industry analysis: smartwatches
TRANSCRIPT
Industry Analysis:Smartwatches
Team 2: Omega Consulting
AgendaBrief History of the Industry
Issues
Analysis of the Environment
Recommendations
Implementations
Summary
History1990• 1st
Samsung Smartwatch launched
• Huge failure
2010• Commercializatio
n of Smartwatch
2013• Intro of
Pebble Smartwatch
• 3.1M units sold
• Sparked other companies
2014• Intro of
Apple Watch
2016• Top 10
Companies holder >80% of market share
Market Share
Samsung34%
Nike9%
Garmin8%
FitBit8%
Sony7%
Pebble6%
Shanda4%
Mio Alpha 3%
Yingqu2%
Casio1%
Other 18%
Market Share 2013
Apple52%
Samsung14%
Other33%
Market Share 2016
Issues
Limited Functionalit
y User Friendliness
• Highly competitive market
• Smartphones• Cheaper
alternatives
• Focus on health/wellness• Fast-growing customer
demand• Tech barriers to entry
• Dependence on other devices
• High Priced
• Portability• Customizable• Connects to
different devices
Strength Weakness
ThreatOpportunity
SWOT
Analysis
Porter’s Five ForcesLow High
Supplier Power
Buyer Power
Competitive Rivalry
Substitution
New Entrants
Recommendations • Increase value to
customers
• Fitbit acquiring Swimmo
Mergers & Acquisitio
ns• Increase device
independence• User friendliness• 1st mover Android
WiFi on Smartwatc
h
Implementations M&As• Firms with synergies and similar
resources• Conduct target market researchWiFi• R&D in developing technologies • Future standard for smartwatches
Summary
RecommendationsM&A firms with synergies WiFi allows for
independence
IssuesLimited Functionality User Friendliness
Market AnalysisHighly Competitive Barrier to Entry
Questions?
Appendix 1: US Wearable Ownership 2015