amazon kindle

I. Executive summary
The recent problem on Amazon kindle Fire is which segments it should be? (Whether still stay in template segment, or back to e-book market) who is their target customers? And what kind of business model it should be in order to maintain their long term profit?
By detailed analysis their recent situation, I high recommended it should still stay in template business by targeting media junkies and children. Also it should leverage its recent amazon ecosystem and following the name amazon kindle fires.
II. Alternative analysis
Alternative 1 stays in template segments, order a competitive price and target media junkies. To media junkies Amazon kindles fires is the customer media end that offers the unlimited free/ low payment resources because it has already a big media platform.
Pro: considering the fierce competition in template market it is no doubt that the lower price can be very attractive to the people who care price sensitive. To media junkies, they are more willing to consuming the content with low or no payment.
Cons: The low margin of the product ($199 )is no doubt a great pain on amazon kindle fires, the content selling and advertisement providing whether can let them win back profit is still a doubt as it target to price sensitive customers and media junkies. These people will oblige to pay more for the additional service but continuously enjoy using the economic hardware and free resources. Also whether the “razor-razorblade” model is workable or not still under a doubt.
Alternative2 stay in templates segments and targeting the kids business. To kids, amazon kindle fires is a learning and gaming platform that offers children free/low payment resource to learn based on its recent huge e-book base.
Pro: the learning platform is always attractive to parents and teacher. Low price product with full function compared with other android template will be very competitive. Also in recent market there are rarely any templates which focus directly in this area.
Cons: Barter and noble is very competitive in education although it is in e-book segment, they are professionally providing e-books and education materials. Also it is still not consider a profitable area compared with hardware selling.
Alternative3 stay in template segments and targeting media Greeks by providing the exclusive media resource by payment. By segmentation the amazon kindles fire as a kind of media communication platform than the media user end. To this extend, the new segmentation kindles will attract those media entertainment Greeks.
Pro: all the android templates now in the markets are more focus on download the resource or view the media online. However amazon kindles fires leverage its historical resource to do more on exclusive content. It will no doubt be as a competitive way to win media Greek customer.
Con: as the fierce competition on content providing in the market, how to continuously provide exclusive resource and how to negotiate copyright issue is really critical to face. Also how to pricing on different resource to retain customers should also be well evaluate.
III Recommendations:
The new segmentation will focus on the price sensitive customers, the target customers will be the children, media junkies and media Greek. The new position of the amazon kindle fire will be more focus on customer using experience, online resource providing. The most of the avenue will comes from both the online exclusive content providing and the advertisement. Still amazon kindle fires will also built up itself as an all-in-one service and entertainment provider in the long term.