Industry Analysis Group Project
HibaJ
IndustryAnalysisSample1.pdf
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E-reader Industry Analysis
Submitted to: Professor Bureau
Submitted by: John Doright, Jill Felldown, Joe Schmoe, Jesse Smith
January 5, 2015
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Opportunity or Threat
DEMOGRAPHIC (O) Canadian population is aging with approximately 15% of the population over the age of 65 (Statistics Canada, 2012)
o This is an opportunity because as people age, they can’t see as
well and the e-reader allows you to change the size of the font,
making it easier to read. JOHN
(O) Baby boomer/senior population is increasing at a rapid rate of +12% from 2011-2014 (Statistics Canada, 2014, para. 20)
o This is an opportunity because baby boomers and seniors form a
large percentage of the population and if they have more leisure
time, they can read more books. JILL
(O) Canada's population growth rate (+1.1%) was the highest among the
G7 countries. (Statistics Canada, 2014, paragraph 2)
o This would be an opportunity for the e-reader industry to expand
their sales within Canada since it has a high growth rate compared
to other G7 countries. JOE
(O) In 2010, there were approximately 90% more post-secondary school enrollments than in 1980 (AUCC, 2011, p. 6)
o This is an opportunity because post-secondary graduates may
have a tendency to read more and this focus on education could
mean that the educational market would be a profitable market to
enter. JESSE
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Opportunity or Threat
SOCIO-
CULTURAL
(O) Interest in the saving the environment is increasing (Ipsos, 2013, para. 4)
o This is an opportunity because consumers may want to move
towards the use of ebooks to limit the amount of paper utilized in
the production of books. JOHN
(T) People have increasing concerns with childhood obesity (Public Health Agency of Canada, 2013, para. 1)
o This is a threat because parents want children to be active in their
leisure time and this may impact the demand for books and e-
books overall. JILL
(O) 89% of Canadians have a medium-high comfort level with the use of
technology (Bensimon Byrne, 2010)
o This is an opportunity because as consumers use technology
more they become more comfortable with it, the adoption rate for
electronic devices will increase. JOE
(O) The use of paper has been steadily decreasing in school. (Learmonth,
2010)
o This is an opportunity as an entire generation will grow up being
more familiar with electronic books and other media. This will
result in increased comfort with e-reader technology. JESSE
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Opportunity or Threat
ECONOMIC (T) Decreases in consumer spending due to concerns about the economy (Euromonitor International, 2012, para. 6)
o This is a threat because when people are concerned about the
economy, they spend less money. The acquisition of an e-reader
is costly and can be seen as a luxury purchase. JOHN
(T) Consumer confidence has decreased with falling prices in oil and
worry about home prices. (Sturgeon, 2014, para. 1)
o This is a threat because consumers are less likely to spend on e-
readers if they are insecure about the future of the economy. JILL
(T) Declining Canadian dollar is resulting in increased prices for online
purchases (Oliveira, 2015)
o This is a threat because the cost of books is expected to go up
20% to account for the declining value of the Canadian dollar.
JOE
(O) Unemployment rate in Ontario hits a 6 year low. (Flavelle, 2014)
o This is an opportunity because as more people secure
employment they will have more money to spend on products like
e-readers. JESSE
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Opportunity or Threat
TECHNOLOGICAL (T) People are spending more time on the internet (CBC News, 2012, para. 2)
o This is a threat since people are spending a large amount of
their leisure time on the internet, rather than reading books.
JOHN
(O) LCD displays can cause eyestrain (Barrett, 2012)
o This is an opportunity because avid readers will prefer to
purchase a device without an LCD display. JILL
(T) Eyesight and vision can be negatively affected by the excessive use of technology. (Orminski, 2012, para 5)
o This is a threat to the e-reader industry because some people
having vision problems may not purchase and use e-readers.
JOE
(O) E-reader technology stays relevant for longer, up to four years
(Barrett, 2012)
o This is an opportunity because consumer value for an e-reader
can be far greater than a competitive product such as a tablet
which can obsolete in half the time. JESSE
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Opportunity or Threat
REGULATORY (T) Pirating of e-books is increasing without regulation(Pogue, 2013, para.
17)
o The practice of pirating can have a negative impact on the legitimate
e-book market place. JOHN
(O) Canada has passed anti-spam and anti-spyware law to protect
citizens (James, 2011)
o This is an opportunity because consumers can download books
without the fear of unwanted spy-ware programs. JILL
(T) As of Jan 2013 electronics importers must be registered in major
export countries (Johnson, 2012, para. 1)
o This is a threat as demand for e-readers may decrease as price goes
up due to added regulation. This will negatively affect the North
American e-reader industry as both major e-reader companies: Kobo
and Kindle (Amazon) are North American companies. JOE
(O) Ontario government promises consumers a reduction in recycling fees
(Ferguson, 2013)
o This is an opportunity because the cost of e-reader could effectively
be reduced, making it a more viable option for consumers vs.
traditional paper books. JESSE
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Opportunity or Threat
COMPETITION/
INDUSTRY
(O) Large global market for e-books (Bensinger, 2013, para. 3)
o A large global market offers the opportunity for growth in the e-
reader segment in countries outside of North America. JOHN
(T) Tablet computers use colour, graphics, apps and touch technology
(Bensinger, 2013, para .10)
o This is a threat as tablets are able to provide much greater
functionality and a more advanced interface than the e-reader
format. JILL
(O) E-readers are expanding customer base by offering “e-reader”
apps for tablets and phones. (CBS News, 2011, para. 4)
o This is an opportunity because the ereader industry can sell
books to customers that have not purchased e-reader
hardware. JOE
(T) Nextissue, online magazine subscription, is not available on E-
readers. (Nextissue, n.d.)
o This is a threat as consumers may buy competitor products
such as tablets that can display both books and magazines.
JESSE
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Reference List
AUCC. (2011). Trends in Higher Education. Retrieved from
http://www.aucc.ca/wp-content/uploads/2011/05/trends-2011-vol1-enrolment-e.pdf
Barrett B. (2012, Dec 21). 5 Ways Ereaders Are Still Better Than Tablets. Retrieved from
http://gizmodo.com/5970460/5-ways-ereaders-are-still-better-than-tablets
Bensimon Byrne. (2010, Jan). The Bensimon Byrne Consumerology Report: Technology and
Canadian Consumers. Retrieved from www.consumerology.ca
Bensinger G. (2013, Jan 4). The E-Reader Revolution: Over Just as It Has Begun? Wall Street
Journal. Retrieved from
http://online.wsj.com/article/SB10001424127887323874204578219834160573010.html#
printMode
CBC News. (2012, Mar 2). Canadians lead in time spent online, says report. Retrieved from
http://www.cbc.ca/news/technology/story/2012/03/02/canadians-more-time-online.html
CBS News. (2011, Jan. 31). Kindle? Nook? Apps? The Best e-Readers for You. Retrieved
From http://www.cbsnews.com/news/kindle-nook-apps-the-best-e-readers-for-you/
Euromonitor International. (2012, Sept 10). Kobo Inc in Consumer Electronics (Canada).
Retrieved from
http://www.portal.euromonitor.com.library.sheridanc.on.ca/Portal/Pages/Search/S
earchResultsList.aspxIpsos
Ferguson R. (2013, April 4). Ontario consumers will get protection from eco fees in new legislation: Liberals. Toronto Star. Retrieved from http://www.thestar.com/news/queenspark/2013/04/04/ontario_consumers_face_higher_e co_fees_for_big_televisions_new_phones.html
Flavelle D. (2014, Oct 10). Unemployment falls to near six-year low. Toronto Star. Retrieved
from
http://www.thestar.com/business/2014/10/10/unemployment_falls_to_nearly_sixyear_lo
w.html
Johnson, C. (2012). Indonesia: New Regulation on Phone Imports. Retrieved from
http://www.loc.gov/lawweb/servlet/lloc_news?disp3_l205403450_text
Learmonth, M. (2010). HOW THE IPAD BECAME CHILD'S PLAY-AND LEARNING TOOL.
Advertising Age, 81(23), 4. Retrieved from http://adage.com/article/digital/ipad-child-s-play-learning-tool/144284/
Nextissue. (n.d.). What devices are supported by the Next Issue app? Retrieved from http://support.nextissue.ca/Knowledgebase/Article/View/38/2
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Oliveira, M. (2015, Jan 9). Apple increases price of .99 apps by 20 per cent in Canada. Toronto Star. Retrieved from http://www.thestar.com/business/2015/01/09/apple_increases_price_of_99_apps_by_20 _per_cent_in_canada.html
Orminski, J. (2012, Jan 31). Excessive use of technology among college students could
cause vision problems. Retrieved from http://www.cm-life.com/2012/01/31/excessive-use-of-technology-among-college-students-can- cause-vision-problems/
Pogue D. (2013, May 9). E-Book Piracy Debate, Revisited [Blog Post]. Retrieved from http://pogue.blogs.nytimes.com/2013/05/09/the-e-book-piracy-debate- revisited/?_r=0#more-6797 Public Health Agency of Canada. (2013). Canadian Best Practices Portal: Public Health
Topics. Retrieved from http://cbpp-pcpe.phac-aspc.gc.ca/public-health-topics/healthy-weights-children/
Statistics Canada. (2012). The Canadian Population in 2011: Age and Sex. Retrieved from http://www12.statcan.ca/census-recensement/2011/as-sa/98-311-x/98-311-x2011001- eng.cfm Statistics Canada. (2014). Canada's population estimates: Age and sex, 2014
Retrieved from http://www.statcan.gc.ca/daily-quotidien/140926/dq140926b-eng.htm
Sturgeon J. (2014, Oct 28). Jitters over oil, stocks, home prices rattle Canadian consumers.
Retrieved from
http://globalnews.ca/news/1639884/jitters-over-oil-stocks-home-prices-rattle-canadian-
consumers/
