Alexa Case Study

1650 Words 7 Pages
1. Introduction

Amazon, one of the largest e-commerce retailer showed interest movement in November 2014. Prior the this new product, Amazon acquired its reputation in digital market through Amazon Web Service (AMS), which is a cloud service providing IaaS (Infrastructure as a server) and PaaS (Platform as a server) bring massive data into its server. Amazon was smart enough to use this database introducing a voice recognise virtual assistant “Alexa” which is connected with Amazon’s cloud-based database to hear, understand, and process the voice interactions. (AWS)

To providing a cloud-based voice service, Alexa requires a large number of customer database to understand and perform exact meaning that human intent to address. Amazon tried
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It is a software platform connecting users and developers, also connects other IT partners and service stores. Figure XX indicates different sides in Alexa platform.
Alexa connected with various service provider, developer and partners helps reducing shared cost for users and sellers. Alexa provides voice assistance to users ordering service from the sellers, but sellers do not need to develop individual system. In terms of users, they can use any services through Alexa without different connection to each service providers.

Users pay for the Alexa device and subscribing of services to get the comfort of the life. Alexa helps users to find right service providers. Alexa only performs as a hub collecting fixed cost at the beginning of the purchase, however, it lead users to buy connected devices.
IT partners positioned next to Alexa. Simply, they allow extended service for users by purchasing their products. They increase connectivity of Alexa with providing extra body. These IT Partners also enable to cut down Alexa’s price at the minimum level, while Alexa can focus on its function only to the voice
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Prime users do not have pay extra cost for service such as grocery shopping with Alexa, delivery of pizza. Amazon also gave a full access of Prime music to the existing members. Purchasing of Amazon Echo for a good quality of bluetooth speaker brought extra value to the users by introducing Echo.
Amazon also introduced new membership price for Amazon Prime Music, which costs $4 a month (USA Today) comparably cheaper than competitors in music streaming market (Apple music: $9.99, Spotify: $9.99). Using Amazon Echo attracted customers with half of the cost hence Alexa was easily brought to the users.
Simultaneously, third party developers started to join the market, then the platform slightly turn into a multi-sided platform. Alexa was innovative and free to develop, which allowed many developers dive into the market to prove their skills. They also turned into a user group. Convenience of using an Alexa development tools boost the inflow of the developers who has curiosity in this new system.

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