E Readers: Amazon's Kindle A Strategic Analysis

2732 words - 11 pages

Untitled

AMAZON'S -KINDLE FOCUSED- LEVELS OF STRATEGY FLOW CHART 2007

AMAZON 1994

*This is to be a quick, basic, and used as a brief overview. (More could be easily added, but it is not this paper's focus.)

EMERGENCE OF FIRST eREADERS

AMAZON'S RESPONSE TO EMERGING TECHNOLOGY

In response to the emergence of the disruptive technology, digital books with handheld eReaders, Amazon moved to sell digital books and the complementary technology, eReaders.

*Amazon expands to sell a wide range of products on its site. Cases could be made for or against `FIT'.

A slight change of enterprise motto to "sell products at a lower cost online" the company maintains `FIT'

The case against it states that these other products are not books and therefore not a good `FIT'

One thing is certain, the additional products have generated considerable sales for the company as shown in case exhibits 1a and 1b (see pages . Exhibit 1b in particular shows how media and electronics have generated increasing percentages of sales as sales overall have continued to grow. Yet once again, to avoid convoluting our case study we will not delve into this aspect so we maintain a clear picture of Amazon's Kindle in a growing digital book world.

VALUE NET

*When digital books were first available, there was little support, and only a niche market.

VALUE NET

Certainly other sound attributes can be assigned to substitutes, suppliers, buyers, and its complements. However, this simplified view exemplifies the crucial value a complement can impart on a product. Digital books became much more disruptive to the substitute of printed books when handheld eReaders were made available and the consumer market broadened. Handheld eReaders were still not much of a threat until there was a greater support from publishers (suppliers) to release books in digital format. Suppliers were now being impacted by the greater demand for digital books encroaching on the substitute market. Further evaluation of advances in digital formats and handheld technology (amongst other areas) establishes the value of its complementary products across the value net.

LEVELS OF STRATEGY

Enterprise Level: "Cheaper Books Online"- Amazon's original enterprise level strategy

Corporate Level:

Books (now including digital books)-The original strategy focus was on books. Eventually Amazon evolved into a retailer of a wide range of products. This added business maintains `FIT' with some minor adjustments. It also increases sales...

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