Amazon Product Analysis

This report provides an analysis of Amazon Echo, a smart speaker developed by Amazon. It examines the competition faced by the product in the technology industry and analyzes the external factors that impact Amazon's operations. The report also discusses the demand forecast for smart speakers and the segmentation, targeting, and positioning strategies employed by Amazon. Overall, it highlights the success of Amazon Echo and the challenges faced by Amazon in the market.

Running head: AMAZON PRODUCT ANALYSIS
AMAZON PRODUCT ANALYSIS
Name of the Student
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1AMAZON PRODUCT ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
About the product............................................................................................................................2
Competitive information..................................................................................................................2
Environmental scanning..................................................................................................................3
Demand forecasted..........................................................................................................................4
Segmentation, targeting and positioning.........................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Amazon.com Inc. is a multinational technology based organization of American origin
that is based in Seattle, Washington. The organization mainly focuses on providing services
based on various cloud computing, artificial intelligence, digital streaming and e-commerce
based activities. Amazon has been successful in the development of its position in the Big Four
Technology organizations that include Apple, Google and Facebook
(Amazon.com. 2019). The report will be based on a major product of the organization named
Amazon Echo. The competition that is being faced by the product in the technology industry will
also be analyzed in the report.
About the product
Amazon Echo that is also known as Echo is a brand of Amazon Inc. that develops smart
speakers. The Echo devices have the ability to connect to the intelligent personal assistant based
service of Amazon named Alexa. The most significant features that are offered by Alexa to the
customers include music playback, voice interaction, setting alarms, making to-do lists, playing
audio books, providing weather updates and real time information (Amazon.com. 2019).
Competitive information
Amazon.com operates in a highly competitive e-commerce based industry and the threats
that are faced by the organization in this industry are quite huge. Many organizations in the
industry are able to provide similar types of services like Amazon to the customers. Amazon had
started its operations by selling books and later diversified its operations in the sales of different
products and services as well (Labonnote and Høyland 2017). The major competitors of

3AMAZON PRODUCT ANALYSIS
Amazon.com in the e-commerce industry include Alibaba, Walmart, eBay, Flipkart. On the other
hand, smart speakers are also developed by some other organizations that are able to provide
tough competition to Amazon Echo. Google Home is able to provide tough competition to
Amazon Echo with the help of same features like that of Amazon Echo. Apple and Samsung are
also planning to develop smart speakers that will further increase the competition for Amazon
Echo (Laudon and Traver 2016).
Environmental scanning
The external environment of Amazon can be analyzed with the implementation of
PESTLE analysis framework.
Political factors – Amazon.com Inc. is influenced by the political aspects that are a part
of the external environment of different countries. The support that is provided by the
government for the operations of e-commerce organizations is a major factor that is able to affect
the operations of Amazon. Cyber security based activities have also been increased due to
increased usage by customers (Laudon and Traver 2016).
Economic factors – Economic stability that has been depicted by the developed markets
have supported the revenues of Amazon.com. The disposable incomes of customers in
developing countries have started increasing in the last few years and have been able to support
the organization. Amazon.com has gained a large customer base in various countries due to
increase in levels of incomes. The economic recessions can have a negative impact on an
organization like Amazon.com. China has proved to be the largest market for Amazon.com due
to the large customer base (López, Quesada and Guerrero 2017).

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Social factors – The degrees of consumerism have increased in the online retail or e-
commerce industry and have provided major levels of revenues to Amazon. The growth of
business in IT services and e-commerce is an important factor related to the effective operations
of Amazon. The habits related to online buying of the customers have been used by the
organization to gain customers (Melacini et al. 2018).
Technology factors – The rapid changes that are taking place in the technologies used by
organizations impose major pressure on Amazon and its operations as well. The new entrants in
e-commerce industry have increased the changes that take place in the technologies that are used
in operations.
Environmental factors – The emphasis on levels of business sustainability have
increased in the last few years and interest in the environmental programs has also been able to
play a major role in the proper improvement of the operations. The popularity of low carbon
based lifestyle is able to play a major role in development of operations of Amazon and waste
management programs of the firm as well (Noda 2018).
Legal factors – The product regulations that have been implemented by governments and
various regulations have been developed based on import and export. The policies related to
environmental protection have an impact on Amazon.com.
Demand forecasted
The last few years have been quite great for the smart speaker based industry. The voice-
activated and home-based devices have provided major options to the organizations. The
popularity and sales of smart speakers have also increased and the organizations like Google
Home and Amazon Echo have been provided major services to the customers in the industry

5AMAZON PRODUCT ANALYSIS
(Pantano et al. 2017). Smart speakers have been able to gain major levels of momentum in the
future and the new technologies will be able to support the organizations in the industry as well.
The increase in levels of diversity has played a major role in the development of smart speakers
(Young and Young 2018).
Segmentation, targeting and positioning
Segmentation – Demographic and psychographic segmentation is used by Amazon in
order to segment various markets. The segmentation process related smart speaker is based on
the actual purchases that are made by them (Smith 2018).
Targeting – The customers who belong to the middle class and upper class groups in the
society are targeted by the smart speakers of Amazon. The convenience in shopping is a major
factor that is related to development of target market.
Positioning – Amazon has been able to develop its position as a Glocal or Go global Act
local in the e-commerce industry. The delivery of products to various locations is also an
important aspect of the operations of Amazon (Wollenburg et al. 2018).
Conclusion
The report can be concluded by stating that an organization like Amazon is able to
maintain its position in the e-commerce industry with the help of various products and services.
Amazon Echo is a major product that is able to attract large number of customers towards the
organization. The demands for the products have started increasing in the last few years.
However, the competition that is faced by Amazon in the market is also quite huge.

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References
Amazon.com. 2019. Amazon.com: Online Shopping for Electronics, Apparel, Computers,
Books, DVDs & more. Retrieved 29 August 2019, from https://www.amazon.com/
Labonnote, N. and Høyland, K., 2017. Smart home technologies that support independent living:
challenges and opportunities for the building industry–a systematic mapping study. Intelligent
Buildings International, 9(1), pp.40-63.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
López, G., Quesada, L. and Guerrero, L.A., 2017, July. Alexa vs. Siri vs. Cortana vs. Google
Assistant: a comparison of speech-based natural user interfaces. In International Conference on
Applied Human Factors and Ergonomics (pp. 241-250). Springer, Cham.
Melacini, M., Perotti, S., Rasini, M. and Tappia, E., 2018. E-fulfilment and distribution in omni-
channel retailing: a systematic literature review. International Journal of Physical Distribution &
Logistics Management, 48(4), pp.391-414.
Noda, K., 2018. Google Home: smart speaker as environmental control unit. Disability and
rehabilitation: assistive technology, 13(7), pp.674-675.
Pantano, E., Priporas, C.V., Sorace, S. and Iazzolino, G., 2017. Does innovation-orientation lead
to retail industry growth? Empirical evidence from patent analysis. Journal of Retailing and
Consumer Services, 34, pp.88-94.
Smith, K.T., 2018. Marketing via smart speakers: what should Alexa say?. Journal of Strategic
Marketing, pp.1-16.

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Wollenburg, J., Holzapfel, A., Hübner, A. and Kuhn, H., 2018. Configuring retail fulfillment
processes for omni-channel customer steering. International Journal of Electronic
Commerce, 22(4), pp.540-575.
Young, M.S. and Young, C., 2018. Smart Home: Digital Assistants, Home Automation, and the
Internet of Things. Independently published.