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Kindle Fire: Amazon's Heated Battle for the Tablet Market

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Nathan Lodde

on 28 November 2014

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Transcript of Kindle Fire: Amazon's Heated Battle for the Tablet Market

Critical Success Factors

Apple iBooks and Newstand
iPad mini launch
Its own E-reader

Target Markets

Media Junkies
Worried about gorging the free month of amazon prime and not purchasing anything else
Children and Gamers
Slow processor and graphics card
Getting third party developers to create special versions just for the kindle

Higher Education
Smaller screen
B&N already trialing

These revenues will essentially remain flat in years to come
Growing e-Book market
E-Books grew from 1% of total book sales to 15% of total book sales by 2012
“Locked-in Buyer”

Continuous Innovation
Consumers demand latest technology
Faster page turns, improved battery life, more storage

Aggressive Marketing
Met with “The Big 6” publishers. Got them to agree to e-Book publishing
Subsidized prices of e-Books
Price war
Limited time offers
Nathan Lodde, Jesse Derwinsky, Scott Rizzuto, Adam Jabouri, Drew Prinsen
Kindle Fire
Amazon's Heated Battle for the Tablet Market

Nature of the problem:
To develop a business strategy in response to entrants in the tablet market including its target market and turning the sales success of the Kindle into business success.

How should Amazon modify the positioning of the device in response to the new entrants in the tablet market since its launch?

What was the most promising target market for the Kindle Fire, and how should it be positioned against competing products?

How could Amazon turn the sales success of the Kindle Fire into business success?
Need to market their product to focus on higher education market

Focus Marketing

Need to move into untapped markets

Stick to undercutting the market/ with apple especially

Stay away from Gaming market

Increase Advertising revenues to increase

Increase advertising profits

Price point
Issues in Global Marketing
BICG9703 01
Founded by Jeff Bezos
Largest online bookstore by 1999 - 10% of the e-commerce market
Marketplace partnerships allowed Amazon to outsource their long-tail offerings, ultimately lowering overhead costs
Lab126 hardware development group
E-reader market sold combined 400,000 units by the end of 2007
Monthly magazine subscriptions
"The six major publishers"
E-book ecosystems
Kindle Fire came out in 2001, steal market share from Apple
Leveraging its cloud-based software
The best selling device that holiday season

Amazon took a risk entering a new market
Bet on consumers seeing a value proposition
Risk of consumers downloading free content only on already subsidized hardware.
Kindle ended being well positioned against competitor
Full transcript