Amazon Case study

Question 1

In what ways does Bezos’s decision to develop and deliver the Kindle and Kindle Fire show systematic and intuitive thinking?

I think that Bezo’s decision to develop and to deliver the Kindle show systematic and intuitive thinking through competitive strategy to assure the success of the company. Competitive strategy refers to a strategy that is designed to create value for customers by providing lower prices or unique features not offered by rival organizations.

This is proven based on Amazon’s quarterly filing ending March 31,2010 when their net sales had increased to 45% in the electronics category. Jeff Bezo, CEO of Amazon.com says “ as we continue to offer increased selection, lower prices and additional product lines within our electronics and other general merchandise category, we expect to see the relative mix of sales from this category increase!”

Another reason would be seeing an opportunity only Amazon.com can give long form reading to be digitalized. They have analyzed their strengths and capacities that helped them develop a new innovation in the market. From there, they were able to produce a refined product called Kindle that has the ability to review and remember more what a person reads follow people of interest and allows one to see their Public notes and manage his books, highlights, and notes.

Question 2

How do you describe the competitive risk in Amazon’s environment as Wal-Mart, Barnes and Noble, and other retailers strengthen their online offerings?

Having the most of the services that Amazon provides myself it is my go to place for every time I am trying to make a purchase. In my opinion, since Amazon has established a great amount of customers and being the one of the most organized and friendly online place where you can purchase practically anything, it will be hard for other competitors to achieve such results. Also the greatest benefit to some people is not paying taxes on the products that they purchase which is currently being disused by the Government to have amazon costumers to pay a tax.

Question 3

Amazon is continuously looking for new markets to exploit. As CEO Bezos addresses the strategic opportunity of delivering streaming video, he calls on you for advice. Amazon’s presence and technology are already established in this market. But what decision error and traps might cause him to make the wrong decisions regarding Amazon’s future moves, and why? What can he do to best avoid these mistakes?

Question 4

What are the latest initiatives coming out of Amazon? How do they stack up in relation to actual or potential competition? How has the decision to produce the Fire turned out? Is Bezos making the right decisions as he guides the firm through today’s many business challenges?

Latest initiatives that are coming out, is Prime membership.

The benefits include:

• FREE Two-Day Shipping on eligible items.

Note: If the item you’re ordering is out of stock or unavailable to ship, we’ll get it to you two days after it’s back in stock. Remember to check the cut-off time shown on the detail page. Items are delivered every day but Sunday, and orders over $1300 may require a signature.

• FREE Standard Shipping on eligible items.

FREE No-Rush Delivery (typical delivery one week after placing an order). Note: You may receive promotional credit for selecting No-Rush Shipping. Credit will be automatically applied to your Amazon.com account once the first package from a No-Rush Shipping-eligible order ships. You’ll receive an e-mail as soon as the credit is available. You may select No-Rush Shipping as many times as it’s offered to you, but you won’t be eligible for the credit if you cancel your No-Rush Shipping order or return items from it.

• Shipping Upgrades to expedite delivery.

Free Prime Instant Video access for paid or free trial members in the U.S.
and Puerto Rico. Note: Instant Video isn’t available to customers receiving free Amazon Prime shipping benefits through Amazon Student, Amazon Mom, or as guests of another membership.

Kindle Owners’ Lending Library access to members in the U.S. For more information, go to Kindle Owners’ Lending Library. Note: Customers in a paid membership, free trial or receiving a free month of Prime benefits with a Kindle Fire activation are eligible. The Kindle device must be associated with the Prime account that’s eligible for the benefit.

Early access for members in the U.S. to download a new book for free every month from the Kindle First picks. For more information, go to Kindle First.

An estimated 200 million fire tablets have been shipped worldwide since 2009 and another 1 billion are predicted to ship over the next five years. Market intelligence firm ABI Research estimates that 22% of the U.S. tablet users spend $50 or more per month and 9% spend $100 or more – much higher than the spending levels observed for smartphone users.

The growing popularity of Amazon’s Kindle Fire range could mean that a major share of this spending will be re-directed to Amazon’s online storefronts. Since Kindle devices are optimized to run on Amazon’s services, we expect them to drive greater adoption of Amazon’s services. We believe that the content business comprising eBooks and movie/music streaming will be the biggest gainer from the trend.

In my opinion he is defiantly making the right moves especially in todays business world.