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Is	
  the	
  IPAD	
  a	
  Disrup/ve	
  
          Technology?	
  




Based	
  on	
  2010	
  data	
  and	
  technology	
  
April 2010
Case	
  contents	
  :	
  
             ü E-­‐Books	
  pla?orm	
  
             ü Publishers	
  
             ü Music	
  industry	
  
             ü Movies	
  
             ü TV	
  

Kindle	
  
Can	
  IPAD	
  success	
  
as	
  IPHONE	
  ?	
  
Q1	
  :	
  PORTER’S	
  COMPETITIVE	
  FORCES	
  
                      MODEL	
  
+	
  
                                                    Threat	
  of	
  subs/tute	
  
                                                                  -­‐	
  Very	
  low	
  
                                                        -­‐	
  Market	
  is	
  uncertain	
  




                                              -­‐	
   +	
  
                                                                                                                 Bargaining	
  
       Bargaining	
                                                                                               power	
  of	
  
        power	
  of	
                                                                                            customer	
  
                                                          Compe//ve	
  Rivalry	
  
        supplier	
                                              between	
  Exis/ng	
                       -­‐	
  Consider	
  low	
  due	
  to	
  
                                                                      Players	
  
-­‐	
  Consider	
  high	
  due	
  to	
                                                                         unavailability	
  of	
  	
  
                                                           -­‐	
  Consider	
  very	
  low	
                   similar	
  products	
  &	
  
   Apple	
  offered	
  higher	
                                      because	
  of	
  
       royalty	
  (developer)	
                                                                                 features	
  in	
  the	
  
                                                          technology	
  varience	
  
                                                                                                                    market	
  
    -­‐	
  High	
  due	
  to	
  quality	
  
              preferences	
                                                                                 -­‐	
  IPAD	
  offer	
  various	
  
                                                                                                                     applica/ons	
  




                             +	
                                                                                      +	
  
                                                                                                            compared	
  to	
  Kindle	
  
                                                Threats	
  of	
  new	
  entrance	
  
                                                       -­‐	
  Low	
  due	
  to	
  high	
  investment	
  
                                                -­‐	
  Other	
  industry	
  player	
  have	
  the	
  
                                                                 capability	
  &	
  ability	
  	
  
Ques/on	
  2	
  
•  What	
  makes	
  IPAD	
  a	
  disrup/ve	
  technology?	
  
•  Who	
  is	
  winners	
  and	
  losers	
  if	
  IPAD	
  becomes	
  a	
  
   hit?	
  	
  
•  Why?	
  
IPAD	
  SPECIFICATION	
  
Combina/on	
  
 of	
  MAC	
  &	
  
  Iphone	
  
        	
  
WINNERS	
                                                         LOSERS	
  
                                                                                      The	
  iPad	
  makes	
  exis/ng	
  eReaders	
  
                   The	
  iPad	
  could	
  be	
  the	
  device	
  that	
  makes	
  
eReaders	
                                                                            including	
  the	
  Kindle,	
  Sony	
  eReader,	
  
                   eBooks	
  and	
  eReaders	
  go	
  mainstream.	
  
	
                                                                                    Plas/c	
  Logic	
  Que	
  and	
  B&N	
  Nook	
  look	
  
                   Cheap	
  eReaders	
  could	
  prosper	
  
                                                                                      very	
  ordinary	
  and	
  obsolete	
  
Handheld	
                                                                            Nintendo	
  DS	
  and	
  Sony	
  PSP	
  have	
  seen	
  
                   It's	
  hard	
  to	
  see	
  how	
  iPad's	
  success	
  could	
  
Gaming	
                                                                              sales	
  decline,	
  partly	
  because	
  of	
  iPod	
  
                   create	
  any	
  winners	
  in	
  the	
  gaming	
  
Devices	
                                                                             Touch	
  and	
  iPhone.	
  The	
  iPad	
  could	
  
                   hardware	
  industry	
  
	
                                                                                    cause	
  further	
  problems	
  
Personal	
  
Video	
            iPad	
  could	
  kick-­‐start	
  this	
  slow-­‐burn	
          The	
  portable	
  DVD	
  player	
  market	
  will	
  be	
  
Players	
          market	
                                                        wiped	
  out	
  
	
  
                                                                                 Apple	
  will	
  con/nue	
  to	
  control	
  the	
  music	
  
Record	
                                                                         distribu/on	
  business	
  and	
  the	
  industry	
  
               By	
  controlling	
  iTunes,	
  Apple	
  will	
  be	
  able	
  
Labels,	
                                                                        will	
  have	
  to	
  accept	
  what	
  they	
  do	
  and	
  
               to	
  maintain	
  their	
  premium	
  pricing	
  
Movies	
                                                                         say.	
  The	
  consumer	
  will	
  also	
  lose	
  
                                                                                 because	
  of	
  the	
  lack	
  of	
  compe//on	
  
                                                                                 The	
  book	
  industry	
  could	
  go	
  the	
  same	
  
               eBooks	
  and	
  audio	
  books	
  could	
  go	
                  way	
  as	
  the	
  record	
  industry	
  and	
  lose	
  
Book	
  
               mainstream	
  and	
  if	
  Apple	
  does	
  what	
  they	
   control	
  of	
  digital	
  distribu/on	
  of	
  their	
  
Publishers	
  
               have	
  done	
  with	
  music	
  they	
  will	
  use	
  their	
   products.	
  	
  Again	
  the	
  consumer	
  will	
  pay	
  
	
  
               monopoly	
  posi/on	
  to	
  keep	
  prices	
  high	
   the	
  price	
  of	
  Apple	
  controlling	
  the	
  sale	
  
                                                                                 of	
  books	
  on	
  all	
  their	
  devices	
  
WINNERS	
                                                          LOSERS	
  
                                                                                       As	
  with	
  book	
  publishers,	
  if	
  Apple	
  
                  The	
  iPad	
  could	
  be	
  a	
  helping-­‐hand	
  to	
  the	
  
Newspaper	
                                                                            dominates	
  the	
  portable	
  reader	
  sector,	
  
                  struggling	
  newspaper	
  and	
  magazine	
  
&	
  Magazine	
                                                                        magazine	
  and	
  newspaper	
  publishers	
  
                  publishing	
  (prin/ng)	
  sector	
  by	
  providing	
  
Publishers	
                                                                           will	
  become	
  dependent	
  on	
  them	
  for	
  
                  a	
  format	
  that	
  readers	
  will	
  again	
  pay	
  
	
                                                                                     their	
  ongoing	
  success.	
  A	
  weak	
  posi/on	
  
                  online	
  
                                                                                       for	
  them	
  in	
  long	
  run	
  
               iPhone	
  Apps	
  have	
  been	
  an	
  incredible	
  
                                                                                   Apps	
  have	
  been	
  so	
  successful	
  that	
  
               innova/on	
  which	
  have	
  created	
  a	
  mul/-­‐
Apps	
                                                                             compe//on	
  has	
  meant	
  every	
  niche	
  has	
  
               billion	
  dollar	
  market	
  in	
  just	
  a	
  few	
  years.	
  
Market	
                                                                           dozens	
  of	
  compe/tors	
  and	
  the	
  prices	
  
               Apps	
  are	
  here	
  to	
  stay	
  and	
  App	
  
	
                                                                                 are	
  being	
  squeezed	
  ever	
  lower.	
  This	
  
               developers	
  will	
  con/nue	
  to	
  see	
  their	
  
                                                                                   downward	
  trend	
  is	
  likely	
  to	
  con/nue	
  
               market	
  grow	
  
               Maps	
  with	
  direc/ons	
  and	
  enhanced	
  
Atlas/Map	
                                                                        Publishers	
  of	
  printed	
  maps	
  and	
  road	
  
               informa/on	
  are	
  becoming	
  an	
  important	
  
Publishers	
                                                                       atlases	
  will	
  con/nue	
  to	
  see	
  their	
  
               sales	
  driver	
  for	
  portable	
  devices.	
  Google	
  
	
                                                                                 market	
  shrink	
  
               Maps	
  will	
  con/nue	
  to	
  extend	
  their	
  reach	
  
                                                                                   The	
  biggest	
  poten/al	
  loser	
  will	
  be	
  
               As	
  Apple	
  becomes	
  more	
  dominant	
  in	
                  Google	
  who	
  are	
  doing	
  everything	
  in	
  
Mobile	
  
               their	
  audience	
  reach	
  via	
  mobile	
  devices,	
   their	
  power	
  to	
  stay	
  in	
  the	
  mobile	
  game.	
  
AdverRsing	
  
               so	
  the	
  opportuni/es	
  to	
  generate	
  income	
   There	
  are	
  also	
  other	
  mobile	
  ad	
  
	
  
               from	
  adver/sing	
  grows	
  exponen/ally	
   companies	
  who	
  are	
  likely	
  to	
  be	
  swept	
  
                                                                                   aside	
  or	
  consumed	
  by	
  the	
  giants	
  
Ques/on	
  3	
  
•  Effects	
  on	
  APPLE	
  business	
  model,	
  content	
  
   creators	
  and	
  distributors	
  
Apple	
  Business	
  Model	
  
IMPACT	
  OF	
  IPAD	
  
   Apple	
  Buss.	
                  Content	
  
                                                             Distributors	
  
     Model	
                         Creators	
  
•  E-­‐book	
                   •  More	
  niche	
        •  Offer	
  more	
  
•  E-­‐mag	
                       contents	
                freedom	
  to	
  
•  E-­‐Newspaper	
              •  Specific	
                 publisher	
  
•  Paperless	
                     customer	
             •  Act	
  as	
  agent	
  
                                   needs	
  and	
         •  30%	
  fees	
  on	
  
•  TV	
  on	
  the	
  go	
  
                                   want	
                    sales	
  
•  Bigger	
  
                                •  Personalise	
          •  $12-­‐14	
  per	
  e-­‐
   segment	
  
                                •  High-­‐quality	
          book	
  
                                   applica/on	
           •  Cheaper	
  e-­‐
                                   for	
  various	
          book	
  in	
  
                                   media	
  	
               future	
  
MIS	
  in	
  Ac/on	
  



IPAD vs KINDLE
IPAD	
  LIMITATION	
  

• Itunes	
  sync	
  –	
  cant	
  install	
  directly	
  
• OS	
  Updates	
  
• Some	
  websites	
  (Flash)	
  
• Some	
  documents	
  
• Prin/ng	
  (par/ally	
  solved)	
  
• Backup	
  
• No	
  USB	
  
Reading	
  Books	
  
                                        KINDLE	
                 IPAD	
  
Features	
               For	
  the	
  purpose	
  of	
     Mul/purpose	
  
                         reading	
  only	
  
Clear	
  formaied	
   Extensive	
  reading	
               Strains	
  eyes	
  easily	
  
text	
  
Airac/ve	
  color	
      Less	
  airac/ve	
                Airac/ve	
  
Weight	
                 Lighter	
                         light	
  
E-­‐books	
  price	
     Cheaper	
  ($9.90)	
              $12-­‐14	
  
Baiery	
  life	
         Over	
  a	
  month	
              10	
  hours	
  baiery	
  
Support	
                Less	
  add	
  in	
               More	
  add	
  in	
  
applica/on	
  
Kindle	
  
Tablet	
  Market	
  Share	
  
Is ipad a disruptive technology

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Is ipad a disruptive technology

  • 1. Is  the  IPAD  a  Disrup/ve   Technology?   Based  on  2010  data  and  technology  
  • 2.
  • 4.
  • 5. Case  contents  :   ü E-­‐Books  pla?orm   ü Publishers   ü Music  industry   ü Movies   ü TV   Kindle  
  • 6. Can  IPAD  success   as  IPHONE  ?  
  • 7.
  • 8. Q1  :  PORTER’S  COMPETITIVE  FORCES   MODEL  
  • 9. +   Threat  of  subs/tute   -­‐  Very  low   -­‐  Market  is  uncertain   -­‐   +   Bargaining   Bargaining   power  of   power  of   customer   Compe//ve  Rivalry   supplier   between  Exis/ng   -­‐  Consider  low  due  to   Players   -­‐  Consider  high  due  to   unavailability  of     -­‐  Consider  very  low   similar  products  &   Apple  offered  higher   because  of   royalty  (developer)   features  in  the   technology  varience   market   -­‐  High  due  to  quality   preferences   -­‐  IPAD  offer  various   applica/ons   +   +   compared  to  Kindle   Threats  of  new  entrance   -­‐  Low  due  to  high  investment   -­‐  Other  industry  player  have  the   capability  &  ability    
  • 10. Ques/on  2   •  What  makes  IPAD  a  disrup/ve  technology?   •  Who  is  winners  and  losers  if  IPAD  becomes  a   hit?     •  Why?  
  • 12. Combina/on   of  MAC  &   Iphone    
  • 13.
  • 14.
  • 15.
  • 16. WINNERS   LOSERS   The  iPad  makes  exis/ng  eReaders   The  iPad  could  be  the  device  that  makes   eReaders   including  the  Kindle,  Sony  eReader,   eBooks  and  eReaders  go  mainstream.     Plas/c  Logic  Que  and  B&N  Nook  look   Cheap  eReaders  could  prosper   very  ordinary  and  obsolete   Handheld   Nintendo  DS  and  Sony  PSP  have  seen   It's  hard  to  see  how  iPad's  success  could   Gaming   sales  decline,  partly  because  of  iPod   create  any  winners  in  the  gaming   Devices   Touch  and  iPhone.  The  iPad  could   hardware  industry     cause  further  problems   Personal   Video   iPad  could  kick-­‐start  this  slow-­‐burn   The  portable  DVD  player  market  will  be   Players   market   wiped  out     Apple  will  con/nue  to  control  the  music   Record   distribu/on  business  and  the  industry   By  controlling  iTunes,  Apple  will  be  able   Labels,   will  have  to  accept  what  they  do  and   to  maintain  their  premium  pricing   Movies   say.  The  consumer  will  also  lose   because  of  the  lack  of  compe//on   The  book  industry  could  go  the  same   eBooks  and  audio  books  could  go   way  as  the  record  industry  and  lose   Book   mainstream  and  if  Apple  does  what  they   control  of  digital  distribu/on  of  their   Publishers   have  done  with  music  they  will  use  their   products.    Again  the  consumer  will  pay     monopoly  posi/on  to  keep  prices  high   the  price  of  Apple  controlling  the  sale   of  books  on  all  their  devices  
  • 17. WINNERS   LOSERS   As  with  book  publishers,  if  Apple   The  iPad  could  be  a  helping-­‐hand  to  the   Newspaper   dominates  the  portable  reader  sector,   struggling  newspaper  and  magazine   &  Magazine   magazine  and  newspaper  publishers   publishing  (prin/ng)  sector  by  providing   Publishers   will  become  dependent  on  them  for   a  format  that  readers  will  again  pay     their  ongoing  success.  A  weak  posi/on   online   for  them  in  long  run   iPhone  Apps  have  been  an  incredible   Apps  have  been  so  successful  that   innova/on  which  have  created  a  mul/-­‐ Apps   compe//on  has  meant  every  niche  has   billion  dollar  market  in  just  a  few  years.   Market   dozens  of  compe/tors  and  the  prices   Apps  are  here  to  stay  and  App     are  being  squeezed  ever  lower.  This   developers  will  con/nue  to  see  their   downward  trend  is  likely  to  con/nue   market  grow   Maps  with  direc/ons  and  enhanced   Atlas/Map   Publishers  of  printed  maps  and  road   informa/on  are  becoming  an  important   Publishers   atlases  will  con/nue  to  see  their   sales  driver  for  portable  devices.  Google     market  shrink   Maps  will  con/nue  to  extend  their  reach   The  biggest  poten/al  loser  will  be   As  Apple  becomes  more  dominant  in   Google  who  are  doing  everything  in   Mobile   their  audience  reach  via  mobile  devices,   their  power  to  stay  in  the  mobile  game.   AdverRsing   so  the  opportuni/es  to  generate  income   There  are  also  other  mobile  ad     from  adver/sing  grows  exponen/ally   companies  who  are  likely  to  be  swept   aside  or  consumed  by  the  giants  
  • 18. Ques/on  3   •  Effects  on  APPLE  business  model,  content   creators  and  distributors  
  • 20. IMPACT  OF  IPAD   Apple  Buss.   Content   Distributors   Model   Creators   •  E-­‐book   •  More  niche   •  Offer  more   •  E-­‐mag   contents   freedom  to   •  E-­‐Newspaper   •  Specific   publisher   •  Paperless   customer   •  Act  as  agent   needs  and   •  30%  fees  on   •  TV  on  the  go   want   sales   •  Bigger   •  Personalise   •  $12-­‐14  per  e-­‐ segment   •  High-­‐quality   book   applica/on   •  Cheaper  e-­‐ for  various   book  in   media     future  
  • 21. MIS  in  Ac/on   IPAD vs KINDLE
  • 22.
  • 23. IPAD  LIMITATION   • Itunes  sync  –  cant  install  directly   • OS  Updates   • Some  websites  (Flash)   • Some  documents   • Prin/ng  (par/ally  solved)   • Backup   • No  USB  
  • 24. Reading  Books   KINDLE   IPAD   Features   For  the  purpose  of   Mul/purpose   reading  only   Clear  formaied   Extensive  reading   Strains  eyes  easily   text   Airac/ve  color   Less  airac/ve   Airac/ve   Weight   Lighter   light   E-­‐books  price   Cheaper  ($9.90)   $12-­‐14   Baiery  life   Over  a  month   10  hours  baiery   Support   Less  add  in   More  add  in   applica/on  
  • 26.
  • 27.
  • 28.