Amazon Kindle
Background ( What/When/Who)
● A series of E-readers that enable users to browse, buy, download, and
read e-books/newspaper/magazines via wireless networking to the Kindle
Store.
● First device was released on November 19, 2007 for $399.99 USD. Sold
out in the first 5 hours
● Designed and marketed by Amazon
We choose this topic because it was an interesting topic and
Why kindle? (functions)
Convenience
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Ease of carrying multiple books
Text size adjustable
Built in dictionary
Automatic bookmark
Highlight sentences/ Take notes
Long last battery
Does not heat up
Low price compared to other tablets
Problem
Porter’s Five Forces
Business Disruption: how business or competitors operate
Business Disruption: how did customer experience change
Innovation adaptation
Kindle was invented in 2007 and changed the way people can view books.
● It helped ushered in e-books
1st adaptation
● Download books over free wireless connection
2nd adaptation
● Kindle Direct Publishing
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Authors were able to reach millions of readers through this new route
BUS4 188
BUSINESS SYSTEMS & POLICY
Group Project
Example: Amazon Studios
Background of your innovation
• Amazon Studios
• Formed in 2010 to create original TV content
• I picked this topic because it seemed interesting and
because the premise is very different from the Hollywood
norm.
• This effort seems to feed into the “Prime” membership
and should provide low cost content.
What particular problem was Amazon trying to solve
• The lack of content for “Prime” customers
• Amazon Studios creates original drama, comedy, and kids
series. We’re looking for compelling new voices,
characters that you can't find anywhere else, and shows
that have the potential to become hits. Specifically, we're
seeking primetime drama and comedy series for adults,
as well as series for children between the ages of 2-14.
We are not looking for sketch, reality or talk shows at this
time.
In terms of Strategy, which of Porter's Five Forces are in play.
• Competitive Forces
• Competition from vendors who manufacture substitutes.
• Competition from new competitors.
• Competition from existing rivals.
• Bargaining Power Forces
• Bargaining power of suppliers.
• Bargaining power of customers.
• Just my opinion but I think I will not switch unless a
competitor has everything Prime has.
In terms of business disruption, how did it (or will it)
change how businesses or competitors operate
• Amazon Studios seeks feedback about projects and ideas, even in
their earliest stages. And to reach the most people, we try to shape
stories into a form that is short, or visual, or both. We will test
premises, storyboards, posters, videos, test movies, pilots,
promos, and other formats to see what people think. Scripts are
critically important in development, but they are just not accessible to
most audiences
• We have paid the creator of these projects for an option or for the
rights to their material, and our development staff may work with the
original writer to develop the script. For most projects, we will also
test various interpretations of the material with Amazon movie
and TV customers. Based on the results, we will determine
which projects to move forward.
Think Godzilla Move - Persuadables
Provide a little known fact about it or describe how the innovation
can be adapted for something else/another industry
Two free tools to help writers,
organize, develop and submit
their ideas
Could also be used for
Books
Essays
SME Articles
Humor
In terms of business disruption, how did customer
experience change
• Amazon “Prime”
• 85 million Prime Subscribers in 2017
• Prime member spend an average of $1,500/year vs non members
who average $ 625/year
• Prime day 2017
• More sales than 2016 Black Friday and Cyber Monday combined
• Perhaps $1B in sales (they do not share this number)
• I don’t know how it changed but it is popular!
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