Amazon’s Strategic Management : Case Study

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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