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MARKET SITUATUION
While the cell phone industry is a large multibillion dollar industry, the voice to text market is a new relatively small market. In 2005 the entire voice application market made $564.8 million of sales. Although it is expected to nearly triple in sales by 2012, it is still a fairly small market. Even though Motorola will be a “newcomer” to this market, being an established company, controlling over 14% of the entire cell phone industry, it will be quite easy for Motorola to become a huge shareholder in the new and upcoming speech to text market.
In 2007 Motorola made over $30 billion in sales. When comparing it to an entire industry making $1 billion in sales, it would be very to take the majority share of this market. In fact if 3% of Motorola’s total sales were in the speech to text industry, the company would have over 50% of the market. VoiceSignal Inc. and Nuance Communications Inc. are two of the main competitors in this market. Being relatively small companies having virtually no investment in other markets, it would be very Motorola to enter this market and push the other two companies aside, forcing them to either leave eventually of merge with Motorola itself.
When looking at the target markets that would be likely to create the greatest revenue, there are three main groups. The largest target market is the young adult group (16-25). These people are responsible for more texts than any other age group. Furthermore many of these people drive automobiles, and people of this age group tend to get into the most accidents on the road. One major cause of accidents are cell phone use, and speech to text would help to limit the number of accidents on the ...