Abstract
The streaming devices are on the rise and it is fastest emerging customer market. Every application now comes with an add on feature to cast the videos using the streaming devices on their TV’s or laptop. Currently, there are many options available for using streaming devices.
Two of the most popular devices are Apple TV and Google Chromecast. These two devices have gained popularity for it’s ease of use. Apple TV being the first mover in 2007 of the streaming devices is facing rivalry from Google Chromecast, the second mover in 2013.
Apple TV and Google Chromecast are the frontrunners in this market and their continuous efforts towards innovation will help them pull ahead in the most heated battlegrounds of the streaming devices.
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These devices are extremely useful and cool, and so managed to achieve attention from all the sources. Analysis of Apple TV Vs. Google Chromecast
Type of Innovation
Looking at the innovation of the technology that streaming devices are using, we can call it both product and process innovation. A complete change in the traditional approach of streaming makes it a product innovation. And from the wired to wireless connection makes it a process innovation too.
It is a radical innovation since the newness of technology is high and the its simplicity and ease of use has created high customer-need fulfilment.
Porter’s Five Forces
One of the most common external analysis is Porter’s Five-Forces. So now let’s analyze the Porter’s Five-Forces for the streaming devices industry. The competition in this market is by both the technology leaders like Google, Apple and also by debut players like Roku.
Apple has advantage of brand loyalty being the first mover but Google has more affordable options which attracts young users. The degree of rivalry is very strong for this industry. Having such technology giants makes it difficult for the debut players to dominate the
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In addition, due to strong rivalry in the market low switching cost makes it easier for users to switch from the existing products. With many options available in the market to buy these products, the buyer exerts more power.
Establishing new business against the existence of technology giants like Google and Apple in the market, requires high amount capital. It is expensive to build a brand to compete against technology giants. These factors make the force of new entrants weak. It is thus important to bolster the innovation and marketing strategies to block the entry of new entrants.
Streaming devices are substitutes of the traditional or wired way of streaming, with even more add on features. Since this is a new technology, the threat of substitution is weak for the streaming devices. So, Apple and Google continuously need to innovative to avoid the threat of substitution.
S-Curve Analysis
Both Apple TV and Google Chromecast have come up with a innovative product. And after the successful development of the product now then have reached phase 2 where there is a continuous improvement to strive the battle. Till now, Apple has launched four different generations of Apple TV taking innovation a step ahead. Not being the first mover, Google has also launched 4 different versions of Google Chromecast and selling millions of devices in just 2.5 years by enticing with their innovation with every
Threat of new entrant is high: With little limitation on capital needs or patents any capable company can easily enter into the already crowded industry.
Television, the phone, and the internet. These inventions have uniquely shaped the 20th century and have led to the 21st century being known as the age of information. These services are the primary ways we communicate, express ourselves, and reach out in our ever increasing global world. In the United States, these services are provided by a number of different firms, chief among them is Comcast, being the largest provider of Cable and internet in America, and a large telephone provider. Next to it stands Time Warner Cable, the second largest provider of cable in the United States. The decision for Comcast to buy Time Warner Cable for forty-five billion dollars in 2014 has led to many criticizing the merger, calling it a monopoly. Others have called the whole cable system an oligopoly. For it to be a monopoly or an oligopoly, it would have to fit their respective categories. The merger between Comcast and Time Warner Cable would not create a true monopoly, but would give it significant market power because it has monopoly resources and can be considered a natural monopoly. It will also further its power in a market dominated by oligopolies. People argue that it is not a danger to Americans for this merger to happen, but when one looks at the practices Comcast already uses, it paints
All Apple really needs to do with virtually any of its products is build awareness (which they are excellent at doing) and let the product do the work.
TiVo was incorporated in 1997 they intended to create an interactive television system that developed the idea of recording digital video on a hard disk. TiVo allowed consumers to watch their T.V shows when they wanted to watch them by recording, playing back, and pausing live television. TiVo has now bundled its services with many companies, but at one point Direct T.V accounted for 70% of TiVo's costumers. Effective marketing and innovation have made TiVo the best known DVR in the industry. TiVo has always considered itself as a hardware provider and a service provider and now seem to be shifting to an all service future. Despite having the strongest brand name and one of the largest customer bases TiVo has suffered millions in operating losses. In 2003 a massive transaction from analog to digital DVR's took place. TiVo has been quick to respond to changes in the market by upgrading the features and refining performance. But, the new digital technology has caused TiVo's market share to drop as competition grows quickly.
[1] Halal, Bill. "How NetFlix Beat Blockbuster: An Exemplar of Emerging Technologies." William E Halal RSS. N.p., n.d. Web. 09 Dec. 2013.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
The two companies have revolutionized the concept of being innovative and novel. The creations of Apple and Samsung have penetrated our minds with products that make our daily tasks simpler. People don’t need to pick up a paper from a local cafe to catch up on world news. Families don’t need to rely on postal service in order to communicate to their loved ones overseas. Students don’t always feel the need to ask questions, because now all the answers lie right in the palms of their hands. For generations Apple and Samsung have been creating products that our society demands.
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Porter’s five forces assist to evaluate where the firm’s power lie in a given market and the attractiveness of the firm to other companies and businesses with respect to buyer power, supplier power, threat of new entrants, competitive rivalry, and threat of substitution. With respect to Audible.com, their market is selling audio content online. Supplier power for Audible.com is medium to high. The firm has an advantage with its partners who offer only specific products through Audible.com less expensively as compared to other companies or websites. However, some of the audio content is offered through many other websites and stores, which can be used instead of Audible.com. As a result, this pulls the firm’s power from the highest on the market to medium power. In spite of that, Audible.com is a supplier of large audio content. The firm is famous for being respected and reliable. This implies that the commitment of outside firms offers the firm with a significant a...
Their astonishing success inspired a multitude of other digital streaming companies such as Tidal, Spotify, and Pandora to offer a very similar service at different costs to expand the market. However, no matter how well Apple Music does, that success pales in comparison to the legendary history of Apple Computers Inc. This technology company helped revolutionize the digital era with a bevy of inventions stemming from Mr.Wozniak’s Apple I Personal Computer. Since the original release, Apple has produced hundreds of new products that were some of the most ground-breaking pieces of technology available at the time (Chapman). Aside from just computers, Apple Inc. established themselves as a powerhouse company by expanding their market to software, keyboards, Apple mouse’s, phones, tablets, iPods and more
Google continues to grow and innovate. Google focuses on the user and all else will follow. Since the beginning, they have focused on providing the best user experience possible, and take great care to ensure that they will ultimately serve their customers(Google.com n.d.). In relation to market development and product development the core values “Its best to do one thing really, really well (Google.com n.d.),” fits in with these strategies. “You don’t need to be at your desk to need an answer (Google.com n.d.),” describes Goggle’s innovation to mobile platforms. “The need for information crosses all borders (Google.com n.d.).” Google company has grown and has offices in more then 60 countries, maintaining more then 180 internet domains, and serve more then half of their results to people outside of the United States, and this relates to concentrated growth strategy. “Great just isn’t good enough(Google.com n.d.).” Google continues to strive to reach for better ways of doing things, through innovation and integration, continue to improve things in unexpected ways (Google.com n.d.).
Porter’s five forces is a framework for analyzing an industry and business strategy development. It looks at forces that determine the competitive intensity of an industry and hence the overall attractiveness of that industry. The configuration of the five forces differs by industry. Understanding the competitive forces and their underlying causes reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition over time.
There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world. Digitally offering television shows is an area of competition that has previously been controlled by
Price competition among rivals is close to nil, industry participants are very competitive when it comes to product differentiation. Product offerings to satisfy consumer demands include a variety of coffee, juices, muffins, bagels, cookies, cream cheese sandwiches, soups and other miscellaneous items.