• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Current price of oil as of June 15, 2026

2

Current price of silver as of Monday, June 15, 2026

3

Team USA star Ricardo Pepi grew up in a trailer in El Paso—and his parents pawned their car title to fuel his soccer dream. Now, he’s in the World Cup

1

Current price of oil as of June 15, 2026

2

Current price of silver as of Monday, June 15, 2026

3

Team USA star Ricardo Pepi grew up in a trailer in El Paso—and his parents pawned their car title to fuel his soccer dream. Now, he’s in the World Cup
CommentaryAmazon

Why Alexa Is Amazon’s Secret Weapon

By
Mohanbir Sawhney
Mohanbir Sawhney
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Mohanbir Sawhney
Mohanbir Sawhney
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
July 11, 2017, 12:04 PM ET
Add Fortune on Google for similar content.

There is a new front in the ongoing battle between Amazon and retailers, especially its rival Best Buy: Amazon appears to be readying a siege on the in-home installation and service market, which was a competitive edge for Best Buy with its Geek Squad.

It was reported Monday that the company is now offering free consultations for its Alexa device, and installations for a fee. But if Amazon rolls out its installation service beyond “select cities,” as listed on its website, it could have a distinct advantage: Best Buy has built its business around computers, while the future belongs to artificial intelligence and smart devices. Thus, Alexa, Amazon’s virtual assistant, could be the “Trojan horse” that gets the company off the doorstep where packages are delivered and into consumers’ homes.

Amazon is already promoting Alexa as the brain of the smart home. Alexa not only powers several Amazon products, such as the Echo, but Amazon is also pushing connectivity with third-party goods, such as lighting and appliances. Now, to provide an end-to-end customer experience, Amazon knows it needs to go beyond merely delivering a smartphone, television, or an Alexa-powered device, and also offer installation and setup, which can be beyond the capability of consumers.

Should Amazon go after Best Buy’s Geek Squad, it would be a major upset in the battle between the two retailers. A 6% decline in Best Buy’s stock price on Monday was attributed to reports of Amazon’s new competitive threat.

Under pressure for years from Amazon, Best Buy (BBY) has turned itself around with its “Renew Blue” strategy, which combines physical stores and a robust website, allowing customers to experience products in person while choosing how they want to shop.

But one of the assets Best Buy (BBY) has garnered in its fight against Amazon has been the Geek Squad, which offers a full-range of installation and maintenance services. Amazon’s experience in this area to date has been limited to a third-party “hire a handyman” service. But now, smart-home installation services appear to be Amazon’s next big idea.

Amazon states on its smart-home setup site that its “experts are Amazon (AMZN) employees, not contractors.” It would make sense that the company would build this model with a core group of employees for consistency. But as it scales, the company would likely need to turn to independent contractors located in local markets. The analogy here would be McDonald’s in its early days of expansion, of owning some company stores and franchising the rest, in order to find the optimal balance.

But while McDonald’s was able to deliver a consistent product and experience no matter if a restaurant was company-owned or franchised, Amazon will have to manage its marketplace carefully to guard against inconsistency. This will require Amazon to curate a marketplace of independent installers, contractors, and other service professionals, much like it does in the marketplace for products.

The model here is Uber, with its network of independent drivers. In much the same way, Amazon would be able to utilize contractors, which would be cheaper than hiring employees.

While Amazon doesn’t have a critical mass or a reputation as yet in installation and service, it is relentless when starting a new business. For example, the company has shown that it can absorb losses for an extended period of time while it builds new capabilities, such as its free delivery or expansive network of warehouses and shipping facilities. Given this track record, it would be no surprise if Amazon was aggressive in its rollout of installation and service. Even if it only achieves breakeven on installation and service, Amazon would benefit by driving market share for Amazon products.

 

By its recent actions, it is clear that Amazon is examining retailing, category by category, in order to devise and adopt strategies that will enable it to expand its market share. In grocery, the key is home delivery, which it may further leverage with its purchase of Whole Foods (WFM). In clothing, Amazon is seeking to disrupt the model with its patented technology to produce goods on-demand quickly, after a customer places an order.

Now, in electronics, the next frontier for Amazon is service and installation. The more Amazon can push into the smart home, the more Alexa can become the center of gravity—a hub for integrating HVAC systems, lighting, and security, as well as entertainment and sound systems. What remains to be seen is whether Amazon will make an even deeper push. Will one day the Samsung television bought at Best Buy be serviced by an Amazon contractor who is connecting it to Alexa? This does not seem out of the realm of possibility.

Mohanbir Sawhney is the McCormick Tribune Foundation professor of technology at the Kellogg School of Management at Northwestern University.

About the Authors
By Mohanbir Sawhney
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

cj
CommentaryIBM
IBM’s $17 million DOJ settlement makes the case for civility
By Carolynn JohnsonJune 16, 2026
9 hours ago
Vietnam has bold plans for its economic future. It will need U.S. tech, capital, and speed to make them happen
CommentaryVietnam
Vietnam has bold plans for its economic future. It will need U.S. tech, capital, and speed to make them happen
By Brian McFeeters and Vu Tu ThanhJune 14, 2026
2 days ago
ivan
CommentaryMidwest
The Sun Belt boom is over. Midwest real-estate investors say ‘I told you so’
By Ivan BarrattJune 14, 2026
2 days ago
t
CommentaryTariffs
A quartz countertop tariff could double your kitchen renovation cost — and kill 13 jobs for every one it creates
By Steve SwedbergJune 14, 2026
2 days ago
nexstar
CommentaryAntitrust
Nexstar CEO: big tech swallowed local newspapers. Local TV could be next
By Perry A. SookJune 14, 2026
2 days ago
ravi
CommentaryWeather and forecasting
I spent 8 years flood-proofing a city. Capital markets are running out of time to take El Niño seriously
By Ravi S. BhallaJune 13, 2026
3 days ago

Most Popular

Current price of oil as of June 15, 2026
Personal Finance
Current price of oil as of June 15, 2026
By Joseph HostetlerJune 15, 2026
1 day ago
Current price of silver as of Monday, June 15, 2026
Personal Finance
Current price of silver as of Monday, June 15, 2026
By Joseph HostetlerJune 15, 2026
1 day ago
Team USA star Ricardo Pepi grew up in a trailer in El Paso—and his parents pawned their car title to fuel his soccer dream. Now, he’s in the World Cup
Success
Team USA star Ricardo Pepi grew up in a trailer in El Paso—and his parents pawned their car title to fuel his soccer dream. Now, he’s in the World Cup
By Preston ForeJune 15, 2026
1 day ago
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
Big Tech
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
By Tristan BoveJune 15, 2026
1 day ago
Current price of gold as of June 15, 2026
Personal Finance
Current price of gold as of June 15, 2026
By Danny BakstJune 15, 2026
1 day ago
Current price of oil as of June 16, 2026
Personal Finance
Current price of oil as of June 16, 2026
By Joseph HostetlerJune 16, 2026
7 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.