The Importance of Information Systems on the Apple iPhone - Case Study Example

Information Systems in Competitive Advantage Strategy Design by (Insert s) Executive Summary The following is a presentation on the importance of information systems in definition and design of competitive advantage strategy. The incorporation of information systems into corporate and private business the information age is a common theme driving business strategy for technology innovations. In this discourse, the strategy to capture the theme in the market at Apple to drive the competitive strategy for the iPhone is highlighted. An overview of the importance of information systems in modern business environment as a driver for innovations in the electronics industry, particularly in the smartphone industry is discussed in the opening remarks. By emphasizing the nature of the modern business environment enables the development of the background on which the iPhone strategy is established in terms of successful information systems solutions packaging. To determine the applicability of iPhone’s sustainability in the competitive strategy approach, Apple’s business competitive advantage is assessed using the five forces of competition in Porter’s model. Each of the five forces is assessed for application in iPhone’s use of information systems solutions in competitive strategy. A brief addendum is provided towards the end of the presentation discussing recommendations that Apple can adopt to make iPhone more competitive. This presentation underscores the analysis of the innovation inclined market to drive strategic competition approach for the modern ICT based technologies. Introduction Competitive advantage is established after a thorough analysis of the market needs against the backdrop of the business competition environment defined by certain market factors. Perhaps on of the most celebrated approaches to perform the task of establishing a sustainable competitive strategy is the Porter’s model that highlights five main forces as determinants of the business competition environment. From the results of the analysis conducted, business processes including product design and other operations are realigned to overcome the market forces. In the modern day market in which Apple’s iPhone competes in, the dominating theme of consumer demand is driven by the growing need for information systems for the changing market for the smartphone and other handheld devises (Benson and Tribe 2008, p8). The market is in need of solutions that can assist to manage various end user needs as the world continually embraces the information age. The iPhone packaging is particularly keen to rise the occasion in offering unique solutions to the market needs with respect to information systems that offer a wide range of computing platforms. This precisely represents Apple’s approach to remain competitive in the market through continued information systems solutions such as those packaged on the iPhone. In this discourse, a visitation of the competitive advantage tenets proposed by Porter is conducted on the strategy used by Apple to launch a better market presence when compared with the rest of the competitors. To arrive at this end, primary and secondary literature was used to draw inferences on how the iPhone uses information systems to remain outstandingly competitive in the market today (Yin 2008, p101). Application of Information Systems in Competitive Advantage How information systems on iPhone blend with Apple’s competitive advantage strategy certainly opens a frontier of almost unlimited opportunities that have enabled the creation of a competitive safety against rivals. For the first time in the young history of information and communication technology, Apple has got it right with the specifics of what the various market segments in the electronics market needs. As an illustration of the accuracy with which the iPhone captures the needs of the market, corporate customers cannot complain of the information system capacity offered by Apple. Alternatively, other individual customers in search of private mobile phone solutions have found a wide range of options that augur well with private needs offered by cutting edge information systems that the iPhone possesses. To virtually every user of the iPhone, different applications that continue to hold the promise of unlimited innovation in terms of the latest end user needs amid changing technological environment of the information age complement the sleek design conceptualized by Apple (Mootee 2011, para.3). In light of the accuracy with which Apple has been able to package information and communication solution on the iPhone for various end user needs, it is possible to identify the nexus it has with its competitive advantage over rival smartphone producers. A perfect interaction with new and exciting technologies is what the Apple has been able to present to the market led by the iPhone devices that are synonymous with the best internet experience. From a perspective of the corporate iPhone user, it is possible to apply the myriad application offered by the product to meet important demands of the modern information based business. The Nature of the Modern ICT Market From complex corporate decision making application of ICT to social platforms on the internet, the ICT market has experienced a drastic change that is inclined to smaller gadgets and devices with an equally wide range of problem solving capacity. It therefore follows that the best positioned player in offering products responsive of the expectations of the market can only be technology inclined to precise provision of market needs. At Apple, this is one of the biggest strengths in view of the fact that the products such as the iPhone continually edge closer to this exact market satisfaction. As an illustration, the market has continually increased its need for information systems that offer solutions to data collection, data analysis, entertainment, news and innovation among many other needs. On the same note, the evolution of the computer from huge machines to smaller pocket-fit handheld devices for portability and convenience has been a driving factor for Apple’s consideration of the opportunities that the iPhone can enable delivery of the specific needs of the market. In terms of the capture of the information system needs of virtually all customer needs, the iPhone information systems have been designed to offer solutions ranging from corporate applications, student’s learning tools, social media applications to complex corporate application offering management, decision making, executive and transaction facilitating applications. The smartphone packaging of the iPhone is perhaps one of the attributes of the iPhone’s accuracy to coincide with the market needs of up-to-date technologies that represent the information age times. Despite the existence of a technological gap that emerges every minute in the information age, the iPhone has been designed to offer unlimited information systems solutions through the open store where new and exciting and updated technologies can be obtained for new users’ needs. iPhone’s Information Systems and Applications As highlighted above, the iPhone’s touch of information systems needs of the market present it as one of the most market responsive products as technology demands continue to evolve. It is perhaps important to briefly mention some of the applications that have catapulted the product and Apple to new opportunities of a promising technology future. On the private solutions level, the iPhone information systems offering solutions to personal needs include fun and social applications such as photos, music, calls and videos handling solutions including Gorillacam, Skype, Thetrainline, Dropbox, Movies, TonePad, Twitter, Facebook and Evernote among many others. The iPhone enables private organization of files and enables sharing them with other end users by use of simple tools on the device making it possible for easy personal information systems integration into any ICT based application. The flexibility with which the iPhone fits between private consumers as well as in corporate needs and application for information systems enables it to target the middle end and higher end of the market segments in terms of packaging. The role of ICT in modern day business however holds the most exciting and promising future for Apple’s innovativeness particularly through handheld devices such as the iPhone. Business operations continue to lean on information systems in terms of the four areas of input namely decision making, management, executive and transactions applications. iPhone offers a number of these solutions to the modern business manager perhaps better than any other product of its kind in the market today. Enabled by its flexibility in features and usage, the iPhone enables corporate applications more possible than ever before. Enhanced social media features such as video calls and chats have perhaps taken the public relations desk to an all time high. The iPhone is wired to enable businesses to integrate global addresses for clients not only facilitates contact with the clientele base but also enables management of such databases using the online mobile platform. One of the most promising opportunities provided to investors in enterprise configuration offered by iPhone as well as exchange support where enhanced mobile interface features enable business transactions via iPhone. Oxagile mobile application supported by iPhone is an example of the information systems integration with capacity to coordinate several corporate functions on the device (Oxagile 2005, para.1). iPhone’s Information Systems under Porter’s Model for Apple’s Competitive Advantage Apple’s packaging of the features and partnership with relevant applications developers fitting in its market synopsis manifests a deliberate approach to deal with the competitive information electronics and systems market needs. Cognizant of the market environment that is full of technology driven competition, Apple’s tremendous sustainability and a promising future for its products is seemingly based on a strategy that eliminates the threats posed by market competition as conceptualized by Porter under the five forces of competition as is replicated below. 1. Threat of Traditional Competitors iPhone’s competition environment is perhaps one of the most crowded in the market today in many respects, particularly in terms of the increased market demand for similar technologies. To facilitate an effective competitive edge against traditional rivalry, the iPhone has been keen to deliver according to market demands than most of its competitors. The iPhone entered the smartphone market as a unique product availing features that the rest of the producers were not able to offer to the market. Although initially priced out of reach by a the largest section of the market, exciting features such as the size of the screen and navigation features made the intended impact of alerting the market that Apple was officially into the business. Subsequent products were significantly priced downwards creating an excitement among the customers. Perhaps one of the most important competitive advantages over existing players is the cutting edge accuracy to provide information system packages in response to the demands of the market. Apple’s competitive advantage achieved on iPhone is by the focus on differentiation of the market needs in terms of innovative applications, which was not possible before (Ritson 2011, p33). As the iPhone proved to the market, it was possible for every user to find favorable attributes of the product better than other products. As an illustration, the operating system platform on which the iPhone works is a replication of the success that its other business line involving the personal computer. Transfer of information system’s to the handheld device certainly captured the expectations of the market better than the rest of the business rivals. Maintaining the innovativeness in provision of exciting technologies on the iPhone as favored by the operating system that integrates addition of applications from the best market information system players has built Apple’s cooperation with market leader. Such cooperation presents the iPhone on the top edge of information system needs of the market when compared with other competitors. Drawing success from other information systems solutions products that Apple deals in, the iPhone’s experience was not a gamble in the market as the market needs were well known to Apple. As an illustration, entertainment industry in which the iPhone information system immensely contributes was packaged from past experience with the iPod and iTunes which are enhanced on the iPhone to offer pleasant options that matches the market’s expectations. The information systems incorporation into the iPhone brand only adds to the market image that Apple has, which has enables Apple to attract a rare market suspense at the launch of new iPhone versions. This has clearly created some shield from the existing market players in terms of competitiveness of the iPhone largely as presented by the information system innovativeness on new products. 2. Threat of New Entrants In order to launch a competitive advantage over possibility of new market entrants offering better products than Apple, the iPhone information systems have been packaged to beat any player in the market. Despite the fact that the attributes of the free market make it difficult for Apple to evade threat of new entrants by blocking investment into the industry, Apple has significantly taken care of the threat by offering exciting new technologies to capture the attention of the market as the best provider of new technologies. Apple has been able to take the market at ransom in its competitive advantage through the development of frenzy around the next innovation. Excitement in the market for instance on the rumor of an iPhone 5 product places the iPhone’s offer on information systems solutions on the list of powerful tools that ward off threats of new entrants. The cost of entry into the smartphone industry has been set too high by Apple at least at the moment, since the association of the iPhone with cutting edge information systems appears undoubtedly unbeatable. As a reference to this aspect of the cost expected to me paid by new entrants, giant smartphone players have struggled to replicate the success of the iPhone, which leaves uncertainty for the success of new entrants (Ritson 2011, p34). However, regrouping and reorganization of new product lines from old firms with a new interest on the smartphone based on improved information systems could spell the strongest threat yet for the iPhone. 3. Customers’ Bargaining Power The cost of technology is obviously highly set in the modern market, which makes the iPhone a popular product due to its precision in information systems solutions. In light of the extent to which customers would go to gain access to exciting information systems on offer through the iPhone, Apple has been able to reign in on unfavorable customer bargaining power. Despite the presence of some loopholes in the pricing strategy on the iPhone, Apple has been able to take advantage of the market by attaching quality to its iPhone product. As an illustration, the uncertainty of the valuation of suspense led to Apple’s design of reference pricing where new iPhone products are significantly priced higher than the actual price Apple would like to introduce a new product (Kunz 2010, para.13). After some time in the market, Apple then significantly adjusts the product to capture the market that would prefer lower prices than the reference price. However, sending the message that quality in new technologies is not easy to value, apple would take advantage of the suspense and hype just before release of a new product. The features on the applications provided augur well with market expectations thereby significantly reducing customer bargaining power. 4. Bargaining Power of Suppliers The popularity attached to the iPhone is perhaps not based on features such as its physical design but purely on the increased capacity to maneuver and solve end user problems. Suppliers across the world would like to be associated with quality products which are well taken care of at Apple, reducing the bargaining power of the suppliers. Pricing strategy approached on the iPhone coincides with the quality valuation which makes it difficult for the supplier to launch bargains against Apple. 5. Threat of Substitute Products and Services Perhaps one of the trickiest questions that Apple faces in its operations and dealing with iPhone is the threat of substitute smartphones. New iPhone competitors such as Huawei with the IDEOS smartphone present a threat to the Apple’s market particularly with the cheap aspect of their products. These players paint a risky future which must be handled with diversification of the approaches in iPhone production such as price reviews and revival of older versions of the product. Replication of iPhone-like applications can only be tackled by the better operating system platform that the iPhone offers. Recommendations Insistence on quality operating system platform as well as increased applications innovations will hold the key to iPhone’s future exploits. Apple can expect operations and competitiveness to face challenges with innovativeness on the increase across major competitors as illustrated by entry of competitors in line of smartphone production. It is recommended to Apple to diversify the suspense aspect to other products as well as new other products to continue edging past competition. Handling overseas market better in distribution of its products could open the avenue to exploit untapped opportunities in emerging markets such as Africa and Asia for the iPhone. This is possible since its brand name in the market presents a rare opportunity to edge past its rivals. Pricing for these markets need to be revisited since the development gap places some markets at a disadvantage, unless the Apple products are targeted for the upper market segments for the rich. Considering takeovers and joint ventures with some of the most competitive markets will also prove to be a worth consideration at Apple in the future. References Benson, V, & Tribe, K. (2008) Trends in Business Information Management. Frederiksberg, Denmark: Ventus ApS Publishers Kunz, B. (2010) “How Apple Plays the Pricing Game,”[Online] Available from Accessed 28 January 2012] Mootee, I. (2011) Apple- A Rare Case of Sustainable Competitive Advantage. [Online] [Accessed 28 January 2012] Oxagile (2005) Oxagile Launches iPhone Corporate Application. [Online] Available from [Accessed 28 January 2012] Ritson, N. (2011) Strategic Management. Frederiksberg, Denmark: Ventus ApS Publishers Washington Post (2011) Apple’s Secret: Ruthless Strategy. [Online] Available from [Accessed 28 January 2012] Yin, R. K. (2008) Case Study Research: Design and Methods Fourth edn. Thousand Oaks, CA: SAGE Inc Read More