Disruptive Technology:
I
remember the first time I used TiVo. I instantly knew it was a
disruptive technology that would change how people watch TV. It's even
better than I thought I was. That doesn't mean it was a great
investment in the stock market; but it was a terrific investment in the
household.
And the ripples of this technology are still being felt whether you're using TiVo or some other digital video recorder.
The Kindle is a Disruptive Technology Well-Placed In the Consumer Adoption Cycle:
Using a Kindle reminds me of the first time I used TiVo. Only this might be different, because we're several generations of technology further along. And the world is ready for it.
The Kindle 2 is ergonomic and reasonably fast. It is a great way to read. It also has a built-in Internet connection, which means you have access to content virtually anywhere. And it just so happens that the content you want is the content Amazon sells.
Chances are you already go to Amazon's website. Because of economies of scale, not only do they have a bigger inventory, they have a bigger community of users who rate the books and write reviews of the books.
A few years ago, Barnes & Noble and Borders tried to compete with Amazon online. As a user, I went to the competitors' site once or twice ... but the first time Amazon had the book I was looking for and the other site didn't ... or the first time that Amazon had reviews of a product and the other site didn't - well, that was all it took to stop going to those sites.
And Amazon continues to extend that edge with bigger inventories, more product lines, and a truly mature delivery pipe. Their storefront and shopping cart has been used tens of millions of times is an important part of the value proposition.
Psychologically Smart, Part 1: Amazon Banks on Funny Money:
Once you have a profile on
Amazon, it doesn't feel like you're spending money. Casinos know the
token is treated differently than cash.
On the Kindle, Amazon makes it easy for you to buy with "one click" over their "Whispernet" always-on data network. So you don't hear or feel your money as it leaves your account. This is brilliant.
Psychologically Smart, Part 2: Amazon Banks on Your Addiction to Instant Gratification:
Even better, though, is how they handle samples. It is already changing how I use Amazon. With the Kindle, I have instant gratification.
I can find a book and download a sample in seconds. In many cases, the Kindle version is dramatically cheaper than the old paper version. So, I suspect that I'll be downloading samples of many books. And when I like the author's writing style or find a few ideas that I can use, I'm one click away from being able to read the rest of it (even if I'm in a meeting or stuck at the airport).
Over time, I might find that I prefer certain books in paper format. On the other hand, I've been surprised by how likely I am to read a little of this and a little of that.
And being able to have a whole bookshelf is a pretty cool competitive advantage too.
