Tutorial 3 - Kindle Fire

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Slides available for the Barbican and Paddington groups on the ICBS Strategic Marketing Summer School 2014

Transcript of Tutorial 3 - Kindle Fire

  • 1. Imperial College Business School Marketing Planning and Competitor Analysis Tutorial 2: Kindle Fire 1

2. Lecture Revision Internal Planning Tools External Planning Tools Case Discussion Imperial College Business School Overview for today 2 3. Managing the internal planning process Imperial College Business School What is market planning? 3 Corporate Operational Departmental 4. Name three internal planning tools Imperial College Business School Internal 4 5. Customer concerns such as service quality, cost and response times Internal measures such as staff productivity, range of skills Financial measures such as revenue, profitability and costs Learning and growth or innovation measures such as rate of product development, availability of staff training Strategy-stakeholder alignment Imperial College Business School 1. Balanced Score Card 5 6. Sources of competitive advantage Imperial College Business School 2. Porters Value Chain 6 7. Sources of competitive advantage Imperial College Business School 2. Porters Value Chain 7 8. Management and organisation design Imperial College Business School 3. McKinsey 7s 8 9. 1. Strategy - the plan devised to maintain and build competitive advantage over the competition. 2. Structure - the way the organization is structured; reporting protocols. 3. Systems - the daily activities and procedures that staff members engage in to get the job done. 4. Shared Values - the core values of the company that are evidenced in the corporate culture and work ethic. 5. Style - the style of leadership adopted. 6. Staff - the employees and their general capabilities. 7. Skills - competencies of the employees working for the company. Management and organisation design Imperial College Business School 3. McKinsey 7s 9 10. Name three external planning tools Imperial College Business School External 10 11. Marketing Environment Imperial College Business School 1. SPICC 11 12. Analysing industry environment or structure Imperial College Business School 1. Porters 5 Forces 12 e.g. Think about the pharmaceuticals vs. (post-regulation) airline industry 13. Merging internal and external factors Imperial College Business School 3. SWOT Analysis 13 14. Situation in 2012 5 million sales in Kindle Fires over half of non-Apple tablet market (iPad launched in 2010). Amazon share price has dropped $40 since the launch of Kindle Fire. Analysts concerned about selling hardware at cost, betting that content and commerce revenues would make up for it. Needed to modify the positioning the device in response to new entrants such as Samsung, Motorola and Google What is the situation? Imperial College Business School Case Study: Kindle Fire 14 15. Invention is in Amazons DNA (Bezos, Letter to Shareholders, 2010) Amazon in 2012 Imperial College Business School Current Situation 15 16. E-Reader market in 2007: Ripe for disruption? Amazon Kindle (Mark 1) features, price, partners E-Book ecosystem How does it work? Early days of the e-reader market Imperial College Business School Setting the scene 16 17. Competition from the Nook, iPad and Android: How do their features compare? Amazon Kindle Fire (Mark 2) Whats new? features, price, partners (publishers) Target segments: Media junkies, Mobile gamers, Higher education Q1. Form a competitive position and a product assessment, as part of planning, would you categorise the Kindle Fire as a tablet or not? Explain your decision. Q2. Devise criteria for comparing product offerings and position the Kindle Fire Rise of competition and the tablet market Imperial College Business School Tablet (R)evolution 17 18. Product features and competitive advantage Imperial College Business School Tablet (R)evolution 18 Kindle Nook iPad Google Android Kindle Fire Price $ $ $ $ $ Features Strategic objective Competitive Advantage e-reader tablet t 19. Q.2 Based on your appreciation of the case, what bets is Amazon making in the business model for the Kindle? Where is he predicting Amazons future $ revenues will come from? Betting the business Imperial College Business School Case Study Questions 19 Hardware Content Commerce Advertising 20. Q.2 Based on your appreciation of the case, what bets is Amazon making in the business model for the Kindle? Where is he predicting Amazons future $ revenues will come from? Betting the business Imperial College Business School Case Study Questions 20 Hardware Content Commerce Advertising 21. A chart Bezos should have looked at in 2010? Imperial College Business School E-Commerce Trends 21 22. https://www.yahoo.com/tech/amazons-first-smartphone-the- fire-phone-has-a-89237543259.html Fire phone: Why didnt he do this before? Imperial College Business School Amazon Smartphone 22 23. How have circumstances changed? Imperial College Business School Current situation 23 Jan 2014: Q1 Results Amazon warns of possible first-quarter loss, stock falls June 2014: Bezos announces Launch of Amazon Smartphone