Competative OLAP Market
On Line Analytical Processing (OLAP) is the modern day numbers cruncher for business information analysis. ... And finally, our ability to account for these results is made possible through the OLAP processing tools utilized by corporate managers, auditors, accountants and more. The roots of OLAP date back to the 1960s when IBM introduced the first mathematically defined computer language with multidimensional variables such as time, region and product. In the 1970s, an application oriented product emerged in academia, but the concepts of the original OLAP architecture remained at the foundation. The natural evolution of OLAP developed at a deliberate pace until the emergence of the personal computer in the early 1990s. The prospects of desktop productivity tools in the office quickly fashioned opportunities for new markets, and OLAP was no exception. ... In this report, we will apply Porter’s model to further understand the competitive nature that structures a growingly competitive, yet lucrative OLAP market. Five Competitive Forces The five competitive forces of competition are listed in order of greatest threat with relation to the OLAP industry: rivalry among existing competition, bargaining power of buyers, the threat of substitution, potential entry, and the bargaining power of suppliers. Starting in 1994, a five year 40-percent market size growth rate paved the way for a $2.5-billion OLAP market by end of 1998. ... However, the market is beginning to show signs of recovery, and is now projected to grow more than nine-percent in 2004, just topping the $4-billion mark in 2005. The OLAP market is an oligopoly; consisting of some thirty firms worldwide, three of which account for more than 60-percent of the entire market share.