Kindle adds merchandising opportunities for long term growth

Implications: Amazon’s ability to add value via otherwise-unavailable benefits to purchasers is immense.  If played properly, Kindle will become to the intelligentsia, bookies and students what IPod has become to teenagers/young adults.  In time there will be Kindle communities, Kindle book clubs, schools where all the books are on Kindle, as well as books available only on Kindle, etc.      The Kindle strategy is akin to Starbucks' music strategy.  Who could have imagined five years ago that Paul McCartney would be exclusive to Starbucks?    

Analysis: It isn’t about Kindle as a product.  What’s important is the the engagement and loyalty that Kindle can create for Amazon.  This is Amazon's "Blue Ocean Strategy."  Retail is about creating and leveraging differentiation.  With proper management, Kindle is Amazon's key to long term growth and dominance selling books.