Amazon Sells Chip to Run Smart House

By Laura Stevens | Sep 21, 2018

TOPICS: Consumer Adoption, Market Growth Strategies, New Product Development, Product Management

SUMMARY: Amazon is offering makers of electronics a small chip that would let people use their voice to command everything from microwaves and coffee machines to room fans and guitar amplifiers.

CLASSROOM APPLICATION: Classify Amazon’s approach within the context of market growth strategies (e.g., product development, market development, market penetration, diversification).

QUESTIONS: 

1. (Introductory) What, specifically, is Amazon offering to appliance manufacturers, and what are the potential benefits to those manufacturers of this offer?

2. (Advanced) What challenges does Amazon face from a consumer adoption perspective for its Alexa voice activated technology? What challenges does it face in trying to get manufacturers to incorporate the technology into their devices?

3. (Advanced) If Amazon is successful in getting its Alexa technology embedded in a broad range of home appliances and devices, what business opportunities would it be able to pursue?

4. (Advanced) From a consumer behavior perspective, how might the prevalence of voice-activated devices impact our daily lives, both positively and negatively?

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