Amazon Plays with Fire (Phone)
A wait-and-see approach can help a company avoid the hazards of being a First Mover in a new, untested market space. But you can also miss an opportunity by being too late to market.
A recent example is the Fire Phone. Amazon was not a First Mover or a Fast Follower, but became a very Late Follower launching the phone after Apple was already on the 8th generation of the iPhone.
As a result, the company had $83 million of unsold inventory 4 months after launch. Even when the company cut the price from $199 to $0.99, the move fell flat.
The battle between Amazon, Facebook, Google, and Apple to keep customers within their separate ecosystems is becoming more and more fierce. What’s your move to keep customers within your company’s ecosystem?