Earlier this month, Amazon announced its new line of Fire tablets: a full salvo of three new devices, each with an HD screen. It’s now perfectly clear that Amazon wants to compete with the big boys, Apple and Google, and try to wrestle itself a big ol’ slice of the tablet profit pie. No longer content on selling just e-readers, Amazon is stepping up its game and advertising the new Kindle Fires as full-fledged tablet computers. But can they really compete with the goliath that is Apple, Inc.? Here are five good tactics Amazon should adopt if it wants Kindles stuffed into stockings instead of iPads this Christmas:
1) Apologize for the whole “Special Offers” debacle
When the new line of Kindles was announced, Amazon marketed that each tablet came with “special offers,” which sounds great until you figure out that “special” means “annoying” and “offers” mean “advertisements.” Like the previous version of the Kindle Fire, the new tablets would feature advertisements built in to the operating system. However, on the old version, you could pay a fee (let’s face it, it’s a fee) to remove all of the ads, sort of like what Spotify and other websites offer. The Kindle Fire HDs had no such option when they were announced. Due to completely understandable and very vocal outrage, Amazon quickly reversed its decision and announced that the new models would have an opt-out option. The bitter taste of forced advertisements is still in mouths of potential Kindle buyers, though. It would be nice to have no ads at all and keep the prices the same, because the pop-up ads are exactly the kind of nickel-and-diming stuff that consumers like me hate. Which brings me to my next point…
2) Differentiate “inexpensive” from “cheap”
200 bucks (or $215 if you don’t want ads) is a pretty darn good price for a tablet computer, especially one with iPad-challenging specs. The problem is, a lot of consumers equate the low price tag with low quality. If Amazon really wants to make an impact with these new tablets, they’ll have to dissuade people from referring to their baby as the “cheaper iPad.” The Kindle Fire HD 8.9″ 4G LTE Wireless + Kitchen Sink version, which costs $500, will cost the same as an iPad but offer several improvements, which should alleviate some of this problem.
3) Make friends with Google/tap into the existing Android app market
Amazon’s got a hell of a lot to offer, but even with hundreds of thousands of books and an impressive database of movies (brought to you by Amazon Prime), it just doesn’t have the same applications as Android devices (like Google’s Nexus) or the iPad. As Jared Newman at Time Techland points out, Apple has a huge advantage in the app market, and that head-start may be insurmountable. However, Amazon can help bridge the gap somewhat by adopting more Android applications, such as the ones found here. With those key apps under its belt, the Kindle Fire HD will have a much easier time competing with the iPad. Amazon did release development requirements, which was a very smart move: developers (like we here at Rapid) who jump on board early and develop an app for the device could find themselves with early-adopter advantage.
4) Really push the advantages offered by the three Kindle Fire HD versions
I’m actually surprised that Amazon hasn’t come out with an official comparison chart yet. Seriously, it’s a good idea (hire me, I’ll make it for you). Potential Firebuyers might look at the prices and stop there, missing the fact that each version of the new tablet offers many advantages over the iPad. Amazon does like to push the fact that its Kindles have faster download speeds than the iPad (I won’t post the chart, I know you’ve seen it before), but because this can and will vary wildly by user, it would be more beneficial to make advertising material that presents more tangible advantages over the iPad (that sexy aspect ratio, for example).
5) Pray that Apple doesn’t release a cheaper iPad
Unfortunately, Amazon may only get a few days in the sun. Word on the grapevine is, Apple is already developing a smaller, cheaper iPad, which will be a direct competitor to the Kindle Fire HD. If Apple undercuts Amazon’s biggest selling point, the price, the Kindle Fire HD may not be able to recover because it lacks the cachet of the iPad. Apple, frankly, has way too many fanboys for Amazon to take head-on: that’s why it was a very smart move to develop a tablet that wouldn’t directly compete with the iPad. However, if the rumors are true and the iPad Mini is in production, Amazon may not be able to succeed.
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Source:
http://rapidconsultingusa.com/blog/?p=384