Amazon (Kindle Fire) Research Paper Example | Topics and Well Written Essays - 2000 words

Amazon (Kindle Fire) - Research Paper Example 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 fact ors 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 alt hough 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 stra tegy 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

Strategic management case study-skf case Essay Example | Topics and Well Written Essays - 3000 words

Strategic management case study-skf case - Essay Example At such a point in time when the world has become a global village, and when companies need to put extra efforts to get noticed by the customer, it is important for a company to stay focused. SKF, the company which is the focus of this report, needs to maintain a consistency strategy when it comes to the future and what it aims to do with respect to the new decision that it has to make. SKF needs to maintain the strategy that they have been using till now, that is, to price their product at a premium price and play on value based selling, that is, they have designed and developed their product so well that it comes out to be one of the best in the industry and the perception that they have created in the eyes of the consumer is that of a premium product which cannot be easily replicated by any other company. It is important for companies to follow such a strategy in this clutter filled world, and where product differentiation can only be done in perceptions, and not in reality. SKF is thinking of changing its value based strategy to the strategy where it will compete on price and cater to the markets where price is an important factor. This will be a very wrong strategy for SKF, since till now, they have been premium priced and price was never a factor that they even considered. Customers came to SKF when they wanted true value for whatever money that they give. There will be value that will be reflected in the products that they receive. It was a win-win situation for both the consumers and the SKF Company. But this decision to change the strategy to compete on price would take the organization into a wrong direction, and they need to correct themselves as soon as possible. One of the first things that they need to remember is that there should be consistency in the strategy of a company, especially when the strategy has helped the company build the brand name that it has, and has helped it secure the