What are the key outcomes of the five forces analysis of the global Enterprise Mobility Management (EMM) market?

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Before looking directly at the outcomes, one needs to understand the mentioned terms thoroughly. So let’s begin by describing the Enterprise Mobility Management and its market. Enterprise mobility management is not just one thing but a set of technology, procedures and the people looking after the management. EMM creates and provides and manages responsive web design services.

Now, what is being managed? It can be anything from mobile devices such as tablets and smartphones, to wireless networks, and services that include human-computer interactions. But of all this comes and is looked after in the business context. Enterprise mobility solutions are very useful in the working sector as workers can now share all work-related information on their mobile devices and store it there as well. There are many EMM providers, names of the famous four providers are IBM, VMware, Blackberry and MobileIron.

Now the Enterprise mobility management market is nothing but a market of various providers of Enterprise mobility services management that enables the companies to work efficiently with mobility.

Moving forward, we will go through the five forces analysis of the global Enterprise Mobility management market. These five forces are mainly known as Porter’s five forces Model as being named after the professor of Harvard Business School, Michael E. Porter.

It is a model that identifies, analyzes five forces or tools that help in determining the severity of competition in an industry and it’s weaknesses and strengths along with the profitability level.

The popular model of the five forces was created by the economist Michael Porter in 1979 which helps in understanding how these factors affect an industry. Let us understand each one of them.

1. The threat of new entry

As the name means the threat of entry of new organizations, new companies in the market to the older or existing firms and corporations. The coming up of these new firms poses a threat to the former ones as they would compete and intense competition leads to a decline in the sales and hence the profits, returns, revenue. So what is the solution for this? The answer is that existing companies need to create high and strong barriers that would make it difficult for new organizations to come up. Following mentioned are the scenarios most suitable for these entrants to arrive in the market:

Cheaper capital
Weaker former companies in terms of retaliation
Lack of trademarks, brand, and the patent on the existing firms
Disloyal customers
Identical products

2. Bargaining power of suppliers

If the suppliers in the market possess strong bargaining qualities then they can easily charge high or provide low-quality materials to the buyers. The impact of this is not good on the profits made by the buyer’s firm. Suppliers have strong bargaining powers when:

Few suppliers, more buyers
Fewer substitutes of the raw material
Suppliers have scarce resources
High costs of switching raw materials

3. Bargaining power of buyers

Buyers can demand the producer to lower the price or increase the number of raw materials. This way, producers will not be able to earn well in either of the situations. Buyers can possess strong bargaining powers when:

Purchases are made in large quantities
Less number of buyers
Low cost of switching suppliers
A large number of Suppliers

4. The threat of substitutes

This threat is caused when buyers are able to switch between services or products at a very low cost. That means they can easily substitute one product or service to another. For example, one can easily switch from one brand of cold drink to another but not from a house to a farmhouse.

5. Rivalry among existing competitors

This force determines how profitable or how competitive the industry is. In a competitive environment companies tend to compete aggressively and this leads to nothing but lower profits. This rivalry is on the peak when:

Numerous competitors
Difficult exit barriers
Lower levels of loyalty in customers
Easy substitution of products
The slow or negative growth rate of the respective industry

All of the five forces impacting an industry, created by Michael Porter are applicable to the Enterprise of Mobility Solutions and it’s market as well. And they would affect the EMM market in the same way as mentioned in the description of these forces. Though these forces were created back in 1979 they can be still applied to custom web development services of now.

After Michael’s other scholars also added a sixth force to this list of forces which is complements: this sixth force is the complement product to the primary product that helps in increasing sales of both and provides the firm with high returns. For example, iTunes would be the complementary product for the iPod and these increased Apple’s profits to a great extent.

Final Few words

All the five forces(sixth can also be included) are applicable to all types of industry and in fact, have a great impact. These forces let the companies know their weaknesses and strength and as a result, helps them to grow, develop by making a strategy taking into consideration the weaknesses and strengths discovered.

This does not reveal only the above-mentioned information about the company but also tells about the industry, the rivalry going on in the market and how to tackle it such as the threat of new entrants to the existing firms and companies in an industry.

Similarly, enterprise mobility services and their market can use it for their extension and evolution. As it is the most suitable model to check the progress of an organization. It is important for the EMM to process this five force model on them as in the future the demand for mobility solutions is going to increase only and therefore, implying the forces for the expansion of the industry will be beneficial. The forces tell the position of a particular firm among a large number of companies prevailing in the industry. And hence is beneficial in promoting growth at global and as well as on the individual(firm) level.

Amit Agrawal
As the Founder and COO at Cyber Infrastructure Inc, it is my aspiration to drive our global clients ahead in the competitive technology world by enabling them to receive huge financial and operational benefits in web development through my years of experience and extensive expertise as technology adviser and strategist. In my current position at CIS, I spearhead management of various technology initiatives, expansion of our technology capabilities, and delivery of quality excellence to our clients.

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