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Industry Analysis

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Industry Analysis

Our group realized that the Instant Messaging industry is a very competitive industry. We make this conclusion after doing the Michael Porter’s five forces analysis. In overall, five sections of the industry can be described as below:

* The existing rivalries in IM industry is high:
By looking through the source of information online, we figured out that there are many competitors within IM industry. Currently, there are at least 12 major players in the market. Among these 12 major players, we found that some of them exist before the founding of LINE apps, which means that they transformed from desktop IM into mobile IM. However, most of these initially desktop IMs are doing so well in the existing market due because they have lack of capabilities to compete with those entrants who target only at the mobile segment. For example, ebuddy was established in 2003 as a light version of desktop IM. They start up as a cross platform IM, which means that if you have user accounts in different IMs platform, you would only need to download ebuddy to chat with friends. For example, you have MSN and Yahoo! Messenger, you need not to download both Yahoo! and MSN chatting tools, instead you can use only ebuddy to chat in both Yahoo! and MSN. They entered mobile segment in 2009 but it appeared that it was not so attracted by the public. Overtime, different player in different geographical region dominates the market of mobile IM industry. Kakao Talk dominates in Korea, LINE dominates in South East Asia, Japan and Middle East, WeChat dominates in Chinese market and Whatapps dominates in some parts of Europe and North America region. These major players have their own large users database in their dominated regions and the other competitors are very difficult to penetrate into the market. One interesting issues we realized from this situation is that

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