EXECUTIVE SUMMARY
The US consumer electronics retail industry has passed a period of sluggish growth
marred by economic recession, decrease in per capita income and changing customer
preferences. However, the economic rebound will be driving revitalized customer spending and
take the sector into a stunted comeback. Smartphones have garnered huge popularity enabling
the retail stores’ sales to stay afloat despite the testing economic times.
The present report takes a deeper look at the US consumer electronics industry and how
Amazon.com is carving its place leaving behind the likes of Walmart and Best Buy. American
sales of consumer electronics grew by $5.6 billion in 2015, nearly none of which would have
been possible without Amazon. The internet retailer recorded a staggering 90% growth in
consumer electronic sales in 2015.
The SWOT analysis of the company revealed that the retailer’s brand image is being
impacted by waning focus from its core competencies. In addition to this, there is huge
opportunity for the retailer to leverage on its strengths and robust technical know-how.
In light of this analysis, a new product has been designed for Amazon’s flagship brand. It
is a laptop named Kindle Pro and is positioned against Apple’s MacBook Lite. The new product
offers several value propositions to the customers and is in consistency with the W-O strategy
profile of the retailer.