Being comfortable with being wrong

Posted: September 29, 2011 in Customer loyalty, customers/buyers, marketing

Interesting to watch Amazon take the opposite approach to the tablet market: it’s not selling a tablet or an e-reader so much as a tool for people to buy additional products from Amazon. For the record, I don’t own a reader or a tablet. I really like the look and feel of real books, but this isn’t the point. The point is that Amazon has the luxury of being wrong here or, as Jeff Bezos said when he announced the Kindle Fire yesterday, being comfortable being wrong.

The cheap price will encourage some folks to opt for the Fire as an alternative tablet but Bezos is betting that it will more than make up for its skinny margins by encouraging buyers to use it to buy a lot of additional stuff on Amazon. So, is it a souped-up reader or a poor man’s iPad?  No reason why it can’t be both. And successful at each. Even if it isn’t, it won’t really hurt Amazon. Now that’s a luxurious position to be in.

What do you think? Will the Fire ignite or burn out?



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