Assess Amazon’s decisions to diversify into (a) e-readers (Kindle), (b) tablet computers (Kindle Fire), and (c)...

Assess Amazon’s decisions to diversify into (a) e-readers (Kindle), (b) tablet computers (Kindle Fire), and (c) smartphones (Fire Phone).

Expert Solution

Amazon is a global multinational brand that has differentiation based on products that it produces itself.

E-REaders: e readers have been a hit for amazon. Being a online book company, E-Reader allowed amazon to double down on their business, prevent the use of paper and at the same time allowed people the ease of being able to carry their books in a portable format anywhere. The product has created good business for both amazon and their partners which have adapted their literature to work well with amazon’s E-reader and essentially create a new business.

Tablet computer: this category has not been much successful if we consider its use for the people, Kindle already served the purpose of being a portable bookstore. Having a computing device with no additional features when compared to the products byu their competitors not presented amazon with much success in this department. The reason to diversify was the fact that kindle was already performing well and could od more if computing capabilities were added to it.

Smartphones; amazon has totally failed in this department. They were unable to create any good products in this market and essentially were not able to compete with their competition and washed out. This line of product was not compatible with the goals amazon had in mind regarding the use of amazon’s services and the value it presented to the p people. This decision was made to capitalize on the electronic mobile device market because of the failure of their computing based kindle.

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keosha answered 6 months ago

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