amazon kindle

Presents by

Katy Hui,Leona Lei Victoria Huang

Key Strategic Issue of Amazon Kindle

Losing competitive advantage

Strong rivalry

Agenda

Company analysisExternal analysis

Recommendations

Company Analysis External Analysis Recommendation

Key Historical Events

Founded in 1914 by Jeff Bezos

1997 May Amazon went public (AMZN)

2005 Amazon bought Mobipocket

2007 November 19 Amazon Kindle 1st generation was released

August 2010 Amazon Kindle 3rd generation was released

Company Analysis External Analysis Recommendation

Vision:

• To be the earth’s most customer centric company; to build a place where people can come to find and discover anything that might want to buy online

Mission:

• To influence technology and potential to provide the best buying experience on the internet.

Company Analysis External Analysis Recommendation

Objectives:

• Gaining bigger market share by improving and diversification of services

Strategy:

• Offering the lowest price while offering great customer service.

Company Analysis External Analysis Recommendation

Kindle’s strengths

Lowest Price:

Kindle& E-book

Access to the largest

online e-book store

Longest- battery life

Brand Recognition

Text to speech

Company Analysis External Analysis Recommendation

Historical Performance

Company Analysis External Analysis Recommendation

Comparative Performance

Company Analysis External Analysis Recommendation

Industry size & Growth

Company Analysis External Analysis Recommendation

Reasons for growth

Company Analysis External Analysis Recommendation

Segmentation AnalysisPrice

FunctionSony

Ipad

Kindle

Company Analysis External Analysis Recommendation

Competitors Analysis

Kindle

US $114

Black and white

Qwerty keyboard

Amazon

For serious readers

iPad

US$499.99

Color

Touch Screen

Apple store with various

apps

Interactive tablet

Samsung

US$499.99

Color

Touch screen

Samsung Apps

Interactive tablet

Nook

US$249.99

Color

Touch screen

Barnes and Noble

Interactive e-reader

Company Analysis External Analysis Recommendation

Industry Threats and Opportunities

High level of substitutes

Industry price compete

Environmental awareness

Global expansion

Strong growth in the e-book market

Company Analysis External Analysis Recommendation

Recommendations

1. Focus on Differentiation

2. Launch a tablet computer & compete in tablet market segment

3. Globalization

4. Lower Kindle’s price

5. Corporation with schools

Company Analysis External Analysis Recommendation

1. Focus on Differentiation

• Focus on positioning as reading device instead of a multifunctional tablet computer

• Invest in R&D• More language• Touchscreen

Company Analysis External Analysis Recommendation

2. Launch a tablet computer & compete in tablet market

segment• Separate the e-book reader market

with tablet market

• Higher premium

Company Analysis External Analysis Recommendation

3.Globalization• Set up a sales center in China

• Eliminate region restriction on e-book selection

Company Analysis External Analysis Recommendation

4. Lower Kindle’s Price

Company Analysis External Analysis Recommendation

5. Corporation with schools

• Provide discount for students and faculties

• Promote Environmental Friendly

Thank You!