amazon Kindle targeted these three segments due to its product features and pricing strategy. Amazon kindle is competing with the major player, i.e. iPad, so the product’s quality and services should be viable enough to compete with iPad’s features. Consumers value quality as well as the price of the product. The enhanced features and amazon kindle functionalities affect the buying behaviour of the consumer. As many scholars confirm that the features and product quality influence the buying behaviour of the consumers (Ngobo, 2004). The consumer would prefer to buy the product at lower price.

Amazon positioned the product in the middle, which means that Kindle is for those consumers who prefer to bargain over prices. This is a blue ocean strategy for Amazon to capture the market share before any new entrants. The new entrant in the tablet market possess a threat for Amazon to change its positioning strategy to retain in the market. Competition in the industry is increasing due to new devise and players in the market. Amazon Kindle should revise its strategies to compete in the market.

Alternatives

Amazon Kindle has the opportunity to revise its positioning, pricing, and business strategies. There is an intense competition in the industry and companies are looking forward to capturing the maximum market share in the market. Amazon Kindle should contract with research institutes and higher education commissions to serve several options to the higher education target segment. There is the possibility that higher education students would be attracted to Amazon Kindle due to the educational content with low prices.

For travellers, Amazon Kindle should offer average prices. Amazon should increase the limit of downloads from third-party websites, i.e. Library and websites. Amazon should contract online libraries and book publishers to share the content through amazon kindle. Amazon kindle should contract with online magazine companies to offer a wide range of magazines and novel books for travellers. Amazon kindle should increase the innovation in its e-book and try to offer innovative services for the consumers.

Amazon Kindle was offering on cost price and covering the cost through the profit of margin of other products but it caused a decrease in the stock price. Amazon Kindle should follow a low price strategy but keep profit margins for this product segment. Amazon should design the product based on the consumers’ demands and set the price after conducting cost analysis. The company should set the price according to the buyer’s product value.

Amazon lost its market share, i.e. 45 to 40, so to regain the competitive position in the industry; amazon should focus on e-books and innovation in this area. Amazon should have more features in the product to compete with the tablet competitors in the markets. Amazon should offer e-books with screen-friendly products.

Along with that Amazon should focus on the brand development and brand image of the company, product design, and quality. To attract consumer’s amazon kindle should offer packages for consumers, collaborate with universities to promote through billboards, higher education centres, through flyers on notice boards and magazines. Amazon kindle should use digital marketing to promote amazon kindle. As stated by Chaffey (2011); the company can increase its social presence through social media marketing and it can use social media marketing as a source to communicate with its consumers. One cannot deny the effectiveness of digital media marketing. Consumers are now mostly available on social media sites, which can work as an effective source to enhance the product image and reposition the product. Market new and enhanced features through social media sites.

Amazon should focus on its availability of products on different websites and places. According to the target market, the favourite places are university libraries, airport duty-free shops, bookstores and online shops.

Recommendation

Based on the analysis, we found that there are limited resources for amazon, considering which, it should increase its resources through having collaboration with other businesses and universities. The target customers are travellers and higher education students, so to facilitate the consumer's Amazon should increase the availabilities of the product, i.e. on airports, online stores, university libraries, and e-book stores. Amazon should add more features and innovative services for the consumer. Amazon should revise the marketing strategies of Amazon kindle. It should use new and emerging marketing strategies to market the products.

Conclusion

This case discusses the amazon’s product and its strategies. Amazon Kindle Fire was an e-book product and amazon captured half the market share of the non-apple tablet market. Amazon was offering the product at cost and there was no revenue being generated from this product stream. Amazon was not certain about the product’s price and revenues. The competition in the industry increased after the launch of tablet-based products, i.e. Apple’s iPad, Barnes & Nobel’s Nook. It was high time for the CEO to revise its business strategies to sustain the competitive position in the market. Amazon’s positioning and target market strategy needs an immediate attention. Amazon should come up with advanced features and innovation in the product to compete in the market. After analysis, we found that the students are not willing to pay higher prices for books so, it is important for Amazon to contract with digital libraries, online book stores, and university portals to share the research work and education-related books on Amazon Kindle.

Along with that, Amazon should allow its users to download the books from any third-party website as well. Amazon should focus on positioning through advertisement and capturing consumers’ attention. Amazon should use digital marketing to increase brand awareness and brand image in the market. Amazon should revise its pricing strategy and offer the product based on the cost. Amazon should further add value through innovation in the product...................

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KINDLE FIRE AMAZON HEATED BATTLE FOR THE TABLET Harvard Case Solution & Analysis