Amazon Kindle Marketing Analysis

2133 Words5 Pages
bulb-icon

Recommended: Porter - How do competitive forces shape strategy

In this chapter the researcher is analysing the empirical findings by applying the theories of literature review. Consequently, this chapter will be helpful for writing the recommendations and solutions.

4.1 Porter’s Five Competitive Forces Analysis:

The manufacturing process in online book industry is relatively simple despite deploying a highly modernized technology which means to have fewer entry barriers. Moreover, the pages made by E Ink Corporation are electronically displayed on Amazon Kindle like in Sony e reader, irex, iPod etc. In this regard there is a huge challenge to persuade more book publishers so that more books can be accessed on the Kindle. However, due to being immature the E-book industry is facing uncertain pricing standards in the market and there is too much price distinction exists with respect to different models of e readers but the prices of Kindle is relatively higher than its other rivals such as Sony, Apple etc. Apart from that the e-book industry has been receiving very low customer support and the manufacturers are instead of growing their businesses always seeking to steal others customers. The bargaining power of supplier is mainly obtained from the accessibility to substitutes, number of suppliers, and the switching expenses to other inputs. Therefore, the Amazon Kindle involves two major inputs such as screen and system technology. E Ink Corporation develops the technology for the display of electronic screen on Kindle and for many other e readers. As the electronic paper is quite new in market which means there are not so many substitutes and firms in this field. Furthermore, it means E Ink possesses very little supplier bargaining power with respect to Amazon Kindle which might be changed...

... middle of paper ...

...ed in providing the latest titles of books Amazon has been following a unique strategy to offer a fully customized manner by launching its book searching tools and email announcements to its customers. Amazon is also confident to give satisfaction to its partner book retailers such as Barnes & nobles, Borders, and Google by complying with all legal formalities such as book conversion standards and media distribution criterion for preventing book piracy and substandard reading material. But, there is an imperative need to follow some effective ways of advertisement and consistent pricing strategy to confront its competitors. Despite all these, Amazon Kindle is suffering from some weaknesses but still it has been revolutionizing the book businesses and the reading patterns of its customers by preventing the book piracy in order to supply qualitative reading material.

Show More
Related

  • Academic Critical Analysis

    1353 Words  | 3 Pages

    The aim of this paper is to explore and critically analysing two research articles. The critical analysis will explain the importance of the study, evaluate design and research method used in those articles. To identify any gaps it will provide the literature review in those researches and possibility for the new study. The project plan, for the possible research will be developed on a potential gaps and the essay will finish with the conclusion.

    Read More

  • Essay On Mozart Effect

    1246 Words  | 3 Pages

    To be selected for analysis in this review, the research must have been of great relevance to the topic, show a strong trend in the results, have a clearly structured argument and be considerably authoritative and credible; such that it has respected author/s.

    Read More

  • Analysis of Amazon.com

    2511 Words  | 6 Pages

    Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...

    Read More

  • Leadership in the Organization: Jeff Bezos and Amazon

    1697 Words  | 4 Pages

    Nodoushani, O., & Yang, C. (2011). E-Print industry and bookseller market: A Strategic perspective. Competition Forum, 9(2), 319-324. Retrieved February 24, 2012, from ABI/INFORM Global. (Document ID: 2548633731).

    Read More

  • Kindle Fire Inc Case Study

    390 Words  | 1 Pages

    The cheaper touchscreen, assuming that all other factors remain constant, would, initially, shift supply because the consumer dictates the demand. Cheaper production costs could lead to an increased number of Kindle Fire HDXs produced but as the CEO, I must determine whether or not my current production force is at capacity or not. Assuming that I am able to produce more units without hiring more workers, my asking price could decrease substantially and, since my production costs decrease substantially I am able to produce more units without increasing the overall cost to the company. (Impact of Shifts in Demand and Supply, 2006)

    Read More

  • The Rise Of Amazon

    1959 Words  | 4 Pages

    Few other companies can compete with Amazon’s ability to use ecommerce to cut costs of manufacturing, selling, holding, and making its products as affordable as possible. This is an attribute that has become increasingly important to American’s as they try to recover the massive loss in average income that accrued during the recession of 2008 and 2009. In a scholarly article written by two University of Chicago economic students, Ethan Lieber and Chad Syverson, in 2011, “Online vs. Offline Competition” there is a comparison made by the competition for book sales with the traditional retail store Barnes & Noble and Amazon’s online book sales. In the article the two writers focus on Amazon’s ability to undercut Barnes & Noble’s costs due to their ability to hold less inventory, buy in bulk if needed, and have a lower employment cost per book sold. This was contributing to Amazon’s lead in book sales, becoming the “World’s Largest Bookseller” and current control of the book sales market. Another huge advantage that Amazon online sales has over retail stores is the absence in income tax due to having buyers adopt these costs while still keeping the price of the product lower. “Only when the online seller “has nexus” in the consumer’s state is the sales tax automatically added to the transaction price by the firm. (16, Lieber, Syverson)” This shows

    Read More

  • Amazon Competitive Advantage

    1553 Words  | 4 Pages

    Amazon used this strategy since its start up in order to attract a huge mass. Promotional strategy involves an agreement between two or more firms together with a long-term relationship. These allies connect their users to Yahoo’s websites, which helps promote its product (Johnson, 2010). The alliance in most cases benefits the both companies and gives them a competitive advantage over the other firms in terms of cost. Such kind of strategy occurred between Yahoo and Amazon where Yahoo provides direct connections to Amazon’s book titles from any yahoo search result. Yahoo users were invited to view and purchase books related to what they were searching on the web. Diversification strategy- Diversification of its product from CD/DVD to book markets has enabled the company to serve many customers from different market segments thus the company continues to expand via new customer bases (Jones, 2012).

    Read More

  • Innovation Process of Amazon Kindle

    1559 Words  | 4 Pages

    One thing need to be improved is its pricing strategies. The company should avoid reducing price on every new version as it could affect customer expectation and product value perception. Customer-oriented pricing strategies can be used in the future to establish Kindle standard price. This could be achieved by understand how customer use the product, the product benefit for customers, and estimate all relevant cost and compare how the product benefits offset these costs (Shiu, 2011b). This is an important point to consider in order to achieve sustainable position as the leading innovative e-book reader in the market.

    Read More

  • Juvenile Delinquency: Causes and Deterrence

    2800 Words  | 6 Pages

    Now within the rest of this paper you will be finding a few different things getting discussed. Staring it off we will be discussing the articles that we have found to make our arguments and hypotheses. After wrapping up the literature reviews we will be discussing the hypotheses thus continuing onto our variables and indicators. Once we discuss our hypotheses we will be moving onto the research design. The research design will have our general issues, sampling, and methods.

    Read More

  • Amazon. Com: The Growth Strategy Of Amazon

    815 Words  | 2 Pages

    Growth strategy is the main means through which any organization plans to achieve its set objective to grow in level of income and capacity of its sales. The main strategies include the development of their product, diversifying, the development of market and its penetration. Amazon.com, an online retail company that provides a variety of unique products and services to its customers at cheap prices via the internet, for the past five years have tripled its sales to more than $60 billion a year. The company’s willingness to take a large hit on its margins has contributed significantly to its 35% to 40% revenue growth in past quarters. To increase the company’s income and sales, it has utilized a number of strategies (Form 10-K, 2014). This includes; investing in the growth of its digital services. This strategy is seeing strong growth and segment. Analysis shows that Amazon Web Services has operated up to annual revenue rate of over $2 billion over the past years. The introduction of new tablets such as Apple’s iPad mini and Microsoft’s surface tablet pose greater competition for the tablet market. Amazon has been able to compete in the tablet market in the past because of its Kindle e-readers that have been priced lower than the iPad. The company is investing in the online video industry. It has entered into several and expensive contracts with the aim of building digital media correction. The company has recently entered into a multiyear agreement with Viacom to license television shows, including children’s shows like “Dora the Explorer” and “BobSponge Square Pants.” (Tsukayama, 2013)

    Read More

  • Amazon Consumer Behavior Case Study

    844 Words  | 2 Pages

    Amazon is a growing and trending brand, giving consumers the unique shopping experience they have always wanted. The company that was started by 1999 man of the year, Jeff Bezos, has taken 44 percent market share in online sales and purchases. (http://bloomreach.com/2015/10/survey-amazon-is-burying-the-competiton-in-search/) That makes consumers more inclined to search for products through Amazon, before the well-known search engine powerhouse, Google. The Seattle, Washington based company was started in 1995. During the well-anticipated start-up, the company’s focus was on book sales online. Over time, Amazon has set many trends in Consumer Behavior, expanding products across every product pool imaginable. "Amazon.com puts the customer

    Read More

  • History and Success of Amazon Inc.

    766 Words  | 2 Pages

    .... Amazon uses the internet to allow customers to make content searches, for instance inside books. In addition it has used e-commerce to enable customers to buy online access to certain books through its upgrade program (Webanalyticsbook.com, 2007).

    Read More

  • Amazon Case Analysis

    1344 Words  | 3 Pages

    In addition, Amazon has also given the customer the opportunity to sell goods. The customers have a huge amount of power when researching and choosing products of the thousands of products at the tips of their fingers. Amazon has just about every department of a store you can imagine, from gardening and lawn accessories, to kitchen machinery, to shoes, and to the strongest departments in my opinion, which is the reading and electronics. The book was the very first product and vision behind Amazon as Bezos “narrowed the list to what he felt were the five most promising [products to be sold via Internet]: compact discs, computer hardware, computer software, videos, and books…”: then deciding to create the worldwide selection and platform to sell literature in print. Little did Bezos realize at the time, that his print literature idea would develop into the foundation of the electronic department. This transformed into varying products and services to be offered to the consumers: from actual devices to purchase, to the Amazon exclusive “Kindle” E-reader and accessories, developing growth into the “Kindle Fire” TV, and the exclusive purchase of “Audible”, which is now an Amazon company audio book

    Read More

  • The Advantages Of Paper Books Vs. Digital Books

    1519 Words  | 4 Pages

    Some years ago, with the arrival of digital technology, the process of reading has been changed to make it easier for everybody; therefore digital books are replacing the actual physical books. In spite of the fact that paper books and digital books are very similar in some ways, such as tittle pages, copyright page, covers, chapters or tables of contents; they present a visual and a sensory difference. In fact, they have a similar action that gives benefits but drawbacks at the same time. Paper books are tangible, accomplishment, easy to share; they have a unique aroma, and a sensitive side. But people should take in consideration that digital books are the better choice, because they are portable, convenient, cheap in price, and easy to manipulate, not to mention that anybody is able to have an bunch of them in only one file, either their phones or

    Read More

  • Importance And Importance Of Research Methodology

    1704 Words  | 4 Pages

    Striating from the research idea to the culmination of the findings, the research process entails many segments, all of which are imperative. By choosing the research methodology, the researchers can formulate the path to be used in conducting the study and reporting the findings. The methodology helps in the search of literature, development of research questions and the creation of the most suitable study design. It also assists in the interpretation of the results and the publication of the findings in journals.

    Read More

More about Amazon Kindle Marketing Analysis

Open Document