IPhone 5: the Latest Iteration of the Iconic iPhone Product of Apple - Term Paper Example

? Sales Proposal: iPhone 5 Table of Contents I. Proposal Summary 3 A. Buyer Problem or Need 3 B. User Problem’s Business Impact 3 C. Value Proposition 3 II. Proposed Solution 3 A. Product Solution 3 B. Company Description 4 C. Proposal Objectives and Strategy 6 D. Feature Benefits Worksheet 6 E. Competitive Advantage 7 III. Implementation 8 A. Costs 8 B. Time Schedule 8 C. Rationale 9 IV. Buyer Profile 9 A. Contact 9 B. Company Description 10 C. Buyer’s Needs 10 D. Buyer’s Customer’s Needs 10 E. Contact History 10 V. Sales Presentation Preparation 11 A. Presentation Objectives 11 B. Business Contact Worksheet 11 C. Need Discovery Worksheet 11 D. Demonstration Worksheet 12 E. Negotiation Worksheet 12 F. Closing Worksheet 12 G. Follow Through, Follow Up and Expansion Services- List 13 VI. Appendices 13 References 14 I. Proposal Summary A. Buyer Problem or Need There is an identified need on the part of the buying organization to upgrade to a mobile infrastructure to address internal productivity needs, as well as to address the needs of customers wanting to interact with the firm using the platforms that the customers use on a daily basis (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). B. User Problem’s Business Impact Productivity impacts the firm’s ability to sustain itself in the long term, and to be profitable. Customer interactions likewise drive business top lines and profits. The decision on the right mobile platform can affect the future of the business in a fundamental way (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). C. Value Proposition We are selling a platform as well as an ecosystem that has global traction, unparalleled popularity and quality, and is proven to improve productivity for both firms and individuals (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). II. Proposed Solution A. Product Solution iPhone 5 is the latest iteration of the iconic iPhone product of Apple. It has several new features and benefits that stand out from previous versions of the phone, and from the competition in general. At the same time, the new iPhone 5 leverages all of the best that the iPhone ecosystem has to offer, including a wide and loyal global user base, which translates to global familiarity of the product not just for consumers but also for businesses. The new iPhone is also able to leverage the unparalleled ecosystem of applications, application developers, companies that cater to components and services tied to the iPhone, the app store and its providers of apps, the music store and the millions of copyrights belonging to the music industry and content creators, and even business productivity solutions all tied to the iPhone franchise (Canada, 2012; Apple Inc., 2012; Beavis, 2012). The product under consideration here, therefore, is not just the phone, but the whole ecosystem that goes with purchasing the new iPhone 5. This is not to say that the new iPhone is interchangeable with the older iPhone models, because as it is the new iPhone has features that make it stand out from the crowd, and represents the best in terms of the evolution of the device. A sampling of the outstanding new features of the phone, that sit on top of the great features of the ecosystem as described above, includes a 4-inch Retina screen, speedy wireless connectivity, new and powerful processor in the A6 processor chip. An 8 megapixel camera, a new OS in iOS 6, and the latest iteration of the cloud computing platform for Apple, the iCloud (Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). B. Company Description Apple the company is in the business of the design, manufacture, and the marketing of mobile products for telecommunications and media consumption, in essence, even as it is known traditionally as a maker of computing products with its Mac line of computers. The products revolve around an ecosystem and a platform for the consumption of content, including music, books, and apps. The key products are the iPhone, the iPod, Apple TV, the Mac, and the iPod, which serve as vehicles for the delivery of content to the users. It also has a cloud solution in the iCloud, which is a solutions infrastructure that caters to the needs of consumers in the main, as opposed to the enterprise. The iTunes store serves up music and video as downloads the App Store serves up apps that can be used on the iPhone and iPad. It is also in the business of software development and distribution, with its operating systems and platforms for mobile. It is also peripherally in the business of application development, including digital multimedia content software (Google, 2012). The company’s market capitalization as of last inspection stood at $510.7 billion, even as its stock price has been heading south over the past few months. From its peak price of around $700 dollars a share in September of 2012, the stock is now trading at around $540, a substantial decline, even as its long-term prospects remain rosy, and the stock remains a top pick among long-term players in the stock market. This implies that the long-term prospects of the stock remain excellent. Its key competitors in the smart phones and applications markets, as well as in tablet computing, include Microsoft, Google, Samsung, and a host of other smaller players in the smart phone space, together with competitors in the tablet space that includes Amazon. Below is a chart indicating the performance of Apple’s stock over the past five years, indicating phenomenal long-term growth, which is the real focus of long-term investors and those with any substantial interest in the stock, including first-time buyers who may be wary about buying into an ecosystem that has no long-term future. Apple’s future, and its ecosystem’s future, is secure (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012): Graph Source: Google, 2012 C. Proposal Objectives and Strategy As can be gleaned from the above discussion, the objective of the current proposal is to encourage first-time buyers into buying the iPhone 5, and with it, buying into the Apple ecosystem. The strategy stands on several legs. One leg is to show the superiority of the iPhone 5 in terms of features, in comparison with the alternative older iPhone versions, and in comparison with competitor offerings. The second leg of the strategy is to show the superiority of the Apple ecosystem of apps, providers, solutions, and peripheral software and hardware components, alongside the superiority of the content platforms on offer. The third leg of the strategy is to show that the Apple ecosystem, and Apple itself, is here for the long term, is robust and secure. It is built to thrive for the long term, and buyers into the phone and the ecosystem are assured that they will be getting into this secure, stable, and superior arrangement for many years to come (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). D. Feature Benefits Worksheet Features Benefits iPhone features including larger Retina display, faster wireless connections, iOS6, iCloud, better camera Hardware and software features guarantee unparalleled user experience leveraging latest technologies Global distribution and recognition New users are buying into an ecosystem that is trusted, excellent, and enjoys global scale Ecosystem of content distribution and consumption is biggest, and most successful Unparalleled access to content and to apps globally, availability of latest apps and content, ease of access, proven platforms for those Table input sources: Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012 E. Competitive Advantage Apple is strong relative to its top competitors, chief among them Google competing with Android and the Google Play ecosystem, Microsoft with Windows Phone and the Windows 8 mobile platform, and Amazon with its Kindle tablets competing likewise via its own ecosystem and platforms for content distribution and consumption. Its key strengths are also its main selling points, namely the vast global popularity and adoption of its iPhone, iPad and content distribution and consumption platforms such as iTunes and the App Store, as well as its large financial hoard and rock-solid financials, marked by high margins and unequalled market capitalization. Its key weaknesses are seen as those that are still forthcoming, including some lapses in the distribution and in the supply chain for new products, and a looming challenge in terms of continuing to innovate to outpace its rivals in that area of innovation (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). III. Implementation A. Costs The cost of entry into the Apple ecosystem consists of two components, one being the cost of the iPhone 5 itself, and the other being the cost of subscribing to a plan via one of the carriers with which the iPhone is to be used. This cost of entry can be as low as $200 on Verizon, for instance, on a two-year plan, and may vary depending on the kind of plan that the user wants to get. The costs imply a subscription as well as the financing of the phone’s ownership costs, spread out over the life of the two-year plan. The costs can further go up as the user makes use of the platforms to buy and consume music, videos and apps, as well as other services on offer in the Apple platform. For the organization purchasing the iPhone 5, the costs include the costs of leveraging any iCloud services, as well as peripheral services and products tied to managing the iPhone 5 and other Apple products from within the IT departments of the user firms (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) B. Time Schedule The timing of the purchase requires a consideration of any integration issues for a mass deployment of the iPhone 5 within an organization. The timing should also be mindful of the use of the Apple cloud computing infrastructure as a leverage that the buying firm can use to improve productivity and harness the phones for business advantage. This whole process, including any projects tied to any integration work, is three months. The process can start this month and be completed in a month’s time, with integration and follow-up work taking up the rest of the year and January of 2013 (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). C. Rationale Given the lead times, and the need for scoping work to determine the amount of work to be done when the buying organization requires integration work at the backend for the new iPhones and related solutions, it is important for the organization to start the process as early as possible. Given that the purchase is required and necessary in the immediate future, there is merit in starting the process as soon as possible, to meet targets of full deployment by the first part of next year (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). IV. Buyer Profile A. Contact The contacts for this opportunity are the purchasing and technology heads of the target organization for which the sales proposal is to be presented, together with the firm CEO acting as the authority to approve the sale. Since the planned iPhone 5 is potentially a firm-wide need and rollout, centralized and coordinated purchase works best. The purchasing manager shall have the responsibilities and the skills to understand bulk purchase and firm-wide implementations of the purchase, and to understand how the iPhone 5 fits into the plans of the organization as a whole. The IT head has the skills and the know-how to understand the integration issues at the backend that are tied to the purchase (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). B. Company Description The company is mid-sized, with a hundred employees, standardized on Microsoft and Unix systems. The firms bring and use their own phones into the workplace (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). C. Buyer’s Needs The buyer firm has a need to upgrade the communications infrastructure to leverage the power of cloud computing, and apps. There is an opportunity to deploy the iPhone on a company-wide basis to address the needs (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) D. Buyer’s Customer’s Needs The buyer’s customers have a need to be able to interact with the buyer through the devices and platforms, as well as apps, that the customers use. This requires that the company consider the most popular platforms for these, and these platforms are centered on the iPhone 5 (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). E. Contact History There has been an expression of interest on the part of the buyer for the iPhone and related products, and the buyer has agreed to a sales presentation (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). V. Sales Presentation Preparation A. Presentation Objectives The primary objective is to convince the buyer of the key benefits of the iPhone 5, and that includes selling the whole ecosystem. The minimum objective is to inform thoroughly, while the optimistic objective is for another series of talks to further explore a possible sale (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) B. Business Contact Worksheet Approach Content Agenda We are grateful for the opportunity to present our ecosystem and the iPhone Product Our phone is the anchor of an ecosystem that will empower you to do more Customer The business and its customers Benefits Productivity, relevance with customers Inputs sources: (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) C. Need Discovery Worksheet 1. Do you have cloud computing needs? 2. What are your most used applications? 3. What phones and platforms do your employees use? 4. What are your standard systems running on? (software) 5. What are your standard systems running on? (hardware) 6. What mobile platforms do you use to interact with customers 7. What platforms do your customers use? 8. What are your key problems with your current systems? 9. Where do you see yourself five years from now as far as technology is concerned? 10. What are your business targets? Inputs sources: (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) D. Demonstration Worksheet This takes off from the business contact worksheet and the need discovery worksheet (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) E. Negotiation Worksheet Seller Buyer Objective of Meeting To make case for iPhone 5 and ecosystem To consider the iPhone5 and ecosystem for firm-wide adoption Needs, Interests Positive feelings of wanting to help, adding value Best business fit, costs containment, value. reliability Possible Concessions Nothing at this point Further discussions Options to Settle None at this point None at this point If negotiations fail Try a different approach Look for other providers Inputs sources: (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) F. Closing Worksheet The closing worksheet takes off from inputs from the negotiations, and handle signs and cues of willingness to buy or walk away (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012). G. Follow Through, Follow Up and Expansion Services- List The list likewise takes off from the results of the negotiations and the answers to the needs discovery worksheet (Google, 2012; Verizon Wireless, 2012; Apple, 2012; Canada, 2012; Beavis, 2012) VI. Appendices None References Apple Inc. (2012). iPhone 5. Apple. Retrieved from http://www.apple.com/iphone/ Beavis, G. (2012). iPhone5 Review. Tech Radar. Retrieved from http://www.techradar.com/reviews/phones/mobile-phones/iphone-5-1096004/review Canada, A. (2012). Take A Lesson from Apple: A Strategy to Keep Customers in Your Ecosystem. Forbes. Retrieved from http://www.forbes.com/sites/jump/2012/11/12/take-a-lesson-from-apple-a-strategy-to-keep-customers-in-your-ecosystem/ Verizon Wireless (2012). Apple iPhone 5. Verizon. Retrieved from http://www.verizonwireless.com/b2c/device/smartphone/iphone Read More