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1. Who should Amazon target with the Kindle Fire?

How should Amazon position Kindle


Fire relative to the competition as well as relative to a company’s own
offerings/ products?
Amazon should target the following-
▪ Readers
▪ Kids
▪ School going students
▪ Parents
▪ Media junkies
▪ College students
▪ Cost conscious customers
▪ Online shoppers
▪ Existing Amazon customers
▪ Music lovers
▪ Large screen phone users
▪ Web suffers
▪ Gamers
▪ Magazine readers

One stop solution for all amazon services

o Amazon web services


o Prime
o Kindle
o Instant video streaming
o App store
o Amazon Silk
o Other numerous unique features and services

Positioning

Compared to I-pad

1. When compared to the I-pad more affordable consumption device and better equipped to
fight while providing a wide and deep content catalogue
2. Deal with third parties for content (Viacom)

Compared to Nook

3. Different users experience


4. Silk browser
5. Numerous cloud based services(whisper sink feature)
6. Focus on content and services

Compared to kindle e-reader

1. Appel to online readers who favour more and more online in favour of blogs and wikis
2. Consolidated device with better reading experience and battery life.
Amazon

1. Traditional one-two punch of low margin combined with large scale delivery
2. Sweet spot between breath of content and blotted library with excessive licencing cost,
enough to attract customers
3. Demand for digital content, incremental online commerce sales and price sensitivity for
hardware
4. Integration of Amazon content cloud based storage and convince of Amazon Prime at
bargain prices

How Is it different from Apple

-Apple was subsided heavily by wireless carriers in return for a long term subscription contract,
while Amazon was selling at cost as a loss leader for content sales.

What is Amazon betting on to ensure that the Kindle Fire business model works?
o Content revenue
o Commerce revenue
o Advertising revenue
o Application market place revenue

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