Group Case Essay
1.) In what ways does Bezo’s decision to develop and deliver the Kindle show systematic and intuitive thinking? We think that Bezo’s decision to develop and to deliver the Kindle show systematic and intuitive thinking through competitive strategy to assure the success of the company. Competitive strategy refers to a strategy that is designed to create value for customers by providing lower prices or unique features not offered by rival organizations. This is proven based on Amazon’s quarterly filing ending March 31,2010 when their net sales had increased to 45% in the electronics category. Jeff Bezo, CEO of Amazon.com says that “ as we continue to offer increased selection, lower prices and additional product lines within our electronics and other general merchandise category, we expect to see the relative mix of sales from this category increase!..” Another reason would be seeing an opportunity only Amazon.com can give—long-form reading to be digitalized.
They have analyzed their strengths and capacities that helped them develop a new innovation in the market. From there, they were able to produce a refined product called Kindle that has the ability to review and remember more what a person reads follow people of interest and allows one to see their Public notes and manage his books, highlights, and notes. 2.) How do you describe the competitive risk in Amazon.com’s environment as it leads the market for digital book downloads? We describe the risk of having new competitors entering the industry in the present. For example famous websites like Google has announced the launch of its e-books service called “Google eBooks.” The Wall Street Journal reports Google has been trying to break into the eBook market for months and has finally unveiled its website. Also, the intensity of rivalry among competitors would be another factor since competitors are described as organizations that offer similar products or services that meet the same customer need. Another competitive risk would be maintaining customer satisfaction through goods and services offered. We thought of how Amazon.com will have a hard time in maintaining customer satisfaction because they are often described as the online retailer that sells almost anything you can think of, from A to Z. We sought out that if not properly organized this might be the breakdown of the company.
3.) Which decision errors and traps are the greatest threats to the success of Bezo’s decision making as Amazon’s CEO and why? We believe in the importance of having proper pricing. Jeff Bezo’s decision in building more shareholder value by lowering prices is not a very good decision to make since it lessens the value of the product. Yes, it offers a cheaper price but does it give a suitable output for the company? We think, the answer is no. We know that pricing of the product is based on the service it offers, the customer it satisfies, and also the materials used in the production of the product. 4a. Research and discuss: What are the latest initiatives going out of Amazon? HTML5 web apps can now be discovered, downloaded, installed and used in the Amazon Appstore providing better opportunities for developers to make money. On August, 7, 2013 Amazon launched web app support in the Mobile App Distribution Program. Developers can now submit URLs for their HTML5 web apps and mobile websites and have Amazon offer that content to millions of Kindle Fire and Amazon Appstore customers in the same, convenient way as native apps. We believe that Amazon continues to grow and develop innovative products and services through the improvement of past products and creating new levels of service for the satisfaction of their customers.
Also, Amazon seeks to help the environment in a more convenient way through Amazon Frustration-Free Packaging. Amazon Frustration-Free Packaging is a multi-year initiative designed to make it easier for customers to liberate products from their packages. Amazon Frustration-Free Packaging eliminates hard plastic “clamshell” cases and those annoying plastic-coated wire ties, commonly used in toy packaging. In addition, Amazon helps the environment through eco-friendly packaging. It is reported that Most Amazon.com orders are shipped in corrugated containers which on average contain 43% recovered fiber content. Once used, these containers are 100% recyclable for use in the manufacture of other paper products. Moreover, In Amazon’s U.S. fulfillment centers that primarily ship larger products such as televisions, kitchen appliances, and other household items, we’ve introduced paper packing materials that are 100% recyclable and are made from 50% recycled content. Furthermore, Amazon has established program for the environment called, Amazongreen.com a cross-category program that includes a list of products that customers have selected as the best green products offered by Amazon.com and a place for customers to discover Amazon’s entire green product selection.