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An example of the Threat of Substitution

December 14, 2012


Today’s chart shows a forecast of global connected device shipments and represents an example of the Threat of Substitution in M E Porter’s work on the Five Competitive Forces framework

The rise of tablets and smartphones has been nothing short of astonishing. With 100 million shipped units in less than three years, the iPad is one of the fastest adopted consumer electronics products ever.

And the boom is far from over: market research firm IDC expects smartphone shipments to reach 1.4 billion units in 2016. Tablet shipments could reach 283 million units in 2016, more than doubling this year’s expected total.

Meanwhile the PC market is expected to stall as desktop and portable PCs continue to be cannibalized by their mobile counterparts.



From → business, Strategy

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