Amazon Echo Dot Competitors Analysis

As a “hands-free, voice-controlled device that uses Alexa to play music, control smart home devices, make calls, send and receive messages, provide information, read the news, set alarms, read audiobooks from Audible, control Amazon Video on Fire TV, and more,” the Amazon Echo Dot is also capable of reading news headlines (Amazon, 2017).

With compatible connected devices from WeMo, Philips Hue, Sony, Samsung SmartThings, Nest, and others, you can control a variety of electronics and facilities, including lights, fans, TVs, switches, thermostats, garage doors, sprinklers, locks, and more (Amazon, 2017). This device also has hands-free calling and messaging capabilities. In its connected mode, (connection provides by 3.5 mm stereo cable or Bluetooth), Amazon Echo Dot can play music on number of Echo speakers, headphones, or devices. The suppliers of music are Pandora, Amazon Music, iHeartRadio, Spotify, and TuneIn. While the system is connected via cable the function of multi room music is available, therefore is possible to play music simultaneously with support of Sirius XM or Spotify. The distance of reaction to voice is about a room, the function is viable even in music playing mode or in the noisy environment, and seven far-field microphones support the function. A built-in speaker allows using the gadget as an assistant, a smart alarm clock, and in other roles, that voice-controlled computer can play. Number of applications supports the usefulness of this device; in addition, Alexa is constantly developing AI (Amazon, 2017).

There are number of alternative products with similar functions and features on the market some of them selling at lower price. In particular, there are alternative products by leading IT companies having their own developed AI and software and gadgets ecosystems. Their own smart speakers provides Google (Google Home) and Apple (Apple HomePod) as well as number of smaller companies, for example, Ivee (Ivee Voice) (Gokey & Picks, 2017; Long, 2017).

Next, I will compare Amazon and its three direct competitors on the company level. As main factors for comparison, I will use brand recognition, economies of scale, and product innovation. The sources for measuring these parameters are rankings, market shares, and amount of patents.

Competitors array (Interbrand, 2016; IPO, 2016; Moon, 2017)

Key Industry Success Factors

Amazon

Google

Apple

Ivee

1 – Brand Recognition (By ranking)

3 (#8, 2016; 50,338 $m)

2 (#2, 2016; 133,252 $m)

1 (#1, 2016; 178,119 $m)

4 (Not in top 100; 2016)

2 – Economies of Scale (By market share)

1 (70.6%)

2 (23.8%)

3 (