Wednesday, October 5, 2011

Amazon unveils £130 iPad rival

The 'battle' of the tablets has some very interesting points (from strategic management). Although, the tablets are not technologically superior to existing devices (i.e. laptops), they are entertainment items, and Apple has create a new segment in the market. The success of these products lies with the complementarities that are to be developed with the rest of the products (i.e. iPad and iphone). Amazon offers the new tablet as 'upgrade' to kindle which quite dominant in its market. Amazon seeks to establish synergies between the Kindle Fire and its e-books, mp3s businesses. It is quite interesting that Amazon is expected to seek access to the mobile handsets for greater coverage of the market (as Google recently did with buying Motorola's handset business unit). Also, Amazon’s strategy is a very good example of 'low cost leadership' as it is losing about $50 per device.

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