Internet Of Things Strategic Analysis
This report is going to use some examples to illustrate “ what is the Internet of Things”. Then it will focus on one particular product, smart oven, and analyzes its main factors and competitors. At last, the report will discuss whether this product will create a Blue Ocean strategy or still compete in the Red Ocean.
Internet of Things
Internet of Things (IoT) can be explained as “physical objects are connected to the Internet (and/or to each other) and are able to identify themselves to other devices” (Internet of Things, n.d.). FRID and embedded technology enable these objects to interact with internal and external environments. In other words, objects can sense and communicate …show more content…
Because of high cost of Android tablet and related Internet services, the price of smart oven is much higher than the traditional type and is around $10,000 (Clark, 2014). Therefore, smart oven should take differentiation strategy.
Mobile App services: Beside the basic function of baking food, users can download receipts through the app. These receipts are written by experienced chefs or other users. The receipts will be categorized by complexity from easy to hard, or by targeting people such as baby, child, vegetarian and the old. People could easily find their ideal receipts and then display the baking steps on oven’s screen. According to consumers browsing history, this app can figure out customers’ preferences and thus make recommendations for them. Users could save their favourite receipts to “my receipts” for next time to use. The app can be used as a social media as well, users may like to share their homemade food pictures, videos and upload their own receipts for other customers to download or comment (Clark, …show more content…
The price of traditional oven is about $3,000 to $6,000 lower than the smart one. People may not like to pay extra thousands dollars for the Internet related services as they can access similar services through computer or iPad. The problem is that the utility gained from the entertainment and convenience probably worth less than the extra amount they paid. Smart oven might attract more young people rather than experienced housewives, but it still need to compete with traditional oven to capture existing customers.
Competitor two- Microwave oven: Microwave oven, compared with smart oven, can provide a very quick service with an extremely low price. For people who are busy, they seldom have a chance to use an oven, neither smart one nor traditional one. They pursue fast and easy food choices with a low quality requirement for foods. Also, there are lots of semi-finished foods available in the supermarket which can be cooked by microwave oven for only a few minutes. Taste might be similar to oven-made foods. Smart oven, though could save users’ time, is not able to satisfy these