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Amazon has acquired iRobot, the company that brings the Roomba cleaning robot to life. What does this new movement centered on home services mean?
Amazon, in its strategy to become a benchmark in smart home products, has just acquired iRobot, the company that created the famous Roomba cleaning robot. The deal closed for a price of approximately $1.7 trillion, according to the announcement made by the two companies. In the case of Amazon, with a positive rate of over $37 trillion in cashit’s done with a product that extends the integration of home products even further.
It is a movement that serves to understand the transformation process that Amazon is undergoing in the market. How did a company born to market e-books manage to position itself as the leading connected home services company? From video platform to smart doorbells, speakers in the same class and much more. Almost without realizing it, Amazon has taken over more and more industries. iRobot is, without a doubt, a very important initiative to understand the future of the brand.
The integration of digital services and products comes with a physical product. Amazon has added this duo to its trading platform with the aim of play a greater role as a diversified company. Undoubtedly, the desired result is achieved. Let’s see what this operation means and, of course, what repercussions this curious market analysis strategy can have in the medium term.
A purchase to demonstrate your new approach to home care
In the Amazon product catalog, we can find all kinds of household products. It all starts on the landing of the house, since it offers a smart doorbell. Once inside, Alexa can receive us through a smart speaker, and if we want to watch TV for a while, we can use Amazon Prime Video. Bored and want to read? Amazon also offers us this option with its Kindle alternative. Without forgetting the company that can make us astro! As you can see, the delivery company has crept into our house and, almost silently, has become part of our daily life.
The Roomba range has been the most successful iRobot has had on the market Five days
The acquisition of iRobot is a decision that allows the firm of Jeff Bezos enter the cleaning industry. It was a move one would expect given the company’s strategy. We are talking about buying a company with over 30 years of history. Roomba is its flagship product and, therefore, has a know how that Amazon wants to take advantage of. Especially since iRobot shareholders aren’t currently experiencing their best times, so now is a good time to buy.
iRobot’s new leadership team, which will continue to include current leader Colin Angle, must fight to reverse the current situation. It should be noted that the company faces a problem related to exchange rates. After all, the current strength of the dollar hurts their annual accounts because 2/3 of their activity is done outside the United States.
Similarly, the supply crisis has also affected the company, early cancellations and order delays have occurred. Indeed, the company has signed an agreement to lay off 10% of the workforce due to the situation the company is going through. The purchase by Amazon hopes that it can soon serve to alleviate this bad moment. For Jeff Bezos, this new move serves to further improve the strategy of a home-centered type of serve.
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