In the article, “Amazon Unveils a Listening, Talking, Music-Playing Speaker for Your Home“, Brad Stone and Spencer Soper talk about Amazon’s revolutionary new tech device called the “Amazon Echo.” The Echo is a 9-inch tall speaker that plays music, fields voice commands and Internet queries, responds in a pleasant conversational voice, and will obey instructions to put products into your Amazon.com shopping cart. The gadget has the ability to hear a command from anywhere in the room and can answer any question you have in mind. For example, if you were wondering who won the Stanley Cup in 2011, Echo would scan through its data and tell you instantaneously that it was the Boston Bruins. This technological revolution is designed to make your day-to-day life much simpler and easier.
This is the revolutionary Amazon Echo home device.
How is this article related to business though?
After analyzing, I noticed that Amazon is making use of one of Porter’s Generic Strategies. They are utilizing a modified version of a differentiation strategy by trying to revolutionize household technologies with their Amazon Echo creation. Their product is a one of a kind technology that does not have any competitor close to it at the moment. A differentiation strategy calls for the development of a product that offers unique attributes which attract the consumer. I believe that is exactly what Amazon is on to. According to Porter’s strategies, a firm that is successful with a differentiation strategy has; access to top scientific research, a strong sales division, a highly skilled/creative development team and a strong corporate reputation for innovation. Amazon has all of these aspects as part of their company. Their strongest component would be there vision for innovation. Their original business plan was already more innovative than anyone before them and now they are continuing to do so.
Amazon’s new device called “Echo” has the potential to be a revolutionary device. They are only releasing it to certain consumers at the moment because they want to make sure that they have perfected the device before they offer it to everyone. It will be interesting to see what kind of success such a new and innovative technology will have and how drastic an effect it could have on the household technology industry.
Here is a video that shows how the Amazon Echo works:
Source(s) Used:
Stone, Brad, and Spencer Soper. “Amazon Unveils a Listening, Talking, Music-Playing Speaker for Your Home.” Bloomberg Business Week 6 Nov. 2014: n. pag. Print.
“Porter’s Generic Strategies.” Quickmba.com. N.p., n.d. Web. 18 Oct. 2014. <http://www.quickmba.com/strategy/generic.shtml>.
http://www.quickmba.com/strategy/generic.shtml