Amazon's Dominance In The International Markets Is Key

| About:, Inc. (AMZN), Inc.'s (NASDAQ:AMZN) reliance on the global market is undisguised and widely known. Nonetheless, it is a factor that has been greatly overlooked on countless occasions. This is mainly because a lot of analysts focus on the neck-to-neck competition that characterizes the U.S. market and fail to take note of the predominating sheers in the wider global market.

Critics can lash out all they want - after all, debate enhances clarity and influences better investment decisions. I am confident in my opinion and believe that I have solid arguments to back what would otherwise appear to be wishful thinking.

The holiday season is fast approaching

While scores of people around the world go on holiday in the coming months, Amazon alongside competitors like Barnes & Noble (NYSE:BKS), Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) will double its efforts and work overtime. Why is this so? Every holiday season, countless consumers, both in the U.S. and the global market, engage in a digital content binge, downloading games, apps, e-books and other fashions of entertainment.

This usually spells the beginning of lucrative business for content providers like Amazon. As expected, competition will stretch to unprecedented lengths. All the same, I believe that Amazon has a game changing solution up its sleeve: the Kindle Fire.

Not only is this new tablet affordable, but it also has the potential of enhancing Amazon's command in the global market. As stated earlier, the global market is Amazon's main playground. In 2011, close to 44 percent of Amazon's collective revenue was gleaned from the international market. Notwithstanding this, how will the Kindle Fire appeal to the international market and give Amazon an edge over its avid competitors?

Perfect pricing

Unlike the American market, most sections of the global market have an evident slant towards cheaper options. The Kindle Fire tablet retails for $199. This price gives it an indescribable edge over Apple's iPad and Google's Nexus.

Despite the fact that some analysts have gone ahead and given Amazon's tablet tepid reviews, I do believe that the Kindle Fire is perfectly suited to meet its core goals. Through the Kindle Fire, Amazon will particularly aim at providing a bigger market for its e-books. I don't believe you need a high-end tablet with complicated specifications to download and read an e-book, do you?

As such, the entire ruckus generated by these reviews is purely background noise. The Kindle Fire can be viewed to be more of a service for content delivery and not an exclusive end device. Those bashing the tablet are inclined to tout the idea that it cannot match up to any iPad. True it cannot.

Nonetheless, how many people actually exhaust all the specifications listed in a typical iPad? One particular analyst was quoted as saying, "Telling the average Jack to buy the latest iPad is like telling someone to buy a Formula One car to run local errands."

Pardon the comparison. The idea that I am trying to relay is that iPad's capabilities are too high for the global market. It is a known fact that the global market responds slowly to technological changes. I mean, people are still hooked onto Microsoft's Windows XP, while consumers in the U.S. anxiously await Windows 8.

The Kindle Fire therefore fits better into the global market, particularly emerging markets where consumers are more concerned about basic functionalities and affordable prices.

Another point of note is the Chinese market. This market perhaps extends one of the most formidable fashions of competition as far as consumer electronics are concerned. As the holiday season approaches, I am certain that local manufacturers will flood the market with a wide array of affordable tablets. Even if Apple will have launched its iPad mini by then, the slashed prices won't match up to the cheaper prices in the potent Chinese market. The Kindle Fire will, however, find a nesting in the rewarding yet highly competitive Chinese market.

At the end of the day, it becomes clearly evident that the Kindle Fire will dominate the global market during the holiday season. While Google and Apple prolong their endless rivalry, Amazon will have leeway to streamline its activities and cash in on the innumerable possibilities during the holiday.

Barnes & Noble, on the other hand, is still grappling with a disappointing balance sheet and, in my opinion, has bigger problems to worry about at the moment. Apple, along with other competitors, has also filtered into Barnes & Noble's educational market through cloud services and tablet donations.

Thus, the race narrows down to Apple, Google and Amazon. As earlier noted, Amazon's Kindle Fire and Amazon's huge footprint in the global market gives it the much needed edge. I would recommend going long Amazon.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.