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Case Analysis: The Random House Response to the Kindle

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Added on  2020-04-15

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Kindle by Amazon was a Digital Disruption strategy that aimed to change the entire methods used in reading books. We will also discuss the "Impact of digital disruption on business".The innovative Strategy of Amazon proves that it’s not a new gizmo, but rather makes millions of books available to customers at the touch of a finger. Amazon believed that it wanted to sell a solution rather than an aesthetic product.  The scope of the above innovation is analyzed in this case analysis to provide more detailed attributes regarding the same.

Case Analysis: The Random House Response to the Kindle

   Added on 2020-04-15

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Case Analysis: The Random HouseResponse to the KindleStudent Name:Student ID:Subject Name:Subject ID:Date Due:Professor Name:1 | Page
Case Analysis: The Random House Response to the Kindle_1
Introduction Book publishing industry constituted a large industry that was subjected to threat in Christmas2009 with introduction of Kindle[ CITATION Ana11 \l 1033 ]. Revolution of digital format in bookreading techniques and methods with announcement of Amazon’s electronic reading formatsovernight changed the entire business of book publishing companies. The innovation thoughstarted by Amazon was subsequently followed by a companies as Apple that looked onto newsegment for devising products strategies. The scope of the above innovation is analysed in thiscase analysis to provide more detailed attributes regarding the same. Case AnalysisBok publishing industry involved a number of participants who made profits from selling ofbooks. It involved printer, wholesaler, retailer, distributor along with several other participants aswell. With introduction of ebooks prices of such books went down substantially. Kindle byAmazon was a Digital Disruption strategy that aimed to change the entire methods used inreading books. The entire value chain and profitability of the book publishing industry had toundergo a revolution in order to accommodate the change. Jeff Bezos ordered a number ofebooks from various publishing companies but at lower prices. Amazon was primarily a book selling company that forayed into retailing business some timeago. Kindle was an extension of the already existing business of Amazon and to providecustomer delight[ CITATION PET08 \l 1033 ]. With this type of innovation, Amazon was able torestructure and revolutionize the entire book publishing industry. Kindle was unlike any other innovation that had an evolution. It allowed its customers with thefeeling of holding book in their hands. It also continued to purchasing books and updating theirstock similar ways that it earlier did business. Though Kindle is a risky idea as Amazon tried topopularize the only idea of e-books but its brand name allowed to establish itself. Throughcalculated risks taking, it devised a new segment of the market from its incubator of innovation.Amazon did not sacrifice on its Cash Cows by stopping innovation. Rather it increased a productline to enhance ranking from existing customer base. It was not an incremental improvisationrather a new technique to re-establish its market dominance. 2 | Page
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