PpOS Startup

Analysis

BY
GROUP-1

PREVIEW
Part 1- Background.
Part 2- Analysis of the
competitive
structure
Part 3- Factors inhibiting adoption

Part 4- Strategy
Part 5- Execution of that strategy
Part 6- Conclusion

PREVIEW
Part 1

S M Murari

Part 2

A K Sinha

Part 3

R C Varghese

Part 3

Digvijay Mohbe

Part 4

P Kumar

Part 5

Arun Johal

Part 6

C S Joshi

T
R
A
P 1

PpO
S

Background
S M Murari

BRIEF OF THE CASE

You are a group of managers and software engineers at a
small start-up. You have developed a revolutionary new
operating system for personal computers that offers distinct
advantages over Microsofts Windows operating system :
-it takes up less memory space on the hard drive of a
personal computer;
-it takes full advantage of the power of the personal
computers microprocessor and, in theory,
-can run software applications much faster than Windows;
-it is much easier to install and use than Windows;
-and it responds to voice instructions with an accuracy of
99.9%, in addition to input from a keyboard or mouse.
The operating system is the only product offering that your
company has produced.

QUESTIONS
1.Analyze the competitive
structure of the market for your
personal computer operating
systems. On the basis of this
analysis, identify what factors
might inhibit adoption of your
operating system by customers.
2. Can you think of a strategy that
your company might pursue, either
alone or in collaboration with other
enterprises. to beat Microsoft"?
What will it take to execute that

BASIC CONCEPT OF
OS

CORPPORATE
STRUCTURE

T
R
A
P 2

PpO
S

Competitive Market Structure Analysis of PpOS

Startup
A K Sinha

Part II
Competitive Market
Structure Analysis of
PpOS Startup

Preview

Market Structure and its Features

Market Size

SWOT Analysis of PpOS

Porters Five forces for competition in Industry

Market Structures

A market is defined as a group of

firms/Companies willing and able to sell a
similar product or service to the same potential
Buyers/Customers.

Market structure refers to the number and size

of buyers and sellers in the market for a
product or service.

Determinants of market structure

Number of sellers

Product differentiation

Entry and exit conditions

Mobile & PC OS Market Share

Environmental Analysis (SWOT analysis)

Strengths

Less Memory Space

Can Run Software Applications Much Faster Than
Windows

Easy to Install and Use

99.9 Accuracy in Voice Instructions Response

Weaknesses

No Brand Loyalty & Reputation

Dependence on hardware makers
PC markets have matured
Startup and confined to PCs Only

Environmental Analysis (SWOT analysis)

Opportunities

Cloud based services

Mobile advertising

Mobile device industry

Growth through Joint Venture/Partnership
Tacit Collusion ??

Threats

Intense competition
Changing consumer behavior
Open source projects
Potential lawsuits

Porters Five Forces

Bargaining Power of Suppliers - Low

Bargaining power of Buyers - Low

Industry Rivalry - High

Threat of New Entrants - Low

Threat of Substitutes - High

T
R
A
P 3

PpO
S

Factors inhibiting adoption of our

operating system by customers

FACTORS
INHIBITING
ADOPTION OF
PpOS
R C Varghese

FACTORS INHIBITING
ADOPTION OF PpOS

Positive network effects favouring Windows

- High customer equity
- Incr attractiveness due large user base
- Access to new versions
- Corporate/ Academia subscriptions
- Incentives for ISVs
- Prohibitive expenses for new entrants
Hi switching costs
- Ability to run older applications
- Avlb of new applications

FACTORS INHIBITING
ADOPTION OF PpOS

OEM Resistance
Decline in PC sales
Lifecycle stg of PCs
Drop in cost of OS
Price restraint for existing MS users
Customer profiles
- Demographic
- Pschyographic

T
R
A
P 3

PpO
S

Factors inhibiting adoption of our

operating system by customers

INHIBITING FACTORS
CUSTOMER
BRAND

LOYALTY
COMFORT ZONE
MINDSET /
APPREHENSION

INHIBITING FACTORS
OLD PRODUCT
PRODUCT

LIFE CYCLE
UPDATED ONLINE
VOICE RECOGNITION

INHIBITING FACTORS
COMPATIBILITY
HARDWARE
SOFTWARE
PEAK

PERFORMANCE

T
R
A
P 4

PpO
S

Strategy that our company might

pursue

T
R
A
P 5

PpO
S
PART V

Execution of that strategy

successfully
Arun Johal

How to execute the strategy

Make sure that the new apps have "85-90% of the
functionality" of Office.
Don't worry about the remaining 10-15% of the features
required by power users, particularly Excel
Support Office documents as a "first-class citizen."
Don't try and convince enterprises to convert from
Microsoft Office to the new Apps.
Teach them to become power users
Get new customers hooked on products other than Apps
Show them how Open Source cloud helps mobile workers

85-90% functionality" of Office

Consumers convinced that Apps are more useful than MS
Office
Open Source Apps are simpler to operate than MS Office
Penetration of Cell Phone is clear evidence that MS Offices
days are numbered.

More and more companies are switching over to apps

every day eg e-retailing companies, banks even railways.

Limited Usage of EXCEL

Only 10% of office staff use EXCEL for their day-to-day
tasks.
Most people do not create or use spread sheets in routine.
Most people do light reading or writing in office.
You have very few users of EXCEL, get licensed copies
for them.

Support Office documents

With cloud storage service, people can upload Office
documents and when they open them, they automatically
open in the appropriate Microsoft program (Word, Excel,
and so on) as long as they have that app installed.

If they don't have the app installed, they open in an Officecompatible editor, QuickOffice
QuickOffice "will render Office files perfectly (or nearly
perfectly) so you can do light editing and share it back, in
the same original Office format,

How to convert from MS Windows

Very little chance that companies are going to wake up
one day and throw Microsoft Office out completely
Instead, they should be convinced to try out Apps in
addition to the Office licenses they already have.
Why buy Apps if you already have Office? Double-use will
only happen for a short while. In the end, companies will
stop buying new Office licenses for employees who don't
really need it.

So give people an option and reconcile your associated

licensing on actual usage, not on some upfront
commitment and long-term contract. That's the old world
of enterprise software. Today you should just pay for what
you actually use, not for some arbitrary number of users
PwC opted for Apps for roughly 25% of its employees as a
test case.

Teach them to become power users

Unlike regular software, which you pay for up front, with
cloud software, a software vendor has to continuously
keep its customers happy or they'll end the subscription
Constantly look at how people are using Apps and trying
to entice them to use it more
As they grow dependent on usage in a document, they'll
tell their coworkers
Need to offer online training tips. Also, create a community
of power users to teach and do tutorials.

Get customers hooked on all products

Get new customers hooked on products other than Apps

Open Source services to offer more of the things that the

customers want

How Open Source cloud helps

It is expected that mobile devices and apps will soon
replace PCs altogether for a lot more employees.
Consumers are mostly on their phones now. Need to make
sure that Android is "a first-class citizen, secure and
manageable, " for companies
When the tablet or phone is the primary computing
device, "There will be a new generation of applications
written for enterprise, which will be built on cloud, for the
mobile, which will combine insights from different
backend, legacy apps that people might have, but delivers
it in intelligent fashion, as an assistant to you as you are
working.

Advantages of Open Source

As an idealistic movement, open source benefits from the input of
dedicated, volunteer programmers who are willing to cooperate to
keep big companies from controlling the computing environment.
Open-source code also creates opportunities for market-driven
complementary software products and services.
Open-source software offers major advantages in security. In
proprietary software markets, manufacturers have a hard time
making sure that only those users with valid licenses are running
programs. Since user respect for copyright tends to decline sharply
after the first year of an applications existence, for-profit developers
make a point of releasing frequent minor upgrades that can be more
trouble than theyre worth to install. Because freeware is free,
developers can release upgrades at a more respectful pace.
Open-source code also creates opportunities for market-driven
complementary software products and services.
The point of open source is to provide a common (and low-cost)
platform for competing products to bloom

Story of FRONT PAGE

In 1993, Charles Ferguson, an MIT-trained political scientist
and high-tech industry consultant, had the brilliant idea of
making a software tool for building online information
systems. The tool, later dubbed FrontPage, was designed to
be user-friendly so the nonprogrammers who were supplying
on-line content could use it but sophisticated enough to
provide flexibility in how to structure and present that
information. Ferguson sunk his life savings into his new
company, Vermeer Technologies, assembled an excellent
programming team with his partner, Randy Forgaard, and
raised venture capital to keep the company going. He
pursued the enterprise with a mix of monomania and
paranoia. When it was released in late 1995, FrontPage was
far more advanced than similar products from any
competitorsincluding Microsoft, which bought Vermeer
soon after for $130 million.

PpOS
Conclusion

YEAR WISE MARKET

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PpOS Marketing Strat

Analysis
Our marketing priorities include

Building brand awareness among customers,

Forming relationships with other OS,
Launching Free Version
Operating in an environmentally friendly manner.
Launch of Paid Version and Generating sales,
Breaking even by the end of the 5th year,
Core capabilities of technical expertise, design
skills, and efficient assembly procedures will
contribute to cost control and enable us to react
quickly to market trends and technological
advances.
For the products introduction, we will use a push