It Industry Symantec

Industry Analysis

The antivirus market in India is valued at Rs. 5,000 Cr. The antivirus market is expected to grow at a CAGR of 12 % and reach Rs. 6,600 Cr. by 2017 [Source: Quick Heal IPO document] due to a rise in virus, malware and other information security threats. Also the increased use of mobile, hand-held devices and the Internet have increased the frequency and complexity of these threats.

Applying Porters five force model to understand the current antivirus industry.

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Threat of New Entrants

With the growing awareness among users about information security and privacy, the demand of antivirus has increased exponentially. With increasing demand, there is high chance of other players from similar industry trying to enter into the market and posing a threat. Also the cost of entering in this industry is comparatively lower and hence it creates opportunity for others to try and enter in the market. Very recently, big giants like Microsoft are trying to enter the antivirus industry

Bargaining power of Suppliers

AntiVirus organizations generally develop their own products and provide their own service. Hence there are no significant suppliers for them. So, the bargaining power of supplier is not a major factor for the Industry.

Bargaining power of Buyers

The main customers of Anti-Virus are large corporations, small business educational institute, government and individuals. In the present era of global and competitive market, customers have better choice if there are multiple players in the market. Anti-Virus industry is filled with multiple players and hence there is huge competition. So the bargaining power of customers is very high.

Threat of Substitute

With the growing awareness about privacy and information security, the demand of Anti-Virus has increased by manifold. In the present scenario, there are not many substitute available for the AntiVirus software. However with the changing dynamics and continuous technology innovation, antivirus software’s might have substitute product for them. Recently, IBM is working to develop an expert system technology capable of self-learning and healing.  Technological development like this can act as a substitute to Antivirus.

Rivalry from existing Competitors

Antivirus software is a low cost software and hence there are multiple players in the market. The market share is dominated by two-three players and the reaming is shared among multiple players. Quick Heal, Intel and Symantec basically compete with each other to capture the maximum market share.

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Major Industry Trends

Other Industry factors which will have huge impact on the Anti-Virus industry are:        

1. Growth of Internet
2. Virus proliferation
3. Move towards heuristic-based product
4. Antivirus market expansion in international arena

1. Growth of Internet

In today’s era most of the small and large business have started to depend on the Internet as the main mode of communication, marketing and promotion. Because of this, internet has become a priority in all the strategic decisions of each company. The use of the Internet is growing at a rate of around 15-20 percent a month. But which this trend of increasing proliferation of internet, the proliferation of viruses and malware is also increasing is subsequently.