Market Analysis and Strategy for Amazon Kindle Fire
Kindle Fire: Amazon’s Heated Battle for Tablet Market
Executive Summary
Amazon has created a value product that resolves around services over the device itself, known as the Kindle Fire. With the emergence of e- readers, various competitors immediately offered iterations of the Amazon Kindle Fire tablet. The CEO of Amazon, Jeff Bezos, must decide and define its most promising target segments and positioning of the Kindle Fire against competing products in the market. Based on the initial sales of the Kindle Fire, it is recommended that Amazon move forward in positioning with Apple’s iPad and targeting its consumer segment to “media junkies”. An extensive financial analysis was then conducted to have found that a pricing strategy at $149, selling at a loss would actually be the company’s most rewarding and profitable opportunity. On the other hand, the consumer analysis identified the Millennium and Generation X cohorts to be heavy consumers of tablets. The considerable purchasing power and growing technology preference from the “media junkies” gave favour to Amazon’s Kindle Fire. Marketing efforts will be contributed to focus on the interests and values of technology from the Millennium and Generation X cohorts. The recommendations to define its target segments and positioning will be implemented immediately alongside its new pricing strategy. It is crucial that the Kindle Fire is a separate brand from the existing traditional Kindle e-reader. Advertising will be concentrated on the “Full Amazon Experience” also known as the user experience to differentiate itself from the market. To facilitate further growth of the Amazon brand, consumers will be then integrated into the Amazon ecosystem of content goods and services to be purchased. It is imperative that Amazon provides the end- to-end Kindle Fire experience and value proposition to entice its consumer segments and market position. Refining Amazon’s strategy will ultimately translate to the growth of
Executive Summary
Amazon has created a value product that resolves around services over the device itself, known as the Kindle Fire. With the emergence of e- readers, various competitors immediately offered iterations of the Amazon Kindle Fire tablet. The CEO of Amazon, Jeff Bezos, must decide and define its most promising target segments and positioning of the Kindle Fire against competing products in the market. Based on the initial sales of the Kindle Fire, it is recommended that Amazon move forward in positioning with Apple’s iPad and targeting its consumer segment to “media junkies”. An extensive financial analysis was then conducted to have found that a pricing strategy at $149, selling at a loss would actually be the company’s most rewarding and profitable opportunity. On the other hand, the consumer analysis identified the Millennium and Generation X cohorts to be heavy consumers of tablets. The considerable purchasing power and growing technology preference from the “media junkies” gave favour to Amazon’s Kindle Fire. Marketing efforts will be contributed to focus on the interests and values of technology from the Millennium and Generation X cohorts. The recommendations to define its target segments and positioning will be implemented immediately alongside its new pricing strategy. It is crucial that the Kindle Fire is a separate brand from the existing traditional Kindle e-reader. Advertising will be concentrated on the “Full Amazon Experience” also known as the user experience to differentiate itself from the market. To facilitate further growth of the Amazon brand, consumers will be then integrated into the Amazon ecosystem of content goods and services to be purchased. It is imperative that Amazon provides the end- to-end Kindle Fire experience and value proposition to entice its consumer segments and market position. Refining Amazon’s strategy will ultimately translate to the growth of