Amazon Kindle The following parts of the paper will focus on the product innovation strategies and programmes behind the development of Amazon Kindle. The Amazon Kindle is an e-book reader designed by the multinational electronic commerce company Amazon. com. This device enables users to browse, read, and download digital books, magazines, and newspapers on wireless connectivity (Amazon. co. uk). An E Ink electronic paper display is used in this hardware device and this feature minimises the power usage to a large extent. This innovation has greatly assisted the Amazon. com to stimulate its business activities by offering improved shopping facilities to users.
The company’s reports show that different user friendly features of this device have attracted a large number of new customers to Amazon. com Amazon Kindle: A Substantial Innovation Evidently, this product development process comes under substantial innovation. Substantial innovation assists a firm to bring dramatic changes in its business performance by exploring potential business opportunities that are likely to lead the industry with a competitive advantage over rivals. As experts point out, “substantial innovations are mid-level in significance both to customers who benefit from them and to the sponsoring company that believes they will significantly help the firm grow and create new wealth” (Tucker, 2008).
Although this type of innovation does not fall under the category of breakthroughs, it enables organisations to meet or exceed its goals for growing business, increasing market share, and lowering cost of operations. Under this type, substantial improvements in a firm’s existing product lines or services greatly aid the firm to achieve customer loyalty. It is expected that there would a considerable increase in the sales revenues of Amazon. com with the introduction of this new e-book reader.
In the view of Epps (as cited in Shaer, 2011), the Amazon. com would sell between 3 and 5 million Amazon Kindle Fire (a version of Kindle) units before the end of 2011. Many other marketing experts strongly support this opinion by pointing to the fact that this device possesses a variety of competitive advantages over its competitive substitutes. It is widely expected that the newly designed hardware device would raise challenges to iPad, a tablet computer of Apple Inc, because the Fire is about half the size of the iPad and it is sold at less than half the price of the iPad.
The Amazon. com charges a price of $199 for the Kindle Fire whereas the cheapest iPad is sold for $499 (Yahoo Finance, 2011).
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