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Case Study on Tablet PC Market

Submitted to

Abdullah Md Ahshanul Mamun

Lecturer

Department of Business Administration

International Islamic University Chittagong

Prepared by

Jubayer Alam Rana

Matric no: R123168

Program: RMBA

Semester: 4th (D)

Department of Business Administration

Faculty of Business Studies

Date of submission: 29th Apri;, 2013

Case Study on Tablet PC Market

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Table of contentsTopics Page no

Introduction 2

Identify the reasons why Apple is a market leader in tablet PC

market

3

Why Samsung is a threat to Apple in this context 5

Sony vows to be no.2 in this competition. Is it possible for Sony? 7

Prepare a Strategic Group Map for the tablet PC market 9

Case Study on Tablet PC Market

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Introduction

Apple Inc. introduced the first-generation iPad in 2010; it was the result of the continued

evolution of personal computing. Consumers were looking for an option that was lighter and

more portable than a laptop, had more functionality and computing power than a Netbook,

and yet was more convenient and had a larger screen than a Smartphone. The result of this

increased consumer demands is the tablet-style computer which, as of 2011, was a market

dominated by the iPad. According to the market research and consulting firm, 26.8 million

tablets were shipped in Q4 of 2012, which is a 150 percent increase on the 10.7 million

shipped in the same quarter of 2011. Nearly two in five (39 percent) of the tablet PCs

shipped during the end of 2012 ran Google's open source operating system, up from 29

percent the previous year. However, 57.6 percent run Apple's iOS software, indicating

Apple's iPad has retained its crown in the tablet PC market. "Demand for tablets among

consumer, business and education users remains strong. Apple shipped a robust 15.4 million

iPads worldwide and maintained its strong market leadership. Apple shrugged off the much-

hyped threat from entry-level Android models this quarter. We already know that in tablet

pc market Samsung is the real threat for Apple ipad. Generally Samsung tablet pc is run by

Google based Android operating system. The tablet market expanded to include the

consumer and enterprise markets.

Consumer tablets include the iPad, Dell Streak, Motorola Xoom, HP TouchPad, Asus Eee Pad

and Samsung Galaxy, among others. Enterprise tablet PCs includes the BlackBerry PlayBook.

We already know that Sony also enter into the tablet and they want to capture the secand

position in the market. HTC has cutting edge technology for competing tablet PC market.

Recently Nokia has declared they are want to introduce new tablet pc that are not like

tablet PC and not like Smartphone according to size that mean the size of their tablet Pc is

middle point of TAB and Smartphone.

Case Study on Tablet PC Market

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Q1-Identify the reasons why Apple is a market leader in tablet PC

Market

Many businesses are dipping their toes in the tablet market. The portability and

convenience of tablets are compelling for many businesses, especially ones that have a

mobile workforce or interact with customers. Tablets Android increased shipment volume

by 27 percent in the third quarter over the same period last year, according to a report last

week by Strategy Analytics. However, while Android's market share jumped considerably,

Apple smoked Android on sheer numbers of tablets sold. Android's jump in shipments

merits attention, but let’s looks at why Apple is still the clear choice for business. After

analysis the data I have find out some reasons that are make Apple’s to act as a market

leaders in Tablet PC market. These are given below.

The 'Cool Factor': Apple has carefully cultivated this “cool factor” for decades, taking

the top position as the world’s most valuable brand in one well-known ranking this year.

There's also the question of brand identification; Apple fans will like that you're using their

favourite, while PC adherents won't exactly mind if you whip out an iPad. It's bound to

impress clients when front-line staff uses an iPad to take orders, help customers, or show

clients plans and projects. Android tablets just don't have the same magic touch.

Young Android Tablets and Marketplace: While the iPad has been around for

a while, Android tablets with a comparative screen size just entered the market at the end

of 2010. Most Android Marketplace apps weren't purpose-built for tablets, whereas the

iPad commands a much higher range of tablet-ready apps from the App Store. That means

there aren't many apps for Androids that take full advantage of the form factor. And

catching up isn't easy; iPad apps need to be rewritten from the ground up for Android, so

"porting" apps is a slow process.

Android Developer Lag: Building an Android app isn't just a matter of translating

one written for an Apple device to Android. Apps need to be recoded from the ground up.

Case Study on Tablet PC Market

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This means that businesses that have an iPad-ready app have to re-hire a developer to

recode for Android. That takes time and a budget that most businesses don't have.

Minor Price Difference: There's not much of a price difference between the iPad

and comparable Android tablets. Android tablets that are comparable to the iPad in features

tend to be about the same price. While this may change when Amazon releases the Kindle

Fire at $200, the Fire won't be able to compete on features. It also offers a smaller screen

size, which professionals may not wish to sacrifice.

Better interface: Apple still has an edge in usability. Android's interface is busy,

cluttered, and difficult to manage, which adds up to less efficiency and productivity. People

might also get frustrated and stop using the new gadgets, falling back on their trusted

laptops. User can create pages and folders in Android, but moving applications and

organizing large numbers of them is less easy. A cleaner user interface means greater

efficiency for work; if you can't find something on an iPad, you probably aren't really looking

for it.

Better apps: The iPad has a mature set of solid business apps, something Android can't

yet claim. The iPad has enough solid tools to serve as a laptop replacement, and IT pros are

already using tools like Citrix's Go to Manage to provide real-time remote support.

These are the basic and most common cause behind the market leader of Apple in

consideration of Tablet PC market.

Case Study on Tablet PC Market

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Q2-Why Samsung is a threat to Apple in this context?

The pass away of Steve Jobs had a deep impact on Apple Inc. Many of Apple’s competitors

have more chances to keep up with it. And in the front of product, there’s no doubt that

Samsung would be one of the most powerful competitors. A lot of ink has been spilled in the

wake of the recent Apple Samsung patent disputes, and the legal wars see no sign of

abating any time soon. The rise of Samsung’s tablet business has been meteoric, and Apple

is right to be concerned. But the real threat that Samsung poses to Apple has very little to

do with the copying (or not) of Apple’s designs. The lawsuits have simply been a convenient

(if expensive and risky) way to attempt to quash a threat that is of Apple’s own making.

While there’s no doubt that Google has played a key role in Samsung’s success by handing

out a free mobile operating system to pretty much anyone who wants to build one it is

actually Apple, more than any other company, which is responsible for Samsung’s present

success.

Samsung’s investment in Sharp, a threat to Apple

The Sharp Corporation, as you may or may not know, is one of Apple’s key suppliers of

display screens, counting for around 30% of Apple’s supply numbers. Even though you’d

assume that Apple’s constant orders would have a positive effect on the bottom line, Sharp

is currently struggling in the current market conditions. Well, Samsung comes in at this point

investing $110 million in Sharp stock, an action which is considered by many to be the first

in a line of small steps in which Samsung will start to court Apple’s and other smart phone

industry suppliers, what with its raise in its mobile devices. While this investment only

constitutes 3% of the company, it’s still enough to get Apple’s attention.

Closely substitute product

Android based Samsung Tablet PC is closely substituted product of Apple tablet pc, but

how? We know that Google is the developer of android OS that are run in Samsung tablet

pc. And we already know that Google have copy the Apple IOS. So that’s why the basic

outlet of the OS is same and Maximum program also copy from IOS. So in this view point of

Case Study on Tablet PC Market

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who are not wanted to pay more money they will choose Samsung Tab because they look

like as ipad without brand name.

World recession period

After world recession period developed countries people also are not interested to pay

more money for apple product because apple every product price is too much high from

others specially Samsung. Some users also said that Apple is the leader of tablet market but

in that situation they will be more benefitted from other companies tablet PC in comparison

to features and price. On the other hand some special features are providing by Samsung

that are not able to provide by Apple. Like Phone call option in tablet PC. As well as they

look like same.

Market boast

Samsung, under the lee family, has become a top global brand in the space of 10 years and

now boast a market value of $30 billion that are equal to Sony, Nokia, Toshiba and

Panasonic Corporation.

Case Study on Tablet PC Market

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Q3-Sony vows to be no.2 in this competition. Is it possible for Sony?

Sony had vowed in January that by 2012 it would become the world's No 2 tablet maker

behind Apple and it stuck by this bold claim at IFA where its chief executive Howard Stringer

introduced the devices. "We want to prove it's not who makes it first that counts, but who

makes it better," Stringer said. Sony is late to the game, with its first tablet due to hit store

shelves in September. Its release is more than 18 months after Apple released the iPad, and

almost a year since Samsung came out with its first Galaxy Tab. Both of the tablets deviate

from the now-standard slim line format that has Samsung in legal trouble with Apple, where

it is accused of copying elements of the iPad leading to an injunction on the sale of its latest

tablet in Germany, and potentially across Europe. In below I am showing a model of Sony

Tablet that is known by Sony Tablet Z.

But now the question is that how they will be vow the second market position and what is

their product strength. Is they are providing some unique feature or is it possible for Sony.

In the following I am giving some unique feature and some comments also that are help to

analyze is it possible for vowing the second position. These are.

The Sony Tablet S, which has a 9.4-inch screen, resembles a cross-section of an

aircraft wing. The Tablet P, which will be heavily promoted as an ebook reader as

well as a web-browsing device, is a clamshell device with twin 5.5-inch screens. Both

will come with Google's Android 3 "Honeycomb" tablet software. Among their

concerns were a high price and features that suggested Sony Corp would remain an

also-ran rather than a leader in the tablet market. Two versions of Sony's main tablet

cost $499 and $599, the same price as two lower-end Apple iPad models. Sony is

Case Study on Tablet PC Market

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trying to distinguish its Android tablets with features that let one tablet function as a

universal remote, while another one folds like a clamshell.

Both tablets come integrated with Sony's music, video and ebook services, marking

them out from many other Android tablets, which have struggled to integrate

compelling content services in the way Apple has with iTunes music, TV, film and app

stores.

Stringer, the company's Welsh-born chairman, president and chief said Sony, which

owns film studios and a record company, is uniquely positioned as a producer as well

as distributor of such media. "Apple makes an iPad, but does it make a movie?" he

asked.

Sony's European tablet product manager, Samir Militao, said: "We think that we

have a unique design. We try to differentiate our products to [various criteria] and

design is one of them."

The Tablet S has infrared functionality that makes it usable as a remote control for

Sony TV sets, for instance, and users can also "flick" music to DLNA-enabled hi-fi

systems.

Worldwide tablet shipments are forecast to more than triple this year to 60m units,

and then rise to 275.3m units by 2015, according to a report this month from

research firm IHS iSuppli.

Sony said the S tablet is unique because of a universal remote inside the computer

that can be used to control stereos, cable television boxes and TV sets. The wifi-only

device has a 9.4 inch screen, weighs 1.33 lbs and has front and rear cameras.

Recently they are introduce Sony tablet Z that are containing water proof like Xperia

Z. As well as they use Sony Bravia engine 3, cybershot taecnology and walkman

technology.

Consumers want tablets, but they are not prepared to pay the same amount they'd pay for

an iPad for something that's not an iPad. Despite of the brand and different design with its

pricing so close to the iPad. But if Sony use their unique features with reasonable price and

take appropriate strategy that time they will be vow the second position because they are

not copy cap product.

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Q4-Prepare a Strategic Group Map for the tablet PC market

Basically strategic group is a concept used in strategic management that groups companies

within an industry that have similar business models or similar combinations of strategies.

The number of groups within an industry and their composition depends on the dimensions

used to define the groups. Strategic management professors and consultants often make

use of a two dimensional grid to position firms along an industry's two most important

dimensions in order to distinguish direct rivals from indirect rivals. Strategy is the direction

and scope of an organization over the long term which achieves advantages for the

organization while business model refers to how the firm will generate revenues or make

money. Here I am going to show the strategic group map of tablet PC market at respect to

market share and the price. The horizontal shows that product price and vertical axis shows

that the market share of tablet for different companies. That are given below.

High

Low

Low High

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References

http://www.pcworld.com/article/242579/

six_reasons_the_ipad_is_still_the_tablet_to_beat_for_business.html

http://www.cbsnews.com/8301-505143_162-28652660/five-reasons-why-an-ipad-

beats-android-for-your-business/

http://en.wikipedia.org/wiki/Strategic_group

http://www.guardian.co.uk/technology/2011/aug/31/sony-tablet-apple-ipad

http://www.reuters.com/article/2011/08/31/us-sony-idUSTRE77U19U20110831

http://androidheadlines.com/2013/03/samsungs-investment-in-sharp-a-threat-to-

apple.html

Case Study on Tablet PC Market