IPhone UK Market Analysis - Report Example

Consultancy Report Reference The consultancy report is prepared for studying the macro environmental elements for iPhone in UK market. Procedures Our team had conducted a research to find out; The various macro environmental factors that significantly impact the market strategy in UK market. Findings There are primarily four major macro environmental factors that have considerable impact on the market strategy of the product; economic; demographic; socio-cultural and environmental. Economic trend and demographic paradigms have major impact. Young people across race, culture and colour prefer the product. People are also increasing preferring products and services that promote environment conservation and preservation. Conclusions The product has great scope in the UK market. Recommendations In the fast advancing technology and rapidly evolving societal norms, the preferences of the people is also changing with the same speed. The rapid globalization has created a pluralistic society which has diverse needs and requirement. Hence it is important for the firms to incorporate the changing requirements of the people through the development of new products and services that meet the changing demands of the masses. The people prefer new products which meet their preferences. The introduction of iPhone by apple Inc. is the latest digital gizmo that would be infinitely attractive to the generation-X and would prove to be a great success in the UK market. The iPhone is a highly innovative product that is based on convergence technology with multimedia features, incorporating internet, mp3, camera and hordes of other features which have made its cost a redundant factor in the overall market strategy. Charles Hill’s assertion that ‘Countries have different political, economic, and legal systems… All these differences can and do have major implications for the practice of international business’ (Hill, 2004) is absolutely correct. In the rapidly changing environment of globalization, the businesses have become more competitive thereby making it obligatory for them, as well as for the working force to become more flexible and swiftly adapt to the changing technologies and work environments. The socio-religious culture of the community has strong impact on the attitude and consumer behaviour of the public, which has direct affect on economic transactions of the company. It is therefore vital that needs and concerns of the community, within which the firm intends to operate, be studied in detail so that sensitive public issues are not violated. In a fiercely competitive business environment when the global economy is under tremendous pressure, a firm must gain their position by leveraging its strengths. According to Michael Porter, the firms’ strengths can be broadly categorized into cost advantage and differentiation. Three types of generic strategies emerge when these strengths are applied by the firm: cost leadership, focus and differentiation (Porter, 1980). It has become imperative for the business to become creative and evolve strategic approach that would effectively meet the challenges of the time. Slater and Narver assert that markets thrive on the processes of the learning organization which ‘continuously acquire, process, and disseminate throughout the organization knowledge about markets, products, technologies, and business processes’ (Slater and Narver, 1995). Looking at the fast changing requirements of the customers, it becomes important for the firms to introducing the product at the right time is crucial but at the same time, the success would also depend on its quality and the pricing, both of which are difficult to manage because the time and the quality would make the products slightly more expensive. Hence, new product management must include exigencies so that the three factors can collectively be approached to make the product appealing for the people while at the same time, encourage creativity and innovative practices that give a unique perspective to participatory approach of management and employees. The macro environment factors significantly influence the performance outcome of the organization. Hence, macro elements vis-a-vis economic; demographic trend; changing socio-cultural paradigm; developing new environmental compulsions; advancing technology; and political environment of the region become critical factors for the success of new product in the international market. The introduction of iPhone in the UK market also needs to take into consideration these factors. Economic environment is a major consideration for all businesses. Consumer buying decisions are greatly influenced by the buying power of the consumers and the regional and global economic environment. The new recessive trend and the burgeoning unemployment has considerably reduced the spending power the consumers and therefore, the high cost of the product may adversely impact its market in UK. The demographic imperatives are strong agents of change in the evolving societies and have huge impact on the market. The demographic changes vis-à-vis population size, age distribution, gender ratio, income group etc. have powerful impact on the economy and consumption behavior of the consumer. An in-depth knowledge of demographic trends is an intrinsic part of market strategy. Kotler et al assert that in the changing global scenario, demographic compulsions significantly impact market position and need to be taken into consideration in a company’s market strategy (Kotler et al, 2007). The developing economies increasingly prefer new electronic gizmos primarily because their age distribution is tilted more towards the young people in the age group of 18-35 and with growing buying power they are able to buy the new product with more ease. McCarthy et al (1997) emphasize that socio-cultural imperatives are decisive factor in the pattern of consumer. The increasingly busy lifestyle of the current population promotes the need of utilities that would facilitate easy and faster communication. Apple’s iPhone greatly facilitates this aspect of new age communication and therefore provides wider scope of success, especially amongst the upwardly mobile younger generation. In the contemporary environment of advancing technology and growing population statistics, sustainable development has become one of the most crucial factors of the time. The rapid advancement of technology has brought about a massive change in our lifestyle which has not always been in our best interest. Some of the ways and means, which have contributed towards our better living conditions, have also brought certain challenges in its wake that needs our urgent attention. The iPhone has features that promote preservation of environment and contribute towards sustainable development processes. The features which save energy, like faster menu based surfing and long battery life have huge appeal for people at large. The company has utilized new technology like computer and internet services in its new product and has redefined the communication with its far reaching implications. Business leadership of Apple Inc. has ‘realized that the “objects” of strategy – such as business units, industries, supply chains, customer relationships, organizational structure, and so forth – are held together by a “glue”, and that glue is essentially information’ (Evans & Wurster, 2000). Thus, using this media in wider interest of business, the iPhone would be attractive for the vast database of internet users and help the company to significantly gain market position. The non market factors have direct and indirect impact on the overall performance and operation of the firm. ‘These are characterised by 4Is: issues, institutions, interests and information’ (Baron, p2, 1995). Broadly they are the socio-political environment within which the firm has to operate. The role of government regulations and political dynamics combined with the media, public opinion and stakeholders are few other institutions that make up non market factors. Reference Baron, David E. Integrated Strategy: Market and Non Market components. California Management Review. Vol.37 N. 2, 1995. Evans, Philip & Wurster, Thomas S. (2000). Blown to Bits: How the New Economics of Information Transforms Strategy. HBS Press. Hill, Charles. (2004). International Business: Competing in the Global Marketplace. 7th ed. Irwin/McGraw-Hill. Kotler, Brown, Adam, Burton & Armstrong (2007). The Global Marketing Environment. Prentice hall. McCarthy, E., Perreault, W., & Quester. P. (1997). Basic Marketing: A managerial approach. 2nd edition, Irwin, Sydney. Porter, Michael, E.(1980). Competitive Strategy: Techniques for analyzing industries and competitors. NY: Free Press. Slater, S. and Narver, J.C. (1995). Market orientation and the learning organization. Journal of Marketing, Vol. 5, No. 3, pp.63–74. Read More