The next aspect that he focuses on is the provision of customer satisfaction. He used the same method with his online retail store. Following his strategy he kept Kindle’s prices quite affordable even when its competitors were going strong with increased prices. According to him, customers wants fast deliveries and low prices when buying an item. Jeff Bezos, the head of Amazon has based its strategies on all those aspect which he thinks will be the same across time. They also thanked the users for believing in Kindle Fire as not only the company but the third party sellers also enjoyed the success with a sales volume increase of 65%. In a statement the Amazon’s head gave credit to its new product Kindle Fire for making the year 2011 memorable for the company. Amazon reported that its net sales of $48.08 billion in 2011 were 41% higher than the preceding year.
According to the Global unit shipments rankings, Amazon was now at the second spot just behind Apple because of Kindle Fire’s he sales. Huge sales volume become one of the causes for the company to get the gains of $1 billion in revenues. Its popularity among the masses was revealed when in it sold around 5 million units in the fourth quarter of 2011. A product sold at just $199 attracted thousands of customers as its preorders had reached up to the 50,000 mark. In its initial years, Kindle Fire was sold at cheaper rates. B&N became the new entrant in the market which forced the company to reduce down Kindle Fire’s prices.
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Piracy was becoming major issue for the Kindle Fire as people could get free eBooks over the internet.Apple came up with better applications which attracted Kindle Fire’s users. Competitors like IPad and Nook tablet came up with the same offerings as Kindle Fire.It can attract new bloggers and authors as they can put their content on the Kindle Fire which also attracts the other readers.
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The company can work with the universities to update them with e-texts and other e-books. As the $10 billion text book market was still untapped, it makes way for a partnership between universities and the Amazon.By offering the e-books at lower prices will help the students go for the devise and can increase the product’s sales volume. Kindle Fire’s target audience are the students.With the disability of this electronic devise, a user can lose its entire library. Kindle fire needs an extra care because it’s an electronic devise.It gets switched off as the user rest it on his lap because it is placed with the headphone input at the bottom of the devise. According to some users, the power button placement has been poor from the company.Users using heavy application may get annoyed because of its slow processing speed.With a dead battery the device is of no use and user cannot have access to its library. Reading books through Kindle fire is only possible till it is working.People can’t share their digital books as they could do with their physical books.A below par interference design doesn’t makes it a better product than its competitor like IPad.This might results in low customer satisfaction level. A battery time of just 7.5 hours won’t help users at all as they can’t use it for long hours.The user could not only read books but could play games at the time of boredom. Amazon introduced it with heaps of preapproved applications along with other games that could be downloaded through Amazon app.Women doesn’t need to have a huge purse to take it with them. It’s relative smaller size as compared to its other competitors like iPad or Nook tablet which makes it easier to carry.It allows people to carry hundreds of digital book and they can read them wherever they are. Its portability gives it an edge over physical books.People’s perception about Kindle Fire gets stronger with Amazon’s name behind it. Kindle Fire can take advantage of the Amazon big brand name because company has got a huge brand loyalty.Amazon has to knockdown all the threats that can hinder their Kindle Fire’s sales. For better sales of Kindle Fire, the company has to pounce on all the opportunities that are heading their way. Therefore, it needs to overcome its weaknesses for greater gains. Though it has to take care of its weaknesses which can be a major cause of low profitability. If the product further polishes its strengths than it can become a market leader. Kindle Fire’s success depends upon the strengths of the product.