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With the sophistication of computer users generally increasing, the corporate market forms an important part of the customer base as these users are a more captive audience. One sale to an it department can be worth hundreds of licenses. However, Norton is weak in the corporate market and competes mainly in the consumer market at present.
Demand for Norton products is declining. While Symantec overall has continued to grow in size, acquisitions and other business segments have spurred this growth (2009 Symantec Form 10-K). From 2007 to 2008, Norton revenue grew 7.2%, but the market share declined as the overall security software market increased 19.4% by revenue (Gartner, 2009). The market is trending towards increased fragmentation. The share of minor players in the industry has increased from 48% of the market in 2007 to 50.9% of the market in 2008. McAfee has increased its market share slightly, while each of the other largest players in security software has seen its market share decrease. Consumers are increasingly willing to explore their options.
In an attempt to reverse this trend, producers are experimenting with different distribution channels. For example, Norton has struck a deal with Comcast to provide its software to that company's Internet subscribers (Trefis,...
This hints at another trend as well. These customers will already have a security suite installed by their OEM. Firms in the industry therefore are competing directly against one another on each machine. Rather than surrendering a customer at the OEM level, firms are finding new ways to reach customers such that every consumer is essentially faced with multiple security software options, even without seeking them out.
Works Cited:
Gartner Inc. (2009). Symantec market share falls; McAfee's shows growth. The Windows Club. Retrieved March 16, 2010 from http://www.thewindowsclub.com/symantec-market-share-falls-mcafees-shows-growth
2009 Symantec Form 10-K. Retrieved March 16, 2010 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzQ3OTU4fENoaWxkSUQ9MzM2NTY1fFR5cGU9MQ==&t=1
Trefis. (2010). Comcast deal can slow Symantec's market share declines. Trefis.com. Retrieved March 16, 2010 from http://www.trefis.com/articles/11016/comcast-and-quest-deals-could-plug-symantec%E2%80%99s-market-share-declines-temporarily/2010-03-04
Weiner, K. (2009). Symantec and McAfee is arms race in PC security market. Neowin.net. Retrieved March 16, 2010 from http://www.neowin.net/news/symantec-and-mcafee-in-arms-race-for-security
Works Cited:
Gartner Inc. (2009). Symantec market share falls; McAfee's shows growth. The Windows Club. Retrieved March 16, 2010 from http://www.thewindowsclub.com/symantec-market-share-falls-mcafees-shows-growth
2009 Symantec Form 10-K. Retrieved March 16, 2010 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzQ3OTU4fENoaWxkSUQ9MzM2NTY1fFR5cGU9MQ==&t=1
Trefis. (2010). Comcast deal can slow Symantec's market share declines. Trefis.com. Retrieved March 16, 2010 from http://www.trefis.com/articles/11016/comcast-and-quest-deals-could-plug-symantec%E2%80%99s-market-share-declines-temporarily/2010-03-04
Weiner, K. (2009). Symantec and McAfee is arms race in PC security market. Neowin.net. Retrieved March 16, 2010 from http://www.neowin.net/news/symantec-and-mcafee-in-arms-race-for-security
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