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ignorance.jpgThis latest self-created Amazon debacle got me to thinking about Amazon’s management in the ebook area. Having been in corporate life for over 40 years, and having faced a fair number of crises and emergency situations, it has become evident to me that Amazon simply doesn’t understand the business it has entered – ebooks. And it doesn’t understand that it doesn’t understand.

From what I’ve read the Amazon personnel managing this portion of the business did not come from the publishing industry, let alone the ebook industry (if there really is one). Because of this you can see that they have not thought through all the possible issues that could arise as a result of their entering this new business. If you think about it, Amazon is really just an on-line vendor. It sells stuff. It has always sold stuff, including books. However, this is very different from going into the licensing business, which is what it is now doing. Since Amazon’s management does not come from the licensing industry Amazon has blithely gone along thinking that licensing ebooks is the same as selling pbooks. To those of us in this ebook world it is obviously not, and Amazon is learning this by a series of painful lessons. There is simply no excuse for the Orwell fiasco. Knowledgeable management could have thought of at least three other ways of handling that problem without any of the fuss and bother that has ensued.

Everything we read points to the clueless nature of many, if not all, Amazon customer service personnel when asked tough ebook questions. Why is this? Not because they are evil or trying to hide anything, but because they haven’t been trained. Why haven’t they been trained? Because, I strongly suspect, management doesn’t realize that there are issues to train them about. If you think about it for a minute, not only is Amazon entering the licensing field, but it is, probably for the first time, selling its own stuff. Amazon makes the Kindles, it is not reselling someone else’s branded product. It becomes clear it hasn’t thought this through by looking at how it mishandled the Kindle cracking issue, which resulted in a class action suit. Amazon is not used to being in a position where it, and only it, is the entity ultimately responsible. Further evidence of this is in how it has fumbled all its PR responses to some of the issues that have arisen. Where are the PR contingency plans for an emergency? Where are the pre-prepared Q&As? Where are the press releases ready to go? Where are the prepared talking points? Not there. Not there because Amazon doesn’t realize there are issues to prepare for. Amazon is a retailer, it generally don’t have to worry about PR debacles. If something goes wrong with a product it can refer the press to the product’s supplier. But now Amazon is in a new world  and doesn’t understand how to prepare for it.

There are cures for all these problems, of course, and some of them are pretty obvious. However until Amazon realizes that it doesn’t even know what it doesn’t know, Amazon will continue on stumbling from one crisis to another. Amazon has no evil intent, it is just clueless.

 
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