Case analysis on kindle fire Amazon on fire

Case analysis on kindle fire Amazon on fire

Introduction

            Considering the fact that Amazon has been long known for its innovativeness and also investing in upcoming opportunities several years ahead of income and profitability, it is not surprising that the organization has come up with another breath taking product. This time round they came up with a product known as the Kindle Fire. According to Blake & Berger (2013), The Kindle Fire is an exceptional device in the view that it is made up of an improved e-reader based feature and functionalities, and at the same it attracts those who are using tablets due its tablet-like ordinary features and operations. It has also been argued by other experts that its price is relatively affordable considering the magnificent features that this product is having. As a matter of facts, it has been priced at a premium in relation to e-reader, and this price is quite competitive when compared to the cost of the tablet.

            This essay explores the case analysis on Kindle Fire Amazon on fire.

Is Kindle Fire an E-Reader or a Tablet?

            Many people do confuse the Kindle Fire with either an E-reader or tablet. However, a closer look at the product would reveal that the product is kind of an amalgamation of both e-reader and the tablet. It seems that makers of the product had decided to amalgamate these two products into one so that it could provide an outstanding beneficial synergy that either E-reader or Tablet could not provide on their own. Considering these observations, it would be difficult to categorize Kindle fire as either as an e-reader or tablet.  But rather as a device for the average customer who is in need of the best value out of a device that can mix the two at a single price. Therefore, it would not be absolutely wrong for one to actually categorize the product as a table-reader (Nuttall & Waters, 2011).

The Key Characteristics of Kindle Fire

            According to Nuttall & Waters (2011), Kindle Fire is a multi-touch screen type of tablet that has been manufactured by the Amazon. It is currently the most popular e-book reader. It is also a perfect example of a Blue Ocean strategy that has been adopted and it is now creating unrivaled market space and has been able to create its own space so as to avoid competition with others. it is also important to remember that the Kindle Fire is a Seven-Inch a multi-touched show that is fixed with the IPS technology. This device is driven with the Google’s operating system that is called Android, currently this device can be accessed from Amazon outlets and it goes for US$ 199. The Kindle Fire enjoys unlimited access to the Amazon’s Appstore alongside other digital contents such as ability to live-stream TV shows, movies, and also e-books. As compared to the Apple iPad that is the market leader; the Kindle Fire is somehow low in quality and it does not have camera, the GPS system, ability to store the information, it is also lacking the high-end graphical, and eve a strong chip. Generally; Kindle seems to be falling in between tablets and the e-readers on several fronts. To begin with, the price of the Fire is quite higher when compared to the e-readers and quite low if compared to the price of tablets in the market. When it is examined in detail, the positive features of the Fire Kindle appears to have improved the general experience of the e-reader in terms in depiction of color images, improved access to Amazon market, storage ability for the received content, and more so via a compact, tactile and long lasting device. This explains why it has been priced at a premium rate in comparison to the e-readers. Most importantly to note is that, Kindle Fire does not provide extra use-cases as contrasted to e-readers like video content, gaming abilities, accessibility of many applications. However, this cannot be contrasted to the breadth and quality of the use-case provided by most tablets. Therefore, this explains why its price is slightly lower than that of tablet (Blake & Berger, 2013).

Marketing Strategy for the Kindle Fire

            Amazon has adopted a strategy known as the Blue Ocean which is based on the idea that it will try and create its own market that is free from stiff competition. Amazon is basically targeting those customers who are not using the iPad, those who cannot afford the iPad, those users who are in such of Android-based tablets, and also rubbishing the competition in the market by making a standalone device. The Amazon has made this device to be consumable in the media platform that has got a massive content like movies, videos, books, and music. The Kindle Fire has been able to distinct itself from the iPad and other tablet machines by not concentrating on the high-end features, but with a simple and a focused features that enables its users a exclusive experience and also affordability. It is also important to remember that the Kindle Fire is light in weight, long lasting, its battery has got a long life span, and it is easy to use.

Sales and Profits for the Kindle Fire

            The Kindle Fire has totally turned around the image of Amazon as its sales and revenue have increased significantly ever since the device was launched to the market. As a matter of facts during the first quarter of the year 2011; the Amazon was able to sell nearly 4.7 million units of this device called the Kindle Fire. Amazon started shipping the Kindle Fire to its overseas customers as from 15th November 2011. Sincerely speaking the device significantly boosted the revenues for the Amazon. The manufacturer of the product and Amazon has decided that they will be selling the product at a cost price when it was launched. This kind of strategy was adopted to act as bait and lure to attract the customers and tilt the customers towards the Kindle Fire. This enabled the management to get this device into as many of their target markets. The idea is that if the device is offered at a cost-effective price, then the customers would be attracted by other contents, commercial advantages, and other attractive applications that will be provided by the Amazon at affordable and bargaining prices. As a result there will be increased sales and this will result into huge profits for the company and Amazon at large (Nuttall & Waters, 2011).

References

Blake, L. J., & Berger, K. A. (2013). Amazon Kindle Fire Claims an Important Market Position. Journal of Case Studies, 31(2), 91-97.

Perenson, M. J. (2011). Kindle Fire vs. Nook Tablet: Which should you buy? PC World Communications, Inc., Retrieved March 3, 2018, from http://www.pcworld.com/printable/article/id,244282/ printable.html

Nuttall, C., & Waters, R. (2011, October 1). Amazon breathes fire into tablet market.

Financial Times , London [(UK) p. 2

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