Entrepreneurial Venture Project:Amazon Kindle

By: Jill Hankemeier

Our objective is to

effectively communicate

the rapid success of Amazon’s Kindle by detailing product

overview/features,

distribution, marketability,

competition, and brand

campaign.

• ‘To light a fire’— intellectual excitement branding• November 2007 release, sold out in 5 hours• Surpassed print book sales in 2010• Shop, download, browse, read, wireless

networking

Amazon.com—The Beginning• Jeff Bezos, founder in 1994 used garage as warehouse

space• By 1995, Amazon.com sold books across the country• Customers were asked to review books that created the

‘Amazon Community’

Growth Expansion

• Significant growth in 1997• AMZN share generated $15.7 million in

revenue• CDs, DVDs, small electronics, and household

items• By 1999, Amazon’s netted $1 billion in sales• Reported a $1.4 billion loss in 2001, forcing

Amazon to sign exclusive deals with retailers

Distribution• High power distribution system (sold 1 million

Kindles in a week during Dec. 2011)

• 80 distribution centers worldwide• Ships to 40+ international countries

Portability

• It’s just like a book—you can take it anywhere

• Download anywhere using wifi

• Cordless feature separates itself from competition

E-Book Selection• Amazon has a relationship with the world’s top publishing

agencies• An estimated 12.8 million E-Books sold in 2011• 600,000+ books priced at less than $4.99, 1+ million under $9.99 • Many books are public and free• Under 60 second downloads• 48% of the 12.8 million E-Books sold in March 2011 were

Kindles

Competition

Barnes and Noble’s Nook release in 2011

Nook was too late in the game and lacked customer appeal

True competitor is Apple’s iPad

Biggest advantage over iPad is a significantly

lower price ($70-$300 vs. $350-$800)

MarketPrimary

marketed toward women and

children

Big for students, less expensive

than books

Makers feel that cameras and GPS

are not necessary

Kindle’s Global Market

• Largest E-Book market in US and UK• Born global—since launch, been available internationally• Sold in over 180 countries• Globalization re-entered Amazon’s international presence• Next move is launching Mandarin Kindle in China

Conclusion• Kindle was 1st in electronic reading

device• Value of price, selection, portability,

and the reputation of Amazon• Tablet industry is risking the future of

Kindle• Kindle spawned an industry, but it may

be choked out by that

‘Your brand is formed primarily, not by what your company says about itself, but what the company does.’ –Jeff Bezos, Kindle

References:• http://www.fastcompany.com/1781303/real-secret-kindles-success• www.androidauthority.com• http://sphotos-b.xx.fbcdn.net/hphotos-prn1/c95.0.403.403/p403x4

03/72261_491315284251937_372291036_n.jpg

• www.buzzom.com• http://a57.foxnews.com/global.fncstatic.com/static/managed/img/S

citech/660/371/Amazon%20Kindle%20in%20Womans%20Hands%20at%20beach.jpg?ve=1

• http://media.nj.com/jjournal-news/photo/tech0930jpg-18c418c6ae88a9b4.jpg

• http://cdn-static.zdnet.com/i/story/60/01/059197/6306069-500-460.jpg

• http://assets.bizjournals.com/bizjournals/images/iPad-Mini*304.jpg?v=1

• http://pics.cssbakery.com/pics/kindleweb.jpg• http://behance.vo.llnwd.net/profiles16/776435/projects/7446095/e

2aa4ace5a47619268409e6167810ed6.jpg• http://cdn0.sbnation.com/entry_photo_images/5324181/kindlepap

erwhite-high_large_verge_medium_landscape.jpg• http://www.digitaltrends.com/wp-content/uploads/2012/02/reading

-kindle.jpg