Amazon Kindle- Value Innovation Essay

516 Words3 Pages
Change in Consumer Lifestyle over Time When looking at changes in consumer lifestyle in the past decade, the most salient feature has been the sharp increase in dependence on technology to acquire information and media. In tandem, the act of reading physical books has declined considerably as information is more quickly and easily obtained via any device with Internet connectivity. As lifestyles of the young and middle-aged demographic become busier with more people on-the-go and reliant upon compact technological devices, physical books and bookstores are slowly becoming obsolete. However, a segment still exists that enjoys reading books during leisure time, such as during travel, but carrying around many books at a time can be cumbersome and inconvenient. Value Innovation – Amazon´s Kindle Amazon saw the opportunity to offer books and other media from its own collection to consumers in a compact and convenient way, and in 2007, it introduced the Kindle, revolutionizing the very act of reading and launching the first commercially successful e-book reader. The Kindle, perhaps appropriately named for its ability to “re-kindle” interest in reading books among the ever-busy and tech-happy young professionals´ society of today, is a salient example of value innovation in response to changing consumer trends over time. Kindle´s Sources of Value The figure below demonstrates the Kindle´s value curve compared to a traditional hardcover book. The 6 factors examined were accessibility, resilience, convenience, variety, internet connectivity and price. Accessibility – Accessibility of a hardcover book depends on the specific book, as some books are out of print and more difficult to access. The Kindle offers books from the vast Amazon selection of 90,000 e-books, including many books that are currently out of print. Resilience – The traditional book can

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