Serious Repercussions in Terms of Competition - Case Study Example

Introduction Technological advancements are continuously changing the fabric of mobile industry worldwide. From walkie-talkies to mobile phones, market has adapted to smart phones with features and services never thought of. Recent talk of the town is the launch of iphone by Apple Inc. which has already grabbed the title of leader in the smart phone industry. With unparalleled technology and unimagined attributes, the iphone has started giving nightmares to its competitor products (Iphone owners 2007). However, Apple Inc. is facing some serious repercussions in terms of competition, cost and product quality which can hinder its growth in the initial launch period. Subsequent sections of the report detail about the problem statement and approaches which Apple Inc. can use to improve its market positioning. Background Three years back, Apple Inc. was an unknown name in the smart phone category of mobile industry. But to our astonishment, with rapid technological pace and research expertise, Apple has come up with a smart phone intact of indefinite features in a single phone. Those characteristics include video conferencing, audio, camera, touch screen and use of social networking sites like Facebook and Twitter. Not isolated with drawbacks, customers have complained of lesser battery life, problems in reception and call quality and pricing which has limited the purchase of the phone to top brass of the society. Problem statement In order to understand the problem statement and define it comprehensively, it is essential to look at the factors impacting the growth of iphone squarely. Product features Though being an exemplary innovation in the mobile phone industry, the basic functions of a phone are not being fulfilled by the iphone. Poor call quality and calls not being connected are common stances of its failure as a basic handset product. Also, customers complain of iphone not able to support many applications simultaneously. For example, only two or three applications can work together otherwise they can damage the battery life. Network service provider AT&T is the sole network service provider for Apple which is in a way monopolizing the smart phone industry and also stopping the growth of iphone connectivity progress. AT&T is associated with weak signals and direct repercussions are suffered by Apple in customers complaining of poor call connectivity and quality. Threat of imitability The biggest threat in the mobile industry is the imitability of technology and expertise by rivals. Same is the case faced by Apple because the technology is not proprietary to it and resources are equally available to the rivals also. As soon as some other competitor comes up with a new technological marvel, the iphone technology will get outdated. As such, Apple cannot maintain its leadership position and monopoly in the market for long on the basis of technology alone. Pricing Because of high end technology, pricing of iphone makes it a luxury item distant from the reach of cost conscious customers. Its target market is restricted in this way which is again hindering its expansion and promotion to other profitable segments and markets. Thesis statement In light of the above obvious implications, Apple needs to revisit its iphone proposition and look at the affecting forces both internally and externally. While organizational and managerial forces affect it internally, moves of rivals, changing technology and customer expectations compel it to adapt to the market impulse. In order to have an in-depth understanding of the affecting situations and pressurizing forces, following researches and information gathering has to be done to arrive at solid and feasible conclusion: Internal check The internal check will be done with the aid of SWOT (strengths, weakness, opportunity, threat) analysis which will facilitate Apple Inc. to match its strengths with the available opportunities and safeguard the weakness from perceived threats. Internally, monitoring the departmental progress and engineering tasks have also to be done. In this regard, constant feedback and opinions of sales team should be gathered to know about the latest changes in the market, customer tastes and preferences and other details which might help Apple in devising its production, supply, marketing and pricing strategies. External check Externally, competitors are the biggest threats and organization which closes its eyes towards rivals is the biggest loser. Apple has to keep a close watch on the product launches, pricing moves, publicity and advertising tactics and market reach of its rivals so that it can respond to them accordingly and timely. This can be done by studying competitor portrayals. Another external factor which is in fact the essence of the existence of a business is the customer itself. Apple should do rigorous market research to know about the present perception of customers towards iphone, its weakness and strengths, expectations and any other information which could help Apple develop a comprehensive plan to address the problem. Conclusion There is a dire need for Apple to revamp its strategies and plan its pricing and targeting to further the reach of the iphone. The product is still in its introduction phase and encountering problems in the inception itself reveal some serious flaws in the development and marketing approach of Apple Inc. To better off its market standing and safeguard its leadership, Apple needs to implement effective customer attraction and retention strategies. It should organize press releases and conferences to address the specific issues encountered by the customers and company’s tactics to handle those issues. This will include attaining feedbacks from existing customers and drafting appropriate attraction tactics for new customers. Social media can help a lot in this regard as social networking tools have gained immense popularity and reach in today’s market place. With the help of social media, Apple can propagate the features, benefits and prices of its new launches and products with cost and time effectiveness and reaching out to diverse customer segments. Secondly, internal communications and marketing have also to be strengthened so that employees are equipped of the required information and can handle queries well. Social media can again help by developing a platform for employees and customers to interact and share information. Apple should also get involved in partnering with other global companies to gain greater market access and share in the technology and competencies of other organizations. Work Cited “Iphone Marketing plan” Iphone owners. 2007. 7 December 2010 < http://www.iphoneowners.com/general-iphone-discussion/268-iphone-marketing-plan.html >. Read More