advertisement
advertisement

Use The Environment To Blind Your Adversary – The Amazon Kindle Has A Competitive Advantage

This week the new Amazon Kindle (Amazon’s digital book reader) has dominated tech device media coverage. While I am eager to get my hands on one after Amazon sold out of the first version during the holidays, what intrigues me most about this device is how clearly it illustrates an important part of technology innovation: that the product itself plays but a small role in its own success.

This week the new Amazon
Kindle
(Amazon’s digital book reader) has dominated tech device media coverage.
While I am eager to get my hands on one after Amazon sold out of the first
version during the holidays, what intrigues me most about this device is how
clearly it illustrates an important part of technology innovation: that the product itself plays but a small role
in its own success.

advertisement

To see this, imagine the sudden
dread that came over the young Samurai who challenged an older, weaker, but
more experienced Samurai to a duel. The older Samurai accepted under the
condition that he could pick the time and place of the showdown. As the young
Samurai approached the chosen hilltop at the precise morning hour, he was
blinded by the sun rising behind his adversary.

He could not see his
opponent. Even though he was faster and stronger, he still lost the battle.

The lesson is this: the environment matters as much as
the object, and great innovators know how to craft their environments to win.

Now the Kindle is, by all of
the reviews I’ve read, an amazing device. It uses an E-Ink®
electronic paper display
,
which
requires no backlight and therefore almost no power. Its display is made up of
ink particles that shift into the position of text and image and that look much
like ink on paper. To read at night you need a nightlight … and therefore less
battery power. The Kindle can also store an entire library of 1,500 titles on
its drive.

But what gives the Kindle the
potential to do what no other digital book has done before? That has less to do
with the actual technology, and much more to do with the “context” or
environment Amazon has created.

For example, you can download
a book in seconds from anywhere because Amazon signed a deal with Sprint Nextel
to use Sprint’s 3G network. This allows users to directly download titles to
their Kindles from the internet while watching TV or standing in line at the
grocery store.

advertisement

Unlike Sony’s reader or the
Apple iPod, the Kindle’s content doesn’t need to be first downloaded to a computer
and then transferred to the device. The user doesn’t have to deal with
connecting the reader to the computer, and this makes the Kindle remarkably efficient,
easy and fast.

This strategy is familiar to
me, and it is pattern #30: choose the
unorthodox path.

Amazon offers 240,000 books
in digital form and is rushing to expand its catalog. It has signed deals with
numerous periodicals including the New York Times that enables it to give users
access to a whole collection of subscriptions.

This is not unlike Apple’s
early strategy of signing deals with major record labels for the iPod,
effectively locking up the supply of music. If Amazon can position itself as
the preferred platform for at least some time it can create a similar
advantage.

This is another strategy that
I’ve written about before, and this is pattern #10: lock up resources.

Those are just two of the
many support innovations that Amazon is employing in the digital reader arena.
Other technologies have used the same patterns, and these strategies continue
to be successful. I’m not saying that Amazon is guaranteed to win this battle
of the readers, but I wanted to point out that Amazon seems to be opening with
a strong set of winning plays that offer the Kindle a competitive advantage.

advertisement



About the author

Author of Outthink the Competition business strategy keynote speaker and CEO of Outthinker, a strategic innovation firm, Kaihan Krippendorff teaches executives, managers and business owners how to seize opportunities others ignore, unlock innovation, and build strategic thinking skills. Companies such as Microsoft, Citigroup, and Johnson & Johnson have successfully implemented Kaihan’s approach because their executive leadership sees the value of his innovative technique.

More