HW2_Google-Home_Frederik.docx - Frederik Svenningsen...

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Frederik Svenningsen Strategic Management 9/28/2017 HW #2: Google Home Google Home: Giving people the answers or? The consumer technology industries usually go through multiple phases where one or two pioneers prove out the opportunity, followed by a rushing in of new players. The virtual assistant industry proved itself with the launch of Amazon Echo and Google Home and are now facing rapid growth rates where 35.6 million Americans are expected to use a virtual assistant in the end of the year, which is a 130% growth. However, the competitive landscape is heavily changing towards fiercer competition in the years to come while Google Home, even though they have announced a handful of additions, still is trailing to find its position in the market. In order to position itself for the future competition and improve the market position, Google Home must differentiate itself by leverage on smart home synergies and current capabilities within technological infrastructures. Therefore, this paper suggest that Google Home: 1) Integrate the subsidiary Nest for customers to gain more control of their household and improve the end-user experience 2) Launch a price fighter ‘Google Home Dot’ similar to ‘Amazon Dot’ costing approx. $50 in order to tap into the mass market and thereby offer a “personal Google for everyone, everywhere” The virtual assistant market holds huge growth potential and is expected to from $32.1 billion today
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