Positioning in Existing Market Space - Apple Inc - Case Study Example

Invention Recommendation Name: Institution: Invention Recommendation Rationale The chosen invention for recommendation is the biometric watch from Apple Inc. Corporation. The rationale for choosing this specific invention is based on the different facets of the technology involved in its process of creation. The gadget is a watch with a human side interface. It becomes a smart watch with the capability of having health-oriented capabilities and fitness tracking together with the adjoining operating system of the company products and renowned services (Apple Inc., 2016). The main objective from the creation of the smart watch is to enable the freeing up of people from the use of their smart phones. The wearable technology to the wrist will ensure there is non-dependency of the activities to the smart phones at all times. It also ensures that the engagement with the technological aspects of the watch and the smart phones is synchronized for efficiency at all times. Another aspect of the rational for considering the invention was the level of human interaction based on the interface and the capabilities that it can do. One of the main considerations is the inter-personal measures of health that the watch can enable when in use. Uses like measuring the heart activity, stress levels and blood pressure are all part of the functionalities. Chang and Wu (2006) argue that the familiarity level of the technology to human interface and interaction delivers the possibilities of the gadget. Apart from the basic functionalities of the watch, fundamental deliveries of the phone like answering calls, responding to prompts are all capable with the watch at any given instance. Finally the dimension that makes the innovation applicable with resonance is the integration between the interface and response base from the directives. It is futuristic and enables a detailed platform of the software and hardware. External Challenges During the process of commercialization, the invention of the biometric watch faces critical challenges in the external basis. One of the challenges is the ethical reception from consumers who will be concerned with the production bases of the company. For example, majority of the production plants are in China. The working conditions of the employees come under scrutiny as they are deemed to overwork, underpay and treat them in hostile environments. In some of the cases associated to the biometric watch production, underage children are involved in the production plants as means of minimizing the costs of payment (Marketwatch, 2016). It affects the company’s image due to the potential ethical legislation issue that it has to address. The negative publicity and association of the company has to affect the process of commercialization in the process as well as branding and venture capitalization. Another of the ethical challenges faced in the commercialization of the biometric watch from Apple Inc. is the issue regarding the material use in the production of the gadget. Amongst the material composition of the gadgets are the non-renewable energy derivatives, which have a significant effect on the environment’s degradation. According to Kopel, Lamantia, and Szidarovszky (2014), instead of the recyclable and eco-friendly matters, the materials enhance the effects of global warming and propagation of poor levels of life-enhancers. In other instances, the sources of the materials are from countries with renowned records of poor environmental conducts. The consumers are thus able to change the perspectives of the commercialization efforts as is depicted through the enabled material composition. In addition, the scrutiny highlights the differential levels of commercialization between the industrial nations as from the lesser developed ones in terms of the utility levels. Another of the external challenges that faces the innovation is rivalry generated by rival companies as well as well as tracker firms. Over the years, health firms and organizations have been developing various measures of helping individuals keep tabs on their health status and conditions especially with the advocacy on physical exercise. Thus the influx of the available gadgets in the market ensures that the company has to take a bold and deliberate step in the process of making sure that the invention is a standout (Bauer, 2011). Rival companies had also created similar gadgets before and this brings about competition within the same sphere of influence. The organization’s basing has to incorporate the synchrony of the watch to the smart phone capability and renewed robust abilities within the invention in order to withstand the growing challenge. Market Potential Social The market potential presented on behalf of the biometric watch invention is huge when put into perspective of the various factors that promotes the same. In the social aspect, the brand image of Apple is synonymous in the world all over. From the inception of the company’s products, the target market inclusive of all commercialization ventures has been of categorical social circles. Jeyarathnam (2008) notes that the younger generation in particular has been of vocal resonance to the apple company’s products as witnessed in the trends set through social media and relationships bases. Thus, the name and brand of the organization can be found in almost every part of the world and propagated by the younger generation at all times. The social dimensions of owning the gadget then takes precedence due to the demand obtained in the same manner. It helps raise the market potential. Another of the social perspectives responsible for the market potential is the globalization effect. Globalization includes the efforts necessary in making the world connected in one way or another as the representative issues are shared as well as interdependence amongst nations is enabled. Globalization in this case is through the need for communication and technological advancement. With the improvement of connectivity and information sharing around the world, the use of smart phones and gadgets enabled is a common practice. According to Kopel, Lamantia, and Szidarovszky (2014) from the reliance of social media connectivity and utilization of the communication channels, the invention gained numerous interests in the process. Due to the capability of the gadget, majority of the globalization issue affects the need to have the same. Synchrony with the smart phones also enables the market potential to grow forthwith without the necessary determination of issues like costs and compatibility. Economic The pricing of biometric watch affects the market pricing of the gadget on a global scale and commercialization efforts. The majority of the target market of the gadget is spread over the developed nations, while the second world includes only a handful. The above measure is due to the economic measure of the target populations. In the developed nations, owing the smart phones is part of the cultural depiction and increased necessity in the 21st century. Thus owning the gadget as an added expense does not bother the target market and commercialization efforts in these countries. On the other hand, the lesser developed nations do not provide the same level of economic mileage expected as the above. Chang and Wu (2006) argue that the preferential numbers look at the gadget as a form for luxury as compared to basic communication tools. Thus, it evens out in the due process. Another of the economic aspect of the gadget is the advantage that it could impact on the company. At the time of the invention’s release, the corporation has earlier on been on the market with the provision of a variety in terms of a smart phone. Therefore, by introducing the gadget of apple watch, the company will be targeting the tokenism achieved in the process. The gadget’s pricing is not high but it does not cover the market in general as it is specific. Thus, the company could deride fame on the brand’s image in order to achieve the tokenism from the sale of the biometric watches around the world (Bauer, 2011). The cherished market position could allow the firm to increase the sales as means of boosting the profitability gains thus far and obtain the preferable economic placing in the crowded industry of importation and technology. Demographics In terms of the demographic attributes of the invention’s market potential for commercialization, the target is in the developed nations. In the populations, the number of tech savvy individuals is at an all time high with the prospects of an ever-growing dynamic attached to it. Due to the brand’s image, the demographic factor also counts in favor of the invention’s commercialization as the generated revenue would ensure that the market positioning is strengthened all through. With the synchrony measures to the smart phone applications and use from freed hand-held attributes, the market consolidation is higher in the populations in an increasing state. It also generates the required commercialization effort as more people become interested in the gadget’s capability (Marketwatch, 2016). They are promoted in a positive response to the market and increase the demand for the gadget thus making it very marketable. The growing population of the younger adults in the society is the force to reckon with, behind the gadget’s popularity. It transcends the commercialization prospects to newer heights across all countries. With the developed interest and brand image depiction, the younger generation accounts for close to fifty-six percent of the proceeds in the invention’s uptake. The interest is also ensured by the relative ease of use with the smart phones and personalization capabilities of the gadgets to their own. According to Kopel, Lamantia, and Szidarovszky (2014) the social trends and relationships based on culmination of communication and exchange of ideas also raises the stakes in the process. Relevant feedbacks and dependence ensembles make the process better between the company and demographic attributes. It is also generated through the distant growth of technology enthusiasts among the older generation as they do not want to be left out on the emerging changes to technology. One of the core responsibilities of the gadget is the human interaction and ability to measure the various health indicators within an individual. Jeyarathnam (2008) notes that the interest in keeping up with the health concerns is a worldwide concern for vast majority of the populations. In the United States for example, a considerable population of the country has weight issues, health concerns and overall need to keep fit. Thus, with the gadget’s availability, it reduces the need for numerous studies and tests required on a consented directive from the doctor. The relative ease of the wrist watch makes the invention a target for majority of the population. It would also help on freeing up the dependency on the smart phones with attention and time consumption over the period. None of the functionalities like communication would be lost whilst using the gadget. Positioning in Existing Market Space Positioning within the existing market space is made possible by the personalization of the innovation as a critical aspect of the product. As mentioned earlier, the influx of products within the market that could track the health activities and status of the human body requires a paradigm shift in order for the innovation to be a sellout. Thus, the company identifies the need to make the innovation personalized according to the user demands in a critical manner (Marketwatch, 2016). The innovation could be modified and changed as per the consumer needs at any given time as well as synchronizing with the smart phone that the individual used. It generates the much needed impetus for the innovation to take its place in the market dynamics with relative ease. The user preferences and narrowed down aesthetics with functionality make it possible for the utility. When the innovation is introduced to the market, the organization does not approach the delivery of the product as a communication tool like the smart phones present. The massive industry of the telephony business encounters new entrants on each single day with varied specifications. However, the necessities used in the marketing and creation of the market niche enable the sustainability and longevity of the technology. In this regard, biometric watches are concerned with the narrowed down health requirements, home usage and the mobile payments derived from the use of the innovation. Chang and Wu (2006) argue that the monitoring service and application proves in particular to be the ideal crowd puller from the rest of the competition and enable a market capture from the beginning. The use of the health dimension and requirements make the process easier from the word go as it created much needed interest. Another of the positioning measures that Apple could take into consideration is the leverage on the applications based in ecosystems. The company’s identification of the partnering capabilities makes the logical step in the market uptake. Apart from the health concerns and abilities of the innovation, the company realizes the software development and ecological partners that would tap into the resources provided by the gadget. Thus, the firm takes out time to include the partnership basis of the software developers, ecological partners in terms of applications amongst other numerous entities (Bauer, 2011). From the health care providers and organizations, other partnerships included appliance makers, third-party developers and many others who would use the platform for marketing. Thus, with all partners aboard, the innovation succeeds in breaking through the existing market with ease as compared to others in the industry. Strategic Perspective The strategic perspective of the commercialization to the innovation is absolved with the help for marketing tactics. First, the company develops the gadget with a clear mind on the abilities that it would deliver. The product has to capture the minds and interests of all consumers, despite their personalities and attributes. The innovation’s product symbolizes the thought process into the delivery used. Jeyarathnam (2008) notes that, the product’s uniqueness and distinguished basis should form the backbone of the strategies to use in dealing with the market. Another of the strategic decisions that could be made is the placement of the gadget. The company has a robust distribution network in the world and it should be able to use this as an advantage to making sure that all consumers can reach for it at any given time. The easier the access of the product, the better performance is achieved. The pricing strategy is key to the success of the biometric watch to the company’s fortunes in the global scale. Compounded pricing should be developed in order to maximize the entry of the innovation into the market. At the beginning, discounted pricing will be beneficial to majority of all customers that report on the entry date. Chang and Wu (2006) argue that the increased numbers on the day will be vital for the latter sales and pushed through ventures on periods to follow. Customers who also purchase in bulk with a maximization limit given should qualify for added discounting. It will encourage the massive purchases in the process. From later on, the pricing should be relative with the market dynamics as various changes keep occurring in the process. It should be inclusive of forces like recession and harsher exchange rates in various countries across the globe. The dimension of the population is important when forming the strategy for sales of the innovation. The product as a biometric watch requires a specific target market. The company should target the younger generation who have increased interest in the gadget from its production. The above targets should be made with ideal pricing in order not to scare them away while also keeping an eye o the enthusiasts who are older. According to Kopel, Lamantia, and Szidarovszky (2014) another perspective is targeting the health generations and diversified cultures among the people across the world. Health is a universal issue and the target markets cannot be avoided. The numbers will also be strengthened by increasing populations worldwide. Another perspective is the aging generations that require close monitoring and interaction for efficient health status. They will also add to the bulk of the consumer targets. Financial Implications The financial implications expected within the company of the technological innovation are high and satisfactory. With the specification of the innovation’s technology and capability, within the first quarter, the company can expect to hit the three point six million units sold within a half financial plan. The above is due to the mixed abilities contained in the reception by the people regarding the innovation (Apple Inc., 2016). The estimates can be attributed to the skepticism expected within the introduction of a new gadget in the market as opposed to the rival companies and their established products. In addition, the pricing strategy used by the company will also be responsible for the turnout based on the measurable period between a half year sale and the complete financial period. Prediction of continuous sale of the gadget includes an annual drop in revenues close to three hundred million dollars on the units sold drops. They will be affected by the upsurge of rival innovations or better gadgets at the time and as year’s progress. It will also lead to an overall drop of close to six point percent of the company’s revenues as much for the costs were used in its production phase. The initial gains will have made enough revenue bases on the closure of each financial year (Apple Inc., 2016). The sustainability of the innovation will serve considerable period, depending on the weaknesses associated with the innovation or collateral damages experienced along the usage. The strategic management cause will be instrumental in maintaining the longevity through updates and such. References Apple.com. (2016). Apple - Press Info - Apple Reports Record Fourth Quarter Results. Retrieved 13 February 2016, from http://www.apple.com/pr/library/2015/10/27Apple-Reports-Record-Fourth-Quarter-Results.html Bauer, T. (2011). Enabling Market-Driven Technology (Innovations Case Narrative: Envirofit International). Innovations: Technology, Governance, Globalization, 6(3), 93-102. http://dx.doi.org/10.1162/inov_a_00085 Chang, S., & Wu, H. (2006). Production experiences and market structure in R&D competition. Journal of Economic Dynamics and Control, 30(2), 163-183. http://dx.doi.org/10.1016/j.jedc.2004.12.001 Jeyarathnam, M. (2008). Strategic management. Mumbai: Himalaya Pub. House. Kopel, M., Lamantia, F., & Szidarovszky, F. (2014). Evolutionary competition in a mixed market with socially concerned firms. Journal of Economic Dynamics and Control, 48, 394-409. http://dx.doi.org/10.1016/j.jedc.2014.06.001 Marketwatch.com. (2016). Apple Inc. Retrieved 13 February 2016, from http://www.marketwatch.com/investing/stock/aapl/financials. Read More