WHY the AMAZON Fire Phone FAILED? And why the World Greatest Phone should not ACCEPT DEFEAT





WHY the AMAZON Fire Phone FAILED?
And why the World Greatest Phone should not Accept Defeat
-jcombalicer 20150917

I love AMAZON Fire Phone! That is what I have told my students a week after AMAZON announced the Fire Phone, way back June of 2014.

Although it will never be available in our country, I showed the video presentation with great enthusiasm, the great designs and details of the AMAZON Fire Phone to my class and ask my students what do they like about it and what do they dislike about this new great phone. I even told them that this might be the greatest contender against the iPhone.

I told them how great it was and how did it get all the details that a user wants and what the user needs, and lastly what the user will need soon.

I discussed how powerful and moving this revolutionary product that will shake the market soon.

And now after over a year of great dismay this wonderful product failed to shake or move the market, it took heavy losses and face slow death with staggering discount after discount.

So what happens before and after the product launch?

Let us analyze what happen:
1.       Did the Marketing team failed? NO, it was so good, it was very nice and enticing as if almost you want to open your wallet and buy it immediately.
2.       Did the Engineering team failed? NO, they did a great job creating a very innovative product, the dynamic perspective is so awesome it leaves other smartphone behind by 10 years. And the headphone set the best standard for basic set.
3.       Did the Support team failed? NO, the mayday is superb and exceptional. The envy of Apple and Samsung.
4.       Did the Sales, Management and Etc. failed? NO, they did the right thing of introducing Amazon Fire Phone to the masses. Ok, but in all honesty, they failed on creating a very good initial price point like printer and ink, and also one of the biggest failure is making it so exclusive in just one network. That decision alone is so 2005, we are now in a world of competitive networks and more user choices.
But all of those was very minimal compared to what is really lacking on Amazon Fire Phone that makes it Flop, it is the same problem plaguing the windows phone and probably the soon to be release Ubuntu phone, the lack of apps.

Based on my market research (after personally spending a hefty bucks on real time market data)
·         almost 80% of active online users are using Android SmartPhone (not tablet)
·         and almost 75% of those users are 13 to 18 years old.
These are the new market of technology, very technical savvy and adventurous. The lack of wide selection of library of apps can kills a great product and that is the Amazon Fire Phone.

Now after over a year of launching one of the greatest phone the Amazon Fire Phone, it already mark it death and no longer sold online. It was the greatest conceded of defeat.

And with the news of a new product coming out of Amazon, the low cost Amazon Fire Tablet. How this will fare up with the rest of the bestselling tablet, what will make us want to buy this new low cost tablet:
·         will it offer the same user experience of iPad mini
·         or will it give the same disappointing user experience of an entry level android tablet with
o   unresponsive design,
o   delayed input controls,
o   mediocre quality,
o   tin can speaker and etc.
But most of all will it suffer the same App Market problem of Amazon Fire Phone.

In order to understand the success of the Amazon Fire Tablet, let us set the correct market segmentation, the Fire Tablet and Fire Phone have a different market. The Fire Tablet is successful primarily because it has a target market of loyal Kindle users who are exploring beyond the e-ink technology, in which the Fire Phone doesn’t have and/or maybe the new low cost Fire Tablet will not have also.

How are we going to solve this Amazon App problem?

Solving the app problem is no easy task, specially Amazon is already late in the game like Microsoft, they tried to introduce new development platform very now and then, and then change name also very often, this conundrum makes people so confuse and it created now an extreme fragmentation of resources that makes it too difficult to find the right information to build a very simple app. In the end developers doesn’t want to spend too much time researching, learning, developing and maintaining app, they decided to give up and stop wasting valuable time and resources creating app for a platform that doesn’t know where to go and how to go. It becomes the slow death of Microsoft Mobile or Metro or Windows Store or Universal App… too many names and everyone are confused. One of the key factor that Amazon should avoid.

Is there a way to solve this problem even late on the game? Yes, there is. But 1st let us discuss what is the strongest point of Amazon. The biggest cloud service provider, bigger than Azure, Google and the rest combine is the Amazon Web Services also known as AWS. But this position is rapidly being challenge by the might of Google and Microsoft. And Amazon should not be too complacent in its leadership, a far behind challenger can sometimes leapfrog just like what happen to:
·         Motorola, Nokia, Blackberry vs. Apple,
·         or Google vs. Altavista and the rest of the search engine,
·         or even Facebook vs. Friendster and the rest of all the social networks.
The leading company must maintain its leadership and continue to revolutionize product, services and delivery.

Having said all of that, what is the biggest problem of Amazon right now?

It’s easy today to say otherwise that nothing, Amazon doesn’t have any problem at all. But in reality and all honesty, though it might be the leader in e-commerce, hardware and cloud, but fearfully it doesn’t do well connecting each tower, leaving each one vulnerable. Spinning off AWS will further create more problem, yes it will give much value to the investor in short term but what would Amazon do sitting in too much pile of cash today and have nothing for the future. AWS spin off will instantly kill the original amazon, with so many online marketplace it will give an instant prime death to Amazon as the leader in electronic commerce. Soon AWS will become so big that will further eclipse its competitor by many folds and also eclipse the core business of Amazon, but it’s ok, it’s a healthy transition. The answer is not about creating a new company out of AWS, this is actually the tower that will support all other business revenue channel that Amazon have today and will have for the future.

Now to answer those two hanging question what can be done even late in a game and to address the Amazon biggest problem, the answer is holistic integration of its resources, complimenting each other strength and weaknesses. AMAZON is the leader on three category e-commerce, hardware and cloud (AWS) but there are no strategic link that will connect these three towers in a holistic approach. The weakness of the other tower can be solved by the strength of the other towers. Thus it creates a Triangle Loop Solutions, a loop that naturally allowed to descend to be able to recoup by the other towers making it more resilient to fluctuating demands, it makes the entire structure more strong, robust and resilient.

The best example of this Triangle Loop Solutions is the new low cost Amazon Fire tablet, it has the best e-commerce, the best hardware for its price point, and backed by the best cloud service provider. How do we connect all three of them is thru App development, and giving the power to its users to create and develop new App. This will be our focus point where all the new revolution and invention will start, for this we need to follow the linear organic leaf learning principle, this learning principle is designed for beginner, intermediate and advance user, just like a cooking show where the final product are shown 1st to inspire viewers how a marvelous thing was created and to get to know more of the very step and to dig deeper to the discipline of wonders. The organic leaf learning principle is so seamless and very well integrated that will make AWS maintain its leadership and create more useful App available to Fire OS, and also make Amazon the go to Marketplace.

The new low cost Amazon Fire tablet might be the new wave of Internet of things (IoT), more economical in price point compared to Arduino or Raspberry Pi kit, it can usher more development initiative and create a new kind of market. Creating a firestorm demands across the globe and become the de facto standard.

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