{"id":4127,"date":"2011-08-17T15:36:25","date_gmt":"2011-08-17T21:36:25","guid":{"rendered":"http:\/\/www.zmetro.com\/?p=4127"},"modified":"2011-08-17T15:37:11","modified_gmt":"2011-08-17T21:37:11","slug":"why-amazon-cant-make-a-kindle-in-the-usa","status":"publish","type":"post","link":"http:\/\/www.zmetro.com\/?p=4127","title":{"rendered":"Why Amazon Can&#8217;t Make A Kindle In the USA"},"content":{"rendered":"<p><a href=\"http:\/\/www.forbes.com\/sites\/stevedenning\/2011\/08\/17\/why-amazon-cant-make-a-kindle-in-the-usa\/\">Steve Denning:<\/a><\/p>\n<blockquote><p><i>Take the story of Dell Computer [DELL] and its Taiwanese electronics manufacturer. The story is told in the brilliant book by Clayton Christensen, Jerome Grossman and Jason Hwang, The Innovator\u2019s Prescription: <\/p>\n<blockquote><p><i>ASUSTeK started out making the simple circuit boards within a Dell computer. Then ASUSTeK came to Dell with an interesting value proposition: \u2018We\u2019ve been doing a good job making these little boards. Why don\u2019t you let us make the motherboard for you? Circuit manufacturing isn\u2019t your core competence anyway and we could do it for 20% less.\u2019<\/i><\/p><\/blockquote>\n<p>Dell accepted the proposal because from a perspective of making money, it made sense: Dell\u2019s revenues were unaffected and its profits improved significantly. On successive occasions, ASUSTeK came back and took over the motherboard, the assembly of the computer, the management of the supply chain and the design of the computer. In each case Dell accepted the proposal because from a perspective of making money, it made sense: Dell\u2019s revenues were unaffected and its profits improved significantly. However the next time, ASUSTeK came back, it wasn\u2019t to talk to Dell. It was to talk to Best Buy and other retailers to tell them that they could offer them their own brand or any brand PC for 20% lower cost. As The Innovator\u2019s Prescription concludes:<\/p>\n<blockquote><p><i>Bingo. One company gone, another has taken its place. There\u2019s no stupidity in the story. The managers in both companies did exactly what business school professors and the best management consultants would tell them to do\u2014improve profitability by focuson on those activities that are profitable and by getting out of activities that are less profitable.<\/i><\/p><\/blockquote>\n<p><\/i><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Steve Denning: Take the story of Dell Computer [DELL] and its Taiwanese electronics manufacturer. The story is told in the brilliant book by Clayton Christensen, Jerome Grossman and Jason Hwang, The Innovator\u2019s Prescription: ASUSTeK started out making the simple circuit boards within a Dell computer. Then ASUSTeK came to Dell with an interesting value proposition: [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,21,32,17,11],"tags":[],"_links":{"self":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4127"}],"collection":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4127"}],"version-history":[{"count":3,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4127\/revisions"}],"predecessor-version":[{"id":4130,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4127\/revisions\/4130"}],"wp:attachment":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4127"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}