Amazon’s Kindle Fire

PART 1

Question 1

1. Define Amazon’s business-level strategy. Based on the five forces analysis, what changes should Bezos make to differentiate the company significantly?

Amazon’s business strategy is based on improving logistics, securing invention through the acquisition of patents, enhancing web services, and investing in various technologies to ensure that customers’ needs are satisfied to acquire supreme experience in the market. Bezos should invest more finance in new technologies like innovation to ensure that they can create new brands and products. In this case, the company will be uniquely identified by entering new markets and gaining a competitive advantage over its rivals (West).

1. How does Amazon’s Kindle Fire strategy stand up against competitive rivalry in the industry?

Amazon’s Kindle Fire strategy stands against its competitors because of the product diversity in the market. From this perspective, Kindle Fire has become one of the influential products offering various services like WI-FI radio, cloud storage, longer battery life gadgets, and large storage space for tablets. In such a manner, service diversification has offered Kindle Fire products a competitive advantage against its rivals within the technology market (West).

Question 2

1. Is the current strategy for Amazon’s Kindle Fire suitable for the existing market? What recommendations can be made to address strategic concerns and safeguard Amazon’s growth and market share?

In my opinion, Amazon’s Kindle Fire strategy is very important in that it aids the company in protecting its media-related income, as it generates approximately 30 percent of the total Amazon revenue. Amazon should diversify its operations of cloud-based technologies and services are the recommendation the company should undertake to address its strategic concerns so that its market share and growth are maintained. In such a manner, Amazon can extend its complementary competency within its business model (West).

1. If you were Apple’s CEO, what would you do to respond to the Kindle Fire?

Exploring various partnership opportunities in the market is how I could respond to the Kindle Fire product of Amazon if I were the CEO of Apple. In this regard, a firm should accumulate more finances to compete favorably. More importantly, accumulating more finance through partnerships could help Apple Company invest in new technologies and innovation to develop new products and brands that can compete with Kindle Fire (West).

PART 2

Q1 – LIFE CYCLES

1. Which stage of the industry life cycle is the Electric Vehicle industry in at the time of the case? Which stage of the organizational life cycle is Tesla in at the time of the case? Is Tesla’s strategy correctly aligned with both of these two life cycles? Please briefly explain why or why not?

The Electric Vehicle industry is in the growth stage of the industry life cycle. In this regard, the electric vehicle industry has experienced significant cash inflows and revenues due to high demand within the vehicle industry. More importantly, due to the development of technology in the vehicle industry, many people are adapting to purchasing electric vehicles, thus moving the electric vehicle from the introduction stage of the industry life cycle to the growth stage. Also, Tesla is in the growth stage of the organizational life cycle. The above aspect is because Tesla vehicles have expanded their market from its defined niche to the national level. Tesla’s strategy aligns with the two lifecycles because their electric vehicle is gaining national attention and demand within the market (West).

1. Is the Electric Vehicle industry becoming more consolidated or fragmented at the time of the case? What evidence do you see for consolidation or fragmentation? What are the strategic implications for Tesla of this consolidation or fragmentation activity?

The electric vehicle is highly fragmented as it comprises medium-sized and large companies. Due to fewer market regulations, the electric vehicle industry allows even low-revenue companies to participate. The strategy implication of the electric vehicle industry being fragmentation is that the dealers are using different manufacturers and suppliers for their production process. In such a manner, the production supply is highly limited as most suppliers aim to make profits (West).

Q2 INNOVATION

1. What is Tesla’s approach to innovation? What forms of innovation and what degrees of innovation does Tesla pursue? Please use specific examples from the case to substantiate your answer.

The incremental innovation strategy is the innovation approach for Tesla Company. Re-imaging the existing production technologies is the main form of innovation pursued by Tesla Company. In this regard, Tesla Company aims to improve its traditional and existing technology to cope with the new technologies in the market because it is cost-effective compared to introducing new technology. For example, due to the technological advancement with the previous technologies, Tesla has become the first American vehicle automobile start-up company within the last century (West).

1. Based on your answers to 1A, 1B, and 2A above, what strategic recommendations do you have for Tesla to achieve its Master Plan, Part Deux?

Enhancement in manufacturing efficiency is the recommendation Tesla Company should implement to compete favorably with Deux Company. This is because Tesla Company aims to extend its foreign market, whereby timely production is key to satisfying customers and achieving a competitive advantage over its foreign competitors (West).

Work Cited

West, Page. “Strategic Management: Value Creation, Sustainability, and Performance,” 6th ed. Riderwood Publishing, 2020. ISBN-13: 978-0-9911552-9-3