Tuesday, September 30, 2014

Amazon Aims for Third Place

Third place is not where a brand wants to be found but unfortunately, I think it's the best Amazon can hope for in the tablet category.  They are not going to catch Apple and Samsung.  Mircosoft's $900 million dollar write-down of unsold Surface tablets could be a glimpse into the future of Amazon's new Kindle lineup.

Although it sounds logical to have one device for everything, that's often not reality.  For Amazon, they'll wind up going from marketing the number one e-reader to selling (at best) the third place tablet with an e-reading function.  Fighting for tablet sales removes a big competitive advantage they had.   

The way to win is to be the best and not to be all things to all people.  Unfortunately, that hasn't been Amazon's approach.

Furthermore, I also have serious questions about Amazon's long-term strategy of creating and marketing an array of devices with the hopes that customers will become intoxicated on free shipping and will simply buy everything online.

Amazon's should focus on delivering something of value to the customer other than making it easier to spend more with Amazon.

As always, I'd love to hear your thoughts on this topic and any other interesting marketing-related musings.

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