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  Search<br />Team 6<br />
  Search<br />Agenda<br />
In eBooks, competition exists within and among hardware, software, and content providers…<br />Where should Amazon focus i...
  Search<br />Current Analysis<br />
  Search<br />Capabilities<br />
  Search<br />Core Competencies<br />2008 Consolidated Net Sales <br />eBook Sales<br />$480M1<br />Media Sales - $11.2B<b...
  Search<br />eBook Stack<br />
Stack + Vulnerabilities<br />  Search<br />Stack & Vulnerabilities<br />Kindle secured first-mover advantage for Amazon, b...
Stack + Vulnerabilities<br />  Search<br />Recommendations<br />Storage layer <br />lock-in<br />SDKs<br />Direct-from-Aut...
  Search<br />Recommendations<br />
  Search<br />Own The Storage Layer<br />Stack + Vulnerabilities<br />With uncertainty at the top of the stack, being posi...
  Search<br />Developers Will Help Drive Growth <br />Stack + Vulnerabilities<br />Using developers to help drive organic ...
  Search<br />How Organic Growth Occurs<br />Stack + Vulnerabilities<br />Once the most popular applications have been ide...
  Search<br />Pursue Relationships with Authors<br />Stack + Vulnerabilities<br />Authors have traditionally been at the m...
  Search<br />Measuring Success<br />
  Search<br />Balanced Scorecard<br />Stack + Vulnerabilities<br />The balanced scorecard approach to measuring success wi...
Amazon is well positioned to define and take advantage of the evolving marketplace by:<br />Controlling the storage layer ...
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Strategic Recommendations to Amazon

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Recommendations for Amazon to continue to grow and evolve the Kindle product line, in light of new competition from the iPad

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Strategic Recommendations to Amazon

  1. 1. Search<br />Team 6<br />
  2. 2. Search<br />Agenda<br />
  3. 3. In eBooks, competition exists within and among hardware, software, and content providers…<br />Where should Amazon focus its energy and resources?<br />Storage and Standards<br />Kindle Application Software Development Kits<br />Capturing Value with Authors<br /> Search<br />Executive Summary<br />
  4. 4. Search<br />Current Analysis<br />
  5. 5. Search<br />Capabilities<br />
  6. 6. Search<br />Core Competencies<br />2008 Consolidated Net Sales <br />eBook Sales<br />$480M1<br />Media Sales - $11.2B<br />Electronics & General Merchandise - $7.5B<br />Kindle Unit Sales<br />$299M1<br />Services & Financial $0.5B<br />1 Sources: Businessweek.com and NYTimes.com<br />
  7. 7. Search<br />eBook Stack<br />
  8. 8. Stack + Vulnerabilities<br /> Search<br />Stack & Vulnerabilities<br />Kindle secured first-mover advantage for Amazon, building on storage core capability. However, because of new entrants, it’s current position in each layer is threatened<br />User<br />Book Stack<br />eBook Delivery Stack<br />SDK/<br />Apps<br />Delivery<br />Device<br />Publisher<br />Content<br />Delivery<br />OS<br />Editor<br />Telecom<br />Author<br />Storage<br />
  9. 9. Stack + Vulnerabilities<br /> Search<br />Recommendations<br />Storage layer <br />lock-in<br />SDKs<br />Direct-from-Author Publishing<br />
  10. 10. Search<br />Recommendations<br />
  11. 11. Search<br />Own The Storage Layer<br />Stack + Vulnerabilities<br />With uncertainty at the top of the stack, being positioned at the bottom enables greater value creation<br />SDK/<br />Apps<br />eBook Delivery Stack<br />Establish the Storage Layer standard<br />Create options value through file extension standards (ePub, .amz)<br />Predicted Outcome<br />Architectural Control Point captures value from upper layers of the stack<br />High quality options value at device layer<br />Maintains strategic price point<br />Device<br />Content<br />Delivery<br />OS<br />Telecom<br />Storage<br />
  12. 12. Search<br />Developers Will Help Drive Growth <br />Stack + Vulnerabilities<br />Using developers to help drive organic growth will enable Amazon to quickly and efficiently identify new markets to place new strategic bets<br />Applications<br />Popular Apps<br />
  13. 13. Search<br />How Organic Growth Occurs<br />Stack + Vulnerabilities<br />Once the most popular applications have been identified, network effects will begin to take shape and bringing in new users and web developers<br />Applications<br />Popular Apps<br />
  14. 14. Search<br />Pursue Relationships with Authors<br />Stack + Vulnerabilities<br />Authors have traditionally been at the mercy of the publishers. However, with the new eBook model, they have a choice – one that is more profitable and efficient for Amazon and authors<br />Amazon has taken control of the storage layer, captured value at the device level and now can explore backward-integration opportunities<br />User<br />Traditional Model<br />eBook Model<br />Delivery<br />Publisher<br />Editor<br />Authors<br />
  15. 15. Search<br />Measuring Success<br />
  16. 16. Search<br />Balanced Scorecard<br />Stack + Vulnerabilities<br />The balanced scorecard approach to measuring success will ensure that Amazon is tracking the correct metrics to meet and exceed its strategic goals<br />
  17. 17. Amazon is well positioned to define and take advantage of the evolving marketplace by:<br />Controlling the storage layer of emerging eBook stack<br />Relying on developer platform to lead market development and innovation<br />Use industry leadership position to pursue direct relationships with authors<br />Stack + Vulnerabilities<br /> Search<br />Conclusion<br />

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