Innovating for the Mobile End-User Market: Amazon's Kindle 2 Strategy as Emerging Business Model

Abstract

Using the example of Amazon’s Kindle 2 launch, this exploratory case study research investigates an emerging mobile business model in the eBook market that closely connects an innovative device with access to content. Reflecting on the business model and innovation literature, the paper points to the potential of an emerging mobile business model that relies on radical innovations to change industry structures combined with high uncertainty. Based on the case study of Kindle 2, the study reveals the need to align innovative products and services with a company’s overall brand strategy to avoid dilution. Finally, it suggests that a mobile business model based on a proprietary approach can be successful in the short run, its long run success depends on the ability to react to new market requirements and competitors. The paper concludes with a reflection of how business models need to be dynamically re-adjusted in such a fast moving field.