Question

If Amazon were to pursue the model favored by wireless services, heavily subsidizing the product in order to gain long term contracts, is the subsidy justified? Why or why not? Briefly describe the important operational elements that make the Kindle Fire a valuable product.

Answer 1

If Amazon were to heavily subsidize the Kindle Fire, the justification for the subsidy would depend on various factors. The Kindle Fire is a valuable product due to its low cost and wide range of features and capabilities.

Step-by-step explanation:

If Amazon were to pursue the model favored by wireless services, heavily subsidizing the product in order to gain long term contracts, the justification for the subsidy would depend on various factors.

One important operational element that makes the Kindle Fire a valuable product is its low cost. By heavily subsidizing the Kindle Fire, Amazon can sell it at a lower price point, making it more affordable for consumers. This can result in increased sales volume and customer loyalty, which can benefit Amazon in the long term.

Another important operational element is the wide range of features and capabilities offered by the Kindle Fire. It is not just an e-reader, but also a tablet that allows users to browse the internet, stream videos, play games, and more. This versatility and functionality make it an attractive product for consumers.