IPhone - Mobile Phone, iPod, and Internet Device - Assignment Example

iPhone: Mobile Phone, iPod and Internet Device Introduction Apple is known to be a seller of high-end computer products such as Macintosh computers, iPod, the new iPad and the best- selling iPhone. The company made a big difference by introducing the personal computer in the electronics industry at the start of the 20th century. It first introduced the line of Macintosh in 1984 which is a well- known computer model (Frieberger and Swaine, 1984). Venturing on a new product called iPhone in 2007 made a big success for the company. Apple released iPhone which is a mobile phone that has the capabilities of surfing the internet and can be an iPod at the same time. It is built with a multi- touch screen and can be used with the touch of fingers (Apple, 2010). Its success mainly relies on the quality and its capability to multitask. The customers are offered a great benefit of using an innovative technology at their convenience. Q1. Business Plan Apple established the iPhone brand with great benefits. It is developed in a way that people could easily adapt into and give convenience at the same time. iPhone makes communication more easy and convenient as it allows its users to connect to internet services without hassle; plus, it comes with a music player, which makes an iPod in an iPhone (Apple, 2010). iPhone is one of the best- selling gadgets of Apple and it makes them increase profits bigger. The market strategy of the company includes developing their own software and hardware to make sure that quality products will be manufactured by its own brand. 4 P’s Product- the major features of iPhone are the following; Multi-touch screen, mobile phone, camera, iPod, internet connection, built-in-battery, unique design, synchronization with iTunes, iCal, address book and other necessary applications, and headphones as well. The company makes sure that iPhone can compete with recent mobile products in the market. Since it is a common gadget, developing a product that defines its edge from other brands makes a great deal such as focusing on its functionality (Apple, 2010). (Apple, 2010) iPhone has a 2 megapixel camera resolution and it transferring of photos is made easier. Also, it could function as an iPod as it is compatible with iTunes; plus it is a widescreen iPod more powerful than the iPod itself. One great feature of the product is its internet connectivity and it allows the users to use the most advanced web browser on a mobile device such as Google and Yahoo! (Apple, 2010) It is Wi-Fi ready which can automatically connect its user to the internet and surf the web conveniently considering its wide screen. Users can even make a phone call while uploading a photo or surfing the web over a Wi-Fi or 3G connections (Apple, 2010). In addition to, what’s distinct with iPhone is its design and style. It has a well-design operating system and stable as well. Its battery can last up to 16 hours of talk time and can be recharged easily (Apple, 2010). Price- for the price of iPhone, it varies according to the size of its memory available at 4 GB, 8 GB and other. As of now, price of iPhone 3G with an 8 GB memory is $99 for the qualified customers only and it requires new two-year AT&T rate plan which is sold separately. iPhone 3GS, which is a newer model of iPhone that offers a faster and more powerful iPhone has the prices of $199 for 16GB and $299 for 32GB unit; both are subject to the company’s condition of use (Apple, 2010). New generation iPhones offer more advanced applications such as faster access and launching of its applications (German and Bell, 2010). Pricing strategy of iPhone is catered to dominate the market immediately and be able to determine its success. It is a good and effective way though it gives the customers a limited time to adjust to their varying prices. However, Apple must maintain a stable pricing strategy to be able to completely satisfy the market and avoid disappointing the loyal customers. Distribution- Apple makes sure that iPhone is placed accordingly with the objective of making available to the customers. iPhone can be purchased directly from Apple online and other accredited retailers such as Amazon. It is also available through apple stores worldwide and other electronics retailers. The strategy is to distribute the product in different major retailers worldwide through online and directly in stores. iPhone has got the main focus to be the major product distributed by the company as it yields high sales upon its launching. Displays for iPhone product are made sure to stand out among any other brands that could easily get the attention of the customers. Apple online makes a great way of displaying and promoting the product for online shoppers. It is more convenient because shoppers does not have to go to the store just to get one, plus they could enjoy the benefit of seeing the full feature of the product as the website has it in details. Promotion/ Marketing Mix- Before Apple launched their mobile phone; there have been many articles about its new product which is the iPhone. Since Apple has established a good name in the industry, people are waiting for their new releases and that makes a great impact on the promotion of their products. Less effort is made to inform the customers about their new products. Although the use of media to advertise is really important to launch the product; the customers are easily reached because the company is positioned well. (Apple, 2010) The iPhone 3GS ‘the fastest, most powerful iPhone yet’ and various television ads with large pictures, descriptions of the features and instructions on how to use the gadget respectively are effective in catching the attention of the customers. Apple maintains their advertising campaigns to create public awareness and communicate with the target market. Q2. Economy Apple is a multi- billion business and its economy in the recent years has drastically achieved more than the goals of the small electronics companies. It keeps its company close to the public so any hints are quickly exposed over the net most especially the upcoming products. People are interested in every detail of its new launches and that makes a good sign for the company because it means sales. iPhone strengthens the economy of Apple through the trusted retailers that venture in selling related products which supports the company. As such, accessories for iPhone such as the headsets and cases are being sold by smaller companies which apparently make a larger return for the economy of Apple. End users of the products and services are not only benefited but also the potential developers of Apple’s applications most especially iPhone. Game developers are taking advantage of creating iPhone- compatible games to make profit from the Apple economy and the market (Elmerraji, 2009). Mostly, iPhone includes the users that need storage of information and an easy access to the internet which helps them communicate easily with other people and get interaction. The economy targets almost all the market segments as it involves the students which are the trendiest users, the professionals, businessmen, corporate users, medical professionals and other. Although iPhone’s overall market can distinctly be categorized to those who are willing and able to buy the gadget, its potential customers are increasing because many people want a powerful mobile phone which is worth their money however prices of iPhone are relatively high so its first years in the market are quite a break-even point of sale. Considering that Apple has the most established brand loyalty in computer electronics industry, there is no doubt in delivering its yearly revenue because customers are responding in accord to the company. During the recent years, significantly the times of recession, the slow demand for personal computers affected the company by its low shares and expectations are not met. The financial analysts have expected the earnings to be greater than what has been announced by Apple. However, low return during the recession years has not been a hindrance to say that Apple is still a company that has a good stabilization and position in the market; though they have decided to lower down the supply and prices of iPod, Mac and iPhone but still maintaining profitability. The company has to conform with the competitors such as Dell and IBM, for computers mainly. Analysts are also setting a high expectation for iPhone products. Apple is expected to report high sales and a positive customer feedback most especially on the 3G models of iPhone (Elmerraji, 2009). But because of the high-end technology that iPhone offers to its users, its applications are sold drastically and yields $200 million per month (as of 2009). iPhone includes an iPod built in the mobile phone which allows the users to download from iTunes and that makes a great impact. Complimentary products such as applications and other make a big contribution to the revenues of Apple iPhone. Thus, the economy of iPhone is doing well and largely makes up a big part of the company. The strategy used is not only concerned with the product development, but also to what and how they satisfy the needs of the market and keeping people updated with the latest technologies (Rogers, 2008). Q3. Leadership with management Apple maintains a professional working environment in the organization. It has been managed by different brains but its standards remain the same. Steve Jobs, Chief Executive Officer of Apple, stands as the great mind of the company for its great products. Steve Jobs, Apple Chief Executive Officer (Google Images) His ideas are brilliant and he has a strong vision when it comes to developing the products, thinking of the best strategies and working with his subordinates. Jobs’ management style simply drives his subordinates to work hard because of his insistent personality. He demands and expects a lot from his people; hence, there is no doubt that Apple produces great products and largely makes a great impact in the market. For the CEO, it is the company who sets the trends for computer technologies so the whole management must conform to those standards. A goal must be met and new designs and styles must come out first from the company (Young and Simon, 2005). Other companies could consider the leadership style of Jobs as a factor the success of the company. Setting goals and defining the objectives clearly are very important to be able to surface in a fast-paced world. Aggressiveness can also be a plus factor, like what Steve Jobs shows, because it means like grabbing the opportunities and taking advantage of what is available. He possesses a strong personality of an entrepreneur and knows exactly what he wants for his company. As a leader, Jobs believes that it is better to work with people than to work alone because ideas will be more profound and productive; it is like saying “two heads are better than one”. It is actually a good point because it means that he accepts or listens to different ideas though he has a strong ego. For him, it is like forming a music band where each member must make an effort playing their own musical instruments to come up with a masterpiece. A CEO like Steve Jobs makes a good leader and makes the company strong enough to compete with other giant companies in the computer electronics industry. He practices an unpredictable style of leading the organization where in it brings a positive outcome. With his temperamental style, employees are being challenged with what they could do to reach his standards. Obviously, leadership in the business is very effective as seen in its profitability. But, his cleverness is sometimes misinterpreted as greediness because of prioritizing the goal of making profits for the company. iPhone indeed is one of the most successful products that Steve Jobs supervised. He had a strong vision and clear objectives about iPhone and shared it to his employees. They maintained a strong brand identity for iPhone although there are some inconsistencies when it comes to its prices; still, Jobs showed a great leader because he established iPhone as the greatest mobile technology today. Q4. Evidences: iPhone’s success Apple started to boost its sales for a mobile phone when they introduced the 1st Generation of iPhone in 2007. It was an excellent product as it allows the users to multi-task and get what their money is worth. When iphone was launched, its technology is years advanced than its competitors. Its features make it significant to say that Apple made one of the smartest gadgets in the world as it combines a mobile phone and a laptop in one single unit and is very convenient. Apparently, after its launching, it dominated the market and people are responding accordingly (Megna, 2009). Apple earned a great success for its revolutionary product, iPhone. The main key to its success is the product itself; the product development, what features it offers to the users, what convenience it brings and other. People have seen what iPhone could do and it is enough to lure potential customers. Apple earned a lot even during the recession and despite the controversies of its price strategy. It just reflected how the management runs business where mistakes or failures are considered as challenge and improvements. The success of the iPhone market relates with the applications that it use most especially the integration of iPod of the music player into it. Apple store is also seen as a factor for its success as it makes the product available to the customers and communication is clearly established between the company and the customers. The advanced technology that iPhone used to lure the potential customers is effective enough to follow through on the other products such as the use of iTunes in downloading songs, videos and other. The revenue for iPhone is relatively high compared to other mobile phone brands because of it reaches their market worldwide and offers a variety of benefits. Its main competitors are now making their way to level up with iPhone though, but Apple is simply different and defines its own brand by maintaining its strong marketing strategy. Conclusion Apple is an outstanding company and has been ranked number 1 (Fisher, 2008). It is successful in venturing with their new product iPhone and earned outstanding revenue. Marketing strategy for iPhone greatly considered the product development and offering the best features for the customers. It is composed of great minds and great ideas are reflected through its products and services. Steve Jobs largely influences the whole organization in working hard and seeing the growth of advanced technology in the world as a great opportunity for the business to be at its peak. Developing an entrepreneurial venture has to consider the path that Apple took to be in their current position and establishing the iPhone brand. iPhone makes three different devices such as a mobile phone, a music player and an internet communicator in one gadget. It is a powerful mobile phone that allows its users to multitask and communicate easily through the use of the easy access to the Web and various applications. It is positioned well in the market and gives high-end technology benefits such as multi-touch screen, 2 megapixel camera, WIFI ready, Bluetooth enabled and other. Its innovativeness and uniqueness makes it at the top of other mobile phone brands. The economy of iPhone contributes a lot to the success of Apple. It relates with the applications used in iPhone and of course the great features of the product. The customers are patronizing the product because of its advanced technology and thus make a drastic increase in its sales. The Apple store is one of the factors for the success of iPhone aside from the applications. iPhone certainly catches the potential customers in different market segment because of its flexible features and convenience that it brings its users. Generally, what holds iPhone at its position is its product development strategy. Steve Jobs makes sure that the Apple products and services that they sell are sensible enough to catch the attention of the potential customers and make profit from them in exchange of a super product such as iPhone. Decisions of the business leaders are also vital because they work in accord to what will benefit the customers and the company. Thus, the key to success in venturing a new product for a company depends on how the products are developed and how the company delivers it to the market (Bartholomew, 1999). References Apple. (copyright 2010 ). “The Company”, apple.com from http://www.apple.com/pr/, retrieved 4-9-2010. Bartholomew, Doug. 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