Amazon India adopts line extension strategy

To expand their footsteps into its private label play, Amazon India is all set to launch a smartphone in January under the brand name ‘Tenor’. Amazon is all set to give a tough fight to its home ground rival Flipkart in the smartphone segment.
  • The US-based e-commerce giant is going to launch this smartphone under the programme called crafted for Amazon.
  • The e-commerce giant is in talks with two original equipment manufacturers named: Huaqin technology and Longcheer to carry out their further operations to build these smartphones.
  • As smartphone is considered to be a very important segment and helps to boost up overall sales for major e-commerce giant such Flipkart and Amazon.
  • It is also very difficult to develop thick margins of profit as the market is very saturated on an e-commerce platform.
  • Between first quarter to first of the fiscal year 2016-17 their revenue in the smartphone segment boosted up by 95% which is a major benchmark for them also to counter their domestic rivals.
  • Earlier Flipkart adopted line extension strategy to launch their product under the brand name ‘Capture+’ and referred to the same strategy adopted by Amazon India under the brand name ‘Tenor’.
Mr. Manish Tiwary VP of Amazon India figured out that consumer wants a smartphone with good battery life at an attractive pricing so they will work together with their partners to launch new ‘Tenor D’.
Author- Murtaza Bagidora

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