; Profile, History and Facts


; Profile, History and Facts

Jeffrey Bezos started in 1994, after identifying that the usage of the internet had grown with 2,300 per cent rate yearly. It began its operation in Seattle in a room 400-square foot, which was their office as was launched on the Internet in the year 1995. The company mission has always been the usage of the internet in the transformation of book buying to be fast, easy and easy and pleasant shopping experience. The end of 1996 saw the firm is one of the most flourishing Web retailers, enjoying revenues totalling to $15.6 million. became the world’s biggest e-tail bookstore all over the world. The company continued to enlarge its customer base in addition to sales revenues, which has since increased yearly. The revenue of the firm has seen an increase from around $15.7 million in the year 1996 to almost $2.76 billion in the year 2000. Presently; is the biggest shop in buying anything online. It offers the world’s biggest products selection to 30million people in over 160 countries worldwide world making them a major online shopping site, which can be accessed through the World Wide Web. The past several years has seen the company grow and experience rapid development.

The main core processes, which have made to the firm’s success remains price, section, convenience and service. Over 106 million people buying books each quarter yearly, the firm has made use of online ordering convenience. The next important element for the company in the process is selection. It is able to provide the world’s biggest selection, as they are an e-tailer, which makes use of virtual directories. The company keeps the latest publications in stock to enable a speedy order fill, except that it directly orders a few other books that have been requested by their clients from the publisher. Such a business practice makes Amazon experience low warehouse cost in addition to offering the biggest books selection at the same time. The other third main process for Amazon remains service, which aims to provides their clients with everything like email notifications to notify them when their orders have been filled, chat rooms to enable their customers to have a discussion and book recommendation.

Amazon allows its customers to search for books with the same titles and subject matters. Presently, around 63% of the company’s business is associated with repeat customers. Originally, the firm was an online bookseller, however with time it has expanded beyond the original product line. Clients can easily find anything at with the company trademark being catchphrase such as the earth largest selection, which the firm uses to promote materials and describe the lack of Amazon’s product accessibility (Wulfen, 2011). The company offers music, kitchen products consumer electronics, DVDs, toys, videos, software, beauty products, video games, tools, other products through different partners. Amazon provides offers services like film processing, in addition, people and businesses are able to sell products through the Amazon’s website using it’s such as Amazon Marketplace, zShops services as well as Auctions. The firm operates websites in various countries such as United Kingdom, Japan, Germany, and France.

The firm’s business strategy linked to the growth of market share and not profitability. The accomplishment of this goal has seen the company take advantage of any opportunity to form strategic partnerships to obtain additional business operations. For instance, Amazon bought, an online retailer, which was the company’s website after it went bankrupt in the year 2001. Another thing that the company bought from was intellectual property as well as product information. Another strategy was investing heavily in information technology. Certainly, Amazon’s better customer service and technology use remains two of the firm’s greatest strengths, which have made it be the best, famed brand in relation to e-commerce. The reason for’s existence remains the sale of products through information technologies in addition to the internet. Amazon is booming in the e-commerce industry because of being an innovator. Amazon was the first online store to make use of site personalization.

Equally, Amazon makes usage of uses e-mail messages in marketing to its present customers, by keeping track of the client purchases and occasionally sends messages that have suggestions as well as promotional information for same products, which each individual customer can enjoy in terms of their interests in movies, books, electronics, music, and other products, is selling. The company has launched Amazon Access, which is a substitute version of the firm website aimed at their customers, who are visually impaired. The function of the sites remains compatible with the screen access software (Holt, 2002).

The vision of the company remains the provision of quality products as well as services using the available best technology at a rational price. This leads to extremely loyal customers, while at the same time, retaining the interests of the shareholders and keeping the firm profits in mind. Amazon aims at expanding geographically to increase the number of clients and to enhance their competitive advantage, which is infrastructure. The firm aspires to provide an excellent working environment for their employees, encourage career opportunities, and increase their responsibility in relation to the environment together with the society.

Product Portfolio

The website has undertaken a measure to design and promote a sequence of electronic book readers called Amazon Kindle. The aforementioned device permits its clients to browse, shop, read and download stuff through wireless network systems. The project commenced with a single device before graduating to an array of devices whose generic core was the utilization of electronic ink and paper display while cutting down on power use up. Lab 126, which is a subsidiary of Amazon, is responsible for creating the name Kindle. The rationale behind the name was that it was a metaphor regarding the ignition of intellectual exhilaration.

The original Kindle was designed in the year 2007 and since then the products have undergone mammoth metamorphosis. Two years down the line, designed Kindle DX which was characterized by a superior display. By the year 2011, the Kindle series included a Kindle Touch and Kindle Fire. The latter is a tablet computer with a reader application while Kindle Touch possesses a sensitive touch screen. Subsequently, Amazon has introduced Kindle software which can be adopted in their array of devices. They include Microsoft Windows, Windows Phone and Android. In addition to this software, Kindle has a cloud reader which enables its operators to purchase and read Kindle books from a wireless internet provider.

The device’s content can be purchased online in some regions with the use of standard Wi-Fi or a product of Amazon’s 3G Whispernet. The latter can be accessed without the need for a wireless payment or regular subscription. In addition to this Amazon offers services such as Whispersync which enables users to harmonize the reading process in various Kindle hardware. The year 2010 was the first time ever for the Amazon firm to record a number of electronic books which surpassed the sales of paperback books.

Milestones & important events

Amazon experienced a prosperous year in 2011 not only because of its Kindle electronic book but also due to the introduction of the firm’s paramount Android tablet called the Kindle Fire. Immediately after the introduction of Amazon’s Kindle Fire, clients ordered beforehand approximately 240,000 Kindle Fire gadgets. In that year the Kindle Fire was ranked as the record-breaking product on the Amazon retail website. Even though its predecessor, the Kindle electronic book, could not much the android tablet record it performed as well as the latter in the market. Another milestone marked by the Amazon firm during this period was that all the Kindle applications could now be found in HP Touchpad software and Windows Phone 7. Other developments made were the introduction of new services that were rendered by Amazon such as Amazon Local, which is a site responsible for regular transactions tokens; GoyCloud services which aid government agencies and finally a new browser for Kindle Fire called Silk. Notwithstanding all the accomplishment mentioned above, Amazon as a firm experienced some grave concerns which threatened to hinder its progress too. It is in the same year that Amazon’s web server experienced massive technical hitches which led to the collapse of sites like Foursquare and HootSuite.

Present Scenario Analysis

New product or innovation description

The company has been highly successful in the manufacture of Android-based tablets and electronic readers.  Since the company’s focal point is the construction of connected devices the blueprint of the company’s future improvement will obviously encompass a set-top box for the television sets. The Amazon company is set to introduce a novelty device which is intended to stream live videos from the internet to a client at his/her living room. The set-top box is attached to the television sets to permit the clients the right to use Amazon’s expansive video offerings. This Amazon’s new product is set to compete with other products such as Apple TV and supplementary resourceful devices such as Xbox. There are other set-top devices that already enable the clients to access Amazon’s video offerings. Through the construction of its individual system, Amazon is able to directly include its content to customers while improving on its series of devices and equipping inventors with a concrete motive for the creation of apps of the company’s digital ecosystem.

The Amazon Company has been making tremendous work in developing its stature in the video sector. Recently, it launched its first TV set-box pilot which is geared at collecting clients feedback on its services so as to enable it to know if it should commence full operation of this series. The Amazon Company has also proceeded to pay all remunerations required for special live streaming privileges of hit shows such as Downtown Abbey. The implementation of the set-top box series will benefit the Amazon clients since it will permit them to access all its video offerings the traditional way (through one’s TV set). The Kindle TV is hopefully going to send shockwaves in the technological arena.

Market Description and position

The world of technology has some companies controlling the mammoth share of it. In this instance, the iPad elucidates the aforementioned dominance by recording sales of slightly above 14 million units in the last quarter of the financial year. Even though this is the case not every individual can afford to purchase an iPad since it is an expensive device. This is the juncture where Amazon’s Kindle Fire assumes an important role. According to research conducted by various analysts, there has been a revelation that the fourth quarter sales of the Kindle Fire reached 5 million units thus placing this tablet on a level playing field with its competitors (iPad). Online retailers preferred to buy the low-end device ecosystem. The current research conducted by the Amazon Company reveals that Google’s Android controls 39% of the tablet market while the Kindle Fire controls 57% of the above figure. It appears to be that the tablets are slowly edging out notebooks and PCs and the number of sales of the Kindle products keeps improving due to its low attractive prices and a loyal customer base. With all Amazon’s progress, the tablet market will soon be split between this company and the Apple Company and any other company found in between is going to be in deep glitches. VC The online retailer’s best-selling product remains to be the Kindle products since its introduction in early 2011.

Comparisons with competitors

One vital thing that I have learnt from the tablet market is that size does not really matter. The Amazon Company echoes these thoughts since it unveiled the small Kindle Fire HD. The aforementioned device is stipulated to be the globe’s most advanced device in this series. An individual might perceive the above words to be far-fetched given the current alternatives available in the market. A solid assertion to counter this misconception is evaluating the hardware used in making the Kindle product; it is of better quality as compared to its competitors such as Nexus 7 of the Google Company. With due regard to the general appearance of the products, Kindle is more of the same as its competitors but Kindle has gone the extra mile to make its product wider and convenient to its consumer. In terms of its display superiority, the Kindle Fire HD shares an identical resolution power as its competitor Nexus 7. Proceeding to the internals of the device, no other competitor in the tablet market can share the same distinct advantage as the Kindle Fire HD. The Kindle Fire HD exhibits a superior internal quality to its competitors. Its dual-core TI OMAP 4460 enables the Android program in the tablet to run smoothly without any hiccups.

Generally, the area where the Amazon reigns supreme is the ecosystem competition. The Kindle series is equipped with the Amazon MP3, Instant Video and Kindle Store. Due to the aforementioned services, the Kindle is ranked second to Apple Company in the digital market. Even though this is the case if one is to consider the reading capability in the devices the Apple Company will be overhauled from its perch. Other competitors like Google have made numerous attempts to be on par with the kind of services offered by Amazon’s Kindle but have proved to be unsuccessful. Google has incorporated Google Play experience in its devices but it has not exhibited head to shoulder advantage as the Kindle.

Current competitive strategies/outcomes

The Amazon Company developed the Kindle with a view of storing electronic books. Although the e-book concept was introduced in the early ‘70s it is currently in its initial phase of implementation (Anthony, 2012). Amazon’s e-book readers create an appeal to clients who seek the latest technology at a low-end price. The clients represent different segments of the market and have varying needs. With due regard to the fact that there is the existence of different clients who represent different segments of the market, the age group targeted by the e-books is age 40. Research conducted by Amazon reveals that most people between the age of 35 and 55 own e-books. To date, there are only a few e-book readers available in the digital marketplace. This digital market has dominant companies such as Sony but none of the companies has made a move to cement their position as the supreme company in this market. In the final quarter of the year 2007, the Amazon Company entered the digital market by introducing its own e-book called the Kindle which was sold out in hours after its official release.

Although the Kindle is not the dominant force in the digital market, it possesses a head to shoulder advantage when compared to its competitors (Cooper & Scott, 2009). These advantages are attributed to competitive strategies that were implemented so as to counter the current competition in the market. The first strategy was to design the Kindle to line impeccably with the Amazon online retail store. The Amazon online retail store hosts multiple titles which have the ability to be ordered through an electric format. Due to the aforementioned fact and the inherent wireless nature of the Kindle, the device can be used by its clients independently. Kindle users can access the Amazon web retail store and download magazines, books among other things in their Kindle devices. The other strategy the company implemented when designing the Kindle is by ensuring that they have a large client base. The company managed to construct a large customer base through its existing online retail store. Thus, the Amazon Company through its online retail store advertised its new product which would prove to ease convenience with regard to access and utilization of the online retail store. The Kindle inventors in designing the device envisioned a product that would go the extra mile to fascinate the readers while ensuring that they are not bothered with what kind of actual reading device one is using. Various concerns that the reader may raise such as eyestrain, battery life, device portability were all considered when tailoring the device. In simple terms, the product (Kindle) was tailored to meet the customer’s expectations.

The level of success experienced by the Kindle stimulates other firms to join in the e-book industry since it proves to be easy to imitate one’s success. The move mentioned above tends to lead to heightened competition in the digital marketplace. However, the Amazon Company conducted a competitor analysis and created a situation of conflicting goals for its competitors. The implementation of such a strategy ensures that any form of retaliation by the competitors would hurt their mere existence or dominance in the market. With strict regard to this point, one realizes that the Amazon Company started focusing more on mini-tablets/e-book readers such as Kindle Fire HD. This move accelerated the changeover of all Kindle products released to the smaller size of which its competitors such as the Apple Company are yet to produce. Even though the focus on the smaller modes of the devices proves to be detrimental to the continued creation of bigger devices, the company gets to create a new dimension (Schermerhorn, 2010).

Currently, the implementation of this strategy proves to be bearing fruits for the Amazon Company since established firms such as the Apple Company are exposed to conflicting goals (whether to improve on its bigger designs or shift its focus to smaller devices). So far the Kindle Fire HD is enjoying a good share of the digital market since it is the smallest and most effective tablet in the marketplace. Amazon’s competitors are being penalized for the sake of their current strategies.


It would be considered a myth for people to have the perception that product innovation is accorded only to big companies with a large number of resources or special minds like the late Steve Jobs. The reality of the matter is that any company of any size that has or lacks a genius is capable of creating an ethos of product innovation and gain the ultimate goal of sustainable growth. In the industrial and digital marketplace, product innovation stands to be the lifeblood of the companies partaking in that particular marketplace. The transformational strategy that would guarantee the long survival of any company can positively be touted as successful product innovation. Any firm whose departments mutually reinforce the product innovation strategy stands a higher chance of success in the marketplace.



Works Cited


Anthony, Scott D. (2012).The Little Black Book of Innovation: How It Works, How to Do It.                  Boston, Mass: Harvard Business Review Press.

Cooper, Robert G, and Scott J. Edgett. (2009). Product Innovation and Technology Strategy.        Ancaster, Ont.?: Product Development Institute.

Holt, K. (2002). Market-oriented product innovation: A key to survival in the third millennium.                Dordrecht: Kluwer Academic Publishers Group.

Schermerhorn, John R. Management. (2010). Hoboken, N.J: Wiley,.

Wulfen, G. (2011). Creating innovative products and services: The FORTH innovation method.               Farnham, Surrey, England: Gower Pub.


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