Amazon's Kindle: Crossing the Chasm

Amazon had achieved success far beyond its expectations when it launched the Kindle e-Reader in November 2007. The marketing team at Amazon had adopted a "launch and learn" approach rather than target specific markets with this digital device on the cutting edge of technology. Now, six months later, it faced a more complex decision as it prepared to launch the second-generation Kindle. The team at Amazon felt that it must focus and choose its target market more precisely this time in order to position the product for long-term success. The choice of the target market would dictate not only the design and features of the device but would also influence the content, capabilities, and go-to-market strategy, including its partners, channels, and promotional tactics. The Kindle team had identified three promising market opportunities for the device---college students, mobile business professionals, and avid readers---but gearing the product toward a specific segment would likely diminish its appeal to others. Now the team had to decide which of the target markets represented the best opportunity for the Kindle.