E-commerce and Digital Marketing

This solved assignment delves into the realm of E-commerce and Digital Marketing. It examines key concepts such as online retailing models, data mining techniques for mobile devices, and the implementation of successful global e-business strategies. The assignment also explores the impact of digital marketing tools and techniques on contemporary businesses.

Amazon’s Strategic Management 1
AMAZON’S STRATEGIC MANAGEMENT
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Technology is part and parcel of the day-to-day activities of a human being. In this era,
individuals seek for technologies which can help to ease various functions of their life. This
paper focuses on the case study of Amazon which released a tablet dubbed as kindle fire for the
purposes of allowing individuals to have access to electronic publications. This case study is
intended to relay the analysis of business and strategic management that followed after the
launch of Amazon kindle fire by the Chief Executive officer for Amazon, Jeff Bezos (Hitt,
2017). It is important to note that Amazon Kindle Fire was meant to have their customers have
all Amazon’s experience in their laps. This meant that Jeff Bezos believed that the device would
create a fulfilling experience for the customers. In the bid to make this a reality, Amazon was
willing to finance the hardware device for the product (Hitt, Ireland and Hoskisson, 2016). This
was with the assumption that it would lower the overall cost of the product thus increase its
purchase. In the light of the above knowledge, this paper critically analyses the case study of
Amazon’s invention of Kindle Fire, their strategic environment, and future strategies.
Amazon has been known to be one of those organizations which are profitable and ahead
of revenues. It is largely known for selling products such as books, compact disks (CD) and
various households’ items (Sinaga, 2001). In this regard, it was little surprise that it came forth
with a new invention to spur up the market for tablets. The Kindle Fire is a unique electronic
device that encompasses amplified e-reader functionalities while at the same time trying to
incorporate basic tablet capabilities to woo tablets buyers. At this point, the Kindle Fire acts as
device baring to capabilities, one for a tablet and the other of e-reader capabilities. In this regard
for a layman, one can point that the Kindle Fire is a tablet e-reader. It is momentous to
comprehend that since its founding in 1994, Amazons’ first kindle an e-reader was developed in
2007. Over the years, kindle touch, kindle keyboard and other versions which can access the

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internet were developed. However, the invention of the Kindle Fire in September 2011 was what
broke the market for this online retailer.
Environment analysis for Amazon Kindle Fire
When a closer look is taken at the environmental surroundings in regard to the Kindle
Fire invention by Amazon, there are a lot of generic elements that erupt. On the financial part,
Amazon comes with a relatively cheap price due to the company financing the acquisition of the
hardware product. As per Britannica Book of the Year 2012, (2012), the Kindle Fire comes with
a low price of two hundred United States dollars hence having a competitive advantage from
other tablets which cost around six hundred United States dollars. In comparison to e-readers,
kindle fire is a bit expensive because e-readers cost an average of one hundred United States
dollars. However, additional features such as bigger storage, increased uses such as internet and
games makes it worthwhile. As a physical element, the kindle fire falls between an e-reader and
the tablet of seven inches (Rich, 2012). The price for Kindle Fire is less compared to e-readers
and a little bit lower as compared to other tablets. A technical examination for Kindle Fire brings
into light providing an enhanced e-reader experiences with state of the art color combination, in
addition, the device, is more compact with a large storage space, durable and tactile. On the other
hand, it serves as a tablet because it has features such as gaming content, access to application
and internet. However, one of the drawbacks of this device is the location of its power button.
The power button is located at the bottom of the device which makes it difficult to power on and
off.
The Amazon Kindle Fire has an impact on the social-cultural environment. The Kindle
Fire provides a unique experience to e-reader users who do not fancy full tablets regardless of the
price. Amazon has enhanced readership culture among many individuals. With the current

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generation who seeks to have intellectual nourishment and at the same time seeks to have
entertainment, Kindle Fire serves as the best device. This is because it offers different
applications with convenience on one device. Kindle Fire has been juxtaposed as a device which
serves different kinds of people, those who have attitudes of owning many devices for different
uses and those who are keen on prices. In the global environment, Kindle Fire has impacted a lot
of Android tablet vendors (Jennex, 2014). This means that Android vendors across the globe are
forced to confirm their prices to reflect the price that Kindle Fire is selling at. The ecosystem of
Kindle Fire is what lives android tablet developers out in the cold. This is especially when it
comes to application. While Kindle Fire can allow users to have localized running apps, other
android developers depend on Google for the provision of selected applications which are a
cliché (Mena, 2013). In addition, most of the android tablets look the same while Kindle Fire is
different due to its differentiating ecosystem.
When an individual takes up the Kindle Fire, one will realize its technical strength. The
screen resolution and the color combination of Kindle Fire are perfect. The touch sensitivity of
Kindle Fire is good as compared other high-end tablet in the market today. In addition, the
seven-inch size of the Kindle Fire provides a good e-reading experience and also a good video
streaming experience for a user. The kindle fire high definition has a forty percent higher Wi-Fi
with an eleven-hour-long battery life (Conder and Darcey, 2012). The Amazon Kindle Fire has
few legal impacts on the legal and political environment.
As far as demographics in regards to Amazon’s kindle fire is concerned, certain
demographic elements seem suitable for the device than others. According to Hitt, Ireland and
Hoskisson, (2016) Children and individuals who are highly educated have been selected as
targets for the product. The large storage, durability, the applications of games and also the

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affordable price of two hundred United States dollars make parents see kindle fire appropriate for
their children (Hill-Whittall, 2015). The device has been designed in such a way that it can be
able to seamlessly display textbooks with their corresponding texts, graphs, highlighting among
others, a partnership with publishers serves as a worthwhile endeavor. Ultimately, its low price
makes any individual who is willing to have a tablet in possession, kindle fire will be the first
option.
The e-reader and tablet industry environment
It is important to note that Amazon operates majorly in the United States, Italy, Spain,
Germany, France, and parts of the United Kingdom (Turban et al., 2017). However, this does not
mean that people from Australia do not use Amazon products such as Kindle Fire. Kindle Fire is
just like any other tablet technology in the market with few enhanced features. Since technology
serves as the backbone of economic activities in countries such as China and Japan. This means
the supply power for the hardware and the software that make up the product is high. On the part
of supply power of the Kindle Fire product, it is appropriate to say that it is not stable since there
are issues that touch on the advancement in technologies and that it covers a few countries as
compared to normal tablets which can be supplied worldwide. The buying power for the Kindle
products as far as the targeted customers are concerned is high. This is because Kindle Fire is
pocket-friendly where a person earning average salary can afford. The Nook tablets by B&N,
publishing firm is a new entrant which has given Amazon’s Kindle Fire a run for their money. It
is very easy for people to purchase books as well as e-reading platforms from one dealer instead
of spending a lot of time purchasing a tablet from another source.
On the contrary, there are other competitive products such as Apple’s iBook and
Newsstand applications are giving amazon sleepless nights as far as the sale for Kindle Fire is

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concerned (Davis, 2014). It should be understood that Kindle Fire is concerned on how its
customers use the product for it to make money. This is contrary to tablet products for Apple
where if bought and if used, the company would still make money. This implies that Amazon
needs to sell its products from interested buyers only who would use the device by buying
contents from it. In this regard, companies such as Apple, do not view Kindle Fire as ultimate
competition as it would still make more money (Rich, 2012).
Competitive environment
Amazon is introducing a new product into a market that already exists. This implies that
the product was expected to focus on the product development and enhancement in order to have
a smooth sail into the market. When Amazon advertises Kindle Fire there is no mention of the
word tablet. This is because the target group for the device is people who can be able to buy
content from the device so as it would be able to make money from the product. As much as
Amazon would like to sell more than the product to a customer, in the same manner, that Sony,
Microsoft, and Nintendo sold their gaming console with the hopes that their customers would use
them for a substantial period of time. Apple, Microsoft, and Samsung use a different method
where they instill in their customers the need to upgrade their devices, a method that makes
Kindle Fire’s future in the dark.
Opportunities and threats of Amazon Kindle Fire
Amazon has many opportunities regarding expanding its market in the sale of their
Kindle Fire product. One of the opportunities is innovation. In the world of technology,
innovation is one of the best-selling points (Hill and Jones, 2012). The reason why Amazon still
holds as the nest leading online retailer is that of its innovative nature is coming up with new

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products and services. As much as the Kindle Fire faces a lot of competition from big brands
such as Apple, Samsung, and Sony, there are opportunities to make the hardware of Kindle Fire
make money without selling its contents. The Amazon Web Services (AWS) for delivery of
products are other ways of ensuring that the company still generate revenues. As per Noble,
Griffin and Durmusoglu, (2015), Amazon has been able to acquire loyal customers while at the
same time it tries to expand its customer base. In that connection, loyalty can result in
sustainability for the company even in hard times. Due to the big size of the company, it has the
opportunity to sell their products at a lower price in the bid to sell more units. This is dubbed as
bait and lure model.
Amazon has experienced threats such as the new entrants in the market, for instance, the
B&N who have forced Amazon to sell its products at a discount. Kotler et al., (2015), asserts that
competitors such as Apple’s iPad, are imitating Kindle Fire e-book capabilities. The threat of
Amazon having an e-commerce selling point is a threat since many customers would want to
have a feel of what they are going to purchase.
Amazon’s tangible and intangible resources
Amazon enjoys the asset of goodwill among many customers both loyal and potential
customers. The goodwill is measured using the balance sheet where the profits increased yearly.
Innovation is an intangible assent that Amazon enjoys greatly (Peng, 2013). For a company to
stay in the market as long as Amazon, it must come with innovation so as to be in tandem with
the changing generation. According to Hitt, Ireland and Hoskisson, (2011), Amazon brand acts
as an intangible asset as it is the only company which is known largely in retain online sales. The
information technology such as the drones for the delivery of products such as books is an

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intangible asset (Berry, 2005). The property and equipment that belong to Amazon act as
tangible assets. They include money, furniture, software and premises among others
Strategic capabilities of Amazon has been a reason for its long survival. Strategic
capabilities are composed of the resources in terms of technology and the premises that the
company possesses. The physical capabilities which include the products, warehouses, patents
and customer database are consequential to the company survival. The employee motivational
programs are important to the service delivery that Amazon offers.
Core competency analysis for Amazon
Amazon Company own a very large space which can accommodate a significant number
of customers. Amazon has twenty-five million square feet of warehouse space. In addition,
Amazon has the hold of ten percent of North America loyal customers who have an affinity for
e-commerce mechanisms. The ability of the company to come up with innovations such as the
Kindle Fire serves as a core competency (Bali, Wickramasinghe and Lehaney, 2009). Logistics
innovation such as the use of drones to deliver products provides efficiency of services which
make the company have a lot of customers. The e-books that Amazon provides makes it spend
less in distribution costs thus making more profits. The fact that its sales its products at low
prices in a bid to sell more unites gives it an advantage over other competitors.
Value chain analysis of Amazon
Amazon does not have a long-term contract with any of its vendors to guarantee the
availability of its products. Its inbound logistics is the backbone of Amazon’s success. Amazon
sale points are separated into three segments North America, international and amazon web
services which offers activities such as software services for institutions. In the bid to manage its

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big market, Amazon has outbound logistics such as FedEx and TNT. The company has plans to
lease twenty Boeing 767 freighters in a bid to reach international markets. Amazon sales have
been increasing every year. This is because Amazon marketing message focus on fast delivery of
products which is number one priority of its customers.
Amazon has only two weakness, one of them is that it does not permit sharing of the e-
books due to copyright issues (Strauss and Raymond D., 2016). Another weakness is the
dwindling of the stock price.
Currents strategies that Amazon use
Amazons use cost leadership generic strategy in order to have a competitive strategy over
its competitors (Pantano et al., 2004). This is the continuous improvement of its information
technology structure and heavy investment in its research. One of the amazon’s strategy is
market development. Market development is Amazon’s primary strategy for its market growth.
In this market development strategy, Amazon seeks to have entered into new markets. Case in
point, initially Amazon used to provide its retail services only in the United States. Recently, the
company has expanded its market base up to ten different countries that include, China, Canada,
and the United Kingdom. With a new website that conforms to a country, Amazon believes that
venturing into new countries provides another opportunity to have access to new markets.
Market penetration is another strategy that Amazon uses to be relevant in the market. The
interest of many people to shop in online activities have encouraged amazon.com. The generic
strategy has made Amazon have many customers who make Amazon sell its products at low
costs thus giving other companies a run for their money (Plant, 2000). Product development is a
strategy that is very dear to Amazon’s growth. It is no doubt that the ability of Amazon to

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develop new products makes it have more customers. Amazon products such as Amazon Web
Services (AWS) ensures that the company makes revenues from different avenues.
Diversification is another strategy that Amazon uses. This implies that Amazon sales a lot of
income-generating activities other than online retailing to make a profit and reduce risks (Wynn-
Williams, 2017).
Future viable strategies for Amazon
The future of Amazon can be best sustained by applying strategies such as dynamic
pricing. This can help the company get rid of new entrants such as B&N who give competition to
Kindle Fire by offering their products at a lower price. By having the knowledge of the real-time
purchasing power and act accordingly, no entrant will be able to outdo Amazon (Yeoman and
McMahon-Beattie, 2004).
Sidestepping the economies of scale is one of the future strategies that Amazon can use to
advance in its market for a long time, many business people believe that reducing the costs of the
product by reducing the quality assist business make profits. Amazon can make its products
deposable by focusing on the content of a product rather than the outside hardware of the
product. This makes a product to have low cost thus making an individual be able to purchase
another hence ensuring a company make profit from high sales (Stalk and Butman, 2008).
By embracing complexity in their products as a strategy, Amazon can be able to provide
a competitive advantage for their customers. For example, the fact that Amazon produced a
complex device dubbed as the Kindle Fire which could be able to act as a tablet and as an e-book
reader ago, gave big companies such as Apple and Samsung fierce competition. As much

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simplicity is the mantra of the day, when it comes to technology, simplicity does not hold any
waters.
Having products in which its use is controlled is a future strategy that Amazon should
take advantage of. In this regard, Amazon should learn a lesson from itself with the coming up
with a device that is unlike other products in the market. For instance, the Kindle Fire is user
controlled, unlike Apples iPad. This is because the product contains ports such as USB which
makes a lot of users prefer the product as compared to iPads which do not contain such ports
which are essential to a techno survey being.
In conclusion, Kindle Fire is more than an e-reader. It serves as a table in which tablets
are used for content consumption. This is crystal clear that Amazon used a clever way to ensure
that its content is delivered to the customers in a form that their customers can be able to relate
to. With its cheap price, the product has been able to give stiff competition to big players in the
market such as Apple, Samsung, and Sony. As much as new entrants such as B&N are giving
competition to Amazon’s Kindle Fire. There new strategies such as ignoring economies of scale,
tolerating complexity, and embracing real-time pricing.

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York: Routledge, p.32
Berry, J. (2005). Tangible strategies for intangible assets. New York: McGraw-Hill, pp.29-31.
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Hill-Whittall, R. (2015). The indie game developer handbook. CRC Press, p.111.
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Jennex, M. (2014). Knowledge discovery, transfer, and management in the information age.
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