Supplier power: Low
Supplier power is low due to the malleable nature of the technology. There are many different firms that could develop and supply the required software. The technology industry is big and it is only going to grow. (PWC Global CEO Survey, 2014)
Threat of new entrants: High
The resources required to make an application are limited and so the threat of new entrants to this industry is high.
Threat of substitutes: High
This industry is highly susceptible to the threat of substitute products, such as pen & paper. Furthermore, many believe that there is no value in Education Technology. (Journal of Educational Computing Research, 2005)
Rivalry among existing competitors: Low
There is no well-established Education technology industry.
Overall attractiveness of the industry:
This industry is relatively attractive to enter due to its relative infancy and lack of competition. However, the risk is high as the high risk of traditional substitutes and the propensity of many to shy away from Technology in Education.
3.3 Customers and Their Needs
The customers for TeachMe are Teachers and Students, this includes all levels of Education; primary, secondary and tertiary. Their needs are aligned and simple. Thus, they need their learning process to be worthwhile so to as to ensure success. (Molly Shields, 2014) Teachers faciliate and manage the learning process, while Students aim to understand the concepts being taught.