Perfect Model Business Plan On Recommendations

One of the major problems faced by the international firm Amazon is the publisher relationship and licensing. The first recommendation that we have to solve the issue is the sharing of revenue with the publisher. Currently the publisher takes around 70% of the profit and Amazon keeps the rest of it. The publisher is no longer satisfied with their share; so they have been asking for an increment in their share. Our suggestion is that Amazon should give up a part of their profit to improve their relationship with the publisher. Maybe this will result in some loss of revenue but as an e-reader nothing is more important than the accessibility to the publisher’s library. Another suggestion is that Amazon should stop taking unnecessary action against all publishers. For example, Amazon is in conflict with Hacheette (world’s largest publisher).
Amazon tries to increase its pressure by intentionally delaying Hacheetepre-order shipment and takes off their promotional page. This action will not only spoil its relationship with the publisher but will also damage Amazon’s brand reputation. By following these points we believe that Amazon will be able to solve the problem with the publisher. Our recommendation on the hardware problem being faced by Amazon is it should improve its multimedia performance. There are many ways to do it; first is to encourage the 3rd party developer to design a game and application to maximise kindle fire performance. One of the major reasons behind Kindle Fire poor performance was that it didn’t have the application design for it like the other competitor do.
Most of the applications that Kindle Fire has are not suitable for its hardware. So after redesigning the application, Kindle Fire will be able to run many applications with full potential. We also recommend that Amazon should have different models with different storage sizes; this will not only give more options to the customer but will also increase the revenue for the company. To make these changes an increase in investment for R&D is a must for Amazon. Amazon needs to increase their options and maintain a low price to have a competitive advantage. The last recommendation that we offer is for the market positioning problem. We want Amazon to expand their Kindle Fire Product Line; this can be done by introducing Kindle Fire to students. This product will be based on the current model Kindle Fire HD 7; so that Amazon doesn’t need to change anything about their production line. And this new product should be installed with many education softwares; examples are dictionary and a science calculator.
Most importantly, Amazon should work with the textbook publishers and universities to gain access to their course structure and schedule. When students have selected their desired course, Kindle Fire Students can find out about their course text books and reading material that is required by the instructor in the semester; the software will automatically download all these things. This product will help Amazon to enter and capture the education market; there are few competitors as of now in this segment. By following the above suggestions we believe that Amazon can gain considerable market share and earn a reasonable revenue through its novel product.