Abstract

The caselet discusses the debacle of the Fire Phone which was a major setback for global online retailing giant Amazon. The failure of the Fire Phone was attributed to its high price, limited features, small App store, late market entry, and lacklustre approach to prime customers. Reportedly, Amazon’s CEO Jeff Bezos’ (Bezos) focus on creating a high-end product instead of the kind of service that has always distinguished the company, proved imprudent. Despite the fiasco of the Fire Phone, Bezos remained committed to the company’s strategy of continuous innovation.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Discuss and debate the Fire Phone’s strategy.
• Understand the reasons behind the failure of the Fire Phone.
• Examine the strategies Amazon should adopt to make a mark in the segments it plans to
• enter in the future.

Keywords

Fire Phone,New Product Development,Consumer Behavior,Smartphone Market,Innovation,Amazon