Kindle Fire Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Kindle Fire Case Study Solution

INTERNAL ANALYSIS

Kindle Fire’s success depends upon the strengths of the product. If the product further polishes its strengths than it can become a market leader. Though it has to take care of its weaknesses which can be a major cause of low profitability. Therefore, it needs to overcome its weaknesses for greater gains. For better sales of Kindle Fire, the company has to pounce on all the opportunities that are heading their way. Amazon has to knockdown all the threats that can hinder their Kindle Fire’s sales.

STRENGTHS:

Kindle Fire can take advantage of the Amazon big brand name because company has got a huge brand loyalty. People’s perception about Kindle Fire gets stronger with Amazon’s name behind it.
Its portability gives it an edge over physical books. It allows people to carry hundreds of digital book and they can read them wherever they are.
It’s relative smaller size as compared to its other competitors like iPad or Nook tablet which makes it easier to carry. Women doesn’t need to have a huge purse to take it with them.
Amazon introduced it with heaps of preapproved applications along with other games that could be downloaded through Amazon app. The user could not only read books but could play games at the time of boredom.

WEAKNESSES:

A battery time of just 7.5 hours won’t help users at all as they can’t use it for long hours. This might results in low customer satisfaction level.
A below par interference design doesn’t makes it a better product than its competitor like IPad.
People can’t share their digital books as they could do with their physical books.
Reading books through Kindle fire is only possible till it is working. With a dead battery the device is of no use and user cannot have access to its library.
Users using heavy application may get annoyed because of its slow processing speed.
According to some users, the power button placement has been poor from the company. It gets switched off as the user rest it on his lap because it is placed with the headphone input at the bottom of the devise.
Kindle fire needs an extra care because it’s an electronic devise. With the disability of this electronic devise, a user can lose its entire library.

OPPORTUNITIES:

Kindle Fire’s target audience are the students. By offering the e-books at lower prices will help the students go for the devise and can increase the product’s sales volume.
As the $10 billion text book market was still untapped, it makes way for a partnership between universities and the Amazon. The company can work with the universities to update them with e-texts and other e-books.
It can attract new bloggers and authors as they can put their content on the Kindle Fire which also attracts the other readers.

THREATS:

Competitors like IPad and Nook tablet came up with the same offerings as Kindle Fire. Apple came up with better applications which attracted Kindle Fire’s users.
Piracy was becoming major issue for the Kindle Fire as people could get free eBooks over the internet.
B&N became the new entrant in the market which forced the company to reduce down Kindle Fire’s prices.

QUANTITATIVE ANALYSIS

In its initial years, Kindle Fire was sold at cheaper rates. A product sold at just $199 attracted thousands of customers as its preorders had reached up to the 50,000 mark. Its popularity among the masses was revealed when in it sold around 5 million units in the fourth quarter of 2011. Huge sales volume become one of the causes for the company to get the gains of $1 billion in revenues. According to the Global unit shipments rankings, Amazon was now at the second spot just behind Apple because of Kindle Fire’s he sales. Amazon reported that its net sales of $48.08 billion in 2011 were 41% higher than the preceding year.

In a statement the Amazon’s head gave credit to its new product Kindle Fire for making the year 2011 memorable for the company. They also thanked the users for believing in Kindle Fire as not only the company but the third party sellers also enjoyed the success with a sales volume increase of 65%.

COMPANY’S STRATEGY:

Jeff Bezos, the head of Amazon has based its strategies on all those aspect which he thinks will be the same across time. According to him, customers wants fast deliveries and low prices when buying an item. Following his strategy he kept Kindle’s prices quite affordable even when its competitors were going strong with increased prices. He used the same method with his online retail store. The next aspect that he focuses on is the provision of customer satisfaction. He mentioned that their company will not focus on their competitors but will rather look to provide better quality product for their customers which can bring them back and can satisfy them completely. It has also worker on its employee satisfaction by offering them the stock options. The move was taken to retain the employee as its employee turnover rate was getting higher.

RECOMMNEDATIONS:

Since the introduction of the new product, Kindle Fire, Amazon had ridden on its success with a boost in the sales. The company’s strategy to provide people with the e-text books made them popular among the masses specially students. They had given special emphasis to customer satisfaction and hence in an attempt they sold their products at much cheaper prices which led many experts to think that if they were selling their items at a loss. The sales of Kindle also depends hugely upon people’s reading habits. Regions with lower literacy rates aren’t beneficial for the company because it won’t find Kindle Fire’s customers. To bring new customers the company have to work on its advertising campaigns. An advertising campaign that promotes reading and learning will be help the society and by doing so they can promote their product, Kindle Fire. People will like Amazon’s advertising strategy to eliminate illiteracy and it will help them get new customers..............

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