With its deep penetration into the home, Sonos is now competing with much larger businesses that have broader goals for customers. Amazon, Google and Samsung are all fighting over the connected home & home theater. Further, whoever wins the battle for the living room may win the war on the entire home.
To remain competitive against these global tech giants, Sonos should remain laser-focused on music rather than home or home theater – playing to its strengths as a quality-first and music-first company, and steering away from its weaknesses in its home theater product line.
Amazon and Google will not compete on sound quality; Amazon is merely offering a voice interface to customers and Google’s strategy appears more focused on delivery over playback.
To stay competitive against Bose and other leading speaker manufacturers, Sonos must continue its current strategy of skating to where the puck is going, by making big bets on consumer music trends and looking backwards through the value chain to how consumers discover, find and interact with music.