International Business: Amazon Kindle Production in the US Report

This report analyzes the challenges Amazon faces in manufacturing its Kindle e-reader in the United States. It begins with an introduction outlining the paper's purpose: to recommend strategies for Kindle production within the US. The report highlights that Kindle parts are currently manufactured in Taiwan, China, and South Korea, with final assembly in China, and identifies increasing competition from companies like Kobo, Acer, and Lenovo. The rise of alternative e-reading devices such as smartphones and tablets is also discussed. Despite strengths like low prices and global popularity, the lack of US-based manufacturing is a key issue. The report then presents strategic recommendations, including establishing facilities in the US, hiring engineers (potentially from Asia), leveraging Amazon's R&D capabilities, acquiring small manufacturers, and training local labor. The report uses Porter's Five Forces analysis to understand how the Kindle competes in the tablet/e-reader market. The analysis emphasizes competitive pressures, the rise of substitute products, and the use of similar suppliers. The report concludes by emphasizing the importance of strategic shifts to ensure Amazon's competitiveness in the e-reader market.

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
Name of the Student
Name of the University
Author Note

1INTERNATIONAL BUSINESS
Introduction
The aim of this paper will be to recommend some strategies for the organization of
Amazon in the context of its Kindle services. The main issue which the company is facing on
their inability of using the Kindle services in the region of the United States.
Synopsis of the Study
It can be noted in this context that the part of the services provided are divided and the
parts are manufactured in the regions of Taiwan, China and South Korea (Amazon.in. 2019).
The competitors of Kindle, the e-reading service provides by the American giant Amazon are
increasing gradually in the global market place, which are Kobo, Acer, Lenovo, Nook, Sony
and others (Amazon.com, 2019). Apart from this, the advancement of technology has also
helped the people to avail the e-reading services that are provided by all these organizations
by the help of smartphones, laptops, tablets and netbooks. Though there are strengths like
providing the services in low prices, high sales volume and huge popularity among the global
customers and easy accessibility and can be moved from one place to other with ease, the
manufacturing organizations are very rare in the region of the United States. The main focal
point of Amazon is to do research and design on the service that is provided by the American
e-commerce multinational giant instead focusing on the production process. It can be noted in
this context that all the fresh technology products are manufactured in the region of Asia
except the region of Apple. The shift has been made due to less labour cost and possessing
the power of overcoming the lack of expertise of the American workforce.

2INTERNATIONAL BUSINESS
Recommended Strategies
In this context, it can be stated that there are some solutions which the management of
Amazon need to follow, so that the production of Kindle services can be done in the region of
the United States. The recommended steps are as follows:
Proper facilities need to be established in the region of the United States, where able
and competitive engineers from the region of Asia can be hired to manufacture the e-reading
services provided by Amazon through Kindle
Attractive salary packages along with other benefits need to be offered to those
freshly hired engineers, so that it will help them to motivate to work far from their home and
help in the manufacturing of Kindle services (Kantor & Streitfeld, 2015)
The overall research and technology possessed by the management of the
organization of Amazon need to be fully utilized in the manufacturing of Kindle services in
the United States, which will help in the overall service offering of this e0reading service
Small manufacturing organizations need to be taken over and the labour need to be
used in the manufacturing process of kindle services, which will help them to use the local
labour in their manufacturing process
The trained engineers from this market place of Asia who will travel to the United
States can train the local labours, who will be provided with additional monetary benefits to
remunerate the extra services provided by them (Varia & Mathew, 2014)

3INTERNATIONAL BUSINESS
Reference
Amazon.in. (2019). Online Shopping site in India: Shop Online for Mobiles, Books, Watches,
Shoes and More - Amazon.in. [online] Available at: https://www.amazon.in/
[Accessed 12 Dec. 2019].
Amazon.com. (2019). Amazon.com: Kindle eBooks: Kindle Store: Nonfiction, Foreign
Languages, Literature & Fiction, Romance & More. [online] Available at:
https://www.amazon.com/Kindle-eBooks/b?ie=UTF8&node=154606011 [Accessed
12 Dec. 2019].
Kantor, J., & Streitfeld, D. (2015). Inside Amazon: Wrestling big ideas in a bruising
workplace. New York Times, 15, 74-80.
Varia, J., & Mathew, S. (2014). Overview of amazon web services. Amazon Web Services, 1-
22.