Business Industry Essay

Protection is being the number one reason on why gadget accessories have been growing in a fast phase. Both small size gadget to big size gadget need protection from the harsh outside environment, and therefore many companies have been trying to solve the problem by making a suit or body protector for the gadget lover to keep their devices functional even with severe impact to the ground or other hard objects. The mobile phone accessories itself accounts for 36 billion dollar which is a very unexpected number because of the forecasted number was 20 million by the end of 2012. This proven that the industry has been performing very well that even the prediction to the real value ratio is almost doubled. The trend of using smartphone and newest laptop has taken protection of those items to the next level. High protection for expensive gadget is very important nowadays, this is proven by the amount of money people spent on having the best protection for their devices. There are 2 types o n consumers in this business, people who actually put accessories on their smartphone to add esthetic value to their gadget and people who buy accessories for the protection of their gadget. This trend is supported by several studies that shown people who have gadget spent more than 55 dollars alone for the accessories. Smartphone industry is very popular among the age group of 18-44 and therefore the accessories come along with the age group of people who have smartphone. This research is done and concluded with more than 55% of the age group have smart phone. Otterbox Otterbox is a private company which is founded in 1998. It has been producing the protection for gadget ever since. Otterbox is headquartered in Fort Collins, Colorado and it’s trademark is to build a waterproof electronic cases for mobile devices. Otterbox product lines are mainly focus on the protection of the product and not focused on the esthetic side of the product. Functionality has been the front line of the product. Mainly it is as waterproof boxes and device-specific smartphone and tablet cases designed for outdoor enthusiast. Unique selling point Over the years, Otterbox has earned a reputation for the best protection for portable devices which offer high impact protection, water protection, etc. The Otterbox premium feature is offered by the premium price that comes along with it. Leaving its competitor behind, Otterbox sells their product from a competitive price of $25 to a whopping $70 for the defender series that offer the best protection for portable devices. Target Market Otterbox targets mainly on outdoor enthusiast who usually go out to rough terrains. Given the product main unique selling point of protection, Otterbox can relieve the fear of destroying their devices during their activity outside. SWOT Strength| Weakness| Strong brand nameDiversified ProductsStrong logistic| Lack of promotion| Opportunities| Threat| Growing market of smartphone| Intense competitionImitation start coming to the market| Strength Strong brand name People who know Otterbox know that the product is a very high quality product. The customers know that they are getting what they paid for. Even though Otterbox release a new product line, the customers will already know that the product will offer protection like no other brand. Diversified Products: The product lines of Otterbox varies from small smartphone to big smartphone even tablet, and therefore customers find it is nice to have the protective case that made specifically for that type of device that they have. Strong Logistic: It is easy to find Otterbox all over the world. Otterbox have channel distribution almost all over the world with the main phone accessories distributor in that country and therefore, getting our hand on Otterbox is relatively easy. Weakness: Lack of promotion People who know Otterbox know that it is a good product, but a lot of people don’t know Otterbox because their lack of promotion compared to other brand such as Targus. Opportunities: Growing market of Smart phone As it is described in the market Industry analysis, the market has been growing unexpectedly high compared to the forecast, and therefore by using this opportunity, Otterbox can boost up the sale of their product alongside with the growing industry market. Threats Intense competition: Competition has been very tough and it is not getting easier for Thule, more companies are coming to step in to the way in the protective case market. Fierce competition is on the eyesight and newcomers such as Balistic, Hardcore, and Casemate Imitation comes to the market Even though it is still hard to get, imitation has been swarming the market because Otterbox such a good product. However, if Otterbox just let it go, the problem will get much bigger and imitation could cannibalize the real product. ——————————————– [ 1 ]. https://www.abiresearch.com/press/accessories-get-smarter-as-smartphones-drive-more- [ 2 ]. http://velositor.com/2012/03/14/smartphone-accessories-market-growing-while-feature-phone-accessories-market-forecasted-to-decline/ [ 3 ]. http://www.nielsen.com/us/en/newswire/2012/survey-new-u-s-smartphone-growth-by-age-and-income.html [ 4 ]. http://www.inc.com/inc5000/201109/otterbox-curt-richardson-how-i-reinvented-m