tablet market: investment analysis
DESCRIPTION
This is a group presentation for the Summer 2011 class of Strategic Management of Technology based firms, SchulichSchool of BusinessTRANSCRIPT
1
Ajay SinghMpahiseng NondoYong HeYu Liu
Tablet Market Investment Analysis
2© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
INVEST IN GOOGLE– Android will continue to build momentum around mobile ecosystem– 500k daily activations in June 2011– Installed base on Android expected to grow to 1.3bn by 2014– Monetization Opportunities
Mobile search Click to call App royalties Longer term, perhaps a licensing model
Conclusion
We got late with our presentation13% Upside
3© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
Industry Analysis
Competitor Analysis
Key Success Factors
Recommendation
Q&A
Agenda
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Industry Analysis
PC Industry PC Market Segmentation PC Market Share Tablet Market Share Tablet 5 Force Analysis
5© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
Industry Analysis
Personal Computer Industry
– Desktop PCs– Portable PCs
Laptops Netbooks Tablet
Expected to reach a value of $163.8 B by 2014
“post-PC” world ??
6© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
Market Segmentation
Global PC Market– Mobile PC: 54.3%– Desktop PC: 45.7%
Geographically– Americas: 42.3%– Europe: 30.8%– Asia-Pacific: 27%
35% of tablet sales will replace PC sales in 2011 (Goldman Sachs)
Expected 50-80 million tablet unit sales
Cannibalization of netbook segment
7© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
Market Share
Tablet Market Share– Apple dominates tablet
segment with 83.9% stake
– Google Android’s has only 14.2% stake
Gartner estimates for 2015
– Apple’s iOS: 47.1%– Google’s Android: 38.6%– RIM’s Playbook: 10%– HP’s WebOS: 3%
PC market share– Hewlett-Packard leads
the pack– Apple – Niche Player
8© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
Tablet Market: Shipment in 2011-2014
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Rivalry
High Growth Opportunities
Competition is high
Buyer Power
Considerable product differentiation
HW specifications are being standardized
Moderate Buyer Power
New Entrant
Open source Android platform reduces barriers to entry
HP is looking to license its WebOS platform
Supplier Power
Communication and processor chip vendor hold reasonable power
Low switching cost for components
Moderate Supplier Power
Substitutes
Still evolving form factor
Intel introduced ultrabook
Substitute threat is high
Tablet Industry: Five Force Analysis
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Competitor Analysis
iPad Apple Android Google Playbook RIM Windows 8 Microsoft WebOS HP
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Tablet Platform Feature Comparison
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Android
AdvantagesOpen-source project
Speedy innovation and time to market
Expected Mobile Advertising business of $1.3 B by 2012
Leader in the smartphone market with 40% stake
Technology StrategyDevelop a strong ecosystem
Drive adoption of mobile platform
Customer in focus: Software Developers
ChallengesSecurity and interoperability issues
No Common Android experience
Privacy concerns
Weak patent portfolio in communications
Core CompetenciesGreat brand name
Optimization of its search business
Value Added cloud services
Huge pool of R&D talents
13© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
AdvantagesValue Chain and Ecosystem
Hardware Excellence
Customer Value and the User Experience
Go-to-Market Capabilities
Brand Value,
Retail channels.
Technology StrategyCapitalize on the convergence of the PC, digital consumer electronics and mobile communications
Leverages its unique ability to design its own operating system, hardware, application software, and services
Develop new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design
ChallengesSecurity
Limited Enterprise Applications
High Total Cost of Ownership (TCO)
Core CompetenciesApple's Hardware + Software
iTunes & Digital Asset Management
Apple's Retail Stores
Apple
iPad
14© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
PlayBook
AdvantagesDominant player in the enterprise mobile market
Existing BlackBerry infrastructure to leverage
Long list of excellent features and hardware specs
Technology StrategyLeverage BB infrastructure: BES, Push email
Powerful QNX –multi-task, real-time, fluid UI
ChallengesSmaller eco system, less apps
Missing some key functionalities: native email client
Lack of effective marketing strategy
Core CompetenciesSecure and encrypted transmission
Existing BlackBerry infrastructure
Vast and loyal customer base
Strong R&D and engineering capability
RIM
15© Copyright 2009 EMC Corporation. All rights reserved.Tablet Market Investment Analysis
Windows 8
AdvantagesSupport both PC and tablets seamlessly
Redesign UI, optimized for touch screen
Huge Windows eco system to leverage
Technology Strategy
New designed from scratch for gestures and touch.
Develop once, run on both PC and tablets
Run old Windows apps easily
DisadvantagesStruggling with tablets, failed previous products
Tablets <> PC
Too late to the market
Core CompetenciesDominant position in PC, Windows apps
Extensive marketing channels, big brand
Established partnership network
Excellent R&D and engineering capability
Microsoft
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WebOS
AdvantagesWill supports both new and old products
Player in both enterprise and consumer markets
Can use the existing huge PCs customers as a stating base for their sales
Technology StrategyRun on both PCs and the Touchpad
Runs Windows and OS system
Will license OS to hardware manufacturers
DisadvantagesLess apps
HP is too late into a crowded market
Touchpad is based on a platform from a failed company
Core competencesdominant position in the global PC and printer hardware
Huge brand awareness
Strong R&D and engineering capability
HP
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Platform Evaluation
Industry S-Curse Landscape of the Technology
Adoption Life-Cycle Uniqueness & Complementary
Assets over the Life Cycle Future development and Available
Apps Future Trends of Tablet
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Industry S-Curve &Landscape of the Technology Adoption Life-Cycle
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Uniqueness & Complementary Assets over the Life Cycle:
Ferment
Takeoff
Maturity
UniquenessComplementary
Assets
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New Product Development
Breakthrough
Platform
Derivative
Support
New CoreValue
NewBenefits
ImprovedBenefits Variation
Radical
NextGeneration
Incremental
Base
En
abli
ng
Te
chn
olo
gy
Market Perception
Apple
Apple
Others
Others
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Future Development and Available Applications
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Technological Trends– Post PC era
Mobility + Portability
– Changed User Behaviors– Consumerization of technology drive
Tablet within the enterprise. Functionality and business process integration User factors System integration Application architecture Management and security
Business Trends– Business Challenges and Opportunities– Market Implications
Future Trends of Tablet Industry
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Recommendation
Key Success Factors Recommendation
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Key Success Factors
Key success Criteria Weighting iPad Andriod Playbook Windows 8 WebOSHardware (15%)
USB Port/SDCard 1% 0 5 4 4 2Batter Life 4% 5 4 4 3 3Weight 3% 4 3 5 3 3Sensor(Accelerometer /Gyroscope etc) 4% 5 5 3 4 4GPS/Compass 1% 5 5 5 5 5
Connecttivity (15%)Wifi/Bluetooth 3% 5 5 5 5 53G/4G 5% 3 4 3.5 2 2Security 7% 4 3 5 3 3
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Key Success Factors
Key success Criteria Weighting iPad Andriod Playbook Windows 8 WebOSUser Interface (15%)
Screen (Quality and Size) 4% 5 5 4 4 4Front/Back Cameras 3% 3 5 5 4 3Multitouch 7% 5 4 4 4 4Handwriting Recognition Enabled 1% 0 3 0 3 0
Application and Management (26%)User Experience 10% 5 4 3.5 3.5 3Appliation Capability 2% 5 5 3 3 3Adobe Flash 2% 0 4 5 4 5Number of Application 8% 5 5 3 2 2Secure Access Client 2% 4 3 5 4 3Remote Manageablity 1% 4 4 5 4 3
Platform Eco-System (20%) 20% 3 5 2 3 2Value-added Service (12%)
Content (e-book, music etc) 6% 5 4 2 3 3Cloud service 6% 5 5 4 3 2
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Recommendation
Long-TermAndroid ! But Patent
Short-TermiPad
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Q&A
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Thank You !