An Analysis of PC and Tablet Industry

The provided content is about mobile computing trends and the impact of language learning & technology. It discusses how devices have become lighter, faster, and smarter, with a focus on tablets and mobile phones. The text also touches on topics such as e-books, PC evolution, and consumer electronics. The summary aims to condense the information into one paragraph.

MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Current trends within tablet manufacture sector....................................................................1
Critical evaluation of 3 key trends along-with justification...................................................2
TASK 2............................................................................................................................................5
Selection of two companies that lie within Tablet computer manufacturers.........................5
Response towards changing external environment................................................................6
Critical evaluation of key opportunities and threats faced by companies at present..............7
TASK 3............................................................................................................................................9
Current competitive positioning of Apple and Xiaomi..........................................................9
Comparing each of its competitive strategy.........................................................................10
Recommendations for further enhancement of competitive advantage...............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

ILLUSTRATION INDEX
Illustration 1: Comparison in terms of market share.......................................................................3
Illustration 2: Phablet movement.....................................................................................................4
Illustration 3: Different sectors........................................................................................................5
Illustration 4: Competitive Positioning..........................................................................................10
Illustration 5: Global sales of Apple Tablet Manufacturing..........................................................11

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INTRODUCTION
Tablet PCs market is considered to be the most emerging and dynamic segment in the
consumer electronics in recent time period. Consumer demands are seen to be constantly
evolving with the need to multitask, extended battery life, lifelong software and hardware,
network connectivity and portability being all the key requirements in computing devices. The
report herein is carried out to identify the current trends that are taking place within tablet
manufacturing industry. Apple and Xiaomi are the two thriving companies in tablet
manufacturing industry which have been chosen for this report. The key opportunities and threats
for each is briefly outlined along-with their response to external environment.
TASK 1
Current trends within tablet manufacturing sector
Its end of one era and beginning of another: the speeding era of tablets is destined to
surpass all PCs in the upcoming years. There has been an impending growth in worldwide tablet
manufacturing industry. The sector analysis recognizes manifold increase in revenue as well as
profitability growth in tablet manufacturing industry (PCs, 2008). With the introduction of first
modernized tablet- an iPad from Apple, since then the tablet PC's market has begun to grow and
flourish with a speeding rate. It has created fierce competition among the major Laptop and PC
manufactures who have set out to diversify and gain advantage of the tablet market. Tablet PC's
are seen to be more adaptive for personal as well as commercial use. Keeping this fact in mind,
most PC manufacturers like Lenovo, HP and Asus have successively launched their tablets in
quick successions.
The current trends that have been seen to evolve the tablet manufacturing sector are-
1. Revenue for Computer Tablet Manufacturing industry growth at an annual trend of
20.4% in five year cycle through 2015.
2. In the year 2015 exclusively, the revenue is deemed to grow up to 17.8% to $38.6 billion.
3. The number of industries dealing in these products have drastically grown from just 93 in
2010 to 248 in 2015 (CeArley and Claunch, 2012).
4. Surpassing the combined sales of laptops, desktops and ultra-books, revenue for tablet PC
sales are expected to multiply five times in between the year of 2012-2016.
5. Growth in Phablet is seemingly disrupting the growth of tablet market to a great extent.

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6. Wide popularity among the commercial segment in comparison to industrial and
traditional segments.
The world has looked up to an aggressive competitive rivalry among the tablet PC
manufacturers after the popularization of iPad from Apple. The success of Tablet PCs
manufacture in the near future depends on the way in which companies have inculcated different
usages of tablets over time (Murphy and Meeker, 2011). Lastly, this segment is seemed to be
changing over time with drastic changes and fluctuation in it, but still it cannot be concluded as a
dead soul.
Critical evaluation of 3 key trends along-with the justification
The revolutionary change is assured with every successive launch of new tablet series
that seem to satisfy every aspect of its consumers. Tablet with its recent entry into the market has
been successful in capturing everyone's attention towards it. With success, there come fierce
competitions which lead to volatile fluctuations in the market. Out of all trends identified in
previous topic, 3 are identified as the main and crucial trends that have been seen in tablet
market. These are:
1. Industries have manifold increase from 93 in 2010 to 248 in 2015
Worldwide tablets were seen as a sprouting invention which gained much more
popularity than ever perceived. The hype created in the market with the first release of tablet
edition iPad by Apple in 2010 was looked upon as a streaming opportunity for other companies.
The desire to gain profits and achieve heights of success impelled companies to diversify and
start their own production of tablet (Anastácio, 2015).
The key software developers and market leaders were seen to capture every share of
tablet market to aggressively exploit this opportunity. The year to year growth is seen and
projected shipment volumes are estimated by IDC (International data Corporation) accordingly-

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Illustration 1: Comparison in terms of market share
(Source: Worldwide Tablet Growth Hits the Brakes, Slowing to the Low Single Digits in the
Years Ahead, According to IDC. 2015)
The comparison drawn above between different operating software; android, iOS and
windows seem to have a cut-throat competition to capture the tablet market. Devices launched
under this software are multiplying in numbers to withhold their share in Tablet market.
The market of tablet is small but is growing at a faster pace. As IDC estimates the tablet
market to be ambitious, varied new emerging companies like Lava, Micromax etc. are launching
economic range of tablets. Thus, it can be said with an attractive market of growth and revenue
new and existing companies are fighting to capture a considerable share of this industry.
2. Growth in Phablet is seemingly disrupting the growth of tablet market to a great extent
Phablet is a new technology that seems to incorporate features of both mobile and tablet.
The days of 3.5 or 4.0 inch screened phone are gone. The launch of 5 inches screened Samsung
Galaxy series was held responsible for nudging all companies to shift their market from tablets
towards phablets.

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Illustration 2: Phablet movement
(Source: Danova, 2014)
Phablets are seen as the fastest growing smart-phone category which has left behind the
sales of tablet globally. It is seen that Phablet sales are cannibalizing the sales of table
worldwide.
3. Wide popularity among the commercial segment in comparison to industrial and traditional
segments
The launch of tablet was not specifically bound to target a particular segment rather it
was to attract and provide ease for all. Though, since its launch, it was seen that the number of
workers who likely don't have a sitting at one place during their work schedules like industrial
workers, service workers and even agricultural workers were seen to be less attracted towards
these tablets (Weitz Wachsmuth nd Mirliss, 2006). The commercial segment was seen to be
more fond of tablets manufactured than the others.

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Illustration 3: Different sectors
(Source: Krause, 2015)
It is important for tablet manufacturers to realize this fact and to bring into market tablets
which are more essential for such sectors as well. These left out sectors seems to hold a lot of
potential for the growth of table manufacturing industry.
TASK 2
Selection of two companies that lie within Tablet computer manufacturers
Apple Inc. is an American multinational company whose headquarters is Cupertino,
California. It has diversified its product range widely from Mac, iPod, iPhone, iPad, television,
Apple watches etc. Apple Computer Inc. was first established on January 3, 1977. On 27th
January 2010, Apple introduced its first much awaited media tablet, the iPad. Since its launch,
iPad users have downloaded 3 billion applications (Kaur, 2013). There have 6 versions of iPad
and it was introduced much before their series of iPhone. Steve Jobs, the owner of Apple Inc.,
considered iPad as his revolutionary product that had the potential to transform their user’s life.
Apple is till date the most competing and successful tablet manufacturer. Initially, Apple with
iOS software dominated the international market, however, Android have been seen to take over
a considerable share of Apple's in the upcoming years.
Xiaomi Inc. on the other hand is a newly emerging company which has overtaken the
market with its exceptional marketing strategies and is progressively moving ahead in the tablet

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market. It is a privately owned Chinese company with its headquartering in Beijing, China. It
launched their first tablet Xiaomi MiPad at an event in 2014. It was the first device which had
quad-core 2.3 GHz processor with 2GB RAM. The firm sold their product through online stores
to cut down their overhead costs. Xiaomi with its much desired success which was achieved in
short period is the most adored product of the tablet market. Xiaomi has a strong technological
base and has a clear brand positioning with a high profile product and creative marketing (Sena,
2012).
Response towards changing external environment
External environment has seen to be of paramount importance for pushing both Apple
and Xiaomi towards market sales and for pursuing different marketing strategies. Looking on
Apple, it has a monopoly on the western market while Xiaomi is keen on selling their products in
the Asian market. They both seem to have different needs and approaches towards the market.
For analyzing both companies’ responses towards external environment changes,
PESTLE model can be applied-
POLITICAL- Government rules and regulations seems to have a due impact on these globally
established companies (Cicchino and Mirliss, 2004).
For example,
 USA government seems to be having hostile relationship with some countries which
exerted pressure on Apple to undertake its production outside USA. Countries where
it has production are Ireland, China and Korea etc.
 Xiaomi on the other hand to overcome the impact of politics, distribute their product
in different countries on the basis of contract sales.
ECONOMIC- The change in GDP rate, Recession, Inflation rate etc. have a serious impact
on company’s policies and sales. Apple’s products are classified under the luxurious head; rise in
inflation and unemployment rates can result in severe losses in their sales. On the other hand,
Xiaomi sells more at a less prize which enhances their sales. They also seek their product
through online stores which reduce their overhead costs. The impact of economic crisis is likely
to affect company less.

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SOCIAL- Apple on one hand focuses on designing incredible, innovative and unique
products with emphasis on structuring strategies resulting into differentiation. They attract and
target society which admires more classy and fashionable (Shim, 2012). People who are more
cautious regarding their status will surely have an apple product in their pocket. On the other
hand, Xiaomi products are driven by consumers needs and are able to create a product that
perfectly fits into everyone's budget. Society which prefers perfect utility tablets at much cheaper
rates, Xiaomi products is their choice.
TECHNOLOGY- Development and innovation complying different features provide
appealing feast for consumers that ultimately enhances their experience. The core software
android and iOS seems to be ruling over the tablet market. While, Apple is relying on iOS and
Xiaomi has used the android software. Both are considered to be technologically upgraded
companies to compete effectively within market (Barker, 2003).
LEGAL- In order to secure the legitimate rights and interests of consumers, different
legislations have been enacted worldwide in relation to tablet computer manufacturing industry
like Product Quality Law, Telecommunication Regulations, Monopolistic Competition Law,
Trademark and Patent Law etc. Considering the fact that there are various fake and duplicate
products appearing in this industry, legal means are provided to protect the interest of Apple and
Xiaomi.
ENVIRONMENTAL- With the growing awareness among public, environmental
sustainability is seen to be an essential factor in established companies like Apple and Xiaomi.
Apple duly complies with it and undertakes measures to contribute successfully to environment.
It has renewable sources attached to its product. Similarly, Xiaomi was named among the top
100 Green Companies and has duly been reporting their performance on sustainability
development.
Critical evaluation of key opportunities and threats faced by companies at present
Apple is an established company and captures most of the tablet computer manufacturing
market. The opportunities that lie upfront for Apple are-
1. High demand for their product like iPad has provided it an added value and a
competitive edge over others.

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2. Unique element in their product has potential to create and sustain their massive
customer base. Assured lead by Apple can be made by introducing different innovations
in its product.
3. Launch of new application can help in gaining strong and lasting positioning for its
product.
4. With core branding, Apple must maintain its reputation as well as can sustain and
enhance their customer relation to a much higher level.
In order to look forward and to stay ahead of its competitors, one must acknowledge the
threats that are either present or likely to arise in near future. The key threats that Apple faces
are-
1. Apple may face tough challenges at a long run and in the upcoming future where
companies like Xiaomi are looking forward to capture sales and market of company.
2. Breaching of Intellectual Property rights might arise and can damage the firm too.
3. Android OS has begun to dominate the iOS software products.
4. Customer’s changing preferences and rapid technological changes create a pressure on
company to meet these changes.
Apple needs to pay its focus on improving and enhancing its performance by grabbing
opportunities that are available to it. Apple must ensure to compete with the new emerging
companies like Xiaomi and at the same time, with existing companies like Samsun which give
tough competition to Apple products.
Xiaomi is the fast-growing Chinese smartphone maker which has diversified itself into
tablet market. For competing successfully with others, the key opportunities identified are-
1. Key expansion into retail channels is the basic opportunity that lies with Xiaomi. Since, it
is selling all their products through online sites, opening up its own store is an accessible
opportunity for them (Reganold and et.al., 2001).
2. Huge market growth and sales for tablets provide them with an opportunity to excel and
compete effectively in the market by bringing assured returns to them.
3. Create a friendly and sound user experience providing unique experience to their
customers.
4. Enhancing brand values by ensuring MiUi ecosystem sustainability (Junglas and Harris,
2013).

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Every company is likely to possess some threats that are lying within their industry-
1. Pricing competition as other low cost competitors are also persisting within this industry.
2. Big competitors shifting their operations into low cost market as well like Samsung.
3. Too much reliance on e-commerce as a primary distribution channel can turn out to be
threatening step for Xiaomi.
4. Loss of patent and other patent litigation can affect company severely.
Xiaomi needs to acquire knowledge about different strategies that are being applied by its
competitors outside China. It must efficiently compete with brands that are providing stiff
competition like Samsung. Also, look upon reducing the rising patent litigation issues as this can
hamper their growth significantly.
TASK 3
Current competitive positioning of Apple and Xiaomi
Apple was the first who initiated the table manufacturing product and significantly
captured the most part of market share of this industry. Apple has a sustainable competitive
advantage and its wide open brand appeal assures their competitive positioning that keeps them
ahead of their rivalries.
A company’s core competency is the most crucial asset which reflects one's core set of
resources which provide it with a competitive edge that is turning out to be hard for others to
imitate. Apple’s core competencies include key innovation in their products, strong team of
marketing, customer brand loyalty and lastly a strong financial performance.
Apple has always believed and proved on developing products that were rich in designs
and provided an everlasting user experience. This has helped them achieve an eminent brand
image which has further withstood its capabilities to face multiple competitions.
Xiaomi Inc. is a hi-tech Chinese mobile internet company which released its first product
in 2010. Since, then it has become a milestone for others to compete with, for Xiaomi, their core
competency is their urge to design and develop a high-end technology product and to market it at
such a low price which is inconceivable by their competitors (Godwin-Jones, 2003).
Xiaomi products possess similar features as of that of its competitors but sell the same at
much cheaper price than theirs. Moreover, Xiaomi constantly updates and enhance its products

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and services which retain customer’s confidence towards the product. Xiaomi continues to
capture customer’s attention by providing superior value to them.
Xiaomi is recognized as one of the fastest growing companies who have competitively
priced its product. The firm has specifically recognized a niche group of smart-phones known as
'power-users' (these are cellphone fever friendly). Such consumers are constantly desiring for a
phone which can provide them with a more new experience and having affluent features
(Reganold and et.al., 2001). Xiaomi phones are specifically tailored to meet this specific group
of consumers.
Illustration 4: Competitive Positioning
(Source: Zhang, 2015)
The above figure depicts clearly the criteria for current competitive positioning of both
Apple and Xiaomi product. Apple has largely been focusing on fashion-forward youngsters and
specialization in product designing. They have loyal customers and targeted those youngsters
who are more fashion and status driven.
On the other hand, Xiaomi products are drafted to attract power user customers and based
on performance/specification/customization. They are developed to meet the quality and
customize its product for 'power-users' (these are cellphone fever friendly)

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Comparing each of its competitive strategy
With the greatest innovation of its time, Apple iPad has had the best growth years of
tablet market. It drove the trend and motivated people to change with the modernization in
technology. It is considered as one of the most awaited products and was first launched in Apr
2010. Ipad was marketed as a consumer device that was able to fill gap between a laptop and
smart-phone (Hilmola, 2012). The global sales of iPad since January 2010 by Steve Jobs till the
most recent financial quarter are stated below:
Illustration 5: Global sales of Apple Tablet Manufacturing
(Source: Have Apple, Inc.'s iPad Sales Peaked? 2015)
The sales were initially low but with gaining popularity and few competitors at initial
stage, it started growing significantly. The highest sales of iPad were recorded in Q1 of 2014
when two of its key products Air 2 and mini 3 were launched. Then, with a due downfall in its
sales after Q1 of 2014, it again regained its position in Q1 of 2015. Since then, company is
constantly trying to boost its sales and meeting its competitive positioning.
Xiaomi having nabbed third spot in smart-phones with its low-pricing strategy of product
is now been enthusiastic about targeting low-priced table market. The firm sold its first android
tablet in July 2013 and became the third largest tablet supplier in China. The gap identified
between Samsung (in close competition with Apple) and Xiaomi market share is only 0.6%. The
organization has been successful to jump on third rank only in the first quarter after it got into
tablet market.

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The core competitive strategy that has helped both Apple and Xiaomi to compete
effectively are-
1. Apple having Product Innovation as its strong competitive strategy
2. Xiaomi having Cost innovation as its strong competitive strategy.
In order to compete remarkably, the above respective strategies are used by these two
companies. The strategies used by them translate their successful competitive advantage. Apple
focus on keeping its price stagnant and enhancing the superior quality of product with justifying
its product innovation strategy. Apple general policy is on not reducing its prices of new
products and continuously emphasizing on creating improved and entirely new product (Barker,
2003).
On the other hand, Xiaomi is more adamant on selling same featured products at a much
cheaper price. Xiaomi outstandingly confirms to its cost innovation strategy. Xiaomi has been
able to achieve the most awaited success at such a remarkable time because of this strategy. The
company is effectively competing by using online medium as marketing and selling mode along-
with moving ahead of Apple in terms of timing when its product releases (Rivera and Van der
Meulen, 2013).
Xiaomi with 50% of its product quality than Apple and then selling it at 50% of its price
would result in no competitive advantage for company. On the contrary, Xiaomi deliver 90% of
Apple functionality for less than 50% of its price. This is what it provides with a competitive
edge over Apple.
Xiaomi is well-known for its strategic presence of mind and its success lies in
capitalizing its brand image with that of similar product quality as that of Apple.
Thus, it can be seen that Apple Inc. is facing close threat of competition from Xiaomi brand.
Recommendations for further enhancement of competitive advantage
Apple-
Despite being 3 years old and employing just 3000 employees, private company Xiaomi
has become a disruptive component affecting big firms like Apple (Huberty and et.al., 2011). It
is important for Apple to become alert and repressively use it capabilities to move ahead of
Xiaomi.
According to the survey, it has been recorded that 78% of iOS users couldn't imagine
themselves with any other different phone and while 59% made a declaration that they had 'blind

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loyalty' towards Apple products. Company by using Relationship marketing theory can lock
their current customers and look on maintaining its brand loyalty among other new ones. Apple
must continue placing its interest on developing the value on maintaining longer business
relationship (Kumar, 2004). Relationship marketing will also help company in coming out of the
turbulent times of changing needs of consumers as well.
The next area that Apple must look upon is on its innovation capabilities. Since, it can be
seen that the sales of Tablet is bearing downfall, company must introduce an innovative feature
to its current product which will set it apart from others. Innovation can help in pruning down the
technological changes and face the stiff competition arising from other companies.
Xiaomi-
Xiaomi has made detailed study of its competitors and has so far focused on creating a
friendlier operating system which gives more customized power to its users. It has been
promoting its own operating system MIUI which is based on Android. In order to maintain this
state for upcoming years, it can continue on the same path of Transaction Marketing Theory.
They have cut down their overhead costs by using own payment ecosystem. Company
with its cheap and reliable phones has been able to beat and replace big multinational companies
like Apple. Through transaction marketing theory, company can continue its focus on economic
transaction focus which has a positive impact on their sales (Hassenzahl, 2013.).
Along-with china, Xiaomi has been expanding its operations in the Asian countries and
its low priced strategy has successfully been quite popular in Indian market which is considered
as one of the hub of tablet markets. The next recommendation would be its expansion in Western
countries through which it can compete more effectively with big companies. Expansion will
also bring more revenues and sales along-with the increment in market share of company.
CONCLUSION
From the above report, it can be articulated that both Apple and Xiaomi are well
renowned names in the field of table manufacturing sector. Tablet Manufacturing sectors have
been sought to face some decline over the passing years due to reasons like invention of Phablet
in the market and inconvenience for sectors other than commercial one. Moreover, is has been
seen that the companies level of response to political, social, economic, technological, social and
environmental changes is highly remarkable. Lastly, the requisites strategies that enhance their

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core competitiveness is seen through product innovation strategy for Apple and cost innovation
strategy for Xiaomi.

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