This website uses cookies to ensure you have the best experience. Learn more

Technological Leapfrogging In The Book Industry

813 words - 4 pages

Amazon is not a good example of a company that accomplished technological leapfrogging in the book industry.
In an industry where a standard has emerged the company that holds the rights to it and can appropriate much of its network externalities is called an incumbent. Due to the competitive advantage offered by a standard, the incumbent is always challenged by companies attempting leapfrogging- the replacement of current standards by a new, incompatible technology that is usually realized through the improvement of the technical characteristics of the product.
Looking at the book industry, more precisely, at its newly developed E-book segment it became obvious for all the ...view middle of the document...

The new platform brought one big improvement: it could connect to the internet through wireless technology, what they called whispernet.
It was not this innovation that allowed Kindle to become a standard, rather the complementary products it offered through a system that was already in place that made the difference. With the permanent link between Kindle and the user`s Amazon account, one could easily download any book in 60 seconds with payment being made instantaneously. The wireless technology was an improvement but without the Amazon account connection it would have offered little benefits.
The price set for a product that is trying to establish itself as a standard is an important signal. The first Kindle was priced at 399$ and it sold out after appearing on Oprah. This shows that Amazon was using two of the leapfrogging strategies: showing commitment through well done marketing campaigns and offering discounts in order to encourage adoption: Kindle could have easily produce a much higher marginal profit if it had a higher price but Amazon decided that the network externalities that will follow mass adoption of the product will offer greater opportunities.
Deriving profit from the complementary goods through licensing and royalties was a strategy used by Nintendo in the video console industry (Schilling, 2003). The same behavior can be observed at Amazon. By making connection so easy to the Amazon account and not allowing Kindle users to purchase books from other retailers through the AZW3 format, profits were not made by selling the actual...

Other Papers Like Technological Leapfrogging In The Book Industry

The Manufacturing Industry In India Essay

1127 words - 5 pages India’s manufacturing sector is an important cog in the wheel of economic progress and development; the segment’s contribution to the Gross Domestic Product is 16% ( India Brand Equity Foundation, September 2013). Post economic liberalisation era, India has realised the important role of manufacturing industry in the overall industrial development. In this context even the government has been very proactive. The recent initiative counts back to

Slavery in the Chocolate Industry Essay

669 words - 3 pages The case study Slavery in the Chocolate Industry raises systemic, corporate, and individual ethical issues with all the parties involved in the chocolate industry. Systemic issues in business ethics are ethical questions raised about the economic, political, legal, and other institutions within which business operate. (M. Velasques) Corporate issues in business ethics are ethical are ethical questions raised about a particular organization

Teamwork In The Hospitality Industry

1932 words - 8 pages Teamwork in the Hospitality Industry Teamwork is the primary gear that enables any business to run smooth and efficient. In this paper, the role of teamwork in regards to the food and beverage industry, entertainment, and accommodation will be discussed. Outcomes will be considered, and results of effective teamwork will be analyzed. Ultimately, each component of the industry will be examined in order to conclude how teamwork makes these

Slavery In The Chocolate Industry

525 words - 3 pages Question 1Which of the "obstacles" to moral behavior do you see at work in Aaron Beam's behavior and thinking? In Scrushy's ? Moral brings the meaning of private conduct based on strict adherence to a sanctioned or accepted code or dogma of what is right or wrong, particularly as proclaimed in a sacred book, or by a non-secular group or sect. Moral behavior is the way of peoples' acts or conducts oneself based on accepted code or dogma of what

Traceability in the Wine Industry

2381 words - 10 pages Group in 2003 together with the British Wine and Spirit Association (WSA) and its French counterpart -Association Française des Eleveurs, Embouteilleurs et Distributeurs de Vins et Spiritueux (AFED). The objective was to adapt the GS1 System for its implementation by the wine industry to facilitate compliance with the traceability-related provisions of the General Food Law - Council Regulation. These standards provide a common language of business

Sustainability in the Hotel Industry

2316 words - 10 pages Memorandum To: Dr. XYZ CC: From: XYZ Date: MM/DD/YYYY Re: Sustainability in the hotel industry: weak in one pillar! For my assignment for BADM 798 Spring YYYY course, I interviewed a hotel executive to determine the company’s (i.e. hotel’s) perspectives on sustainability. The business professional I interviewed was Mr. XYZ, the Executive Director of Ramada Inn - American City. Mr. XYZ has Post-Graduate Diploma in Business Management as

P3: Describe the Main Physical and Technological Resources Required in the Operation of a Selected Organization

696 words - 3 pages properties is a type of technological resource. intellectual properties gives a company the right to own their own business ideas and it also allows them to give other companies the license to use the idea in a way. An example of this is patent. patent; patent is a product or service which is protected from any person or company who tries to company any business ideas. copyright; copyright is a legal term used to describe the rights that

Technological Advancement In Faust, Accident, Life Of Galileo, Oppenheimer, And The Physicists

2647 words - 11 pages The Cost of Technological Advancement Exposed in Faust, Accident, Life of Galileo, Oppenheimer, and The Physicists        Since the beginning of time, man has taken every step possible to advance technology.  Advancements in medicine, aviation, science, and other areas, have made our world a better place to live.  But there have also been technological developments that perhaps have hurt mankind far greater than any benefit that they have

Survival In The U.S. Funeral Industry

2311 words - 10 pages Abstract The funeral industry, one of the oldest and among the most stable of industries regardless of economic trends, is facing one of the biggest challenges of its existence, and the threat is coming from an unlikely source – their own customers. People’s attitudes towards funerals have been changing and as a result, the number of traditional funerals has been declining. "Show me the manner in which a nation cares for its dead and I will

Stratagies for Competition in the Golf Industry

1207 words - 5 pages original purpose, emergence of new technological paths and market rivalry. (Gamble, 2011) This would not be the right strategy to pursue if the end goal is to gain a competitive edge. It requires potential competitors to work together. However, because the biggest issues affect the whole industry, this would be an appropriate strategy. Other issues associated with strategic alliances are that a company could become too dependent on the others in the

Cherish the Technology in Domestic Hongxing Industry

548 words - 3 pages drying, cement rotary kiln and some other mining machines, which can make a big difference in the fields of coal, power, chemical industry and building construction, and which also provide the credible and efficient guarantee on technological equipment in order to satisfy the demand for raw material and energy needed by our national economy. One enterprise should pay much more attention to the independent research and innovation on the mining machine

Related Essays

A Study Of The Technological Environment Of Mobile Services Industry Of India

5269 words - 22 pages consisted of students, young adults and business class. Conclusion The technological environment in the mobile services industry is fast changing and exciting. The marketing being done by the mobile services companies is starting to reach a fevered pitch due to the increased competition. There are politics being played in the allocation of spectrum. The CDMA and GSM sides are vying for market-share in the Indian market. Coupled with

A Growing Trend Of Academic Dishonesty In The Technological Era

1879 words - 8 pages Due to the emerging technological era, the propensity to cheat in an academic environment is becoming increasingly enticing for students and problematic for their instructors. As technologically savvy students become more creative in committing acts of academic dishonesty, their instructors must become increasingly competent in their endeavors to deter cheating. With the convenience of computers and online data, unfortunately, an unwelcome new

Pricing In The Gaming Industry Essay

2277 words - 10 pages virtually anywhere. The life cycle of a console is another aspect that affects the pricing of a console. The video-gaming industry is characterized by a 5-year cycle: the games console has roughly a 5-year life cycle before being replaced with new, and improved technological hardware. Companies sell their products at prices that are below costs making profits only through the sales of games in the form of licensing fees. This is key in

Challenges In The Publishing Industry Essay

1169 words - 5 pages Progress Report 2: The Challenges in the Publishing Industry A. We have chosen to cover the issue of the challenges in the publishing industry. First we will examine what is copyright law and how it encourages the creation of published works while limiting the accessibility to those works. In fact, copyright laws protect artists from having their works stolen or copied and sold for lower costs, and therefore guarantee them certain revenue. The