Creating Barriers to Entry – Amazon Partners with Apple

iphone-and-kindleBarriers to entry can be difficult to create. But Amazon has recently announced a new strategic partnership with Apple that will make competing with Amazon’s Kindle very very difficult. Amazon and Apple have teamed up so you can now download a Kindle application on your iPhone (the Kindle 2 version was just announced, by the way!). This means all those books you’ve downloaded on your Kindle can be read on your iPhone, instead. Of course this contributes to a much more powerful value proposition since people carry their phone everywhere they go. Also, the iPhone has a built in light, unlike the Kindle, so reading at night or in dark airplanes is much easier. But it’s not the benefits of reading books on an iPhone that will give Amazon the advantage, it’s the strategic distribution model based on a seemingly ubiquitous product (cell phones) that will make it so difficult for Sony’s eBook to compete with the Kindle. Smart move, Amazon!

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