SWOT and Situational Analysis of iPhone - Case Study Example

Executive Summary IPhone is one of the latest multimedia enabled smart phones which been continuously taking measures to improve its brand image. The presence of the brand worldwide and its adaptability to changing technology and innovation has allows Apple’s iPhone to develop itself as a most sough brand for the people. The report looks into the strategic analysis where the performance of Apple’s iPhone has been looked into. This goes well with the vision objective where Apple’s iPhone want to be one of the most sought brands. Their mission statement is helping them to achieve it. The report then looks into the positioning and SWOT which helps to identify the short and long term objectives. The short term objectives highlight the importance being laid on marketing issues and the long term objective looks into improving the brand image. Thus on the whole the report highlights that Apple’s iPhone has been striving to improve its image and ensure innovation to satisfy the customers. Thus, the report helps to find the various opportunities and areas where Apple iPhone needs to work upon to ensure that the services rendered by them helps them to earn customer. This is on the back drop that Apple iPhone needs to ensure that they are able to deliver quality service and products to ensure steady customers. Table of Contents Introduction 4 Objective of the study 4 Situational Analysis 4 Background of Apple 5 Vision Statement 5 Mission Statement 6 Growth Strategy 6 Past Performance 6 Unique Selling Proposition 6 Marketing objective 7 SWOT Analysis 7 External Enviornmental Analysis 9 Political 9 Economic 9 Social 10 Technological 10 Environmental 11 Legal 11 Customer Analysis 12 Positioning of iPhone 13 4P’s of Marketing 14 Product 14 Price 15 Place 15 Promotion 15 Competitors Analysis 16 Marketing Strategy 16 Implementation and Control 17 Recommendations 17 Conclusion 18 References 19 Introduction The ever growing mobile industry and the increase in the size of population have made the telecom industry grow. On the backdrop of it the telecom industry has witnessed a boom and is trying to reap maximum benefits out of it. The report tries to present the manner in which Apple iPhone 4 has been able to use the marketing strategies in the service industry and reap maximum benefit. Objective of the study To identify the target market for Apple iPhone 4 To identify the 4P’s of Apple iPhone 4 in the service sector and the impact it is having on the delivery of services To identify the SWOT and PESTEL analysis for Apple iPhone 4 To identify the competitor analysis and strategies for Apple iPhone 4 To identify the marketing strategies and the budgeting followed by Apple iPhone 4 which will bring a change in services To identify the areas which Apple iPhone 4 needs to work upon to improve its service and create a bigger brand name Situational Analysis The situational analysis helps to identify the internal strengths and areas where Apple iPhone 4 is working upon. Working upon those areas will help to ensure better delivery of services and satisfaction of customer desires. Background of Apple Apple is a company which designs and sells internet integrated multimedia phones since 2007. (Apple Website, 2011) But the matter is, all wonder is fantasy, and thus it is by all of Apple's major hits (Brashares, 2009). Other firms had already shaped MP3 music players with the same ability and good quality by the era the iPod came beside. Phone calls on the iPhone didn't seem any improved compared to other handsets (Brashares, 2009). The reality of Apple's offerings has been the supplementary software and services the corporation offers. Due to iTunes online store makes it extremely simple to buy songs and load them onto the machines. Consumers have reacted by purchasing well in surplus of six billion songs, preliminary at 99$ a bang. By previous quarter, Apple had sold approximately 250 million iPods about the globe, giving it manage of nearly 74% of the MP3 market (Brashares, 2009) Vision Statement Apple iPhone vision statement is “Innovate, differentiator, improve efficiency, quality service, reliability through continuous efforts of the employees for maximum customer satisfaction”. (Apple Website, 2010) The company by being “the best” wants to provide quality service, latest technology and value for their money. The company aims to ensure this by seeing a smile on everyone who visits the outlets. (Apple Website, 2010) Mission Statement “Improve the quality of service and devise mechanism to retain customers so that customer satisfaction remains high and they get value for money”. (Apple Website, 2010) This goes with their vision statemnt and ensures that the objectives are achieved. Growth Strategy Apple iPhone has used the strategy of being a differentiator by using technology to develop their products. This has helped iPhone to acquire new customer who are fond of technology and also retain the old ones who replaces handsets on a regular basis. Past Performance Apple iPhone has bn doing well and the product is liked by the customers. The fact that Apple has sold over 100 million iPhones shows the popularity of the product and the manner in which the product has received world wide accepatbility. Unique Selling Proposition The unique selling proposition for Apple iPhone has been technological advancement used by them in developing smartphones and the applicability of iPhones to different applications which are approved by Apple Marketing objective To increase the image through different advertising campaign which highlights the new features and quality used of Apple iPhone 4 has over other products. Improve their brand image and be recognized as the number one provider of internet enabled smart phones over a period of 3 -5 years. SWOT Analysis The analysis of SWOT will help to identify how Apple iPhone based on its strengths and weakness was able to use the different marketing concepts and the result it yielded for the company. The SWOT is as follows Strengths Apple iPhone has a “strong brand name due to the number of years the company has been operating”. (Dylan, 2007) Apple iPhone have many products aiming at different customers according to their wants Apple iPhone has “a strong presence which has ensured that the products are readily available”. (Dylan, 2007) Large market and increasing customer base due to population growth Huge market penetration and market share Lot of items to choose from (Adam, 2009) Adaptability to different cultures in different countries (Adam, 2009) Innovation & Product development Weakness Fewer advertisements bing made by the company (Adam, 2009) The turnover rate for employees is high (Adam, 2009) Competition from competitors like Nokia, LG in relation to price is dwindling profits (Adam, 2009) Opportunities Developing new products “which improves there product range” (Dylan, 2007) and gives them a scope to grow Innovating and coming with new supplies techniques and moving into new markets Expand in new markets Develop stores which dispay all their products and are totally Apple oriented (Adam, 2009) Threats New entrants entering the telecom industry Heavy investment in technology and advertisement by other mobile phone manufacturers (Adam, 2009) External Enviornmental Analysis The PEST analysis of Apple iPhone will help to explain how these factors have being included in the marketing strategies. It will also throw light on the effectiveness of the marketing concepts and theories that has helped Apple iPhone. The analysis is Political The marketing and service strategy of Apple iPhone gets affected by the political conditions prevalent in different countries where it is operation. Stability of the government has a role as changing government makes it difficult to implement policies which makes it difficult for the differentiator to function Changing tax nature also has a role as rising taxes makes it difficult to cope with the incremental expense Economic The strategy also gets affected by the economic condition prevalent throughout in the following “Slowdown in an economy” (Mullins, 2009) like the recent global recession has affected the sales to fall. The growth also hampered and strategies rendered useless due to barriers of entry into the different economies. Rise in operating cost and inflation further took a tool as consumers preferred other cheaper mobile phones. Social Apple iPhone strategies also get affected due to the social culture. This makes the company use different marketing concepts and theories in different countries like “Change in the buying habit of consumer” (Mullins, 2009) has increased the people purchasing latest smartphones as they want life to be fast Change in generation as Y generation prefers latest technology (Mullins, 2009) has brought a change in the way Apple iPhone used to function Change in the demographic is further adding to it as people are looking towards cheaper and faster mode of communication. Technological The change in technology has enabled Apple iPhone to bring about a change in marketing theories used previously and now as The changes in the manner services are rendered have gone a rapid change (Mullins, 2009) thereby making more people use it. This has also changed the buyer behaviour towards it Internet has helped them in a big way as it has ensured all the functions can be carried over the smartphone. Environmental The changes in environment has led to Apple iPhone change the concepts it was using before as The changes in climate due to global warming have increased the role of Apple iPhone towards the society by ensuring that pollution level falls. (Mullins, 2004) This has made the concepts and marketing theories to undergo change and look more into the social responsibility aspect Legal This also brought about a change in which Virgin Blue Airlines performed as it changed the concepts like Workers threatening to go on strike as being paid poorly (Mullins, 2004) is making Apple iPhone look for alternatives to ensure equality for all. Apple iPhone by ensuring sufficient safety facilities for users of the smart phones have ensure every mechanism to take care of it. Customer Analysis Apple iPhone is looking towards customers who are more technology oriented and want to use the latest gadgets available in the market. The target customer for Apple iPhone is the premium and middle segment because the smart phone has been priced a bit high to ensure its brand image. This has helped Apple iPhone to achieve a status symbol and with growth in the segment of customers who are more technology focussed the target market for Apple iPhone has grown. Target Customer Apple iPhone has identified a target market for itself based on the manner in wants to pursue its future objectives. The target market for iPhone falls in the age bracket 14 to 50. The target market is based on people who are fond of technology and want to ensure that they use the latest gadgets which simplify life. (Apple iPhone, 2007) The target customer can be further segregated as follows School & College Goers: Apple iPhone 4 targets students and college goes as they as the taste of the younger generation matches with the smart phones offered by Apple iPhone 4 thereby helping them to attract the correct customer base. Young People: Apple iPhone looks to tap students and young people who are fond of technology and wishes to upgrade their phone to use the latest features and technology on phone. Business Community: Apple iPhone looks to attract the business people so that they can use the features like Microsoft, email and other necessary features which help to improve business. (Apple iPhone, 2007) Internet User: Apple iPhone has developed the phone using the latest technology which helps internet users to surf the internet quickly. (Savitz, 2010) This has further strengthened by the development and use of 4G which makes using the internet easy and enjoyable. (Savitz, 2010) Positioning of iPhone The target market for Apple iPhone helps to understand the positioning statement being followed by the company. The positioning statement for Apple iPhone can be better understood by the perceptual map which will help to identify the positioning statement proposed by the company. The perceptual map and the target customer for Apple iPhone identifies the positioning statement as “Apple iPhone is positioned as a phone which has internet access along with video in a single device to make life easy and enjoyable for the users”. (Blackblot, 2011) Apple iPhone target market and positioning would improve through customer relationship management as taking ways to improve relationship and understanding the customers better will help to develop long term relations. This will help to ensure loyal customers which will improve popularity of the products as word of mouth advertisement from the customer will develop their customer base. (Goud & Madhurkar, 2010) This will also help to improve backward integration and ensure that Apple iPhone is able to work on areas that help to develop trust and consumer confidence. 4P’s of Marketing The 4P’s of marketing helps to understand the marketing strategy that the telecom industry offers. The analysis of this will help to understand the strategy that will help them to be successful. (Kotler, 2001) Product Apple iPhone 4 offers a variety in smart phones. This has made its value rise as consumers get variety. Apple iPhone 4 have ensured that customer gets everything. They have taken care of every requirement. The service plays a huge role but in smart phone industry and Apple iPhone 4 by ensuring “the socio-cultural factor which affects the number of people visiting the restaurants” (Justin, 2008) have been able to provide good food and services Price Apple iPhone 4 has priced its product in such a manner that it eyes the target audience in and delivers them proper services. This helps the company to earn extra. Apple iPhone 4 has also been able to do it. It has been able to generate more than its competitors that is reflected in the margins. This has enabled Apple iPhone 4 to get high value. A study conducted also shows that “brands create an halo affect around the product as consumer have a perception that the product is better compared to its competitor in terms of quality, price and usage” (Lance, Katrin & Chiranjeev, 1995) Place Apple iPhone 4 to ensure proper distribution needs to ensure that the product and service is delivered to the customer at the door step. Apple iPhone 4 has been able to use the place strategy at its advantage. It has ensured that the sales person deliver the services properly. It is merely for the services rendered by Apple iPhone 4 that it has been able to earn a brand image. Promotion Apple iPhone 4 uses an integrated marketing communication to make the customer aware of the services and ensure that they remain loyal. Apple iPhone 4 offers “advertising on television, radio, billboards, newspaper, hoardings, and public relations, personal selling, direct mail and internet”. (Justin, 2008) Apple iPhone 4 has been able to promote its product in such a manner that it has given them widespread recognition. This helped to attach customer to its product. They know the customers wants. It has been consistent in those. Thus loyalty has grown and customers prefer it. (Bristow and Frankwick, 1994) Competitors Analysis Apple iPhone faces competition from many companies who have developed smartphones as similar to Apple. Som of their competitors are Samsung, LG, Nokia, Siemens and many others who have developed touch screen phones which are similar to iPhone but lacks the technological advancement present in iPhone. (Mobilewhack, 2007) Marketing Strategy Improve their brand image and be recognized as the number one provider in smartphone market. In addition to it increase the sale of the product through penetration and product development so that all type of customers is eyed at. To achieve it Apple iPhone is looking towards a strategy of promotion and growth. Apple iPhone needs to develop more outlets and devlop a network of dealers and franchise who sell products from the Apple’s company. Also individual stores that are totally Apple oriented should be dveloped so that the product gets good demonstration. It is imperative that Apple lays stress on improving the supply chain to be able to improve its sales and operations. Implementation and Control Apple iPhone 4 to ensure that they are able to improve their marketing strategy will look to follow a strategy which helps them to improve their market share in a year time. It needs to evaluate the growth at regular 2 months interval. It needs to compare it with other similar products in the market. This will help to understand the performance. It will also bring about areas which need to be worked on. This will help to build strategy at short time interval. It will facilitate the process. This has been created on the assumption that the economy will revive.   2 Month 2 Month 2 Month 2 Month 2 Month 2 Month Penetration Brand Market Share Thus, we see that working on the above will help Apple iPhone 4 to achieve growth as shown above. This has been prepared on the basis of acceptance of the product. The above chart will act as a measure to evaluate the performance on a regular basis so that steps can be taken to make the necessary changes in the marketing plan. This will help Apple iPhone 4 to enter the market and gain steady growth among the customers. Recommendations Apple iPhone need to market the product Apple iPhone 4 extensively. Apple iPhone needs to look towards cheaper smart phones so that all income levels are tapped. Apple iPhone need to carry on with the same advertisements campaign and ensure that people remember it as association becomes easy Apple iPhone should look to eye teenager and younger generation as they are the ones who prefer this and with rapid rise of the younger generation provides an opportunity to grow Apple iPhone should ensure that they are able to market the benefits of such using the smart phone and the manner in which it makes life easy for the users. The growth rate, huge population and the rise in per capita income demonstrates a rise in the living standard which provides an opportunity for Apple iPhone to tap Conclusion Apple iPhone has been able to grow and improve its brand image. The above mentioned point even highlights the same and shows the manner in which the company is looking towards changing itself with the changing culture. It also supports that the fact that the company has been innovative continuously and brought the changes which will help Apple iPhone to ensure better product and service. References Apple Website. Apple iPhone. 2011. Retrieved April 6, 2011 from http://www.apple.com/iphone/ Adam, T. Apple iPhone SWOT Analysis. Marketing Strategies. B & T Today. 2009 Apple iPhone. The iPhone’s target market. 2007. Retrieved on March 11, 2011 from http://uk.answers.yahoo.com/question/index?qid=20090225200717AAPbVRt Blackblot. Apple iPhone Product Positioning. 2011. Retrieved on March 11, 2011 from http://www.info@blackblot.com Brashares, A. Steve Jobs: Think Different. Brookfield, CT: Twenty-first Century Books. 2009. Bristow, D. & Frankwick, G. Product manager influences tactics in marketing strategy development and implementation. Journal of Strategic Marketing, Volume 2, Issue 3, pp. 124-137. 1994 Dylan, W. SWOT Analysis of Apple iPhone. Journal of Strategic Marketing, Volume 2, Issue 3, pp. 23-27. 2007 Ferrell, G. SWOT Analysis for Apple iPhone. Orland, Dryden Press, 2009 Goud, A. & Madhurkar, M. Brand Dossier: Apple iPhone. Marketing Management. Praxis Business School. 2010 Justin, A. Telecom Industry. Service Sector Management. Business Week. 2008 Kotler, P. “Marketing Management”. 11th edition. Prentice Publication. Upper saddle River. New Jersey. 2001 Lance, K., Katrin, H. & Chiranjeev, S. “Brand equity: the halo effect”. European Journal of Marketing, Volume 5, Issue 2, pp 23-37. 1995 Mullins, K. Critically examine the main drivers for Apple iPhone growth. Free Press. New York. 2009 Mobilewhack. Top ten list of iPhone Competitors. 2007. Retrieved March 6, 2011 from http://www.mobilewhack.com/top-ten-list-of-iphone-competitors/ Savitz, E. Apple: How the iPhone Target Market can expand. 2010. Retrieved on March 11, 2011 from http://blogs.barrons.com/techtraderdaily/2010/03/24/apple-how-the-iphone-target-market-can-expand-7x/ Read More