Windows 7 Phone
Section 1: Where to Compete
Opportunities and Threats
Size of the market
In Australia it’s estimated that 42% of online Australians own a smart phone (Nielsen Wire 2010). It is predicted that six million Smartphone’s will be sold in Australia during 2011 alone (International Business Times 2011) demonstrating the large consumer base of this market.
The allocated score out of seven: 6
Smartphone demonstrate the latest in technological communication and software development so are this continues to develop and evolve it can be assumed that the Smartphone market will therefore to grow with these new developments. In this year alone the overall Smartphone market is expected to increase by 42.9% (IDC 2011) also by 2013 it’s predicted there will be 160 million Smartphone users worldwide (InfoWorld 2009). Clearly as market for Smartphone grows it will provide more of an opportunity for Microsoft to promote their Windows 7 Phone (W7P). Particularly as the market grows it also grow
The allocated score out of seven: 7
Competitive structure of the market
Intensity of competition
With the growth of the Smartphone market competitors will be actively promoting their respective products. Microsoft has recognised the intensity of competition they face as the newest entry in the market and therefore were estimated to have invested $400-$500 million into promoting their Smartphone (Economist 7 October 2010, p.90).
Threat of new entry
As seen when Google entered the market spending $100million on the launch of Android (Economist 7 October 2010, p.90) large financial support is required which could reduced the amount of new entries into the market. Yet the projected growth of the market means corporations may see this as an attractive market
Threat from substitutes