Term III

BMDE
Amazon Kindle Fire
Group 7:
PGP/25/256 Anannya Mishra
PGP/25/266 Devesh Kamle
PGP/25/273 Hariharan B
PGP/25/280 Kishan Nathani

 Use Case Desirability Deliverability Accessibility Differenciation Shortcomings

199$ Kindle fire
Huge catalog of Lack of high resolution
Streaming in 2011 compared to
music, video and, Low price of screen
increased by 33% 499$ IPad. and a superior
Junkies

reading content. Kindle Fire

Media

Avid media and customers Amazon Silk, a graphics chipset.

consumers Bundling of eliminated barriers
required service cloud-accelerated Uncertainty in
through streaming services in to get access to further increase of
with competitive web browser,
Amazon Prime and the content content
pricing Prime instant
low pricing consumption
streaming feature
Android market Slower processor,
Handheld gaming
by the end of 2011 smaller screen,
& Gamers

was the fastest growing Ruggedness and

Children

segment
provided access Unwillingness of and limited
Games and apps small form factor
of the gaming to 2.5 billion parents to buy memory capacity.
made for children, of Kindle Fire
industry. Games games. In addition even a 199$ Hesitant
gaming made it child developers to
represented 25% to this Amazon device
of 25 billion app had its own App suitable produce titles for
downloads Kindle Fire
Marketplace

Lowered the cost Differentiability

of purchasing There was a need potential
Education

Updating file
books and the for Amazon to Tech-savvy compared to B&N
Higher

format, smaller
Digital copies of weight of work out college students Nook was lower
screens, and
college textbook backpack. partnerships with were easy to as it was already
partnership
Lowered the publication acquire operating
challenges
production cost companies partnerships with
for publishers campuses
 Based on market research and vivid instances presented we are comfortable
saying that the segment of School/College children and Gamers can be targeted.

Use cases include:

1. Educational Apps
2. Digital Study materials
3. Gaming Apps
4. Other learning platforms
5. Apps providing engagement activities

Reasoning:

Tech-savvy & increased digitization in this segment

Increased emphasis on e-learning
The market has high potential with educational awareness
Increasing costs of physical books & study materials
Children likely to read eBooks and shop online for them
Amazon already has established a presence in this segment
Easy promotion of other Amazon products such as Prime Video, Amazon Music
is possible
Word of mouth and other easy customer conversion is possible
The competitive price of kindle will ensure less impact of iPad launches

 POSITIONING KINDLE FIRE WITH READER,NOOK,IPAD

Kindle fire Kindle reader

Kindle vs Kindle
Runs apps from amazon app store Reading books
reader Limited browsing
Stream movies from Prime etc
General media consumption Long battery life
Micro SD slot No Micro SD slot

Kindle vs Nook Kindle fire Nook

Better web browser Better battery life
Better display Affordability for the price
Better look Less access to apps
Access to more apps

Kindle fire vs ipad Kindle fire Ipad

Better for the given price High resolution
More storage space Better software
More usage
 They should increase the no of apps that the amazon app store has which is 50,000 as
compared to apple's 0.35 million Apps.
The gaming market is on the rise, Amazon should onboard developers on their

Based on the Analysis, platform to develop small gaming apps, that are less intensive on hardware.
Amazon can also produce digital content under its own production house as a digital
content distributor.
What should Jeff Bezos Data of book sales and customer preferences are available with Amazon, it must
focus on content i.e., adaptions from books.
do? To What extent the Since the graphs and graphics are important Amazon must also develop a new format
other than MOBI
model adopted by Kindle Amazon’s e-commerce platform is its key differentiator, it can create bundle offers
for Kindle Fire users, to increase sales volume from e-commerce business.
fire is appropriate For the new iteration, Amazon must focus on improving the processing and graphic
capability of devices, while adding high-resolution displays to cater to the needs of
media junkies while enhancing the productivity experience.

Amazon is not making money on hardware, since they are selling as devices at cost.
Hence Amazon aims to make money when customers use them. The majority of the
sample earnings come from advertisements based on impressions.
Amazon is expanding its offering to compensate the revenue loss by increasing its
digital media library and enriching its Amazon app store.
Also, to leverage increasing offerings in App Marketplace, Amazon’s decision of taking
30% payout for in-app purchases will help Amazon develop Marketplace as a core
revenue stream
The commerce revenues are also expected to increase due to diverse offerings in e-
books and website sales of physical products.
The increase in the installed base due to the expected decrease in CPM would help in
offering steady revenue stream from advertisements on these devices.