Amazon.com: Technology and Market Share
Much of what drives Amazon is technology. As it states in its mission statement, Amazon sees that their "vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online (Amazon.com 2011)." This tradition is taking another step into the future with the advent and development of Kindle. This new "pad" or "tablet" will, if Amazon it's way be the launchpad for a new era in E-commerce. The naysayers have been wrong before and this author is making a safe bet that the Kindle Fire will light up E-commerce much as Bezos has in the past. Other technological innovations such as Amazon's cloud servers and even a space project have been more problematic and will be examined here as well.
Research Questions
In order to understand Amazon and where it is going in the next few years, one must understand how it will use the Kindle Fire technology to successfully meet its objectives and gain a competitive advantage. Based upon this author's research, they have found that it is necessary to look at the company's strategy and how they intend to use it. While Jeff Bezos is running the company with much of his original strategy, he is also modifying his approaches radically and now plans to use his company's market position to change the way online retailing is being conducted. This paradigm shift in business is huge and ranks up in business history with the innovation of the Sears and Roebuck Catalog or Steve Job's introduction of the iPod's impact upon the music industry. The shift is massive, long-term and will change the way business is conducted.
To further plumb the depths, we will look at Amazon's mission statement and objective for this product (as close as there is to being one), examine Amazon's historical competitors such as Barnes and Noble and also see how they can compete in different, changing and multi-faceted markets. What one will find is that Bezo's market strategy for his company is changing rather considerably with the Kindle technology and will open up considerably the ability of Amazon to penetrate a widening array of markets.
While the above situation continues to heat up, we will find that Amazon has used this widening market position to compete ever more widely to dominate and control the market. Customers have condoned this due to brand name loyalty. They trust Amazon to sell them just about anything. As long as this faith continues and the company's reputation continues untarnished as an unrivaled technological competitor, this situation can be sustained.
Recently, however, a series of technologically-based law suits charging patent infringement on Amazon's part are generating concern over their effect upon the viability and trust in the Amazon brand name. One can only recall the anti-trust fights that embroiled Microsoft in the late 1990s and consider the present potential for the company's future. Like Microsoft, Amazon would likely remain a major contender in its field, but with much less market velocity.
Further, recurring technical problems with the web site and with the cloud servers has caused considerable customer irritation and some damage to the company's image. While this will not end the company, it may slow down the meteoric rise of the firm bring pause and a rethinking of strategy on the part of Bezos to reconcentrate efforts upon the core of the company.
Also, while the company has not lost its continuing battle with United States state governments to tax its retail operations in those jurisdictions, the current recession has caused these units to redouble their efforts considerably and this may now bear some fruit. In addition, while the company's future is positive, it is facing increasing competition from traditional competitors such as Barnes and Noble as well as other companies. Previously, the company competed in many commercial channels with little or not competition. While the overall E-commerce is booming, this increasingly cut-throat competition can certainly be counted upon to effect the situation heavily.
Kindle Fire and Related Technology Research Questions
So, why has Amazon placed so much emphasis upon the Kindle technology? Why is it being introduced? Is it new to industry or just new to the organisation? The research in the paper will support the opinion of his author that the Kindle technology amounts to more than just an attempt to take an increased market share from the iPad. Rather, to understand the technology, one must comprehend that it is not simply another product but rather a hi-tech vehicle to move more of Amazon's surplus merchandise and therefore strengthen the company's...
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