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Amazon (Kindle Fire) - Research Paper Example

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In order for it to stay at the top in its sales, more needs to be done to obtain competitive advantage that is essential to get rid of any competition in the prospect. Comparing with the rest of the firms, Kind Fire presents a gap of about $300 for a similar commodity, thus, allowing customers to enjoy significant sales from its target markets. The gap exists because the other firms seek to sell their commodities at $499 while Kind Fire sells its commodity at $199. From the recent market results, Kind Fire has hit a sale of five million in the period terminating on December 2011 although Amazon has already resolved to stop working for this company. In comparison, the market leaders Apple Inc. sold at eleven million for their iPad in the last quarter, thus, presenting an undefeatable upper hand. According to the CEO of Amazon, the company aimed at realizing smaller profits from these devices although in its capacity as the retail company has resolved to dwell in smaller margins a factors that only few electronic firms would manage. Comparing to other firms, Kind Fire from Amazon Inc. has revealed excellent pricing strategies, through price elasticity in order, to keep sales high above most influential firms in the sector. According to most analysts, Amazon has not much interest in obtaining a gap in the tablet device market rather it views it as an opportunity to develop into the market for the digital world and make use of the vast opportunities that exist within the target market (Rohida 1). The firm has the chance to present its services to Kind Fire similar to their tests concerning the digital content. In order to realize these objectives, Kind Fire and Amazon have used price as the tool for entering into the market. Price is considered to determine the purchases that occur within the digital and electronic markets. With the emergence of Apple Inc. and other firms that market commodities such as the iPad, the world has presented demand for the commodity although the prices do not favor the customers. Unless a marketer manages to offer his or her product an edge over the competitor’s commodity, only little sales can be realized. Therefore, marketers ought to give their firms an edge over the competitors in order to acquire competitive advantage that serves to augment the sales of firms that manage to establish one. Pricing strategies are offered on various grounds through consideration of different concepts such as the target market, demand, assortment of products offered and the commodity life cycle (Roth 2). Pricing strategies assists the marketer in realizing his or her pricing objective. Therefore, the pricing objective that a marketer prefers assists in the creation of the best pricing strategy. Both the pricing objectives and pricing strategies are guided by the business plan that a certain firm places in the business environment (Roth 2). Selection of a pricing objective precedes the determination of the best pricing strategy for the firm. Kindle Fire utilizes the penetration pricing strategy in which the firm seeks to obtain entry into the market environment, especially if there are other already established firms with a similar product. The aim of utilizing this pricing strategy is to attract customers into purchasing products from the new market entrant and improve the market share of that firm (Roth 5). In case the anticipated extents of the ...Show more


Name Instructor Task Date Amazon (Kindle Fire) Introduction Kind Fire tablet from the Amazon Inc. has gained a lot of popularity from the populace through its best sales and friendly prices for its commodities. According to research concerning the company, it is estimated that it charges around $199 without other forms of taxes and charges (Rohida 4)…
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Amazon (Kindle Fire)
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