A lot is being speculated about the possible entry of Amazon into the smartphone arena. The world’s biggest online retailer is all set to join hands for an Android based platform with Chinese company Foxconn (which incidentally is also the manufacturer for Apple Inc.’s iPhone). Amazon may not possess huge chunks of money as its competitors like Apple, Google and Microsoft have for developing a business that requires plenty of patents to protect its forte. However, it has the advantage of its 100 million plus customer base. The move will ensure a better presence for Amazon in a rapidly growing smartphone market. It also enjoys a strong distribution network, which is expected to stay receptive to the new endeavour. But it will have to create relevant retailing and branding strategies to match the bar with the rest, including Facebook. The company also needs to build its assets strategically to face the core competencies of leaders like Apple and Samsung. However, learning from the earlier mistakes of its rivals and trying not not repeat them may help the company. Nevertheless, competition in the smartphone space is set to get more intense as more players join the fray.
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