Kindle Fire: Amazon's Heated Battle for the Tablet Market

Author(s):  
Mohanbir Sawhney ◽  
Joseph R. Owens ◽  
Pallavi Goodman

This case is intended to illustrate to readers the challenges faced in 2011–2013 by Amazon's CEO, Jeff Bezos, as he guided his company into the exploding tablet market. Faced with the tough decision between focusing on the e-reader market—which Amazon had come to dominate with its Kindle product line—and making a foray into tablets—for which it had no expertise—Bezos chose the latter. Amazon sought to combine platform assets to create an end-to-end experience that would let users find a “sweet spot” in the mix of features and services. This strategy involved critical decisions such as selecting a customer segment to target and a positioning for the new product, dubbed the Kindle Fire, as the tablet market rapidly evolved. The Kindle Fire was designed to put the full Amazon experience right into the laps of customers, and Bezos was betting that his customers would see the Kindle Fire as the physical manifestation of all things Amazon. To achieve this, Amazon was willing to heavily subsidize the Kindle Fire hardware device. The key assumption was that the superior end-to-end experience Amazon had carefully created would lead to incremental purchases of content as well as physical products and services, and the margins thus gained would outweigh the hardware subsidy. Position and define target segments for a new product relative to competition as well as to a company's own products Articulate a competitor's strategy and how to compete against an incumbent with a disruptive business model and a differentiated position Discuss selling an experience (as opposed to a product or device) and how to create a differentiated service experience Determine pricing, analyze business model, and calculate revenue/profit for a technology product

Author(s):  
Mohanbir Sawhney ◽  
Jon Nathanson ◽  
Oded Perry ◽  
Chad Smith ◽  
Sripad Sriram ◽  
...  

Israeli entrepreneur and inventor Dov Moran envisioned the creation of a mobile device that was a small, stand-alone, fully functional mobile phone that could be slipped into a variety of enclosures, or “jackets,” that would provide added functionality and better reflect the personalities of its users. As the development of the Modu phone began to take shape, Moran and his team decided that to ensure the success of the new phone's much anticipated launch, Modu would develop and market the accessory jackets itself. The question now was which of the eight jackets to develop and what factors should be considered in making that decision. The case is about how to estimate optimal product-line extensions after accounting for experience curve and cannibalization effects of products that share similar features, cost, and price. This will require quantitative analysis that estimates the effect of the experience curve and cannibalization on cost, revenues, and ultimately, profit. The issue is how to optimize profits by choosing an ideal set of products. Understand the importance of quantitative analysis in launching product-line extensions while taking into account demand and cost side interactions Combine both qualitative and quantitative data in choosing a targeted segment Reflect on the strategic and financial considerations in choosing a segment for a new technology product Evaluate the implications of experience curve and cannibalization when introducing product-line extensions and their impact on the decision under consideration


2011 ◽  
Vol 1 (3) ◽  
pp. 1-13 ◽  
Author(s):  
Jaqueline Pels ◽  
Natalia Schurmann ◽  
Maria Candelaria Garcia

BioScience Argentina: BioMobile and the telemedicine market. Subject area – Marketing and strategic decision making. Study level/applicability – Undergraduate business and management programmes, particularly with advanced marketing modules; and MBA programmes incorporating strategic management. Case overview – Claudio Bedoya, founder of BioScience (BS) and CEO has decided to launch a new product line, BioMobile (BM), to enter the new telemedicine market. BS is an Argentine company, which develops and commercializes innovative diagnosis equipments since 1995. The BM is a device which sends vital signals (from a patient with a chronic disease) through the mobile phone to a recipient's cell phone (doctor and/or relative).Three market segments, the alternative value propositions and the suggested go-to-markets for each of them are suggested. A debate between Antonio, Claudio's partner and Ydavelis, the marketing manager, highlights the underlying disagreement on which segment to serve and on the choice of value proposition. Expected learning outcomes – The case has been written having a senior classroom in mind. The case works best when used towards the end of the course, as it allows integrating all the concepts discussed in the course as such it assumes that participants have acquired basic concepts of strategic management and marketing management. Thus, it is not in the scope of the case to introduce any new theoretical concepts and no specific reading material is assigned to it: To apply prior knowledge to an emerging economy setting: For example: the SWOT analysis, the identification of critical success factors (CSF) for each alternative, segmentation, pricing, or the new product adoption curves. To calculate the projected revenues with limited data. To foster critical thinking about a company's strategic planning. Specifically, to be able to identify the underlying business decision: BS needs to decide whether to focus on the B2B/B2C market. Critically think on the differences between B2B and B2C business models.


Author(s):  
Luis M. Contreras ◽  
Samier Barguil ◽  
Ricard Vilalta ◽  
Victor López

AbstractNetwork slicing will permit offering to vertical customers tailored end-to-end logical networks in an on-demand fashion, on top of a common telecom infrastructure, achieving a Slices-as-a-Service (SlaaS) business model. This is possible due to the progressive introduction of network softwarization techniques, such as programmability and virtualization, into existing operational networks, enabling dynamic and flexible provision of slices. Those vertical customers could require the control not only of the network functions composing the end-to-end service, but also of the connectivity among them, e.g., for influencing the paths for steering traffic among function instances. However, this can be problematic since decisions from one vertical customer can collide with decisions from others. One aspect not yet sufficiently investigated is how to permit vertical customers to jointly control the service functions and the underlay connectivity, in such a way that could operate the allocated slice as if it was actually a dedicated network entirely for them. This paper explores some architectural proposition in this respect illustrated with some potential use cases and it provides an example of the provision of SlaaS for a vertical customer.


Author(s):  
Stephen E. Maiden ◽  
Elliott N. Weiss

In an effort to save his business, Paul Marciano, the owner of Italian family restaurant Maria’s Ristorante, runs a number of experiments focused on improving the customer experience around his target customer segment. These experiments lead to a better understanding about his business and cause him to make specific changes to his business model that ultimately improve things across the board. The experiments are based on research from the academic literature on the use of behavioral variables to manage customer perceptions.


2019 ◽  
Vol 13 (01) ◽  
pp. 42
Author(s):  
Novitha Herawati ◽  
Triana Lindriati ◽  
Ida Bagus Suryaningrat

Business model canvas (BMC) is a strategic management and lean start-up template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances. It assists firms in their aligning activities by illustrating potential trade-offs. Business model canvas focuses on the idea of creating value in a business. The purpose of implementation of BMC was to determined the best business planning of fried edamame, when it applied to the industry or MSMEs (Micro, Small and Medium Enterprises). The method in the research used descriptive method, while the data analysis used qualitative analysis. Primary data collection was obtained from interviews.  Analysis was done by compiling the initial hypothesis, hypothesis testing and verification of business model canvas (BMC). The results showed that the business model strategy for fried edamame products in the value proposition component were crispy, natural, labeled and applied good cooking oil for use. The customer segment component were the buyers of the entire Jember Regency including men and women over 20 years old with middle income. Components of revenue streams were fried edamame product sales, sale of unused oil, and sale of edamame peel to farmers, while the component channels were direct selling and retailers for fried edamame product. Keywords: business model, fried edamame, strategy, value proposition


2002 ◽  
Vol 48 (8) ◽  
pp. 1042-1059 ◽  
Author(s):  
Gary L. Lilien ◽  
Pamela D. Morrison ◽  
Kathleen Searls ◽  
Mary Sonnack ◽  
Eric von Hippel

Traditional idea generation techniques based on customer input usually collect information on new product needs from a random or typical set of customers. The “lead user process” takes a different approach. It collects information about both needs and solutions from users at the leading edges of the target market, as well as from users in other markets that face similar problems in a more extreme form. This paper reports on a natural experiment conducted within the 3M Company on the effect of the lead user (LU) idea-generation process relative to more traditional methods. 3M is known for its innovation capabilities— and we find that the LU process appears to improve upon those capabilities. Annual sales of LU product ideas generated by the average LU project at 3M are conservatively projected to be $146 million after five years—more than eight times higher than forecast sales for the average contemporaneously conducted “traditional” project. Each funded LU project is projected to create a new major product line for a 3M division. As a direct result, divisions funding LU project ideas are projecting their highest rate of major product line generation in the past 50 years.


2017 ◽  
Vol 2017 (1) ◽  
pp. 264-267
Author(s):  
Stefan Hoppert ◽  
László Kelemen ◽  
Zoltán Nádudvari ◽  
Gábor Vörös

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