Strategic Management Assignment - Doc
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Added on 2020-03-16
Strategic Management Assignment - Doc
Added on 2020-03-16
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Running head: STRATEGIC MANAGEMENTStrategic Management Name of the Student Name of the University Author note
1STRATEGIC MANAGEMENTIntroductionConsidering the investing opportunities in the emerging tablet and gadget market, itcan be said that there are several opportunities of earning moiré profits and revenues.However, it has always come as a surprise to the global market that Amazon has occupiedmost of the non-Apple tablet market with their game-changing invention, Kindle Fire. Theproduct was a new entrant in the global tablet market. Before Kindle Fire, Apple hadoccupied most of the market; however, later Amazon and Apple both occupied around eightypercent of the market share (Hill, Jones and Schilling 2014). In this competitive market,Amazon brought their unique and innovative device, Kindle Fire, which encompasses andenhanced experience for the customers with its innovative functionalities and features.Therefore the target customer segment of Kindle Fire was attracted towards the product as itreflected the characteristics of a premium quality device, even if it was placed at acompetitive range comparing to the other tablets in the market (Peppard and Ward 2016).Mostly the Kindle Fire is a product that combines two different products at one time andcreated a gorgeous synergy so that the individual customers experience something great.Within an average price range the device is offering various functionalities to the customers.Therefore, this essay performs a detailed analysis of the case of Kindle Fire struggle in thetablet market and their existing market and competitor analysis. The essay will also discusstheir possible strategies in the market and recommendations will be made accordingly. General environment analysis While assessing the general environment for the Kindle Fire, it should be noted thatwhile the product entered the market, there were existing products such as, android tabletsand Apple I pads. The kindle came with comparatively lower prices which cost around $199;it was not put in the higher group like the other android tablets, yet it was providing all the
2STRATEGIC MANAGEMENTnecessary functions. While the other tablets cost around $499 to $799, Kindle offered a allthe facilities in lower prices. Along with that, if the features of the Kindle are compared withother existing gadgets, the Kindle Fire seemed to be more long-lasting, capable of storingmore contents and more compact (Barney 2014). The device was also connected to the directstore of Amazon. However, Kindle Fire was not able to meet all the specifications that wereoffered by the other tablets and I Pads. Comparing the Kindle with the other E-readers, it can be seen that the market pricesof the E-reader dropped to a great extent. The prices were less than $100 as an outcome of theprice war after the entrance of Kindle. In such a scenario, the E reader started to offer morefunctionalities to the customers such as streaming the video contents, playing games, colorfuldisplay etc. However, at the same time the less prices e readers could not offer maximumpower usages. Even though the screens were coordinated with the eyes while glaring, thedevice could only provide primary reading which refers to the simple focus on one specifictask at one time (Hill and Jones 2013). However, the E reader seemed to have a longproductive life than the Kindle. Therefore, it can be seen that within the general tablet andgadget market, there were huge ups and downs after Kindle Fire enters the market. Overall it can be said that the Kindle Fire had appeared falling between the tablets andE-readers on several fronts. Even though the price of the Kindle fire was high comparing tothe E-readers, but it was quite lower compared to the android tablets. If the entire situation isevaluated with more granular details, it can be said that the positive features of the devicesuch as more storage area, incorporated text book features, durable and children friendlyfeatures enhance the allover experience of the readers. Other features of the Kindle fire suchas the providing color images, and the enhanced access to the market place of Amazon hadcontributed to the popularity of Kindle Fire, mostly due to its durable, compact and tactilefeatures. As stated by Ede and Ackermann (2013), there have been several researches on the
3STRATEGIC MANAGEMENTfact that even if the device was offering more functionalities and features, it was placed in thepremium range price in comparison to the e-readers. Wheelen and Hunger (2017) has statedthat, it was mostly due to the fact that Kindle was offering more use cases compared to e-readers such as gaming, video content, accessing applications and several others. However, itwas not really comparable to the quality and breadth of the use cases that were offered by theexisting android tablets. Therefore, the price of Kindle Fire was kept somewhere in betweenso that it can be positioned well in the market. Industry and competitor analysis The industry and competitor analysis is a major analysis for managing the brand morestrategically. Porter’s five forces model is one of the significant tool that helps to understandthe business environment and its competitive nature, especially this model is more significantin identifying the possible profitability of the strategies. There are five factors in the model: Competitive Rivalry While evaluating the rivalry in the global market, due to constant competitions in themarket, Amazon had to provide a large amount of discount for the original e-books to aconsiderable rate. Moreover, due to the price wars, the company had to ensure that they get acompetitive edge in the market. In addition to that, due to increasing competitors in themarket, many organizations had made an attempt for offering all of their contents acrossdifferent proprietary platforms; therefore it was quite obvious that the exclusivity started toincrease during the time (Slack 2015). On the other hand, Amazon also did not have theopportunity like other competitors of having both the digital and physical presence in themarket. Therefore it also impacted the popularity of the Kindle fire. It should also be notedthat the intense competition in the market had also decreased the product life cycle of KindleFire.
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