Amazon, Desperate or Smart Move?

Amazon has recently announced the release of their newest product, the Kindle Fire HDX 8.9 tablet, with improvements in terms of functions and capabilities. The new tablet is, however, blatantly similar to the Microsoft Surface tablets which were, as the article says, generally unsuccessful in the market. Even though Amazon has seen the issues within Microsoft, Amazon has chosen to step away from only manufacturing standard Kindle e-Readers and instead become a competitor in this emerging market.

Referring to the 9 building blocks of a business model, Amazon seems to be trying to take steps forward. Amazon is trying to not only appeal to the customer segment seeking readers, but also appeal to the customer segments seeking laptop alternatives. Amazon has seen the success with the iPad and seeks to evolve their technology to appeal to customers seeking more powerful tablets with a wider range of functions, albeit at a lower price than the iPad. One edge that Amazon currently holds with the Kindle Fire is the excellent warranty deal. The article states that Amazon will offer full repairs for the tablet for up to two years, adding additional safety onto the already sturdy “shockproof rubber case that comes in the package.” Amazon is taking a leap of faith into an emerging market, however, Amazon’s move is highly risky. Well established competitors in this sector easily outshine Amazon, however, if Amazon is able to better price their products and provide benefits like their excellent protection warranty, Amazon’s new Kindle Fire HDX 8.9 may stand a chance.

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