Fundamentals of Business Information Systems

Fundamentals of Business Information Systems

Introduction

Ipad is a series of tablet computers that are designed, introduced and marketed by Apple Inc., running Apple's iOS operating system. On April 3, 2010, Aple released its first iPad and the latest models were released on November 2, 2012. These latest models include the fourth-generation iPad and iPad Mini. The iPad is comprised of a built-in Wi-Fi and cellular connectivity. There are a wide range of functions that are performed by an iPad including online functions of emailing and browsing, playing music, taking photos and shooting videos. Some other functions like social networking, GPS navigation, reference and games are enabled by installing and downloading apps. There are other competitive companies such as Kindle and Nook that also offer a wide range of innovative technologies (Rosenzweig, 2011).

Purpose of the Report

The main purpose of this report is to evaluate the technology development in information system.

Background of the Report

This report is based on the analysis of iPad including its market potential, performance as well as its impact on the functionality of competitors present in the market.

Discussion

Impact of the iPad Using Porter's Competitive Forces Model

Threat of New Entrants

The most obvious threat of new entrants for iPad is caused by the new tablets that are Nook tablet and Kindle Fire. It will be very difficult and challenging for iPad to defend its position in different aspects such as price and content trumps services. The price rate for Kindle fire is much less than for iPad. This makes Kindle more affordable and is mostly considered for purchasing. There are more services available on tablet as compare to iPad. In case of Apple, the more focus is on innovative services and technology that is because of its mobile operating such as the intelligent assistant, Wi-Fi-based iMessage, iTunes-based ecom, iCloud storage and Siri. On the other hand, on the Kindle Fire free content is available (Simeonidis, 2012).

The threat of potential entrants is expected to be high because of the highly competitive environment of the discount retail industry with mostly big players that are involved in the competition of market shares. The main basis of the competition is the price factor. It can be observed that existing mobile companies have already established stable and strong supplier networks but Apple possesses an excellent distribution and logistics system with cutting phase technology that has the potential to support all of its business operations and practices with a long chain of international business, well-established brand name and a deep financial resource. Due to its large purchase volume, Apple also somehow possesses cost advantage over its competitors (Simeonidis, 2012).

Threat of Substitute Products

IPad has a comparatively low threat of substitute products. The strategic impact defined by Apple is based on an effective and engaging user experience. In a world of simplicity and design elegance it is immerse to use an Apple product which is not only efficient and effective but it also provides entertainment to its users. With this approach, Apple ensures strong ...