Manual Kids Tablets: Competitive Advantage & Moat Building - White Paper

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Notably, these startups all play into the voice category, the primary use case for Alexa, or into new human-computer interaction models. However, the fund completed a record high number of deals in After a successful inaugural class in July , Amazon recently announced a second Alexa Accelerator program, launching summer Investments here likely offers more strategic and synergistic value in bringing these products closer into the Alexa ecosystem than a chance at serious returns.

Presently, Alexa Voice Service only works in English. Notably, the Alexa Fund has seen a high proportion of exits in the last few years. Since then time there have been 4 other exits. Investment peaked in with 9 deals. Since then, annual investments have averaged less than half of that peak.

Despite this recent slowdown in activity, Amazon is putting capital behind a wider variety of industries. Early in , the company invested in its first biotech startup: GRAIL , which focuses on genomics for cancer diagnosis. Interestingly, Amazon has frequently co-invested with the same investment syndicate that helped the company launch. All have invested in at least one company backed by Amazon. This analysis comes with a few caveats, primarily that the patent filing process involves a significant time lag before the publishing of patent applications.

We also focused on Amazon proper for the purposes of this analysis, which would exclude patents absorbed through external acquisitions. From a modest patents filed in , the company filed over patents just a few years later in The best way to think about Amazon is as an amalgamation of many businesses with solid tech at its core. I almost never get the question: They want fast delivery; they want vast selection. And so the effort we put into those things, spinning those things up, we know the energy we put into it today will still be paying off dividends for our customers 10 years from now.

When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it. Amazon owns perhaps the richest dataset on how consumers consume, how sellers sell, and how developers develop. The company began as the sole seller on Amazon. Not having physical stores allowed Amazon to maintain a selection of over 1. By , the company would offer music and DVDs. From the beginning, the lower cost structure of having no stores allowed savings to be passed on to customers.

Early on, Amazon would use a web crawler to find competitor prices and undercut them.


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For most of the past decade, any company that competed with Amazon was either acquired Zappos, Diapers. In , Amazon gave outside companies the ability to sell on Amazon. Prices even for commodity goods spike and fall like those in a volatile exchange. In February of , that number has dwindled to less than — though this is possibly attributable to a growing pool of quality candidates or improved retention rates.

In addition to home essentials sold under its AmazonBasics brand, the company now has private labels in apparel, CPG, luggage, and diapers, among dozens of other categories. The strategy behind private-label goods is that Amazon can take advantage of higher profit margins: But Prime has expanded far beyond free shipping, and now includes Prime Video media streaming, music streaming, unlimited photo storage, discounts from Whole Foods, free restaurant delivery, free eBooks, free audiobooks, and a number of other exclusive services to keep its subscription rates high.

The stores will employ RFID tech and computer vision to allow any Amazon Prime member to shop without a checkout process or in-store employees. Amazon ran into issues with the technology in early trials, but seems to have successfully worked past such obstacles, opening its first Amazon Go store in Seattle in January The company reportedly has plans to open 6 additional Amazon Go locations in the US throughout Needless to say, many shamed the idea of tagging and tracking employee performance with such oversight. But with the increasing adoption of smartwatchs and wristbands by consumers, this technology could prove useful in Amazon Go stores where patrons take items from designated locations throughout the store.

In addition to the cashier-less Amazon Go, AmazonFresh Pickup now with two locations in Seattle offers car-side grocery pickup. Both the Amazon Go and AmazonFresh Pickup models may soon be adopted by Whole Foods as Amazon continues to grow its share of the massive grocery market. Moving into brick-and-mortar allows Amazon to expand its reach with an offline presence.

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Some consumers prefer touching and seeing certain goods in person, especially apparel, which Amazon is now supplying with AmazonBasics and its various private labels. Early on, Amazon realized its shipments were all unique combinations of goods, and that its warehouse techniques would actually be closer to manufacturing than shipping. In doing so, Amazon accomplishes a number of things: Unmanned logistics and delivery capabilities remain an open question with an uncertain timeline, though the company has filed patents in this area.

On the drones front, Amazon is heavily focused on an in-house effort to add autonomous aerial drones to its arsenal of delivery methods. Right around the time Amazon released its ill-fated Fire phone in late , it also quietly released the Amazon Echo, a screenless cylindrical computer running its AVS cloud software. Alexa also unlocks a new source of revenue: But these might only be short-term expenses.

And as of February , Amazon has over 1, jobs listings for additional roles on its Alexa team.

Both are becoming popular Echo competitors. Where Amazon might have the first-mover advantage, Google benefits from its extensive AI research, while Apple benefits from seamless integration across its macOS and iOS devices. You need a lot of data to do extraordinary things with the algorithms we have.

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Similar to how server racks were enormously cost-prohibitive for startups pre-AWS, the same is presently true for training machine learning algorithms. Startups are continually devising creative and expensive hacks to train their algorithms. With a drone effort involving vision for obstacle avoidance in the works, it seems likely that Amazon will continue to move into the vision space and offer more pre-built algorithms.

Over the past decades computers have broadly automated tasks that programmers could describe with clear rules and algorithms. Modern machine learning techniques now allow us to do the same for tasks where describing the precise rules is much harder. Some of this work is highly visible: We still struggle to keep Echo in stock, despite our best efforts. A high-quality problem, but a problem. But much of what we do with machine learning happens beneath the surface. The Importance of Offering Language Services is a free white paper download for the language industry from Telelanguage.

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