Amazon’s Echo Speaker (Blog #7)

Recently Amazon announced its new product, Echo – a home stereo speaker. So, why is it unique? Echo differentiates from other speakers with the inclusion of a built-in digital assistant, Alexa. Alexa is aimed to help you at home ranging from finding online resources to helping you with timekeeping.

However, with current technology developments, Amazon’s Alexa is much too similar to Apple’s Siri. This built-in assistant feature automatically puts Echo as a direct competitor with Apple products. In my opinion, the direct competition brings Amazon marketing and sales trouble in many ways. Firstly, consumers see a lack of purpose to purchase an item which they already “have”, a phone with built-in assistant features and home speakers. Secondly, Amazon needs to demonstrate why Echo is necessary for one’s home and how it is different from other speakers and electric devices. Yet, Echo’s similar features with Apple products makes the home speaker simply a “nice to have” item not a necessity. Ultimately, Amazon will face and should project for lower sales quantities.

Amazon, however, is promoting its new product – Echo – while strengthening its customer relationship at the same time. Echo will be offered through an invite-only basis start where, for Amazon Prime members, Echo costs only $99 in comparison to the $199 regular price. This is reflective of a marketing strategy by promoting Echo through Amazon’s loyal customers, while giving back to these Prime member with the “first pick” option.

http://www.cnet.com/news/amazon-debuts-siri-like-digital-assistant-echo-for-your-home/

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