Amazon’s Alexa: A Case Study Analysis

Contents
1.0. Introduction...........................................................................................................................3
2.0. Case Synopsis.......................................................................................................................3
3.0. Issues.....................................................................................................................................4
4.0. Analysis of Issues.................................................................................................................4
5.0. Solution.................................................................................................................................6
5.1. Discussion.....................................................................................................................7
6.0. Conclusion............................................................................................................................8
References......................................................................................................................................10
Appendix........................................................................................................................................11
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1.0. Introduction
An overall smart speakers device was launched leading to technology growth and one was
launched by Amazon that was named Alexa. Amazon's many offers have influenced modern
living. The purpose of the report is to study about the case study on Alexa to understand the
issues and solutions concerning Alexa. The concept that has been used in the report is like PEST
analysis is said to be a tactic for promoting and growing a corporation that will help to know
about political, environmental, social and technological viewpoints. In this report, a case
synopsis will be discussed then issues. Further analysis will be done concerning PEST and then
discussion will be done on analysis that came out where strategic management concept that is
PEST will be examined. With the help of the PEST technique and an assessment of Amazon's
strengths and weaknesses, the case's concerns will be strategically identified and analysed, and
recommendations for mitigating measures will be made.
2.0. Case Synopsis
Considering the given case study says the introduction of Amazon's Alexa in 2014 led to a rise in
the use of voice assistants named Alexa and other artificial intelligence-based technology which
on the words of a person started working. A wide range of third-party features is now available
to users using voice command technologies. Amazon is a significant factor in making online
purchasing a habit among consumers all over the world. Online shopping has been a common
practice among consumers worldwide, as mentioned by Amazon (David 2020, p. 1). Due to the
convenience offered by service offers like musical entertainment, control of smart homes, and
daily productivity from Alexa's capacity to create reminders, millions of people worldwide are
becoming more dependent on AI, which has led to an increase in Alexa's industry penetration.
Although Alexa has proven successful, data security and cybersecurity problems persist. The
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system might be used for data collection and analytics to help store owners calibrate their offers
and make them more in line with consumer needs before those customers make purchases, which
has the potential to expand the market (Walker 2019, p. 2). While it's not accurate to discuss
Alexa primarily in terms of security concerns, it does have a good side in that it speeds up and
simplifies processes. Overall, it can be concluded that Alexa increased the adoption of artificial
intelligence to simplify daily life and the workplace.
3.0. Issues
The strategic analysis reveals problems and areas of concern that had not yet been identified, in
some situations, future occurrences must be predicted to make decisions with efficiency as one
of the major issues was data sharing which leads to sharing of personal information by Amazon. .
Operational issues limit the attainment of goals and business objectives as it is directly linked
with data sharing which affects the overall trust of the people, which stunts growth. In addition to
giving brands like Google Home and Siri a competitive advantage, the emergence of Alexa has
raised concerns about artificial intelligence (AI) eventually outpacing and superseding the human
population. considering the PEST analysis as shown in (appendix Table 1) Alexa has privacy
issues regarding data sharing which ultimately violates the government regulations and corporate
social responsibility, that is towards the public as they trust the company for the same.
4.0. Analysis of Issues
Customer bargaining power affects the adoption of speech technology, with AI-related
technologies seeing the highest consumption. As it incorporates all of the judging criteria,
strategic analysis is the idea that is seen to be crucial for evaluating the existing study on Alexa
(Miller and Cardinal 1994, p. 1650). The market competition is no longer just about maximising
profits; rather, product offerings must be accepted by consumers, with a focus on the societal
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