Amazon Kindle Fire Case Analysis
Autor: shyhandsome • November 8, 2016 • Case Study • 1,309 Words (6 Pages) • 1,005 Views
Amazon Kindle Fire Case Analysis
I. Executive Summary
Being aggressive in launching innovative consumer-related products and services (like Amazon Kindle, Amazon Prime), Amazon launched its “Kindle Fire” brand in the November 2011. Priced $199, with 7-inch, color LCD touchscreen, a powerful dual-core processor, a fixed 8 GB of internal storage, Kindle Fire shows Amazon’s ambitious to win the heating battle field of personal tablets. The major competitors are the market “mover”-Apple iPad, Barnes & Noble Nook from the E-Readers side, and various Google Android Tablets. Despite the fact that Amazon have sold 3-5 million units of the Kindle Fire in Q4 2011, there actually exist several major concerns and problem that Amazon needs to solve to remain this brand’s success.
II. Statement of the Problem
There are two major problems for Amazon Kindle Fire now:
• What was the most promising target market for Kindle Fire, considering its present targeting group?
• How should it be positioned accurately for that target market to compete the existing rivals and new entrants?
After Kindle Fire’s “probe-and-learn” process, it has already generated three major targeting groups (media junkies, children & mobile gamers, Higher education) that Amazon can make the most revenues from. However regarding the intense competitive environment in this market, it’s time to be more focused in defining the most important target audience. Therefore, the company can come up with a series of positioning strategies in competing with its major potential rivals.
III. Alternative Solutions
1. To “media junkies”, who are the most avid consumers of media, consuming multimedia content with huge selections, Amazon Kindle Fire is the brand of multimedia content provider, that offers abundant media content with reasonably low price, because Amazon offers competitive pricing on its music, video, and reading content, and Kindle Fire platform was ideally suited for downloading popular content through the Prime Instant streaming feature and for purchasing the more obscure titles that the long tail demanded through the massive Amazon store.
Following are the pros and cons for choosing “media junkies” as the major targeting group:
Media Junkies as Major Targeting Group | |
Pros | Cons |
•They are attracted by the bargain prices from Amazon •The huge selection of multimedia choice would be another attraction •The consumption per customer is high •This group is growing bigger because of the digital transaction trend | •Smaller screen of Kindle Fire is not ideal for this group •Can’t meet the demands of “high-resolution screen and the superior graphics chipset” •They may rely on the Prime Instant service, and hardly continue further consumption |
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