Computer Industry Analysis

PpOS Startup AnalysisBYGROUP-1

PREVIEWPart 1- Background.Part 2- Analysis of the competitive structurePart 3- Factors inhibiting adoptionPart 4- StrategyPart 5- Execution of that strategyPart 6- Conclusion

PREVIEWPart 1- S M MurariPart 5- Arun JohalPart 4- P KumarPart 2- A K SinhaPart 3- Digvijay MohbePart 3- R C VarghesePart 6- C S Joshi

PART-1BackgroundS M MurariPpOSYou are a group of managers and software engineers at a small start-up. You have developed a revolutionary new operating system for personal computers that offers distinct advantages over Microsofts Windows operating system : -it takes up less memory space on the hard drive of a personal computer; -it takes full advantage of the power of the personal computers microprocessor and, in theory, -can run software applications much faster than Windows; -it is much easier to install and use than Windows; -and it responds to voice instructions with an accuracy of 99.9%, in addition to input from a keyboard or mouse.

The operating system is the only product offering that your company has produced.BRIEF OF THE CASE1.Analyze the competitive structure of the market for your personal computer operating systems. On the basis of this analysis, identify what factors might inhibit adoption of your operating system by customers.

2. Can you think of a strategy that your company might pursue, either alone or in collaboration with other enterprises. to beat Microsoft"? What will it take to execute that strategy successfully?QUESTIONS

BASIC CONCEPT OF OS

CORPPORATE STRUCTURE

PART-2Competitive Market Structure Analysis of PpOS StartupA K SinhaPpOSPart IICompetitive Market Structure Analysis of PpOS Startup Preview Market Structure and its Features Market Size SWOT Analysis of PpOS Porters Five forces for competition in Industry Market StructuresA market is defined as a group of firms/Companies willing and able to sell a similar product or service to the same potential Buyers/Customers.

Market structure refers to the number and size of buyers and sellers in the market for a product or service.

Determinants of market structure Number of sellers

Product differentiation

Entry and exit conditions

Mobile & PC OS Market Share

Environmental Analysis (SWOT analysis)

Strengths

Less Memory Space Can Run Software Applications Much Faster Than Windows Easy to Install and Use 99.9 Accuracy in Voice Instructions ResponseWeaknessesNo Brand Loyalty & ReputationDependence on hardware makersPC markets have maturedStartup and confined to PCs Only

Environmental Analysis (SWOT analysis)

Opportunities

Cloud based servicesMobile advertisingMobile device industryGrowth through Joint Venture/PartnershipTacit Collusion ??ThreatsIntense competitionChanging consumer behavior Open source projectsPotential lawsuits

Porters Five Forces

Bargaining Power of Suppliers - Low Bargaining power of Buyers - Low Industry Rivalry - High Threat of New Entrants - Low Threat of Substitutes - High

PART-3PpOSFactors inhibiting adoption of our operating system by customersFACTORS INHIBITING ADOPTION OF PpOSR C VargheseFACTORS INHIBITING ADOPTION OF PpOSPositive network effects favouring Windows - High customer equity - Incr attractiveness due large user base - Access to new versions - Corporate/ Academia subscriptions - Incentives for ISVs - Prohibitive expenses for new entrantsHi switching costs - Ability to run older applications - Avlb of new applicationsFACTORS INHIBITING ADOPTION OF PpOSOEM ResistanceDecline in PC salesLifecycle stg of PCsDrop in cost of OSPrice restraint for existing MS usersCustomer profiles - Demographic - PschyographicScope of Competitive RivalryThe competition within the PC OS industry is extraordinarily cutthroat. The top companies consist of Windows-.

A few factors of competitive edge: New technology Custom built PCs Reliability Customer Service

PART-3PpOSFactors inhibiting adoption of our operating system by customersINHIBITING FACTORS CUSTOMER

BRAND LOYALTYCOMFORT ZONE MINDSET / APPREHENSION

INHIBITING FACTORS OLD PRODUCT

PRODUCT LIFE CYCLEUPDATED ONLINEVOICE RECOGNITIONINHIBITING FACTORS COMPATIBILITY

HARDWARESOFTWAREPEAK PERFORMANCE

PART-4PpOSStrategy that our company might pursue

PART-5PpOSExecution of that strategy successfullyArun JohalPART VCompetitive Position of Major CompetitorsNet IncomeMarket Capital

1 B2 B3 B4 BDellGateway

Hewlett-Packard25 B75 B100 BApple50 BSoyaHow to execute the strategyDon't worry about the remaining 10-15% of the features required by power users, particularly ExcelSupport Office documents as a "first-class citizen."Teach them to become power usersGet new customers hooked on products other than AppsShow them how Open Source cloud helps mobile workersMake sure that the new apps have "85-90% of the functionality" of Office.Don't try and convince enterprises to convert from Microsoft Office to the new Apps.85-90% functionality" of OfficeOpen Source Apps are simpler to operate than MS OfficePenetration of Cell Phone is clear evidence that MS Offices days are numbered.More and more companies are switching over to apps every day eg e-retailing companies, banks even railways.Consumers convinced that Apps are more useful than MS OfficeLimited Usage of EXCELMost people do not create or use spread sheets in routine.Most people do light reading or writing in office.Only 10% of office staff use EXCEL for their day-to-day tasks.You have very few users of EXCEL, get licensed copies for them.Support Office documents If they don't have the app installed, they open in an Office-compatible editor, QuickOfficeQuickOffice "will render Office files perfectly (or nearly perfectly) so you can do light editing and share it back, in the same original Office format, With cloud storage service, people can upload Office documents and when they open them, they automatically open in the appropriate Microsoft program (Word, Excel, and so on) as long as they have that app installed.How to convert from MS WindowsInstead, they should be convinced to try out Appsin additionto the Office licenses they already have.So give people an option and reconcile your associated licensing on actual usage, not on some upfront commitment and long-term contract. That's the old world of enterprise software. Today you should just pay for what you actually use, not for some arbitrary number of usersPwC opted for Apps for roughly 25% of its employees as a test case.Very little chance that companies are going to wake up one day and throw Microsoft Office out completelyWhy buy Apps if you already have Office? Double-use will only happen for a short while. In the end, companies will stop buying new Office licenses for employees who don't really need it. Teach them to become power usersUnlike regular software, which you pay for up front, with cloud software, a software vendor has to continuously keep its customers happy or they'll end the subscriptionConstantly look at how people are using Apps and trying to entice them to use it moreNeed to offer online training tips. Also, create a community of power users to teach and do tutorials. As they grow dependent on usage in a document, they'll tell their coworkersGet customers hooked on all productsGet new customers hooked on products other than AppsOpen Source services to offer more of the things that the customers wantHow Open Source cloud helpsConsumers are mostly on their phones now. Need to make sure that Android is "a first-class citizen, secure and manageable, " for companiesWhen the tablet or phone is the primary computing device, "There will be a new generation of applications written for enterprise, which will be built on cloud, for the mobile, which will combine insights from different backend, legacy apps that people might have, but delivers it in intelligent fashion, as an assistant to you as you are working.It is expected that mobile devices and apps will soon replace PCs altogether for a lot more employees.Advantages of Open SourceOpen-source code also creates opportunities for market-driven complementary software products and services.As an idealistic movement, open source benefits from the input of dedicated, volunteer programmers who are willing to cooperate to keep big companies from controlling the computing environment.Open-source software offers major advantages in security. In proprietary software markets, manufacturers have a hard time making sure that only those users with valid licenses are running programs. Since user respect for copyright tends to decline sharply after the first year of an applications existence, for-profit developers make a point of releasing frequent minor upgrades that can be more trouble than theyre worth to install. Because freeware is free, developers can release upgrades at a more respectful pace.Open-source code also creates opportunities for market-driven complementary software products and services.The point of open source is to provide a common (and low-cost) platform for competing products to bloomStory of FRONT PAGEIn 1993, Charles Ferguson, an MIT-trained political scientist and high-tech industry consultant, had the brilliant idea of making a software tool for building online information systems. The tool, later dubbed FrontPage, was designed to be user-friendly so the nonprogrammers who were supplying on-line content could use it but sophisticated enough to provide flexibility in how to structure and present that information. Ferguson sunk his life savings into his new company, Vermeer Technologies, assembled an excellent programming team with his partner, Randy Forgaard, and raised venture capital to keep the company going. He pursued the enterprise with a mix of monomania and paranoia. When it was released in late 1995, FrontPage was far more advanced than similar products from any competitorsincluding Microsoft, which bought Vermeer soon after for$130 million.

PpOSConclusionYEAR WISE MARKET SHARE

Our marketing priorities include Building brand awareness among customers, Forming relationships with other OS, Launching Free VersionOperating in an environmentally friendly manner. Launch of Paid Version and Generating sales, Breaking even by the end of the 5th year,

Core capabilities of technical expertise, design skills, and efficient assembly procedures will contribute to cost control and enable us to react quickly to market trends and technological advances.

For the products introduction, we will use a push strategy aimed at channel members combined with a pull strategy aimed at customer segments.PpOS Marketing Strat Analysis