Ecommerce Assignment

CP5008E

eCommerce & eCRM

Assignment

1 March 2012

Table of contents

1 Introduction 3

2 Survey and Result 3

3 E-book Market 3

4 Six Forces Analysis of the E-book Industry 4

4.1 Entry 4

4.2 Rivalry 5

4.3 Supplier Bargaining Power 5

4.4 Buyer Bargaining Power 6

4.5 Substitutes 6

4.6 Complements 7

5 SWOT Analysis 8

5.1 Strengths 8

5.1.1 Reputation and Marketing 8

5.1.2 Infrastructure for Content 8

5.1.3 Large Selection 8

5.1.4 Partnership with Sprint 8

5.2 Weaknesses 9

5.3 Opportunities 9

5.4 Threats 9

6 Strategy 10

6.1 Marketing 10

6.2 Long Term Positioning 10

6.3 Pricing 11

7 Conclusion 12

References 13

Annex I E-book Reading Device Questionnaire 14

Annex II Questionnaire Result 15

Kindle is a Success or a Failure

1 Introduction

The concept of e-books dates back to at least the 1970’s, the industry has only begun to develop since the late 1990’s. The first e-book readers appear in the market in 1998 are Softbook and Gemstar’s Rocket e-book Reader. As of today, there are only a handful of e-book readers available for consumers.

In 2007, online book retailer Amazon.com releases the Kindle, made exclusively for the American market. Amazon originally priced the Kindle at $399 and it sold out within hours of its release.

Facing a lot of competitors such as Barnes & Noble’s Nook, Apple’s iPad, Kindle is a success or a failure to Amazon?

2 Survey and Result

A survey about e-book reader device was conducted