The report aims at providing a situational analysis for Sonos in the Voice Activated (VA) speaker market of United States. Sonos represents an American consumer electronics company known for the manufacture of smart speakers (Sonos.com 2018). The report therefore puts forward a detailed situational analysis for Sonos in the Voice Activated (VA) speaker market.
Situation Analysis for Sonos in the Voice Activated (VA) Speaker Market:
The internet enabled voice activated (VA) speakers has become quite popular for music streaming and have become one of the fastest growing consumer electronics product (Porter and Heppelmann 2014). By the year, 2021, United States is believed to have around 60 million users of VA smart speakers.
The market size for smart speaker was around USD 400 million that will have estimated growth over 50 percent between 2017 and 2024 (Millard 2015). The competitors are as follows:
Google Chromecast Audio: This is a wireless device that helps in adding Chromecast streaming system of Google to the home speakers. The device is available for only $35.
Amazon Echo Dot: This wireless device helps in adding the Alexa voice system of Amazon and enables wireless streaming of music to any speaker of choice.
Librazone Zipp: This ensures the readers with a multi room option for listening and comes with design that enables natural blending in the open.
Bose SoundTouch 10: This represents wireless speakers that comes with a multi room option and has a higher rating in customer review
Sonos: The Sonos Play 1 represents a mini home speaker that comes with a mighty sound. Sonos Play 3 represented a medium sized home speaker with a stereo sound while the Play 5 was the biggest of the entire home speaker that came with the boldest sound. Sonos Playbase, Playbar and Sub were the products manufactured for the Television.
People have provided mixed reviews on the usage of the Sonos smart wireless speakers. Some are of the views that these speakers keep disconnecting without any particular reason whereas some people are of the view that they act as useful resource when it comes to listening music and home entertainment (Sonos.com/en-us/reviews 2018). Some of the customers pointed out that the products lacked sensationalism and was very difficult for connecting to the itunes. Some held a different view and marked it as compact and reliable with a good sound quality compared to the similar products of the same genre.
In present times there has been a cultural shift and users spend more time in using smart wireless speakers in finding businesses, setting alarms and timers, playing games, controlling home devices, sending messages and listening to the music. People now keep smart speakers in not only living rooms but also their master bedroom and kitchen.
It is found that around 35.6 million Americans uses a voice activated device once a month. Around 60.5 million American users make use of voice assistants once in a month (Theodosiou, Kehagias and Katsikea 2012). Further, older millennial uses virtual assistants compared to the younger generation due to the demand for their functionality.
Music however plays a vital role in the human culture and brings people together inspite of differences in gender, politics, religion, language and other obstacles.
The smart speaker industry of United States dominates global revenue due to the increasing demand for the wireless systems increasing usage of the internet technologies.
In less than a matter of three years, the Voice Activated (VA) smart speaker has become a head turner in the industry. The device has not only introduced artificial intelligence but has also voice commands into the American homes (sonos.com/en-us/sonos-vs-bluetooth 2018). This trend will also have a positive impact on the demand for the smart speakers manufactured by Sonos.
The job market of the present times looks much better compared to the years that followed the great recession that ended in the year 2009. This is helping the consumers in regaining their confidence in economy (Gillespie 2017).
1. Sonos app allows integration with Apple TV
2. The smart speakers are weatherproof
3. The smart speakers are portable and battery operated.
4. Sonos speaker allows direct connection with the receivers.
1. There are smart speakers in the market provided by Google, Apple and Amazon
2. There are other devices like Apple TV that comes with an easier option of playing music in the living room
3. Other companies like Samsung provide better option at lower price.
4. Recession would have a significant impact on the market for smart speakers.
The analysis thus helps in implying that with the proliferation of smart homes, the demand for the smart speakers are bound to increase (Peng 2013). However, Sonos might face a tougher competition from Samsung and Google. The level of competition between Sonos and large companies who is presently indulging in the manufacture of high quality speaker is quite unknown.
The report ends with a SWOT analysis of Sonos, one of the manufacturers of smart speakers. The smart speaker finds a place in the living rooms and kitchen thereby taking necessary commands and providing answers like talking search engine with an amazing sense of humor.
Gillespie, P. 2017. Fed hikes interest rates and brightens economic outlook. [online] Available at: https://money.cnn.com/2017/06/14/news/economy/federal-reserve-june-meeting/index.html [Accessed 27 Feb. 2018].
Millard, A., 2015. America on record: a history of recorded sound. Cambridge University Press.
Peng, M.W., 2013. Global strategy. Cengage learning.
Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition. Harvard Business Review, 92(11), pp.64-88.
Sonos.com 2018. Sonos | Wireless Speakers and Home Sound Systems. [online] Sonos. Available at: https://www.sonos.com/en-us/home3 [Accessed 6 Feb. 2018].
Sonos.com/en-us/reviews (2018). [online] Available at: https://www.sonos.com/en-us/reviews [Accessed 28 Feb. 2018].
Sonos.com/en-us/sonos-vs-bluetooth (2018). Sonos WiFi vs. Bluetooth Speakers: Comparison | Sonos. [online] Sonos. Available at: https://www.sonos.com/en-us/sonos-vs-bluetooth [Accessed 6 Feb. 2018].
Theodosiou, M., Kehagias, J. and Katsikea, E., 2012. Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations. Industrial Marketing Management, 41(7), pp.1058-1070.