Determinants of Earnings Management

Running head: BUSINESS STRATEGY
BUSINESS STRATEGY
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Author Note

1BUSINESS STRATEGY
Business strategy is highly important in an organisation as it provides an organisation
with a direction as to what needs to be done in order to achieve the goals of an organisation. It is
defined as competitive actions and moves that organisations use to attract their customers and
strengthen the performance of the company to achieve their desired goals (Cortimiglia, Ghezzi
and Frank 2016).
From the case study, Kindle Fire: Amazon’s heated battle for the tablet market, it can be
seen that how Amazon had been fighting in order to sustain in the tablet market and dominate the
tablet market. The business strategy of Amazon can be seen here where he focuses on enhancing
the customer experience through their products however put the main emphasis on their cost
strategy. Amazon has developed their business and has become a huge success in the market
because of the cost strategy they have incorporated in their business. They believe in providing
good quality products at a cheaper rate to attract their target customers however, the intense
competition in the tablet had created several issues for the company.
The case study shows that Kindle was one of the most successful products of the
company however, Kindle Fire with added high quality features and a relatively low price in
comparison to the other tablets in the market. However, the company was receiving minor
complaints in terms of the speed of the tablet and other services that had been provided in the
tablet. Amazon in order to ensure that the Kindle Fire dominates the tablet market and becomes
one of the best tablets in the market then the company needs to shift their focus from the cost
strategy to differentiation strategy.
According to scholars, the differentiation strategy is to create a unique feature for the
product and services which will be the unique selling point (USP) of the product or service so