The PEST Analysis of Apple 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. Contents Introduction 3 Purpose of the report 3 Internal Environment Analysis 3 External Environment Analysis 5 Competitor Analysis 7 SWOT Analysis 7 Marketing objective 9 Customer Analysis 9 4P’s of Marketing 10 Supply Chain Analysis 11 Implementation and Control 11 Conclusion 12 References 13 Introduction Apple’s iPhon is the latest development where the phone has been developed using internet and is one of the most smartphone which is multimedia enabled. (Apple Website, 2011) The first phone was launched in 2007 and since then has grown to become a status symbol. With numeroud application being supported by the smartphone has led towards the growth and development of iPhone. (Apple Website, 2011) Purpose of the report To present the internal enviornment and its effect on the performance of Apple iPhone To present the external enviornment and its effect on the performance of Apple iPhone To identify the marketing opportunities by looking into the 4P’s of marketing for Apple iPhone To identify a SWOT for Apple iPhone based on the abov features To identify the supply chain and developmnt for Apple iPhone Internal Enviornment Analysis Analysis of the internal factors will help to understand Apple iPhone better and will highlight the area where the company worked upon to be successful. This will help to improve the understanding about the company and develop better strategies for the future. 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. 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. 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) 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) Marketing Objective 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. 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 smaprt 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 customrs who are more technology focussed the target market for Apple iPhone has grown. 4P’s of Marketing Apple iPhone while launching a smartphone which is more technologically advanced have ensured that they have a customer base in the younger generation by having the following marketing mix Product The smartphones by Apple has the latest technolgy and its adaptability with different applications has improved its importance by ensuring that only applications approved by Apple work in it. At the same time the quality should not be compromised considering the brand image. The company can also look forward to launch a new smartphone which has more features and uses different programs to support the new advancement taking place. Price Apple iPhone have ensured that the product is t priced heavily as it is considered a status sumbol and is meant for the previleged. This will help to attract younger people especially the students who are more focussed on technology thereby ensuring that all the segment of the younger generation are tapped. Place Apple iPhone should ensure that the product is launched across all its stores slowly where as in the beginning the company can launch it at a few stores thereby testing the feasibility of launching it. Apple iPhone need to ensure that while launching it special care is taken to ensure that it is launched at places where the students and the younger generation is in abundance. Promotion “Apple iPhone will advertise the product through in stores promotion”. (Bristow and Frankwick, 1994) Apple iPhone should also ensure that marketing takes place through “advertisement in news paper, hoardings and distribution of pamphlets”. (Bristow and Frankwick, 1994) This will help them get awareness and will help them sell their products easily. Supply Chain Analysis 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 & Control Apple iPhone needs to evaluate its marketing strategy every quartr to idntify the areas they need to work upon. This will also help Apple iPhone to indntify the competitors’ strategy and prepare them accordingly. This check process will facilitate the development of stratetegy which will provide benefit to Apple iPhone in the near future. 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. (2011). Apple iPhone. Retrieved March 6, 2011 from http://www.apple.com/in/iphone/ Adam, T. (2009). Apple iPhone SWOT Analysis. Marketing Strategies. B & T Today Bristow, D. & Frankwick, G. (1994). Product manager influences tactics in marketing strategy development and implementation. Journal of Strategic Marketing, 2 (3), 124-137 Dylan, W. (2007). SWOT Analysis of Apple iPhone. Journal of Strategic Marketing, 2 (3), 23-27 Mullins, K. (2009). Critically examine the main drivers for Apple iPhone growth. Free Press. New York Mobilewhack. (2007). Top ten list of iPhone Competitors. Retrieved March 6, 2011 from http://www.mobilewhack.com/top-ten-list-of-iphone-competitors/ Read More