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This document is a problem-solving assignment submitted by MD. Ahiduzzaman for their course HRM-503 at the University of Dhaka. It analyzes Amazon's Kindle Fire business strategy. The assignment identifies Amazon's strategy of cost leadership through cheap prices as a potential problem when competing against Apple's differentiation strategy. It agrees that Kindle Fire's lack of features gives Apple a competitive advantage but argues Amazon can overcome limitations by providing online services. Possible alternative solutions proposed are: 1) Developing different Kindle Fire versions at varied price points and features, 2) Redesigning the product for broader social/communication uses and innovative technology, 3) Shifting focus to developing markets where customers prioritize features
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- 1. Assignment On Problem-Solving of Amazons Kindle fire Course no: HRM- 503 Submitted By: MD. Ahiduzzaman ID No- 107 Bath- 13th MBA, Stream- HRM Department of Management Studies University Of Dhaka. Submitted To: Mr.Ali Ahsan Professor Department of Management Studies University Of Dhaka. Date of Submission: February 23, 2012
- 2. 1. Identification of Problem: The problem of Amazons kindle fire is the right selection of business unit strategy. Amazon follows cost- leadership and Apple on product differentiation strategy. Amazon mainly focuses on cheap cost, Apple focus on strong brand image and differentiation of product. Most of the customer of electronic product focuses on brand preference in developed country. 2. Agreement or disagreement with authors argument: Kindle fire cheap in cost also have shortage in configurations: no embedded cameras, microphone, no cellular connection, no parental security for wifi connection, no 3G connection and no expandable storage. But ipad has of all these. That clears Apple take competitive advantages. Bezos argued that Amazon clear their limitations and argued against it. I partial support the opinion of author- Kindle fire overcomes the limitation by providing various services by Amazon. They assume that Amazon has wide market of various product or service, so Kindle fire takes the advantages. But they cant do any research what their product take competitive advantage, differential of product and features, create strong brand loyalty to customer, no cultural backlash. These threats cannot properly emphasis by the author. He emphasizes on cheap price and on line access. I strongly disagree with this opinion. Because only price and specifies service cant achieve the advantages on competitive market. 3. Possible alternatives solution: (i) Product differentiation: The version of Kindle fire is one. So demands of all types of customer are not properly met. Some customer choice price and other choice features and quality. That may need different functions at different price level. The versions of product are many and updated features may capture the wide market of tablet in the world. (ii) Redesign of product: Amazon design Kindle fire only for e-book and other online service provided by only Amazon. So it is clear that Amazon innovates that product for gaining profit for their loosing book market. That may be or not accepted by the customer. If the product may redesign with all necessity that for all social communication and also the most innovative technology of the tablet market with high qualities, creates strong brand image for the loyal customer.
- 3. (iii) Relocation of market: Apples focus strong brand image, high tech qualities and high price. Their customers are in developed countries. Amazon focuses on cheap cost and high service. If Amazon shifts in developing countries they catch the market because in that country uses of technology increasing day by day. They come to that market with some features (cellular facilities, expandable memory), customer may choice their product rather than high price product. On these countries customer want the product which has numerous features of product with cheap cost.