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Summer 2011
Citation preview
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!