Over the past year, Amazon has consolidated its position as leader in the smart home and is now gearing up to monetize this position – something so far all other players have failed to do.
Amazon has crafted a comprehensive strategy that propels its core e-commerce business through AI and smart home devices and services. Meanwhile, the continued expansion of its ecosystem of partners and developers through multiple tools and incentives has helped make Alexa a key enabler of smart living.
In its Smart Home Case Study: Amazon consolidates its position in the smart home market, Ovumtakes a deep dive into Amazon’s strategy for the smart home, revealing the reasons behind the company’s current market supremacy.
“To gain ubiquity across different platforms and environments, Amazon is constantly experimenting with Alexa, trying to find new ways to make money while enhancing the customer experience.
Amazon understands that the ecosystem plays a key role in Alexa’s development. However, it is still early days for the ecosystem to take advantage of the potential of Alexa as a vehicle to make money.
Ovum’s Amazon Smart Home Case Study shows how Amazon is making progress on this front, not only by promoting skill usage among customers, but also guaranteeing that users remain engaged so that the ecosystem can start profiting from Alexa in a more consistent manner,” said Mariana Zamoszczyk, Senior Analyst of Ovum’s Consumer Services team.