Kindle Business Model Presentation

This Research work was co-presented by Regina Nkemchor Adejo, Victoria Friebel and Manar Wassouf.

Transcript

1. Business model Kindle Business Model Victoria Friebel Regina Nkemchor Adejo Manar Wassouf
2. Competitive value Value proposition Revenue model Business model Customer segment Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Kindle Kindle Defined: • E-book reader by Amazon • launched in 2007 • undergone a series of design changes • 8 generations • Kindle Oasis (2016) Device App E-book store Background
3. Competitive value Value proposition Revenue model Business model Customer segment Values (Anthropocene, pandemic reality) Perceived needs Background Types of value
4. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Readers Authors Publisher Advertiser Customer Segments
5. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Readers Satisfied Needs • Convenient reading experience • Cheap prices • Flexibility • Environmental friendly • Saving space • Time saving purchase Authors satisfied needs • Quick publishing process • Higher profit margins • User friendly upload to platform • No stock limitation Advertisers satisfied needs • Achieve coverage (benefit from Amazon‘s broad existing data base) • Profit generation Publishers satisfied needs? • Kindle store as additional Point of Sale • Profit generation • Increasing chance for bestsellers
6. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Anthropocene More environment-friendly 1 Lower Carbon emission 2 Electronic Waste 3 (Recycle your device, Trade in your device) Pandemic Lock down Closed libraries and bookshops Social distancing 1,2 conducted by Cleantech Group, research and media company 3 Trade-In Your Device or recycle your device, Amazon.com
7. Competitive value Value proposition Revenue model Business model Customer Segments Values(Anthropocene ,pandemic reality) Perceived needs Background Types of value Social Values • Amazon depicted that Kindle users read four times as many books as prior to owning a Kindle.1 • Create knowledgeable generation • Stress free society • … • Building reading communities -like book clubsCreates • Jobs or career opportunity: (Reduces unemployment rates)- digital content and publishing teams etc Economical Values • Compatiblity with different devices even from compititors. • Kindle app can be used on different devices so that other companies also benefit from the service • Related to the company itself: less production costs . Environmental Values Discussed earlier 1 . Mar 03, 2015. https://www.hbs.edu/openforum/
8. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Readers Flexibility Cheaper prices Time saving purchase Environment al friendly Convenient reading experience Saving space Expand book library Fast delivery E-ink Technology Self-service Gaining knowledge Satisfy reading hobby Low privacy Amazon policy change Missing aesthetic aspect Internet required (costs) Content quality issues Lack of colors Digital infrastructure enhancement Quality Control Graphic enhancement Aftersales services Online bookshop Videos games
9. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Other customers Higher profit margins Easy upload to platform No stock limitation Delivering content High competition Quick publishing process Quality Control Kindle publishing policy No production costs User friendly interfaces Aftersales services Online bookshop Videos games
10. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Readership • extra features: change font size, highlighting is not permanent, search function, cross references • Lending/sending book as a gift without meeting in person/delivery • unlimited amount of books in one device Authors • No stock limitation • Higher profit margins • Easier publication without publisher • Easy upload of e-book to KDP • Quick feedback about publication Device layer (e.g. iPad) • dedicated e-book hardware (Kindle device) with “e-ink display” which is more similar to a conventional book • hardware is at lower cost than Apple’s iPads Service/content layer (iBook) • Kindle store: non-agency books often cheaper on Amazon (prices set by publisher in most cases) • large selection of e-books and specials on popular books • compatible with various operating systems and platforms • Subscription service
11. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Revenue model Kindle makes money from Selling the device Selling ads Selling the contents(Ebooks) $ $ $
12. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Key Partners Key Activities Key Resources Value Propositions Customer Relationships Channels Customer Segments Cost Structure Revenue Streams • Authors • Publishers • advertisers • Readers • Authors • Publishers • Advertiser • Commissions • Selling the device • Monthly Subscription • Advertisers • Commissions to authors • Software development • Customer service centers • Hardware production + development • Marketing(branding) • Kindle app • Retailers • Amazon.com • Social media • Competitive pricing • Daily offers • Convenience • Books on demand • Portable device • Huge library • S&H developmenet • Create relationships. • promotions • Aftersales • Reviews • Social media • Customer service centers • Amazon brand • Platform (algorithms & Data) • People
13. Competitive value Value proposition Revenue model Business model Customer Segments Values (Anthropocene, pandemic reality) Perceived needs Background Types of value Thanks for Listening