Assignment

This assignment will introduce you to some key marketing fundamentals: positioning a product, selecting target markets, developing a competitive strategy and understanding how business models can differ. There is also an operations component to the case in that operations plays a critical role in the product's value proposition.

First, read the Kindle Fire case and then make sure, as you read the case, you consider the following issues:

• What is the nature of the product?
• What is the product's value proposition?
• Who is most likely to purchase it?
• How would you position the product to compete against key competitors?
• What is the difference between Amazon's business model and that of its principal rival, Apple?

Answer the following questions:

1. What is Kindle Fire - a tablet or something else?

2. Who should Amazon target with the Kindle Fire - which customer segments are most promising and how would they use the product?

3. How should the Kindle Fire be positioned against the iPad and other tablets? This is best determined by deciding what the Kindle Fire is - hardware or something else.

4. What, in your view, is the business model Amazon is pursuing for the Kindle Fire?

5. If Amazon were to pursue the model favored by wireless services, heavily subsidizing the product in order to gain long term contracts, is the subsidy justified? Why or why not?

6. Briefly describe the important operational elements that make the Kindle Fire a valuable product.

Requirements

• Length: 500-750 words (includes all answers to all questions)
• Word file, 12-font, double spaced
• List each question followed by your answer