Kindle Disruptive Technology Essay

1387 words - 6 pages

A disruptive technology or innovation can be found in both emerging and existing markets. Historically, these new technologies introduce a different platform of features that mainstream customers aren’t used to. Typically, an emerging market will make it easier for disruptive technology to enter the mainstream as consumers haven’t developed a tendency or reliance for a certain product. As a rule, mainstream customers are unwilling to use a disruptive product in applications they know and understand. If we are to use a relatively recent example, the Apple iPhone, when first introduced, was originally met with skepticism and criticism. At the time, flip phones that were capable of both touch ...view middle of the document...

In other words, who is in support of the project and who isn’t? It is typically found that the financial and marketing managers are unwilling to back a disruptive technology because the potential revenues from the discernible market are small. Additionally, it is often difficult to project how big the markets for the technology will be over the long term so it is increasingly important to think far into the future even during the developmental stages of the product.

Analyze Amazon’s disruptive strategy in detail, based on Christensen’s logic. Can we call Amazon’s strategy disruptive? Why or why not? What are the main features of this strategy that have made the Kindle such an overwhelming success?

With the Amazon Kindle, a new market was emerging; eReading was disrupting the paper and hardcover book industry. Although the Kindle was wildy successful following its launch in late 2007, it was met with a lot of skepticism from die-hard novelists. These people that refused to leave their beloved books because they didn’t enjoy the feel, the aroma, or even the pleasures of carrying it with them on cross country road trips. The kindle had yet to appeal to all demographics, especially the more conservative types.

Amazon’s strategy with the Kindle was to introduce the world to a different way of reading books. A way that was simplified, convenient, and ultimately cheaper than having purchasing regular paper back books. The emerging market that they were creating is now referred to as eReading, which allows users to purchase their books online, store them onto a device and read them on the go. The disruption was eventually felt all over the book industry, although initially it was not expected to do so. Amazon was already at an advantage with how successful their eCommerce website had become, so when they made the choice to use this as leverage, it was no surprise. By asking the right people the right questions, Amazon was able to determine, atleast for the majority, that the benefits of cloud storage for books on a mobile device would far outweigh the costs. In 2004, CEO Jeff Bezos and his senior vice president came up with the radical idea of using their online bookstore and making its own hardware. It was only natural that they created an entirely new market segment, eReading. At that point, the market was wide open; they just need to harness its potential by exhausting all of the resources available to them. With their disruptive strategy, Amazon knew that timing was an extremely important factor in its success. They wanted to reach the market at a time where people were becoming more and more dependent on the Internet. With the release of the Apple iPhone a few months earlier, Amazon, using their various marketability research methods, saw it as a good time to release their own groundbreaking product, the Kindle.

Even after doing the market research, which Christensen says will always be ineffective in disruptive technologies, they dramatically...

Find Another Essay On kindle disruptive technology

amazon's crm intitative how it evolved in past years and added to its critical success - ifmr - assignment

3939 words - 16 pages them, and adapting as these changes. This report evaluates how a service based organization -Amazon uses Management information systems as a vibrant tool in attaining competitive advantage through efficient acquisition and management of information. The study involves assessment of the best MIS practices in place for Amazon throughout its value chain activities. Uniqueness of MIS in technology, process and the systems that Amazon use right from

Ten Practical Implications of Porter’s Work

1818 words - 8 pages deliberately makes some customers unhappy. a. Practical examples of this statement are: • Apple forces its customers to use a closed ecosystem. • Similarly, Amazon's unique Kindle ecosystem generates revenue for Amazon, app developers, and media businesses. • Apple and Amazon, thus, sacrifice pleasing some of their customers in favor of product quality and continued revenue. b. Ignoring a few customers is an example of a tradeoff that ensures

Analysis of Wearable Augmented Reality as an Emerging Technlogy

3751 words - 16 pages mobile phone platforms. This sort of shift in mobile platforms would significantly impact platforms dependent on mobile device platforms; for example, advertising technology platforms would need to restructure their approach to serving targeted ads for a different device with a different user experience. Just as mobile advertisement has disrupted traditional advertisement, WAR ads will have a similar disruptive effect. 4 Necessary Ecosystem

Jezz bezos

10437 words - 42 pages replied. "Except that there is probably no limit to what he can do, given a little guidance." In late 2011, I went to visit "Tim"-aka Jeff Bezos-in the Seattle headquarters of his company, I was there to solicit his cooperation with this book, an attempt to chronicle the extraordinary rise of an innovative, disruptive, and often polarizing technology powerhouse, the company that was among the first to see the boundless promise of the

jezz bezos

10437 words - 42 pages replied. "Except that there is probably no limit to what he can do, given a little guidance." In late 2011, I went to visit "Tim"-aka Jeff Bezos-in the Seattle headquarters of his company, I was there to solicit his cooperation with this book, an attempt to chronicle the extraordinary rise of an innovative, disruptive, and often polarizing technology powerhouse, the company that was among the first to see the boundless promise of the

When the Bubble Burst

1539 words - 6 pages By the time I arrived state side from my second tour in the Middle East the housing bubble had already burst. I noticed a drastic change in the way that many of my friends and family were living. Several of my friends that worked in real estate had sold their boats and seconds houses. My own stock portfolio had lost a third of its value. My sister and her husband had defaulted on their home mortgage leaving them scrambling for a place to live. I

phase diagram

4456 words - 18 pages Introduction: Chemical equilibrium is a crucial topic in Chemistry. To represent and model equilibrium, the thermodynamic concept of Free energy is usually used. For a multi-component system the Gibbs free energy is a function of Pressure, Temperature and quantity (mass, moles) of each component. If one of these parameters is changed, a state change to a more energetically favorable state will occur. This state has the lowest free energy

Revolutionary Work of Art

1890 words - 8 pages Walter Benjamin emphasizes in his essay, “The Work of Art in the Age of its Technological Reproducibility” that technology used to make an artwork has changed the way it was received, and its “aura”. Aura represents the originality and authenticity of a work of art that has not been reproduced. The Sistine Chapel in the Vatican is an example of a work that has been and truly a beacon of art. It has brought a benefit and enlightenment to the art

Enlightenment Thought in New Zealand Schools

1594 words - 6 pages In this essay I will be looking at how the political and intellectual ideas of the enlightenment have shaped New Zealand Education. I will also be discussing the perennial tension of local control versus central control of education, and how this has been affected by the political and intellectual ideas of the enlightenment. The enlightenment was an intellectual movement, which beginnings of were marked by the Glorious Revolution in Britain

Psychological Egoism Theory

2240 words - 9 pages The theory of psychological egoism is indeed plausible. The meaning of plausible in the context of this paper refers to the validity or the conceivability of the theory in question, to explain the nature and motivation of human behavior (Hinman, 2007). Human actions are motivated by the satisfaction obtained after completing a task that they are involved in. For example, Mother Teresa was satisfied by her benevolent actions and

How Celtic Folkore has Influenced My Family

1587 words - 6 pages Every family has a unique background that influences the way they live and interact with other people. My parents, who emigrated from Ireland to the States with my three brothers in 1989, brought over their own Celtic folklore and traditions that have helped shaped the way our family operates and lives. One aspect of folklore that has helped shape my family dynamic is the Celtic cross—both its background and what role it has played in our lives

Similar Essays

E Readers: Amazon's Kindle A Strategic Analysis

2732 words - 11 pages maintain a clearer perspective of Kindle and its digital book world. eReaders- Kindle is Amazon's response to the changing marketplace and the emergence of the disruptive technology, digital books with handheld readers. Business Level: Differentiation Ease of use Higher levels of service More quality features Functional Level: Ease of use is achieved through technologies such as direct wireless downloading (ex

The Future Of The Textbook Industry

2193 words - 9 pages Amazon and their Kindle or Apple with their introduction of the i-pad, along with Hewlett Packard and Dell who have announced a portable tablet computer, and lastly Microsoft is rumored to be developing a two screen model. These devices are becoming a disruptive technology that is reshaping how information is distributed and consume. Digitization of information allows readers to download dozens of books and makes everything variable. Users can

Amazon Case Study

2473 words - 10 pages the well-known brands are available on the website and shipment network is really huge.The company is not only an electronic market, but also produces revolutionary products, which has shaped the history of technology, such as Game studios, Instant Video, Appstore, LoveFilm, Kindle, The Book Depository etc. Revenue development: Jeff Bezos, the CEO of the company, in 1994, has figured out a new business that nobody had thought before. In 1994

Creating Innovators: The Making Of Young People Who Will Change The World By Tony Wagner

1773 words - 7 pages people” and “creative problem solving” (Wagner, 2012, p.7-8). Innovation is not solely creating new devices or technology, but can also be the way a process is handled. As Wagner continues to dissect the meaning of innovation, he separates innovation into incremental innovation and disruptive innovation. Incremental innovation is when existing products, processes or services are improved; while, disruptive innovation is creating a new product or