“Amazon is one of a number of companies (Sony is another) which have developed electronic devices which deliver books, newspapers and other printed matter without using paper. This is a growing market, with technology evolving rapidly. In the not too distant future it is thought that mobile phones and other devices will perform a similar service. How though are such devices priced?Case QuestionWrite a 2-3 page paper in which you answer the following case question:Amazon’s Kindle 2.0 was priced at $359 and delivery started in February 2009. The price was dropped to $300 in July after a newer model with a larger screen, the Kindle DX, was launched, priced at over $400. In January 2010 Apple announced the launch of the iPad, the lowest priced version of which was to sell for $499. Assume that you are in charge of the pricing of the Kindle models. Explain what methods are open to you to price your products and the factors that you should take into account in deciding on these prices. Then assume that you are responsible for deciding the future pricing of Kindle models over the next year. What prices are being charged now and what would you recommend Amazon charge? Why? In answering this case question aim to demonstrate your learning not only of the materials from MOD05, but also those from MOD01-04.Ensure that you repeat the case question in full and verbatim on the title page of your submission. Excluding your title and reference pages, your paper should be no more than three pages long. Place any detailed calculations in an appendix, (not counted in the page limit), after the references. Please submit your case for grading by the end of this module.CASE EXPECTATIONSIt is expected that you will use information from the background readings as well as the case articles and any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper.The following will be assessed in particular: Your demonstrated understanding of the marketing concepts central to the case question. Your demonstrated understanding of factors related to the development of an effective pricing strategy through the analysis you conduct in the context of the case. The criteria used for assessment will be those explained on the MOD01 Home page, namely: Focus. Breadth. Depth. Critical thinking. Effective and appropriate communication skills. Case-Related Articles and LinksAnonymous, (2010) iPad costs give Apple room to cut prices, says researcher. (2010, February). Network World Middle East. February 11. Retrieved February 22, 2010, from ProQuest Computing. (Document ID: 1962300801).Anonymous, 2009. Business: Well read; Electronic-book readers. The Economist. Feb 14. 390:8618. Viewed using the Proquest database February 20, 2010. Anonymous, 2009. AMAZON’S KINDLE 2 The Independent. Feb 13. Viewed using the Proquest database February 20, 2010.Anonymous, 2009. Amazon.com; Introducing Amazon Kindle 2. Telecommunications Weekly. Feb 25. Viewed using the Proquest database February 20, 2010. Anonymous, 2009. National Federation of the Blind; National Federation of the Blind Responds to Authors Guild Statement on the Amazon Kindle 2. Life Science Weekly. Feb 24. Viewed using the Proquest database February 20, 2010. MacMillan D. 2009. Amazon’s Kindle 2: No iPod for Books. Business Week Online). Feb 10. Viewed using the Proquest database February 20, 2010. Amazon.com 2009 Kindle 2: Amazon’s New Wireless Reading Device (Latest Generation). Viewed at Amazon.com on February 20, 2010. (If you have access to the Amazon.com website, you should read the consumer reviews there). Ryan Kim. (2009, August 10). New market may be turning a page. San Francisco Chronicle,p. DC.1. Retrieved February 20, 2010, from ProQuest Newsstand. (Document ID: 1824378911).Patel, N. (2009, June 19), Amazon Kindle DX review, viewed at http:// February 20, 2010.
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