E commerce - mobile platforms


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E commerce - mobile platforms

  1. 1. MOBILE PLATFORMS Submited By: Nihit Jain (06AG3802) Prateek Kumar Jain (06AG3806) eJains
  2. 2. Mobile Applications <ul><li>Developments in mobile handset technology and use of mobile devices by consumers have made mobile application market consumer-oriented, global in scope and device-dependent. </li></ul><ul><li>Mobile commerce takes off, the size of the market will increase exponentially because of network externalities. Research companies see mobile commerce developing significantly in the future. </li></ul><ul><li>The rollout of 3G and 4G mobile services vastly increases the data transfer rate and therefore the variety of services that can be provided on a mobile device. </li></ul>
  3. 3. <ul><li>New technologies permit mobile phones to be used as payment devices not only for virtual but also real-world shopping. </li></ul><ul><li>New services, such as mobile digital television, location-based services and integrated financial services, are being offered by many market players. </li></ul><ul><li>The cross-border use of mobile handsets for mobile commerce also has huge potential. </li></ul>
  4. 4. Categories:
  5. 5. Mobile Applicaitons <ul><li>Three types of applications: </li></ul><ul><ul><li>Free, </li></ul></ul><ul><ul><li>Paid, </li></ul></ul><ul><ul><li>Ad-supported. </li></ul></ul><ul><li>Each app is different for different platforms. </li></ul><ul><li>There are about a total of over 1 billion apps. </li></ul><ul><li>Estimated earnings of app industry in 2010 was $4 billion and is estimated to grow to $27 billion till 2013. </li></ul>
  6. 6. Different Mobile OS Source: http://www.gartner.com
  7. 7. Business Model <ul><li>Native or on deck - operators, mobile device manufacturers, and Operating System (OS) developers managed </li></ul><ul><li>Third party or off deck- independent or third-party managed </li></ul>
  8. 8. App Stores - Native Name Established Owner Available apps Device platform Developer's cut per sale Developer fees Android Market October 22, 2008 Google 300,000 (Mar 2011) Android 70% US$25 App Catalog June 6, 2009 Palm/HP 6,405 (Mar 2011) webOS 70% Free App Store July 10, 2008 Apple 350,000 (Jan 2011) iOS 70% US$99/year App World April 1, 2009 RIM 16,121 (Dec 2010) BlackBerry OS 70%  US$200/10 application submissions Ovi Store May 26, 2009 Nokia 43,535 (Oct 2010) Multiple (Symbian, Java, Maemo) 70% 1 € (plus possible certification costs) Windows Phone Marketplace October 21, 2010 Microsoft 12,023 (Mar 29 2011) Windows Phone 7 70% US$99/100 application submissions
  9. 9. Third Party Name Established Organizations Available apps Device platform Developer's cut per sale Developer fees Amazon Appstore March 2011 Amazon.com 3,800 (March 2011) Android 70% US$99/year AppsLib August 2009 AppsLib, Archos 445 (October 20, 09) Android 70% Free MobileRated 2006 Kalador Entertainment 55,000 (December 2010) Multiple Android, BlackBerry OS, Java N/A Free Handango 2000 PocketGear 190,000 Multiple Android, BlackBerry OS, Java, Palm OS,PSP, Symbian, Windows Mobile ≈ 42% Free explorePDA.com 2004 explorePDA 1,500 Multiple Android, BlackBerry OS, iOS, Java, Palm OS, Symbian, webOS, Windows Mobile 75% Free MobiHand 2004 MobiHand, Inc. 5,000 (June 3, 2009) Blackberry, Palm, Symbian, Windows Mobile and Android 60-80% Free PocketGear 1999 PocketGear 140,000 (June 2010) Multiple Android, BlackBerry OS, Java, Palm OS, Symbian, Windows Mobile ≈ 55% Free SlideME April 2008 SlideME 1,860 (July 21, 2010) Android ≈ 95% Free
  10. 10. GetJar Business Model <ul><li>Third Party App Store; 70,000 applications. </li></ul><ul><li>Sells only free version of apps. </li></ul><ul><li>GetJar generates its revenue from a 'pay-per-download' system, where developers bid for ad slots on the store in order to get premium visibility, paying GetJar when downloads are made.  </li></ul><ul><li>The company is backed by venture capital fund Accel Partners, and closed its US$11 million Series B funding round in June 2010 – at this time, it was said that the company had “maintained its profitability despite a challenging economic environment.” </li></ul>
  11. 11. Apple App Store <ul><li>Launched in July 2008, in the first year, app store of apple made an estimated gross profit of about $180 million. (Source: http://news.cnet.com/8301-13579_3-20008540-37.html ) </li></ul><ul><li>In 2011, app store’s revenue is estimated to reach to $2 billion. ( http://www.greatereader.org/?p=8933 ) </li></ul><ul><li>Similar to the iTunes business of apple, the main focus of app store is promoting hardware sales rather than generating profits. </li></ul>
  12. 12. Google’s Revenue from Android Market <ul><li>Source: ( http://phandroid.com/2011/02/21/in-one-year-android-market-revenue-grows-a-remarkable-862/ ) </li></ul>$ (in million)
  13. 13. <ul><li>Presently, 60% of the market share is held by Apple app store. </li></ul><ul><li>The entry of new independent third party (off deck) stores will increase the market share of off deck stores. </li></ul><ul><li>By 2015, the market share of apple will decrease to 15% and majority of the market share would be taken by third party stores. </li></ul><ul><li>Source: Markets and Market Research, 2011 </li></ul>
  14. 14. Market Share of App sales Revenue for 2010
  15. 15. Revenue distribution:
  16. 16. PEST Analysis
  17. 17. Porter’s Five Forces <ul><li>Threat of New Entrants: </li></ul><ul><li>Moderate high </li></ul><ul><li>Barrier created by industry giants. </li></ul><ul><li>Threat of Substitutes: </li></ul><ul><li>Low as there is no substitute in the market to sell apps. </li></ul><ul><li>The App developers at the most can sell the apps on their own websites. </li></ul>
  18. 18. Porter’s Five Forces <ul><li>Buyer’s Power: </li></ul><ul><li>Moderate </li></ul><ul><li>There are many similar apps and if a buyer feels that he / she is not getting value for money, the buyer could go to another store to buy a similar or same app. </li></ul><ul><li>Certain OS providers such as Apple can restrict the availability of apps on other stores. </li></ul>
  19. 19. Porter’s Five Forces <ul><li>Supplier’s Power: </li></ul><ul><li>Moderate </li></ul><ul><li>The supplier here is the app developer </li></ul><ul><li>The developer would like to go to that app store where his cut is maximum and fees is least. </li></ul><ul><li>But he would like to go to those app stores which are more famous to maximize his sales. </li></ul>
  20. 20. Porter’s Five Forces <ul><li>Industry Rivalry </li></ul><ul><li>Moderate </li></ul><ul><li>The same apps are available at many app stores, increasing the competition. </li></ul><ul><li>In native business model, different mobile OS decreases the competition. </li></ul>
  21. 21. <ul><li>Thank You!! </li></ul>