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Personally, I prefer the Kindle ecosystem, but I prefer Kobo devices.
I had Kindles from 2007-2017, and have only had a Kobo for a few months. I wish I could easily pull my entire library over to my Kobo library, and have it behave native (downloading from cloud, etc). That's really my main complaint...
In terms of what they need to do, I think marketing is 90% of their issue. 99% of people in my area have no idea what a Kobo is. The tech guy for my library had vaguely heard of them, but mine was the first he had ever seen. People here generally have heard that the nook is swirling the drain, and they think the only other option is the Kindle.
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