Tizen is a collaborative projects from Samsung, Linux Foundation and Intel. Expert says that this will be the strong competitor for Android and Apple. This short paper try to analyze Tizen using Porter 5 Forces and SWOT analysis. A ppt version is also available.
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Analysis on Tizen Operating System
1. Assignment #4 : Tizen Operating System
Name : Riri Kusumarani / 20124309
Strategy for Innovative Business, Prof. Jay Young Ohm
Tizen is an open source operating system that can run for multiple device categories. These include
Smartphone, tablet, netbooks, Smart TV and purposely car
navigation systems. Tizen itself is a collaboration project of Linux
Foundation and is governed by a Technical Steering Group
composed of Samsung and Intel. Tizen was developed under
linux-kernel and WebKit runtime. Being developed under Linux
means that users can obtain source code and modify the
software . Tizen roots back to Samsung Linux Platform and the
Limo Project. Samsung also merged Bada project into Tizen.
While Intel, put some of its MeeGo work into Tizen.
Previously, Samsung also developed a mobile OS named Bada, but failed. Similar attempt also made by
Intel , which resulted failure in competing with iOs and also Android. In order to win the competition,
both companies, Samsung and also Intel, merged their projects into Tizen. This means that both
companies already know their strength and weakness in Mobile OS industry.
The Tizen Association formed to guide the industry role of Tizen, including requirements gathering,
identifying and facilitating service models, and overall industry marketing and education. Members of
the Tizen Association represent every major sector of the mobility industry and every region of the
world. Technical Steering Group determines what code is actually incorporated into the operating
system to accomplish those goals.
Why Samsung Developed Tizen?
Tizen is seen as a new competitor for Android and Apple iOs. In my opinion,
Samsung urges to develop Tizen in order to cut off its dependency to Google.
Galaxy S4 is known to be the most popular SmartPhone in the world. This success
brings Samsung to compete with Apple. At the same time, this achievement also
brings Android to a high success as mobile operating system. Therefore, Samsung
might probably thinks that if they can develop their own mobile phone OS, they
can gain success in both smart phone devices and also Operating System.
However, judging from Tizen capability, It’s not only capturing Smartphone market, but also bigger
operating system market. This shows us that Samsung is looking forward to keep ahead of the
competition. Furthermore, Since they know the failure of similar OS for mobile that comes from
Blackberry and also WebOS, they try to minimize the lost just in case Tizen for Mobile OS fails.
And how can Tizen survive the competition?
2. At first, I tried to elaborate Tizen competitive advantage then continue with analyzing the industry of
operating system. I will then try to combine with SWOT analysis and find appropriate strategy for Tizen
to survive the competition and also to win the market.
Competitive Advantage
Tizen is a collaborative project of Samsung and Intel, both has their own unique competitive advantage,
so I expect Tizen will benefit from both sides.
Porter 5 Forces
In this assignment, I will use multi-industry analysis since Tizen itself is a operating system for both
Mobile and other devices such as camera, smartTv and car navigation system.
Current Competition (High)
- Mobile OS
The mobile OS industry already saturated with big companies such as Google, Apple and
Microsoft. (Red Ocean Market)
Each companies market proportion almost equal, leaving small portion for new entrants
Business deal between incumbent and other third parties that can be considered as System-Lock
In. For example, LG, HTC smartphones are locked with Android.
- Other Devices
New Industry as cross-convergence operating system.(Blue ocean Market)
New Entrants (Medium)
Due to competitive environment, New Entrants are reluctant to join the competition.
Substitutes (Medium)
OS is not an easy to substitute product. Once a system is installed, most likely user will have to
use it all the way.
Threats from Buyers (High)
Big electronic manufacturers are the main target for Tizen.
System Lock-in between manufacturers with incumbent makes it difficult for Tizen to win buyers.
Suppliers
For Mobile OS, Tizen must build up their Application collection .Therefore, Application
developers are the suppliers for Tizen.
Samsung is an electronic product manufacturer, so Tizen does not have any threat in term of
supplier side.
3. SWOT analysis
Strengths
Joint forces between three big companies , Linux , Samsung and Intel.
Samsung Status as electronic manufacturer. This will be Tizen major strength , availability of
devices that will use it as OS. Samsung is known as one of electronic manufacturers. Google
android success is also because of Samsung Galaxy S4. That’s why, Tizen can replace Android
and installed at all Samsung Products. When this happens, Android will have major competitor.
Weaknesses
Similar concept with Android, but late in entering the market.
Opportunities
Blue ocean market for Open OS in SmartTV,camera and other devices except Mobile.
As far as I’m concern, Tizen is the first Operating system for SmartTv and other devices. So Tizen
will be the first to enter the market for this industry.
Samsung as electronic companies can apply Tizen to all its product.
NTT Docomo become one of Tizen customers, this means bigger market span.
In-Vehicle infotainment (IVI) is supported by Jaguar. Jaguar is not the only car manufacturer that
provides IVI. That’s why, Tizen can offer its IVI to many car manufacturers all over the world.
Threats
Too much dependent to Android, Samsung is already closely related with Android. Introducing
new OS might decrease level of trust from Samsung customers.
Both Android and Apple has their own application store. When Samsung intends to introduce
Tizen, means Samsung have to prepare for a new Application market similar.
The Red & Blue Ocean Market
Basically, what Tizen is currently competing can be seen from two different perspectives. The first one,
Tizen competes in a red ocean market along with top-notch companies such as Microsoft , Android and
Apple. On the other side, Tizen also covers compatibility for SmartTv,camera, car navigation system and
other devices. This second industry can be seen as Blue ocean market.
Future Strategy
Product Strategy
4. Tizen already has what it takes to win Operating System competitions. First, it allows crossconvergence of operating systems. The concept of cross-convergence OS will be a disruptive
innovation. Second, the merge of three big companies : Samsung, Linux Foundation and Intel
will become Tizen major competitive advantages. And lastly, Being developed under Samsung
means that Samsung will apply Tizen in its future product. This will become on of Tizen
advantages over Google and also Microsoft.
Platform Strategy
Tizen is designed to cover at least three types of platform : the Smartphone devices, Notebook
and PC’s devices and other devices such as Smart TV, In-vehicle Infotainment, POS.
Embrace China’s Industry (Red Ocean Market Strategy)
China produces lots of electronic devices. In order to spread Tizen customers, it can seek to
embrace China’s industry which has a huge portion. China also ranked as the world’s biggest
Smartphone market with 870million 2G users, all of which waiting in line to buy a 3g/4g
Smartphone. Another interesting fact is China’s Smartphone first-time buyer per-month reach
11.2 Billion.
I believe this strategy will bring Tizen into a bigger proportion of Smartphone market. If
combined with Samsung customers, this number will be able to bring a big profit.
Go after IVI industry (Blue Ocean Market Strategy)
In-vehicle Infotainment will become major profit-generating post . Tizen will become the first to
enter IVI market. Furthermore, Tizen is designed to become the standard for In-Vehicle
Infotainment which includes infotainment in Airplanes, buses and other means of
transportation. . Both Google and Apple overlook this industry, but these indusries is growing
each year .Despite the risk of becoming first-to-enter the market, Tizen can gain big market
share and build high entry barriers.