Student number: R0141223
Module: Marketing Fundamentals
The tablet market: External analysis of the micro-environment
The global tablet PC market continues to grow with shipments reaching 53.8 million units in the third quarter of 2014. The rise in shipment from 48.3 million units in the third quarter of 2013 to 53.8 million units in the third quarter of 2014 can be attributed to the growing demand from costumers as the tablet industry offers the costumer a smaller sized device with a better battery life compared to a PC and because the device allows costumers to multi-task. It can also be argued that the increase in sales could be driven by back-to-school promotions. Because the tablet PC market is reaching its maturity stage because of the growing number of sellers, the choice available to the consumer is big. The worldwide tablet market is led by Apple’s iPad product line. Although Apple’s market share decreased with 6,4 % in one year, it maintains its leading position in 2014 with 22,8 % share of the market. Samsung is ranked on the second place with 18,3 % of the market share. ASUS holds a number three position despite its decreased market share from 7.4% in 2013 to 6.5% in 2014. Lenovo, who occupied the number 3 position in the second quarter of 2014, digressed to the 4th position with only 3 million units with a 5.7% 3Q14 market share. Finally, RCA achieved its number five position by shipping 2.6 million units and also bumping their market shares up to 4.9%. We could therefore state that the tablet industry is a oligopoly with Apple occupying the leading position, challenged by Samsung and ASUS, Lenovo and RCA as main followers in this market.
Brief analysis of Porter’s Five Forces
In this paragraph the five factors of the Porter’s Five Forces Model will be briefly discussed. Firstly, the extend of competitive rivalry is quite high due to the large number of competing companies. Although it is forecasted that Apple and Samsung