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Apple Company Recommendation Proposal - Essay Example

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The demographic shift presents business houses with unique and complex challenges. There are hardly any companies in the world that operate in the market without facing threats from the business environment…
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Apple Company Recommendation Proposal
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Apple Company Recommendation Proposal

Download file to see previous pages... The internal analysis of the company has made it evident that the principal reason behind their declining market share is lack of innovation. Apple is best known for innovative and breakthrough products, but since the last couple of years the company is failing to satisfy customer expectations. On the contrary, Samsung has been able to secure the elite position in the smart phone segment through innovative design and aggressive marketing strategy. Despite creating hype, the latest offering from Apple, iphone 5, failed miserably in the market. Hence, the only solution for Apple is to come up with a new strategy that supports expansion of the business operations and fosters innovation. Discussion Reports suggest that currently Samsung holds 47% of the market share in the smart phone category and Apple holds 38%. However, the scenario was completely different in the last year. Apple was the market leader with 73% share, while Samsung and other companies embraced remaining 27% share. Figure 1 – Smart phone market Share Comparison of 2012 and 2013. The drastic shift in the market share figures of Apple makes it obvious that “something went wrong” for the company. A number of studies shed light on the fact that lack of innovation is the major cause of their failure. Moreover, the smart phone product line of Apple has also remained unchanged since its launch in 2006. The new versions were launched only with some add-on features and applications. However, to satisfy the dynamic needs of customers as well as tap new customer segments, it is necessary to offer enhanced and trendy products. The classic example of Nokia’s failure in the market due to the lack of innovation clearly substantiates the current state of Apple. ...
In the meantime, it should be also noted that the operating system of the phones bundled by Apple is also getting outdated. A recent consumer study on smart phone OS preferences, has reflected that consumers are finding iOS to be stale while the latest buzz, Android to be much more user friendly and exciting. Since the first release of iPhone, it really has not come through leaps and bounds. On the other hand, the competitors of Apple were capable in delivering high quality and pioneering products at a cheaper cost (Tapscape, 2013). Apple has positioned itself as a luxury brand and thus targets high end customers. The primary target segment of the company is customers who are willing to pay a higher price for better experience and prefers using technically upgraded and updated products. As a result of that, price reduction will seriously hamper the Apple’s positioning strategy. Therefore, the only way to make global expansion and regain the lost market, the company needs to come up with something inventive and modern. Methodology and Analysis In order to find a solution to the problem, the study has considered collection of data from both primary and secondary sources. Secondary data were mostly collected from authentic electronic sources and journal articles. On the other hand, the primary data was collected directly from the consumers of high end mobile phones. According to Treloar (1999), product innovation involves coming up with something new or sufficiently different (p.253). Likewise, Linder (2006) and Holmquist (2012) believe that innovation plays a crucial role in driving profitable growth. The author further mentioned strong research and development is one of the key ...Download file to see next pagesRead More
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