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Kindle Fire Amazons Heated Battle For The Tablet Market Case Solution

Solution Id Length Case Author Case Publisher
1993 820 Words (4 Pages) Mohanbir Sawhney, Joseph Owens, Pallavi Goodman Kellogg School of Management : KEL770
This solution includes: A Word File A Word File

While the segment of children and mobile gamers seemed promising because of the statistics stated in the case, the limited memory capacity, slow processor, and the smaller screen are not ideal for gaming. However, one alternative could be the introduction of audiobooks or self-reading learning applications for children.

The other alternative of the target audience is the higher education industry. However, some limitations regarding the features of the Kindle Fire demanded changes if they were to target textbooks for higher education. Furthermore, competitors were already in talks with several universities. Targeting them would again mean a price war that had previously impacted the Kindle.

Following questions are answered in this case study solution

  1. Who should Amazon target with the Kindle Fire? Which target segments and use cases are most promising?

  2. How should Amazon position the Kindle Fire relative to iPad and other tablets in the market?

  3. If you were Apple’s CEO, what would you do to respond to the Kindle Fire?

Case Analysis for Kindle Fire Amazons Heated Battle For The Tablet Market

For media junkies, the Kindle platform already had a lot of content that they could purchase. Therefore, they already had content that they could market. However, the limitations of screen resolution and graphics were the drawbacks of this segment. 

However, if the Kindle Fire could make some changes according to improved graphics with a small increase in prices, it would mean that the media junkies’ audience could be targeted. Since Amazon Kindle already had several options for subscriptions, and the Kindle Fire was supposed to be a culmination of all the features that Amazon had offered, the media junkie category was the most promising. Furthermore, just as the Nook tablet offered Hulu and Netflix applications for media streaming, Amazon could develop its own media streaming site, which would help create a unique proposition for its target audience. Media not available on Netflix or Hulu could be a USP for the media junkies. 

2. How should Amazon position the Kindle Fire relative to iPad and other tablets in the market?

One important aspect of the product offering is the hardware. Since the hardware was similar to other tablets in the market, such as the Nook, it was important to position the Kindle Fire in a different way and offer a different consumer experience. While the Apple iPad was much more advanced in terms of features and functionality, the price point was the differentiating factor between the Kindle and the iPad. The customers were comparing the two on the basis of the price even before the launch of the Kindle Fire. However, the Kindle Fire was richer in terms of content availability. Differential factors, when compared to the Nook included a seamless browsing experience and cloud-based services. 

The availability of a wide array of content available on Kindle Fire could be the differentiating factor of the Kindle Fire. This meant that the content could be combined to offer the streaming service Amazon Prime to attract the users relative to the iPad. Also, being content-rich would mean that the Kindle Fire was offering more at a lesser price and would attract the audience.

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