A Market Penetration Strategy Example: Amazon Entering The Tablet Marketplace

With Apple having so much success with their Ipad, a market penetration strategy example emerges as Amazon will attempt to gain market share in the tablet marketplace. Amazon already had a great success in the kindle as they continue to dominate the reader device marketplace. Amazon recently released the Amazon cloud which will allow to share your books on different devices throughout your home. It was only sensible that Amazon offer a pumped up version of their kindle to compete, which is exactly what they did with the Kindle Fire.

A Market Penetration Strategy Example: The Hurdles Amazon Will Have To Overcome

Entering the tablet market will not be an easy task and Amazon knows this. Kindle sales have been great but recently the Ipad has been pushing a marketing campaign for users to read books on their Ipad. This is a big issue for Amazon because if people start reading books on their Ipad it will essentially kill the kindle as that is the only feature that it had before. This is why breaking into the tablet marketplace was move Amazon had to make or they would have seen kindle customers dwindle.

A Market Penetration Strategy Example: What Apple Can Do To Ensure Success

Apple has a large lead and head start in the tablet industry. They are poised to take advantage of the cloud computing revolution soon to come, and the Ipad is considered to be by far the best tablet. They have set themselves up for a huge success, and it essentially is their lead to lose. They will continue the Apple trend of putting quality devices with tweaks each year. If Apple can convince users that the Ipad can do everything the Kindle can and more, they can essentially kill the Kindle Fire and continue to own the tablet marketplace.

A Successful Market Penetration Strategy Example

While we have to wait and see how Amazon and Apple battle it out for marketshare, if you are looking for a market penetration strategy example that was successful, then look no furthur then the smart phone race.  The battle for market share in the smart phone race is a bloody battle and is a great example of needing to adapt to the your market enviroment.  The succesful market prentration example we will use will be the Andriod platform backed by Google.

The Smart Phone Race Before Android And Iphone

The early smart phones that dominated the market were typically Blackberries.  These phones were viewed as the top technological phones at the time because they essentailly combined your phone with your PDA.  These phones allowed you to email and run simple programs such as calanders and some games.  These phones were seen as technolical superior to other phones and blackberry had a strong hold on market share until the Apple Iphone hit the market.

Apple And Its Shot At the Mobile Phone Market

In 2007 Apple decieded to throw its hand in the ring and release the first model of the Iphone.  The Iphone’s touch screen and powerful operating system made it an instant success.  The Blackberry market was taken back immediately as the Iphone was much more advanced then they anticipated.  Years of large marketshare had led to complency and Blackberry and RIMM realized they needed to adapt to survive.  The Apple Iphone continued to have great success due to its technological advantage over other companies at the time.  Also fueled by strong Ipod sales Apple began to really establish itself with a strong company brand.  Apple’s consumer base grew from just a niche market to a larger demographic as more and more consumers made the shift over to Iphones.  It was difficult to blame them, as Apple essentially had a minutre laptop with a touch screen that can fit in your hands.  Apple enjoyed this success for awhile until Google decieded it wanted to enter the fight.

The Introduction Of Android Powered Phones

In 2008 Google released the Andriod operating system to attempt to penetrate the smart phone market.  Its goal was to take marketshare away from Apple and hopefully deal the death blow to Blackberry and RIMM.  Andriod is a great example of market penetration success as they are currently siting at the top of the marketshare ranks.

What Google And Andriod Did Right

The launch of the Andriod operatating system was a success for a variety of different reasons but here are a few of the  most important. The firs thing that they did was to ensure that they were backed by large software and hardware devolpers.  They teamed up with industry leaders such as ARM, HTC, Samsung, and Motorola.  They wanted to ensure that they had the most powerful hardware and the best software possible.  They also had to compete with Apple’s App store design which had received alot of praise.  Andriods response was the Andriod Market which included both free and Paid apps.  Google made great strides in their market share and quickly overtook Apple and RIMM.  RIMM lost market share to both Apple and Android and has had downward pressure on its stock and company.  Their failure lies in their inability to allocate resources to properly keep with research and technologies.  Like many other companies of the past, the failure to adapt to their market hurt them significantly.  Apple on the other hand still has a large chunk of market share.  Apple software is only available on Iphones while Android is on a variety of different phones.  So this can actually skew the market share numbers a bit as you can see.  Android was able to expand to many different phones and plans, while not everybody could get access to an Iphone.  Apple and Android will continue to fight it out for the next couple of years, but Google and Android accomplished what they set out to do.  They had a successful market penetration strategy and executed to the tee.  They reap the rewards and will look to continue their trend of success into the next decade.