Week 10 - 2020
Week 10 - 2020
Week 10 - 2020
ENTREPRENEURSHIP
TECHNOLOGY & INNOVATION
Last week
Corporate Governance
Definition
Agency problems
Internal governance mechanisms
Martha Stewart Case
Agenda
Entrepreneurship
Definition
Strategic entrepreneurship vs corporate entrepreneurship
Technology & Innovation
Incremental innovation & radical innovation
Ambidexterity
How to increase innovations?
Amazon
Entrepreneurship
exploration
exploitation
Kindle Fire’s direct competitors are the Nook Tablets by B&N, and the iPad 2 by
Apple.
The iPad 2 is bigger than a Kindle Fire (in terms of screen size) but thinner than a Kindle
Fire (though also heavier). A Kindle Fire targets media junkies, children and mobile
gamers, and higher education
The Kindle Fire against the iPad:
The iPad: first mover in the tablet market/ royal customer base because of its differentiation
business-level strategy. /simple but yet sleek design, and perfection to details. /serving as a
multipurpose/ 3 to 4 times more expensive than a Kindle Fire.
If Amazon can secure its content offerings, for example, making the Amazon TV selections
significantly larger than its competitors, the Kindle Fire may be able to take away Apple’s iPad
market because of its substantially lower price.
The Kindle Fire against the Nook:
Similar in terms of the hardware specifications with Kindle. / B&N’s heavy promotions the profit
loss of B&N /offer different user experiences: Amazon’s focus was on its own content and
services, whereas B&N focused on providing its own text-based content and allowing third
parties to deliver the rest.
If Amazon can continue to offer a full package, including a better browsing experiences and
cloud-based services, the Kindle Fire can remain ahead of the competition against the Nook.
Innovation
Features:
7-inch, color LCD touchscreen, a Wi-Fi radio, a dual-core processor, an 8 GB of internal storage, and free cloud storage
for content purchased from Amazon. It also featured Amazon Silk, a cloud-accelerated web browser that can handle
the computation necessary to render webpages in the cloud
Tens of thousands of preapproved apps and games available for purchase and download through the Amazon app
market
Movies, TV shows, songs, and magazines available for streaming or download
(Prime subscribers received streaming access to more than 13,000 movies and TV shows for free)
The Kindle Fire came with a free one-month subscription to Amazon Prime to encourage a customer’s integration into
the Amazon ecosystem of content, goods, and services
Target customer: Media Junkies, Children and Mobile Gamers, Higher Education
Challenging leading competitors: Amazon’s leading competitor, Apple, is known to bringing the best personal
computing, mobile communication, portable digital music, and video experience to customer segments through
innovative hardware, software, peripherals, services, and Internet offerings. In order for Amazon to gain market
share from Apple’s, it needs to strengthen its cost leadership position. Amazon needs to keep the Kindle Fire’s
price low and affordable, while offering the best customer user experience. In doing so, other competitors, such
as B&N, will not be able to compete with Amazon.
Innovation: Amazon needs to invest heavily in R&D, with a broadly defined competitive scope. By constantly
improve the Kindle Fire, it will be very easy and convenient for users to learn and use the Kindle Fire.
Personalization: Amazon can offer users the opportunity to turn the Internet into a unique and personal online
portal by displaying specific content, pages, and applications chosen by the user. This way, the Kindle Fire can
turn into a lifestyle product that a user can depend on and become used to it (instead of switching to the
competitors’ products).