Preview

Micro-analysis Tablet Industry

Better Essays
Open Document
Open Document
1481 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Micro-analysis Tablet Industry
Name: Margo De Ridder
Student number: R0141223
Module: Marketing Fundamentals

The tablet market: External analysis of the micro-environment

The global tablet PC market continues to grow with shipments reaching 53.8 million units in the third quarter of 2014. The rise in shipment from 48.3 million units in the third quarter of 2013 to 53.8 million units in the third quarter of 2014 can be attributed to the growing demand from costumers as the tablet industry offers the costumer a smaller sized device with a better battery life compared to a PC and because the device allows costumers to multi-task. It can also be argued that the increase in sales could be driven by back-to-school promotions. Because the tablet PC market is reaching its maturity stage because of the growing number of sellers, the choice available to the consumer is big. The worldwide tablet market is led by Apple’s iPad product line. Although Apple’s market share decreased with 6,4 % in one year, it maintains its leading position in 2014 with 22,8 % share of the market. Samsung is ranked on the second place with 18,3 % of the market share. ASUS holds a number three position despite its decreased market share from 7.4% in 2013 to 6.5% in 2014. Lenovo, who occupied the number 3 position in the second quarter of 2014, digressed to the 4th position with only 3 million units with a 5.7% 3Q14 market share. Finally, RCA achieved its number five position by shipping 2.6 million units and also bumping their market shares up to 4.9%. We could therefore state that the tablet industry is a oligopoly with Apple occupying the leading position, challenged by Samsung and ASUS, Lenovo and RCA as main followers in this market.

Brief analysis of Porter’s Five Forces

In this paragraph the five factors of the Porter’s Five Forces Model will be briefly discussed. Firstly, the extend of competitive rivalry is quite high due to the large number of competing companies. Although it is forecasted that Apple and Samsung

You May Also Find These Documents Helpful

  • Good Essays

    By launching IPAD, in January 2010, and releasing it into the market in April, Apple introduced a potential new product category in computers which is likely to change the way consumers interact with their devices. IPAD was able to meet a changing consumer need which saw them preferring to ‘swipe a finger across a touch screen’ instead of using a keyboard. More than 15 million units were sold in the first year alone. In a move which surprised many market watchers, Apple launched IPAD2, in March 2011, slightly more than a year after the first IPAD was released onto the market. Surprisingly!, because many marketers would have thought that IPAD1 had not yet gone through its full product life cycle. However, this move by Apple is in response to the changing competitive environment which has seen growth in the interest of tablet computers from competitors. Analysts predict the computer tablet market to treble in size in 2012. By launching IPAD2, Apple has left competitors playing ‘catch up’ in a growing segment with consumers hungry for new products. There are a dozen or more competitors with rival tablets to IPAD2 likely to be launched in 2011 from competitors like Microsoft and Toshiba.…

    • 782 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Porter's Five Forces Model includes the following: in the center is competition, on the left are suppliers, on the right are customers, on the top is substitute products and finally on the bottom is entry barriers.…

    • 1312 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Michael Porter’s Five Forces Model is a model used to analyze a particular environment of an industry. An industry is a group of firms that market products which are close substitutes for each other, such as the automobile industry. According to Porter, there are five forces that determine an industry’s long-run profitability and attractiveness. These five competitive forces are the threat of entry of new competitors, or new entrants; the threat of substitutes; the bargaining power of buyers; the bargaining power of suppliers, and the degree of rivalry between existing competitors.…

    • 698 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The intensity of competitive rivalry is the first force in Porter 's 5 forces analysis which analyze “market difficulties”.…

    • 7093 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Five Forces Model

    • 2253 Words
    • 10 Pages

    Porter’s Five Forces Analysis is based on the concept that the key objective for any organization should be to gain advantage over its competitors, it is not the industry that an organization is in that counts, but where it wants to compete in terms of the nature of the competition. This competition is provided by the nature of the rivalry between existing firms, the threat of potential entrants and substitutes and the bargaining power of both the suppliers and buyers (Lowson, 2002). The five-forces model is extremely helpful in systematically diagnosing the principal competitive pressures in a market and assessing how strong and important each one is. This straightforward approach is the most widely used technique of competition analysis.…

    • 2253 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Firms use economist Michael Porter’s Five Competitive Forces Model to gage the profitability and competitive position in a given market. The five forces are:…

    • 1476 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Relative to traditional PCs and past tablets, we see Apple’s iPad ecosystem as unique in 5 key ways, which we call the “5Cs”: (1) Consumption: the iPad focuses on information consumption versus production; (2) Content: the iPad is tightly integrated with content; (3) Connected: the iPad is “always connected”; (4) Constant operation: the iPad is an “instant on” device with all-day battery life; (5) Commerce: Apple’s ecosystem ensures that consumers are always “ready to buy.”…

    • 2762 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    The aim of the five forces model illustrated by Michael Porter (1979) is to analyze an industry to determine that which forces can influence the industry strongly so that the firm could make the best position in this industry. And the five forces include: the threat of new entrants; the power of buyers; the power of suppliers; the threat of substitute products and the competitive rivalry among the existing companies.…

    • 2456 Words
    • 10 Pages
    Best Essays
  • Best Essays

    After launch of Apple iPad device in 2010, the demand for tablets increased substantially, which can be seen in the growth of tablet shipments (Exhibit 1.0). The tablet shipment was at 0% to 5% growth in 2010, but it spanked to 20-30% 1Q of 2013 leaving tech companies highly interested in this high growth market (Betanews, 2013).…

    • 3441 Words
    • 12 Pages
    Best Essays
  • Best Essays

    Above all, the report has some limitations. Firstly, information about the iPad supply chain is mainly referenced from online data of non-official sources such as online magazines and journals. Although most of them have high reputation, articles published by them have not been confirmed by Apple which strictly restricts access to its supply chain information. Secondly, due to the limitation of an assessment, some explanations and arguments are not comprehensively supported by appropriate academic sources.…

    • 4912 Words
    • 20 Pages
    Best Essays
  • Good Essays

    In today’s digital world, tablet computers are the leading mobile devices for daily usage. Eagerness for buying a tablet is spreading around the world. In subways, in restaurants more and more people are seen with a tablet in the hand. Some of them play games, some navigate through the Internet. Today, most people prefer to buy a tablet computer instead of a notebook or netbook. The question is why people buy tablets? They are not cheap, relative to their notebook and netbook equivalents. They cannot perform all the functions of a typical computer. Is the key of tablet computers’ success efficiency or marketing strategies and competition? I guess both of these are important factors in the success of tablet computers.…

    • 1106 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Comparing Google and Apple’s total revenue, net income, total assets, and market value, we will make a conclusion that Apple is better than apple in all of these things.…

    • 2477 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Analysts forecast the Global Accessories and Peripherals market for Smartphones will grow at a CAGR of 9.1 percent and the Global Accessories and Peripherals market for Tablets will grow at a CAGR of 39.9 percent over the period 2013-2018. One of the key factors contributing to the growth of the Global Accessories and Peripherals market for Smartphones and Tablets is the increasing sales of smartphones and tablets. The Global Accessories and Peripherals market for Smartphones and Tablets has also been witnessing changing consumer behavior. However, the lack of differentiation among various brands could pose a challenge to the growth of this market.…

    • 731 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    Taking a look back to the 2nd quarter of 2012 it is clear that the tablet market is changing and other companies are doing it right. Apple experienced a -14.1% growth in just 1 year while Samsun grew 277%, Asus 120.3%, Lenovo 313.9% Acer at 247.9% and all the other competitors in the other combined 38.8% from the 2nd quarter 2013 results, 136.6%. This has resulting in a 59.6% growth of the entire tablet market…

    • 618 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Samsung Galaxy 10.1

    • 3569 Words
    • 15 Pages

    Final Report Consumer Decision Making Process, Perception and Reference Group in Purchasing Samsung Galaxy Tab 2 10.1 Prepared for Prof. Val. Ortega by: Kam Kai Heng (12717040) Satrio Adi Bintoro (12525545) 13 September 2012 0 Executive Summary The content of this report is consumer decision process and two influencing factors that affect first time buyer on purchasing Samsung Galaxy Tab 2 10.1.…

    • 3569 Words
    • 15 Pages
    Good Essays