1 / 9

Strategy Implications: Competition for Standards in the PDA Industry

Strategy Implications: Competition for Standards in the PDA Industry . Presenters: Megan McCarroll Valentin Morozov Ahmed Ozalp Francis Vo. Agenda. Industry Background and Landscape Market Projections Decision Tree Recommendation. PDA Industry Background. PDA’s are a huge market

estralita
Download Presentation

Strategy Implications: Competition for Standards in the PDA Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Strategy Implications:Competition for Standards in the PDA Industry Presenters: Megan McCarroll Valentin Morozov Ahmed Ozalp Francis Vo

  2. Agenda • Industry Background and Landscape • Market Projections • Decision Tree • Recommendation

  3. PDA Industry Background • PDA’s are a huge market • In 2000, 8.9 million units sold word-wide, $2.3 billion industry • By 2005, we project the 39 million units and a $6.6 billion in sales Total PDA Units Shipped — Global Forecast, 2000 to 2005 Source: Aberdeen Group, August 2001

  4. PDA Industry Background Major H/W Players Major O/S Players

  5. Industry Landscape Threat of New Entrants High because of horizontal integration For H/W, convergence of consumer products For O/S, introduction of more flexible platforms for applications Competitive Rivalry Consumer – Price Wars Professional/Prosumer - Price differentiators Palm O/S vs.MS Pocket PC Buyer Power Strong buyer power Low switching costs within O/S Supplier Power Weak supplier power Industry-wide shortages increase power Complementors 3rd part applications developers 3rd party hardware add-ons Threat of Substitutes Very low, paper-based day planners Possibly Yahoo distributed system but not ubiquitous

  6. Consumer Mostly Palm-based, difficult integration Palm, Handspring Prices $150-350 First-mover advantage, established the standard Dominates the market Buying decisions made by consumers Important features: price, ease of use Business Windows-based, easy integration Compaq, HP Prices $200-450 New standard Rapidly growing segment Buying decisions made by IT managers Important features: integration with IT systems, uniformity across company Industry segments

  7. Growth Forecast • Windows-based systems overtake in 2003 • Economies of scope, scale, better margins, deeper pockets • Is Palm next BetaMax ? • What does this mean for HP ? Palm and Pocket PC — Global Forecast, 2000 to 2005 Source: Aberdeen Group, August 2001

  8. Decision Tree Devoted, small share = Continue as is Might get larger percentage of small growth market = Alliance (cell phone, hardware) Bigger share = Change, dominant now N Compete on OS Smaller share - Smaller share - Get out of handhelds N Stay with MS, may become dominant + Biggest share - No risk, no reward

  9. Recommendations • Continue to support and promote merger effort with Compaq • Advantages of not competing head to head with Compaq on MS OS • If merger does not succeed, we would still maintain our current trajectory with Microsoft OS, but would need to develop a differentiating point between HP and Compaq • Proactively co-brand with Microsoft • Work with Microsoft to fuel creation of “killer apps” for MS OS standard

More Related