Amazon Kindle Marketing Analysis

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In this chapter the researcher is analysing the empirical findings by applying the theories of literature review. Consequently, this chapter will be helpful for writing the recommendations and solutions.

4.1 Porter’s Five Competitive Forces Analysis:

The manufacturing process in online book industry is relatively simple despite deploying a highly modernized technology which means to have fewer entry barriers. Moreover, the pages made by E Ink Corporation are electronically displayed on Amazon Kindle like in Sony e reader, irex, iPod etc. In this regard there is a huge challenge to persuade more book publishers so that more books can be accessed on the Kindle. However, due to being immature the E-book industry is facing uncertain pricing standards in the market and there is too much price distinction exists with respect to different models of e readers but the prices of Kindle is relatively higher than its other rivals such as Sony, Apple etc. Apart from that the e-book industry has been receiving very low customer support and the manufacturers are instead of growing their businesses always seeking to steal others customers. The bargaining power of supplier is mainly obtained from the accessibility to substitutes, number of suppliers, and the switching expenses to other inputs. Therefore, the Amazon Kindle involves two major inputs such as screen and system technology. E Ink Corporation develops the technology for the display of electronic screen on Kindle and for many other e readers. As the electronic paper is quite new in market which means there are not so many substitutes and firms in this field. Furthermore, it means E Ink possesses very little supplier bargaining power with respect to Amazon Kindle which might be changed...

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...ed in providing the latest titles of books Amazon has been following a unique strategy to offer a fully customized manner by launching its book searching tools and email announcements to its customers. Amazon is also confident to give satisfaction to its partner book retailers such as Barnes & nobles, Borders, and Google by complying with all legal formalities such as book conversion standards and media distribution criterion for preventing book piracy and substandard reading material. But, there is an imperative need to follow some effective ways of advertisement and consistent pricing strategy to confront its competitors. Despite all these, Amazon Kindle is suffering from some weaknesses but still it has been revolutionizing the book businesses and the reading patterns of its customers by preventing the book piracy in order to supply qualitative reading material.

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