In the face of threatening rise of Barnes & Noble(B&N), Amazon.com has become a bigger threat of crushing down B&N. As it launched its online-based business in 1995, many critics predicted on the fall of Amazon as the new bookseller business came into the market, Barnes and Noble. However, the unpredicted upside-down has happened by Amazon. In the meantime, Apple, one of the greatest business in making tablets, has become now sensitive to the rise of Amazon.com.
Amazon has launched the production, a tablet computer called Kindle Fire which is to compete against such products as Nook Color tablet by B&N and Apple’s iPad. Kindle Fire is sold in the market at much cheaper price, $199, than that of iPad, $499, and Nook Color, $224, an effort by Amazon to make its own product to be attractive and valuable to customers. By definition, operational effective is achieved when a business implements practices similar services, which already exist in the market, in different ways. Also, Amazon’s selling the tablet computer at a cheaper price can be categorized as cost leadership as well.
In order for Apple’s iPad and B&N’s Nook Color to be able to win over the competition with Amazon’s Kindle Fire is to concentrate on maintaining their customers who have loyalty to the brand. Amazon’s Kindle Fire, however, has disadvantages in terms of having less loyalty than those two businesses. Apple and B&N, if there is no way to reduce their prices, have no other choice than improving their products and gain more loyalty.