Industry Analysis:Smartwatches

Team 2: Omega Consulting

AgendaBrief History of the Industry

Issues

Analysis of the Environment

Recommendations

Implementations

Summary

History1990• 1st

Samsung Smartwatch launched

• Huge failure

2010• Commercializatio

n of Smartwatch

2013• Intro of

Pebble Smartwatch

• 3.1M units sold

• Sparked other companies

2014• Intro of

Apple Watch

2016• Top 10

Companies holder >80% of market share

Market Share

Samsung34%

Nike9%

Garmin8%

FitBit8%

Sony7%

Pebble6%

Shanda4%

Mio Alpha 3%

Yingqu2%

Casio1%

Other 18%

Market Share 2013

Apple52%

Samsung14%

Other33%

Market Share 2016

Issues

Limited Functionalit

y User Friendliness

• Highly competitive market

• Smartphones• Cheaper

alternatives

• Focus on health/wellness• Fast-growing customer

demand• Tech barriers to entry

• Dependence on other devices

• High Priced

• Portability• Customizable• Connects to

different devices

Strength Weakness

ThreatOpportunity

SWOT

Analysis

Porter’s Five ForcesLow High

Supplier Power

Buyer Power

Competitive Rivalry

Substitution

New Entrants

Recommendations • Increase value to

customers

• Fitbit acquiring Swimmo

Mergers & Acquisitio

ns• Increase device

independence• User friendliness• 1st mover Android

WiFi on Smartwatc

h

Implementations M&As• Firms with synergies and similar

resources• Conduct target market researchWiFi• R&D in developing technologies • Future standard for smartwatches

Summary

RecommendationsM&A firms with synergies WiFi allows for

independence

IssuesLimited Functionality User Friendliness

Market AnalysisHighly Competitive Barrier to Entry

Questions?

Appendix 1: US Wearable Ownership 2015