Strategy and Prioritization Selection
Cost Leadership Strategy
- Amazon should continue selling its products at the lowest possible prices to maintain economies of scale.
- Amazon must resume its excellent return policies and free shipping offers to preserve its consumer base.
Growth Strategy
- Amazon can revamp its Kindle product line on a necessary periodic basis to gain a competitive edge in the tablet/e-reader industry.
- Amazon should consider the development of products like a laptop or a smart phone as they did for tablets
Technique Analysis
Cost Leadership and Differentiation Strategy for Amazon
- Premium products at non premium prices
- Free Shipping offers
- Amazon Prime program - free two day & discounted overnight shipping (Mirrow, 2005)
- Decrease the cost of Kindle and Amazon Web Services (AWS)
- Use Technology as an enabler in the form of AWS and Kindle
- Kindle Fire's pricing model a differentiator in the tablet market.
- Amazon provides on-demand resources and long term storage service as part of their cloud services