Is iPad a Disruptive Technology - Essay Example

Running Header: Is iPad a disruptive technology? Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Introduction Technology involves the activities and processes for creating, communicating and delivering products or services to the right customer and ensuring that their needs and wants are satisfied. Matt (2010) describes that the development of technology has increased innovation of tablet computers thus the introduction of new technologies such as Apples iPad. This study discusses whether iPad is disruptive technology. The objectives of the study is to evaluate the impact of iPad using the Porter’s competitive forces model and to show the effects that iPad is likely to have on the business models of Apple in terms of content, creators and distribution. The study also compares iPad and kindle for reading books, magazines and news papers and for watching a video. Main Body The iPad is a line of tablet computers that is designed as a platform for audio visual media which include books, games, movies and web contents. Matt (2010) shows the weight and size falls between that of a modern Smartphone and a laptop and runs an operating system similar to the iPad or iPhone. The device is controlled by a multi-touch display that uses a pressure triggered stylus and an onscreen keyboard. The first iPad was released in April 2010 where about 14.8 million iPads have been sold worldwide. In March 2011, iPad 2 was introduced and currently about 15 million have been sold and it is expected to take about 83 percent of the tablet computing market share in U.S. Apple used four different types of new and improved distribution channels which include online store, retail stores and third party distributors. The product strategy cultivates an emotional connection to its consumers through content. Christina (2011) puts it that the device has about 65,000 applications through to consumers this is not more important than the price, battery life and 3G- service flexibility. The other factor is the channel of distribution where most people prefer to buy from the Apple stores to have some knowledge from sales staff on how to use. The service matters for example a study conducted showed that consumers are willing to pay more for Apple products since they perceive that the services offered are built according to the price of the device (Matt 2010). According to Christina (2011) perception makes a big component of branding and marketing and it is not just about the product but also the iOS platform. The vicious cycle of perception for the iPad 2 has done a big chunk of its work. Apple iPad is distributed to third party to resellers in retailers and are sold in bulk and at a cheaper price. The market target is not about male but targets everyone which includes both men and women and their marketing strategies includes showing customers how they can benefit from iPad using other products for example the iTunes. Currently the tablets market target includes business people, gamers and kids. The brand is said to have a fatally flawed product strategy and therefore it is expected to occupy 80 percent of the U.S market in 2010 (Donald 2011). Reviewers have touted iPad a having an excellent way to consume technology since there are more benefits as workplaces. There are several advantages of using iPad for office work. Keith (2011) describes that one is due to its portability. This is one of the major advantage as the device is portable and can be used anywhere. This also makes computing power more portable. The other advantage is due to cloud computing. Since iPad is used with productivity applications, data is stored in a remote place and the information created and edited can be accessed from anywhere by anyone who have access. This is much benefit to people with frequent business travels and need information immediately. iPad has also enhanced communication among office members by the help of the enhance communication option which enables one to stay connected. This makes it possible for one to read emails and post to social networks apps such as Twitter, Facebook etc. It is therefore important to use it in offices which value communication. iPad also uses low time overloads unlike other devices which take time to start up. It also loads immediately and therefore saves time for its udders and especially in a business. iPad uses cheap apps as compared to those used in a laptop or any other computer and therefore saves on costs. The schedules and calendar are easily seen therefore enabling one to be more efficient and it is also advantageous as no files are lost on the iPad for example in case one fails to save their work. This is due to the provision of cloud computing which saves work automatically and this also saves on time for example while using devices that easily loses work. iPad is simple to use as any one with less computer knowledge can use (Keith 2011). It is also easy to access emails and enables one to stay connected therefore easy to prioritise the day basing on the most pressing issues. It also provides all time research as it gives information faster for example in finding directions or contents of a report. Donald (2011) puts it that iPad becomes the tablet to be beaten in 2011 due to its various applications such as thinnest construction, longer battery life and it has a competitive price. The device also has an existing pool of thousands satisfied and it is evangelizing to its customers. Other features making it more popular include multi touch screen, headset control, and digital compass and ambience light sensors. The storage of the device ranges from 16GB to 64 GB flash memory and has a front facing and 720p rear facing camera and therefore it is possible to save a lot of data. However, pioneering in the technology market is very risky as late movers and competitors copy some features and add new features therefore redefining the market. The competitors also copy the marketing efforts used to create demand of a product in the market (Donald 2011). The Porters five competitive forces analyses the industry in order to determine the competitive intensity and the attractive in the market. This includes the competition from external sources which act as reminders to the internal threats. One of the Porter’s forces is threats of new entrants. New entrants raise the level of competition and reduce the attractiveness in the market. Keith (2011) shows the iPad is stunning one is due to its weight which is lesser than the original and the lighter design gives it’s a competitive advantage over other bulkier competitors such as the Motorola Xoom. Its price is mostly influenced by its value and therefore has been able to capture a great market share, developers and momentum due to its fine products. Threat of substitutes is the other force affecting the impact of iPad. The present substitutes lower industry attractiveness and profitability as they are capable of limiting price levels for example in this case is the laptop or desk top computer. Due to the high price of iPad most businesses still prefer to use laptops as they feel there are high switching costs. The bargaining power of suppliers may also affect the distribution of iPad by the Silicon Valley giant. Ipad has been able to establish a recognised supply chain management which has shown that Apple is no. 1 in AMR top 25 supply chains. Jason (2011) describes that this began when Apple announced the acceptance of pre-orders which was a journey to fulfill the demand across the US. Apple therefore implemented activities for making things work in terms of a higher level on-time delivery. They also improved their market dynamics and their supply chain commendable record time. To begin with, Apple ensured that they have enough stock at hand before starting the actual shipping’s. This is because the demand for iPad had significantly increased. The company put a condition that a customer can only pre book a maximum of two iPads as this would avoid retailers stocking more iPads and to resell them at a higher price in case there is a shortage from the company (Jason 2011). The bargaining power of buyers also affects the impact of a product as buyers create demand in an industry. The bargaining power of buyers is higher when there dominant buyers and many sellers and when the products are standardised. Apple has ensured to maintain stability of iPad and therefore attracting more buyers to purchase the product. The final force in the industry is the rivalry between competitors. This is few in the industry as there are no major competitors for iPad. Rivalry within the industry also depends on the structure of the industry costs, degree of differentiation, switching costs and exit barriers. After the introduction of iPad, one group believed that the device was a revolutionary product while the other group thought it was disruptive. Some of the characteristics that make it disruptive include it costs more than the item it has replaced for example costing more than the laptop. Keith (2011) shows the other reason that makes iPad a destructive device is that it does not perform as well as the previous devices which do the same task for example ipad is heavy to carry as compared to a Smartphone and also lacks netbook’s various features such as keyboard, camera etc. If the customers and market research had less desire for the new innovation, the device is destructive such as iPad as many were bought after the introduction but the customers and the market research show that there is little change in the percent of people buying the other substitutes. A device is also destructive if people were confused on how it would fit in the existing market for example the killer app found in iPad was unclear and the use. If the initial market was small, the device in the market is said to be destructive technology. It is however seen that every destructive technology provides new capabilities attractive to a particular part of the market and features that were not well served by the previous devices. iPad has new applications entirely different for example the use of the daily prophet. Sheldon (2010) shows iPad provides a platform of newspapers, magazines as well as books of the world. For example one is possible to watch or participate in a simulation of an experiment in a science book or locating static pictures of organs using 3D. The magazines available are more compelling with new contents and it is also possible to interact with other readers through social media networks. An iPad provides comfortable reading due to its larger screen as compared to that of a smart phone and the touch screen is advantageous as it provides a natural way of interacting with people though the social medias. Ipad also provides a TV companion that synchronises information with the TV program one is watching using an application for example as one is watching a football game the details of all the players are provided or when watching a movie. It is also more amenable to enjoy using the device in any position unlike the computer where one has to sit at a desk. The shortcomings of the device are that it is not possible to multitask when using the device which is very important for business people who need to save time. It can not be used for typing documents for example reports since it lacks features such as a keyboard (Clayton 2010). According to Jessie (2010) the capabilities of Kindle eBook reader include being thinner, lighter and appealing and have a screen like a paper which improves visibility while reading. It enables one to download book samples for free. It can be used anywhere for its wireless capability and therefore cheap as internet is available and no monthly fees. It is possible to store thousands of books, magazines and other materials. One is updated with new materials as it is faster to download the best selling books and newest releases. As compared to iPad, Kindle would be a better device for reading books as it specifically focuses on that area. I would prefer using Kindle for the books we use at the university courses. I would use the iPad or Kindle for the books rather than traditional print publications. This is because iPad and Kindle does more things and more downloads of books and other publications saving time and offering lower prices to buying books. It is therefore a great innovation especially to students and people who love to read. It also conserves the environment as cutting down trees to make books is minimised. Conclusion It is important to develop technologies though one should understand the concept of sustaining technology and the disruptive one. Sustaining is one that tends to improve the performance of the previous devices valued in the market while the disruptive technology include innovations that result to poor product performance and are not centered on customer’s needs but are meant to change the industry. It is therefore necessary to sustain technologies as this develops the market and gives customers their expectations and needs. This means that disruptive technologies underperforming in the market and relative to the market demand may also be fully performance-competitive in the market tomorrow. iPad can therefore not be placed as a disruptive technology but as an upgrade for Amazon’s Kindle DX and e-readers. The tablet can also be a replacement of notebook computing. References Christina, R 2011, Are iPad competitors business strategies ‘fatally flawed’? viewed 13 September 2011, Clayton C 2010, The innovators dilemma, HBS. Donald, B 2011, Apple iPad 2 hands-on: Predictable, awesome, viewed, 13 September 2011 Jason, P 2011, Apple's secret iPad advantage, The supply chain, viewed 13 September 2011, Jessie, M 2010, Capabilities of Kindle eBook Reader, Keith, R 2011, What characteristics make the iPad a disruptive technology? viewed 13 September Matt, B 2010, Official: iPad Launching Here April 3, Pre-Orders, Gizmodo. Sheldon, L 2010, Is The iPad A Disruptive Technology? viewed 13 September Read More