To achieve this, Amazon was willing to heavily subsidize the Kindle Fire hardware device. The Kindle Fire was designed to put the full Amazon experience right into the laps of customers, and Bezos was betting that his customers would see the Kindle Fire as the physical manifestation of all things Amazon. This strategy involved critical decisions such as selecting a customer segment to target and a positioning for the new product, dubbed the Kindle Fire, as the tablet market rapidly evolved. Amazon sought to combine platform assets to create an end-to-end experience that would let users find a “sweet spot” in the mix of features and services. Faced with the tough decision between focusing on the e-reader market-which Amazon had come to dominate with its Kindle product line-and making a foray into tablets-for which it had no expertise-Bezos chose the latter. This case is intended to illustrate to readers the challenges faced in 2011–2013 by Amazon's CEO, Jeff Bezos, as he guided his company into the exploding tablet market.
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