Amazon:
sadly faced a rather large misfit, even in their core US marketplace.
Their
organizational resources allow them to excel as an online retailer, but are not suited to
coming up with a marketing strategy that responds to market needs and conditions in the
high-end smartphones segment.
Customers want the basics (e.g., battery life and look and
feel of the phone) to be done well, plus technologies that really add value (touching the
screen with your fingers is more accurate and predictable than the 3D display that tracks your
head’s movement) in a fun way.
Amazon figured they could enter a highly competitive market with their first product and
make a difference.
That proved not to be the case.
Apple made mistakes when it first entered
the smartphone market, as the case study shows, but the difference is that they were pioneers
and were shaping customer needs.
They had the opportunity to come back with a better
product.
Amazon is a late-mover, facing serious competition from a range of firms
experienced in the sector, and needed to get it right first time.
It would have had a better
chance if it went to market with a mid-level entry product playing to its efficiency strengths.

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- Fall '16
- Sandra Bernie