Group Members:

1. Amit Singh
2. Arka Banerjee
3. Akshita Garg
4. Pranay Hotkar
5. Utkarsh Chaturvedi
 Who should Amazon target for Kindle Fire?
Media Junkies
Amazon fits this niche well because of
its extremely competitive pricing on
its music, video and reading content
Children and Gamers Higher Education
College students faced with heavy
Although, children were not favorable
backpacks wanted to reduce the load,
targets for commerce or app
both physically and financially. Low
purchasing aspect of Amazon, they
cost e-books on Kindle were an ideal
heavily influenced the purchasing
substitute
behavior of their parents
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How should Amazon position Kindle Fire relative to the competition as
well as relative to a company’s own offerings/ products?

Unlimited Content – Amazon Ecosystem Portable and tough

Access to tens of thousands of books, Small, hand friendly with long lasting
magazines, video, music that are either battery and with tactile rubberized
free or can be subscribed. coating and Corning Gorilla glass

Save more on books Stay Connected

As Amazon was the largest seller of
online books, it already was seen as a
book seller. Kindle fire can be the
device where students can buy and
read textbooks for a lot lesser price.
WiFi and 3G technologies combined
with Amazons Whispersync technology
and the superfast silk browser, you can
always stay connected.

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 How Does Amazon plan to make money from the Kindle Fire?

Amazon was not planning to profit from tablet device sales but wanted to use the Kindle Fire
as a means to develop a new sales channel for its e-commerce business and platform to
facilitate the growth and dominance of its content and cloud computing services

01 Content Revenues Commerce Revenues 03

With increase in consumption movies, music and A dedicated Amazon device combined with Prime
books in digital form, online content revenues were would likely motivate customers to increase the
expected to be a key driver for revenues proportion of online purchases they made through
Amazon

02 Advertisement Revenues App Marketplace 04

The Kindle Device would become an omnipresent App purchases promised to be a significant source of
billboard for Amazon to serve ads to its customers revenue for Amazon as in just 18 months it grew from
4,000 apps to 50,000 apps

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How is this different from Apple’s iPad?

Apple’s strategy was to teach it’s

customer base to use the iOS on the
iPhone and iPod Touch and graduate
them to the larger-screen device

It focused more on marketing the

features of its tablet – camera, high
processing speed etc.

It also locked out sales of its competitors

on its devices by removing all applications
from it’s App Store that didn’t use its “in-
app purchase” platform

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 What is Amazon betting on to ensure that the Kindle Fire business
model works ?

End-to-End User Experience User engagement on other Amazon services

Amazon was primarily betting that the end-to-end Kindle
Fire experience was superior to buying from Amazon on
the iPad
Pre-loading their content service apps on the device and
optimizing the device for Amazon’s e-commerce business
and multimedia services will increase its market share
among users in these categories and offset the cost of
subsidizing the Kindle Fire sales
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