Amazon Fire Phone

Amazon Fire Phone: Made for Boss, Rejected by Mass.

Amazing products often come out from Lab126- Amazon R&D Centre. Most of them already have deep rooted impact on day to day life of a normal person. Jeff Bezos , visionary leader behind Amazon, believes in doing all the background work to near perfection before launching any product for public. Till now Amazon has been following a simple rule for product development: Identify the customer need and work backward. Every time it came out with near perfect solutions for public needs. Amazon web services, Kindle to name a few.

Customers are King of market. They rule it. They often play with the fortune of every company. Not even a single company can force its product on customers. Amazon tried it once by changing its product development strategy. And guess what? Amazon is writing off 170Million$ inventory of fire phone.

Here is our analysis why it happened? How it happened? And why every Start up should pay attention to Fire Phone failure.

  1. Why Amazon Err.. Jeff Bezos wanted to develop “An Amazon Phone”?

Apple Phones offer apple web services. Android Phones offer Google web service. And Amazon? It has no hardware in its kitty despite having world acclaimed web services.

As the world goes mobile, an Amazon phone would provide a more direct link to its users. Today, customers often come to Amazon via iPhones or Android devices. Not controlling the hardware can create problems. For instance, you can’t buy e-books through the Kindle app on your iPhone because Apple takes 30% of app-driven sales—a cut that would hurt Amazon’s already razor-thin margin.

By sinking money and resources into a smart phone, the company had hoped to gain a significant piece of the huge smart phone market long dominated by rivals like Apple & Google & Samsung. Moreover, the Fire was supposed to funnel mobile shoppers to Amazon’s online store by making it easier to find and buy products.

Need for Fire Phone was basically not customer driven! It was result of Amazon think tank to control their product buying in grand manner. Now you see. They were forcing a product on customer.

Product was destined to doom.

  1. How Jeff Bezos made it a different Phone?

It’s an adequate device with features comparable to others in the market in terms of screen, camera & memory. What sets it apart is a three-dimensional effect for graphics on certain apps and an application called Firefly that lets shoppers in bricks and mortar stores easily identify over 100 million different products and then buy them online (preferably at Amazon).

Rumors are there that this phone was under development for 5 years in Lab126.

Adding three dimensional graphics into Fire Phone became the major concern as it turned into a battery consuming device. Features like firefly & 3D perspective was never a hit with customer. Moreover its kitty of apps was far less than android based & iPhone.

  1. Who were the rivals of Fire Phone in Market?

Mobile Phone market leaders: Apple and Google/ Android based mobiles. It’s a very densely populated space of mobile market which Amazon tried to capture. Apple came into market 7 years before Amazon’s Phone launch and android based phones were 6 years too early than Amazon phone. In such a cut throat competitive market, simply releasing something “adequate” isn’t enough. It required Firephone to have some breakthrough hardware or software.

“If they had shown up with this phone a long time ago, they could have gotten a lot more attention,” says Frank Gillett, a Forrester analyst. “But it’s a very noisy crowd in an established market. Once you show up at the party now, nobody pays attention.”

  1. Was Fire phone’s compatible with Amazon product category & Customer expectation?

Being one of the most admired brands and having presence at the top of customer satisfaction surveys, Amazon is a company that hundreds of millions of people depend on for good deal of boring daily use products – a low cost paper napkin, not on a $200 smart phone.

People often anticipate some cheap & unexciting device from Amazon. A sophisticated piece of engineering will often be subjected to huge risk; will be lot costly and unexpected.

Definitely Fire phone was not carrying the image of Amazon’s Typical Product.

  1. How was the marketing of Fire Phone?

Unlike Androide devices & iPhones, Amazon Fire Phone was made available at selective strategic stores. Amazon.com for online buying & few brick & mortar stores like Best Buy and AT&T. This limited the availability of the phone to customers. Any product at its beginning needs exposure to largest possible customer base. Through such exposures product gets maturity.

Amazon marketing strategy hence misfired.

AND IN THE END …. In late July 2014, the Fire Phone finally went on sale.

Consumers considered its smart phone effort utterly misguided.

Reviewers knocked the device for its gimmicky features, especially Dynamic Perspective, which most found worthless and distracting.

They also took issue with the Fire Phone’s bland industrial design and disappointing ecosystem; Amazon simply doesn’t offer the same library of apps or cohesion of services as Apple.

But what Amazon got most wrong, they said, was the cost: The Fire Phone was too expensive for its customers.

According to sources, the Fire Phone sold just tens of thousands of units in the weeks that preceded the company’s radical price cuts. The $170 million write-down confirmed that the launch has been a dud.

This is how mighty Amazon were shown doors by customers and all because Amazon’s Chief tried to force an outdated, overpriced, poorly marketed, utterly disgusting phone on King of Market.

Startup Paradox

Time Paradox:

Startup’s product needs to make its own name in the industry. Its target customers, who have worked well till now without any help of such type of products, will be willing to check how new product performs in the market. Bigger is the target customer, more time it needs to get a contract signed from them or to make a deal.

Startup time paradox says: Startup does not have time to impress prospective customers. Prospective customers need a lot of time to assess the startup.

Money paradox :

Startup needs money to develop its product, to market its product and to drive innovation for product improvement. Potential customers who can buy the product are generally least willing to shed even 0.1 million USD just for a product which is cool. Customers first check the product survival in market before investing into it.

Startup money paradox says: startup needs money for their survival, customers have plenty of it. They are not going to invest money in startup unless they are convinced about product survival.

Payment Paradox:

Often startups end up doing free work for their prospect customers just to prove the worth of their product. This free work is either based on the promise of signing contract or based on giving a discount to prospective customer.

Payment paradox says: Startups pay in terms of their time for marketing their product but its not a guarantee that prospective customer will sign a contract with them for sure. Money which you don’t receive is not your money at all. Business can’t be run on false promises.

UberPitch – Inside Story

UberPitch – One of the greatest business model ever. Today, the “funding” word has captured the mindset of every enthrepreneur so much that without eveing giving a single thought to the idea analysis, they are ready to reveal their entire business model to anyone without thinking of the further consequences.

UberPitch, the concept was designed so nicely that it could lure anybody.

Here is the small analysis of the entire business model.

Uber App Download –

Say the per download base cost is C1 and the number of new downloads are D1

So the  total revenue = C1*D1

You can yourself imagine the number of downlods inspired by UberPitch.

Paytm App Download –

Paytm is the associated download for uber. As one of the payment option, you need to associate your paytm wallet for payment.

Say the per download base cost is C2 and the number of new downloads are D2

So the  total revenue = C2*D2

You can yourself imagine the number of downlods inspired by UberPitch.

Paytm Wallet –

To proceed further with paytm, you need to keep minimum 200 rupees in you paytm wallet.

Say the number of paytm users for uberpitch are N3 and the avg amount associated with each wallet is 200.

So the total revenue – D3*200

TVF Promotion –

Defintly, uberpitch helped tvf to promote their channel.

Ideas Collection –

Collection of all the amazing ideas at one portal is priceless. It could be used in any of the way to ensure huge amount of money.

So, finally, uberpitch was one the best revenue model to get manifold benefits.

Wish you Luck for your startup. Be a beer soon.

Stay Connected to know more.

Ramayana & Entrepreneurship – Lesson from the mythology!!

Was Lord Rama a genius business strategist? How do our modern pundits rate him? How Ramayana does inspire us about business strategy?

Lord Rama had several business propositions in front of him. To go to Lanka & bring Goddess Seeta back to India being the ultimate goal. Though he was mighty enough to make even Ocean gods look like a pleading nanny, still he sent Hanuman to Lanka to deliver a massage to both: Goddess Seeta and doomed King Ravana.

Young guns vouching to make a big name in entrepreneurship world tend to over work. They decide to do everything themselves. One reason being cost optimization & other being the thinking that they are the only one who could do a particular task that fast; they think they are the only  jugulars dealing with more than 6 ball at a time.  Though every vision & idea is great, what it specifically requires is a commander and a dedicated team to command.

Lord Rama is God himself. He knows everything – Past, Present & Future. He is capable of knowing where Seeta is kept captive & who has kidnapped her, yet He Seeks help from Sugreev in search. Even after Rainy season is over, when Sugreeva doesn’t turn up, Rama still sends Laxaman to remind Sugreeva about the vow he had made. Rama is acting as a navigator and ultimate leader. He knows which team member he needs to pull strings of.

Navigating the idea in proper direction is most important aspect in the quest of entrepreneurial glory. Execution of idea is equally important. If leader himself becoming the executioner, he will surely loose the sight of road. His Mercedes is destined to doom and so are the passengers! Leader’s job should be restricted to marketing & innovation.

Once clear that large army will have to cross the mighty ocean, Rama the resourceful archer, tries to follow normal procedure : praising king of ocean and thereby getting a way for his army. Only when all the patience was gone and 3 days were over, Rama took out the bow to make way for army. He never fell shy of trying and defaulting the procedure. Rather he took lead everywhere.

After their company folded, Dijiwan’s leaders wrote this: ” A good product idea and a strong technical team are not a guarantee of a sustainable business. One should not ignore the business process and issues of a company because it is not their job. It can eventually deprive them from any future in that company. ”

What Rama Did was – He worked on his business! What Dijiwan’s Did- They worked for their business. And the difference my friends are that Rama is known as one of the greatest king ever & Digiwans are a doomed Start up.

Better Flipkart

Better Flipkart

Flipkart : a known big giant of e-commerce with awesome product catalog and amazing supply chain. But still it has huge scope of improvement. Lets share all the ideas to give a clear picture of what customer actually expect from e-commerce.

Scroll Down

Enhanced Customer Base

Better Browsing Experience

A platform that looks quite similar to any free magento theme, doesn’t prove the technical skill sets of the same.

Take example of “Housing”, the only reason of their success story is their engineering.

At least give users a good browsing experience: a virtual shopping mall – quite similar concept like “Slice View” and “360 degree View” .

Benefits:-

  • Improved Traction
  • Real Time Shopping Feel
  • Better Engagement of Consumers

Rural Market Base

Drone Delivery is one of the nice concept to optimize cost and time of commerce, but would it help rural people to visit online portal and place order.

Infrastructure can’t be developed in one day, better approach is to utilize the existing system properly.

One of the available options is “Call Centers” for receiving order and giving advice to rural people as per their product need. Of course, initial campaign to reach rural consumer is required first.

Benefits:-

  • Enhanced Customer Base
  • Improved Market Share

Flipkart Seller Tracker

Though the seller rating based on customers experience is a nice concept while selecting the best among available options, it is also one of the best practice to decide and recommend the seller based on real experience of its storage and supply chain management.

Further, a lot of people prefer to go out for buying rather than sitting online and getting the stuff on doorstep.

Also, verification and recommendation of flipkart verified seller would be a nice concept while purchasing offline.

So a “Map Based Flipkart Verified Sellers Tracker” would be a nice concept for keeping customer based multiple checks on sellers and giving recommendation of the best sellers for offline purchasing.

Benefits:-

  • Better Control on Seller
  • Enhanced Customer Engagement
  • Better Customer Relationship Management

Relevant Product Suggestion

Flipkart major product catalog  include products that are not so much frequently purchased  to recommend the customer to repeat the same order.

To ensure the frequency of customer coming back for purchase, a nice practice is to give suggestions for improving the previous order. For eg: Good looking t-shirts for previous purchase of jeans, accessories for recently purchased phone.

Benefits:-

  • Enhanced Orders
  • Improved Customer Relationship

FS Success Analysis

%

Better Browsing Experience

%

Rural Market Base

%

Flipkart Seller Tracker

%

Relevant Product Suggestion

Enhanced Product Base

More Consumer Goods

Since Flipkart is market based model, so it would be good to enhance its product catalog with a wide range of consumer goods.

Flipkart has already managed a large chain of supply, so it would not be much challenging for more consumer goods as well. Alternatively, it could be done jointly with local vendors

Benefits:-

  • Enhanced Customers
  • Enhanced Revenue

Enhanced Profit Base

Pick up Facility

To reduce the operational cost of local deliveries, pick up facility is one of the good choice.

Further, a lot of people love to have a look on the product while purchasing the products.

Also it would reduce the cases of defective deliveries for local dispatch cases.

Benefits:-

  • Less Delivery Issues
  • Less operational cost
  • Better Customer Satisfaction

Monthly Order Manager

If flipkart includes more consumer goods, it can also provide a facility of monthly goods ordering system to its customers to keep them engaged for long terms.

Benefits:-

  • Better Customer Satisfaction
  • More Orders

FS Success Analysis

%

More Consumer Goods

%

Pick up Facility

%

Monthly Order Manager

View Existing Platform

Flipkart

Fuckedup is a phrase that captures all the emotions associated with the startup journey.

If no concept clicks in your mind, you feel frustrated. If you are not able to manage a proper team for your startup, you feel irritated. If funds, revenue, expansion etc don’t take place as per planning and expectation, you feel infuriated.

To keep you away from all these feeling, FS is continuously providing you to the best guidelines, practices and market trends. Please share your feedback at contact@fuckedupstartups.com