Amazon Kindle SWOT and Five Forces

Keywords: kindle swot, kindle porters five forces

5. 1 Porter's Five Competitive Makes Analysis:

The making process in online publication industry is relatively simple, even though deploying the highly modernized technology which means to own fewer entry barriers. Moreover, the internet pages created by E Ink Organization are electronically exhibited on Amazon Kindle like in Sony e-reader, irex, ipod touch, etc. However, there's a huge challenge to persuade more publication publishers so that more literature can be utilized on the Kindle. Due to being immature the E-book industry is facing uncertain pricing standards on the market and thus there is certainly too much price difference exists with respect to different models of e- viewers, but the prices of Kindle is relatively higher than others such as Sony, Apple, etc. After that the e-book industry has been acquiring very low customer care and the manufacturers are rather than growing their businesses always wanting to steal the clients of others. The bargaining vitality of the provider is mainly from the accessibility to substitutes, quantity of suppliers, and the turning bills to other inputs. Therefore, the Amazon Kindle will involve two major inputs such as display screen and system technology. E Ink Firm produces the technology for the display of the electric display screen on Kindle and for many other e-readers. As the electronic paper is quite new on the market this means there aren't so many substitutes and organizations in this field. Furthermore, it means E Ink offers an extremely little provider bargaining power with respect to Amazon Kindle which might be altered in future predicated on the level of progression reveals in electronic newspaper technology and the reputation of Kindle. The Kindle users do not pay any connection charges/cost because Amazon itself gives it, but the coverage of kindle is relatively very limited. However, the bargaining vitality of book web publishers is extremely noteworthy because Kindle is worthless in the lack of e-books. Amazon takes approval from publishers before converting their books and for just one title of your book there's a strong amount of monopoly is out there among different reserve publishers and, which means Amazon has to pay them monopoly charges. With this context, the reserve publisher causes an impact on the bargaining ability of the distributor because of experiencing the power as which book should be accessible on the Kindle. Moreover, the book publishers can also restrict the Amazon to convert their literature for avoiding any unlawful copying. The bargaining power of Kindle users is suprisingly low, and it is from the worthy of of something for a buyer and the capability of changing to another rivalling item. Therefore, the Kindle and other e-reader manufacturers have to adhere to the Digital privileges management system which safeguards the available e-books of not being used in another e-reader from Kindle and it improves the switching expenditures as well. As the E-readers are still immature on the market which means it does not change the bargaining power of its potential buyers, but in the near future once its market is completely grown then the bargaining electric power of purchasers will significantly be reduced. Regardless of the online bookstores, libraries, Yahoo literature and E-Book websites are the major substitutes to Amazon Kindle that require the computer applications, but Amazon Kindle doesn't need it because the wireless connection of Kindle permits its users to buy straight from Kindle shop and the books can be accessed within 60 a few moments instead of longing or queuing up in the shops/libraries. In addition, the electronic pages on its display screen are highly suited to sight and can be modified to any font size. Regardless of the substitutes of Kindle are offering relatively more e-books, but nonetheless because of its unique plan of Digital Rights Management it is more reputable than its substitutes (Mcafee, 2002)

5. 2 SWOT Evaluation:

5. 2. 1 (S)trengths:

Amazon has a well flourished market where it's been offering multi range of products such as catalogs, software, videos, and even clothes, etc. Apart from selling the paper books now Amazon has launched its kindle store to enable its users to buy online utilizing the same website configuration and looking tools, etc. Therefore, for getting more customers Amazon is agreeing with a great deal of book web publishers to offer the latest headings of their literature on its Kindle to provide a tastes of library to readers.

5. 2. 2 (W)eaknesses:

Virtually, many products from Amazon are still immature in the market this means having no preceding experience in developing and distributing the hardware. Because of this reason Amazon may need to face manufacturing difficulties towards its products and even the biggest issue of Amazon kindle is its keypad, which very often gets uncontrollable.

5. 2. 3 (O)pportunities:

Amazon gets the opportunity to end up being the market leader and its Digital Rights Management policy may lead Amazon towards increasing its profits by distributing the standardized reading contents. However, if the products of Amazon keep on satisfying the needs of its customers, then in future Amazon will have a huge talk about in E-Book industry.

5. 2. 4 (T)hreats:

The advertisements and charges strategies of Amazon are highly inadequate weighed against its competitors. Apart from that its delivery and syndication system is also unreliable as well and the E-Book piracy has become an epidemic disease in book industry. In addition, the major bookstores such as Borders and Barnes & Nobles are not promoting E-Book industry any more.

6. 0 Tips:

In this chapter, the researcher has been presenting his suggestions and tips.

Although the e-book industry has already been facing strong competition, adverts can add a lot in this regard. Nearly, Amazon Kindle has only adopted fewer channels for its advertisements like the email messages and old mailing system, etc. The Amazon must take on the modernized way of ad such as the regular ad in daily papers, weekly magazines, Tv set and radios, etc. After that they need to develop the links with different academic institutions, colleges and universities for increasing the familiarity with their brand. When catalogs are changed into e-readers then the book web publishers who cause a great effect normally receive more ratio of profit which means Amazon gets only a small percentage of revenue. So for attaining more revenue Amazon should decrease the book conversion and should establish contracts with hardware focused businesses to be able to own best value hardware to expand its customer bottom. Amazon should also adopt consistent charges criteria and despite its current effort to reduce the price tag on its kindle by $40 is very wise, but nonetheless the kindle price needs to be fallen further for acquiring more customer care. Apart from that Amazon shouldn't curtail the costs of its e-books too much because already its catalogs have lower prices than the newspaper books on the market.

Amazon should use the completely trained human resource staff like Yahoo in the beginning utilized very good personnel that led Yahoo towards getting huge acceptance and success. Apart from that Amazon should improve their manufacturing, providing, distributing and mending services to make their products faultless and accessible to customers. Most of all Amazon should persuade more international publishers for participation because presently they have a reduced variety of publishers this means a very limited number of foreign catalogs can be accessed on Kindle.


This section is summarizing the whole discussion surrounding the purpose of the analysis by highlighting the results unveiled in the research. However, some tips and suggestions have also been mentioned.

After doing an empirical evaluation of Kindle customers, there is an imperative need to summarize our discussion. As a matter of fact, paper catalogs are searching for the last many centuries as opposed to the e-books which came to our attention a few ages ago. Within this context paper booklet must have received greater open public support and monetary increases, which eventually led towards breakthrough of e-books. Undeniably, the idea of

e-books has been generated from paper catalogs because both types of catalogs share many similar characteristics despite the difference in their reading format and site display. Nevertheless, now the requirements of book viewers have changed drastically because of requiring better and effective sources for accessing the reading material so the publication web publishers have to meet their requirements by embracing each one of these troubles. In this regard, we need to note the fact that the sales of e-books were increased by 71% during 2002-2009, which justifies as how significantly now e-books are prevailing. Generally, E-book means to convert the paper book into an electronic format which is often accessible from anywhere in the world without burning off the web pages and waiting at retailers/libraries, etc. However, there are many assumptions regarding the adoption of catalogs because many visitors still support the paper books by declaring that paper literature will be the natural style of reading which provide a tremendous amount of physical and emotional benefits, but without taking into consideration the drawbacks of paper development such as carbon emissions. Additionally, another favourable assumption of newspaper books underlines an undeniable fact that the newspaper literature have been stamping out atlanta divorce attorneys part of the world, but e-readers are only available in few countries, which imply that the whole society of readers is not profiting from e-books. However, to a certain degree, the e-readers are unreliable because of having limited coverage and even a minor mishandling can disturb the reading details on it. Thus, the newspaper catalogs are long-lasting and are not based on the unreliable electronic digital system. On the other hand, the enthusiasts of e-books think that e-books are harmless to the surroundings because of not relating printing, binding, postage, and shipment expenditures that are also favourable to the book businesses as well to maximize their gains by reducing all unnecessary bills. Traditionally, book publishing was constrained within certain specific areas and for that reason, the book publishers were unable to assess the market circumstances and the client needs. As a result, the book web publishers have to either close their businesses or develop them with heavy ventures by opening different branches or stores at various places. Nevertheless, that traditional design of book business has been substituted with the modernized style of business, which combines the internet strategies with the publication business to bring the nearness between your visitors and the web publishers.

Amazon was found by Mr. Jeff Bezos in 1994, which presented its first online bookstore in 1995. It has also been working its business in many countries such as United Kingdom, Japan, China, France and Germany, etc. In 2007, Amazon possessed released its first ever e-reader the Amazon Kindle to consider the show of market and despite the fact of receiving an incredible amount of public support it is still young on the market. There may be two significant reasons either the book readers are still not happy to leave paper literature or the e-readers before Kindle will need to have set up more enlarged customer foundation. However, as the e-book industry is rather new, which means Amazon Kindle is having few numbers of substitutes, but having a strong effect on the bargaining vitality of the publishers. Amazon in addition has to take permission from the web publishers as which publication should be converted to Kindle and therefore, have to check out the Digital Rights Management system to safeguard the copyrights of the changed books. Because of being devoted in providing the latest titles of publication Amazon has been carrying out a unique technique to offer a fully personalized manner by releasing its booklet searching tools and email announcements to its customers. Amazon is also positive of satisfying its partner publication vendors such as Barnes & nobles, Borders, and Google by complying with all legal formalities for avoiding reserve piracy and substandard reading material. However, there can be an imperative need to check out some effective ways of advertisement and consistent pricing strategy to confront its challengers. Despite Amazon Kindle is experiencing some weaknesses, but still it's been boosting the relations between the publishers and their customers by providing them with the reliable reading material to prevent reserve piracy.

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