Brief analysis of the Amazon Echo, its impact on Amazon overall, its profitability, and why the Echo will succeed compared to its competitors.

1. Wilson Mullen (muwilson)

2. Problem
 Lights, thermostat
 News, music
 All are manual, separate

3. Solution

4. Solution

5. Solution
= =

6. Proof of Solution

7. Financials
 8.2 million sold (2014-present)
 Word of mouth
 Pre-existing customer base

8. Financials
 Loss on gadgets
 No skill monetization
 Profitable on services

9. Business Model

10. Business Model,
cont’d.
 Easy Amazon purchasing
 Special discounts
 Echo  10% increase in
Amazon spending

11. History
2011—first
pitch made
11/2014—
special
release to
invitees
6/2015—
public US
release
3/2016—
Echo Dot
public
release
12/2016—
Echo
involved in
murder
case

12. Secret Sauce—Skills
 3rd party skills
 Bonafide platform
 No native support
needed

13. Skills Examples
“Alexa, ask Uber to
get me a car.”
“Alexa, what beer
goes with ramen?”
“Alexa, ask Kayak where
I can go for $400.”

14. Competition
Amazon Echo/Dot Google Home
3rd party skills ✔ ~
Conversational/
remembrance ✘ ✔
Large # of supported
smart-home devices ✔ ~
Music streaming
capability ✔ ✔
Multi-room audio ✘ ✔
Simple product ordering ✔ ✘

15. Competition
Amazon Echo/Dot Google Home
3rd party skills ✔ ~
Conversational/
remembrance ✘ ✔
Large # of supported
smart-home devices ✔ ~
Music streaming
capability ✔ ✔
Multi-room audio ✘ ✔
Simple product ordering ✔ ✘
Inevitably forthcoming, but not yet

16. Competition
Amazon Echo/Dot Google Home
3rd party skills ✔ ~
Conversational/
remembrance ✘ ✔
Large # of supported
smart-home devices ✔ ~
Music streaming
capability ✔ ✔
Multi-room audio ✘ ✔
Simple product ordering ✔ ✘
Entire knowledgebase, algorithms of Google

17. Prediction—Success
 Amazon == mover, re-invest
 1.5 yr head start
 Skills, skills, skills

18. Sources
Proof of Solution:
- https://finance.yahoo.com/news/why-amazons-echo-totally-dominating-133000032.html
Financials:
- http://www.nasdaq.com/article/alexa-how-big-is-amazons-echo-cm739959
- http://www.businessinsider.com/amazon-echo-sales-figures-stats-chart-2016-12
- https://www.bloomberg.com/features/2016-amazon-echo/
- https://forums.developer.amazon.com/questions/7528/monetizing-echo-apps-voice-app-store.html
- http://www.businessinsider.com/amazon-echo-alexa-add-11-billion-in-revenue-by-2020-2016-9
- http://fortune.com/2016/07/11/amazon-prime-customers/
Business Model:
- http://www.businessinsider.com/amazon-echo-alexa-add-11-billion-in-revenue-by-2020-2016-9
- http://www.recode.net/2016/11/18/13673894/amazon-alexa-deals-weekend-voice-shopping
Timeline:
- http://www.businessinsider.com/the-inside-story-of-how-amazon-created-echo-2016-4
- https://en.wikipedia.org/wiki/Amazon_Echo
- http://www.cnbc.com/2016/12/27/police-said-to-probe-amazon-echo-in-relation-to-murder-case.html
Secret Sauce:
- https://www.cnet.com/how-to/most-useful-alexa-skills/
- http://www.businessinsider.com/amazon-echo-sales-figures-stats-chart-2016-12
Comparison:
- http://www.cio.com/article/3143137/open-source-tools/amazon-echo-vs-google-home-the-choice-is-obvious.html
- http://www.howtogeek.com/282568/amazon-echo-vs.-google-home-which-one-should-you-buy/
- http://interestingengineering.com/google-home-vs-amazon-echo/

19. Questions?