Amazon +Kaizen

Posted: April 24, 2011 in Uncategorized

Back in 2007 when Kindle was launched to the market, it was a breakthrough in product! Engineered well , but launched at a price of 399, the buyers had to be  a class apart. Success of Kindle triggered emulation by competitors, but Amazon kept on reinventing not just in the product, but on the pricing and partnership and distribution strategy.

Pricing: Healthy competition made the consumer the winner. Amazon’s kindle was always available at a competitive price when consumers looked at ebook readers in the market. The best part is, amazon reinvented it’s pricing model this month and announced that they will sell an ad supported version  for $114 which is bound to attract a good chunk of price sensitive e-book consumers.  I am sure this model will be emulated again, but amazon may have an approach ready in store to counter the copycats.

Distribution: Even though Amazon started as a pure click and mortar, it has done well to create a perfect amalgamation of brick and mortar with its core click business. Distribution of Kindle at BestBuy and Target stores can vouch for this.

Partnership: At it’s best. Amazon just announced access to 11000 library book lending capability.

When it comes to seeing Kaizen in technology businesses, I find Amazon somewhere on the top of the chart.


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