Posted by Christopher Stevenson
Amazon.com has changed its business model. It's not just an online retailer anymore; it's a designer and producer of entertainment technology. Yesterday, Amazon announced the release of Kindle, a "wireless reading device" that Amazon has produced itself. Think of it as an iPod for electronic books. As a lover of books, frequent traveler, and a person who hates to read anything of length on a computer monitor, I think Kindle is about the coolest thing out there. (I couldn't care less about the iPhone.)
The Kindle is about the size of a skinny paperback, weighs only 10.3 ounces, and offers an "electronic paper" display that supposedly looks and reads like real paper. You can shop for books via wireless connection, no Wi-Fi required, and store them right on the Kindle. You don't even have to sync it with your computer.
What's really great is that Amazon.com, one of the few survivors of the dot.com boom and a highly successful retailer, has expanded its notion of its business model, effectively breaking out of the box of "online retailer." Up to this point, all of the company's forays into new business have spun from its identity as retailer; auctions, mp3s, video on demand, and so forth, are all just different facets of the same business. But with the release of Kindle, Amazon has re-imagined itself as the Apple of the book-loving community, designing and producing high-tech, consumer friendly products.
It's no coincidence that Kindle caught my attention. I've been thinking a bit about business models, those of credit unions in particular.
Running a CU is tough. Tight margins, a competitive market, and the strict regulatory environment require that the leaders in the industry be at the top of their game. Unfortunately, the game is changing and many CUs are still playing by the old rules. It makes me wonder what would happen if a few more CUs shook up the old CU business model. What would happen if CUs thought like start-ups and tried to carve new niches for themselves? Could CUs have created Mint, Wesabe, or Sharebuilder? Why not? The knowledge and innovation are out there. The industry hosts some brilliant minds. What would stop us? Nothing, except maybe getting stuck in the old business model.
That's my thought. What's yours?
