Q: Amazon is continuously looking for new markets to exploit.

As CEO Jeff Bezos addresses

the strategic opportunity of streaming video, he calls on you for advice on gaining more

customers from the younger generations. Amazon’s presence and technology are well

established, but Bezos sees a lot of untapped potential in this market. But what decision

error and traps might cause him to make the wrong decisions regarding Amazon’s future

moves in this regard, and why? What can he do to best avoid these mistakes?

Ans: The comfort of viewing your favorite program at your own time on a handheld device makes

video streaming services a popular platform for younger generations. Thanks to video library

services of Amazon Prime Video and its competitors like Netflix, Hulu which not only offer

traditional live streaming but also offer a large library of your favorite movies and Television shows

which already aired or premiered in theaters, allowing consumers to view programs you had

previously missed.

Interestingly, there is big fight going on over the video streaming laws. Some companies want to

charge the customer for video streaming. If this happened, it will reduce the demand for video

streaming than traditional programming. So, Amazon should maintain current Prime Membership

cost as low as possible.

In 2010, Amazon developed Amazon Studio to produce flim and movies. They started producing

films to competes with traditional video streaming services like 21 Century Fox, Walt Disney

Company. Amazon should keep prices of Premium services like Amazon Fire competitive enough

to attract customers. In the view of the global context, Amazon should add more regional contents

so that people from another part of the world can also view international contents at their time.

In conclusion, Amazon should develop a strategy to compete its competitors in long term basis.