Global Business Situation and Opportunity Analysis - Apple Inc - Case Study Example

Global business situation and opportunity analysis Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecture Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 29th September 2012 Executive Summary The iphone is one of the most dominant technological devices in its market segment. Apple has been able to achieve phenomenal success in the marketing of the device. However, other makes of smart phones are starting to catch up with the iphone in terms of market share. Apple thus needs to come up with a marketing strategy that responds to the threat of rival products and ensures the iphone retains its dominant market share in the Smartphone market. This report presents a market plan for the iphone with the aim of ensuring the iphone retains and expands its global market share. It starts with a situational analysis of Apple Inc with particular emphasis on the internal strengths and weaknesses of the company. It is worth noting that Apple’s most profound strength is their innovative products. Secondly, it analyzes the industry and external environment of the global Smartphone market. Thirdly, it evaluates the demographic characteristics of the iphone’s target market noting that over 50% of smart phone users consume apple products. From the analysis given, Apple can use the following strategies to make sure that iphone succeeds in the telecommunication market. Product Marketing Distribution Price 1.0 Introduction With the current generation having a high use for technology, Apple Inc has come up with strategies of not only designing computers but have recently designed an up to date device that caters for all ages information needs: the iphone. This technological gadget can operate like a computer as it has properties found in computer devices hence offering wide variety of solutions to the potential consumer. Apple Inc ranges among the top technology companies that do not spare any energy when it comes to innovation and with no doubt there has been a promising success in the future having made sales of about 55 million sales in 2011.The iphone is of much importance to Apple Company as compared to the iPod as iPods just offer entertainment while the iphone is a smart phone that can cater for all entertainment activities. The Iphone dominates more than 88 countries in the world making this device a globally accepted technology and this makes Apple Inc to plan for its marketing strategy using a world wide view and taking into consideration of the many competitors it is competing with. 2.0 Situation Analysis 2.1 Company Analysis In the company analysis, the main goal Apple Inc is to give good quality products to the customers and it is through this that they will have increased revenue as they will be ahead of their competitors. To make this a success, Apple Inc has made it their duty to focus on a global perspective on how to minimize cost as they maximize on revenue generated out of selling the iphone. With this, their culture as an organization is to give quality products to its consumers all over the world. 2.2 SWOT analysis For this to be possible, the company has a SWOT analysis that helps in identifying their strengths, weaknesses opportunities and threats. 2.2.1Strength Among the strengths the company has is that it is one of the best known technology companies that have a brand position which has a strong value. Due to the strong brands that the firm offers to its customers, there are progressive sales over the years. Apple Inc is loyal to its customers and this is a key to sustaining their customers through their product quality. Another strength that the company has is its stability in terms of finance making it have a better chance to cater for all costs involved in designing a particular product. Apple has the latest and modern inventors of technology being led by Steve Jobs the former Chief Executive Officer of the company. By having a wide pool of human resource conversant with the changing technology and the current customer needs, it is a sure way that all the products the company makes, inclusive of the latest gadget, the iphone will capture a large market demand. Product diversification is also another strength that the firm has. By not concentrating on a particular product makes the company a notch higher than the rest. This enables wider spread in international markets hence fetching more revenue. 2.2.2 Technology In the technological world a lot of revenue is needed to produce a quality product hence price becomes a weakness to the company. Iphone as a product that belongs to Apple ranges from USD 200 compared to products from other companies. This makes only the high income earner have a better advantage of purchasing the iphone as compared to the low income earners. The iphone does not have a keypad but instead has a full sensitive screen which is susceptible to breakage if it falls. Most of the company’s products are made with full screens and this makes it a weakness for people who will prefer using keypads. 2.2.3 Opportunities The opportunities that Apple has are the ability to implement quality control which will ensure that the customers have quality products (Eddy, 2011). With the wide pool of knowledge that Apple Company has, they have an opportunity to design better quality products using minimal costs. They also have a better opportunity to improve their product awareness in international markets hence promotion of the iphone. 2.2.4Threats The major threat that Apple Inc faces is strong competition because the business structure is oligopoly where there is a major company that determines the prices that are to be sold for products and any increase in the product price will make the company not have any consumers. Among Apples major competitors are Samsung, Sony and HP which actively compete with the same product. Financial problems is also another threat facing the company because dealing with international markets, there are possibilities that not all markets will be operating in boom period. This makes customers behave differently in different economic periods hence a risk to iphones being sold to unstable markets. 3.0Customer Analysis Apple targets both primary and secondary consumers in its iphone product. The first consumers are the middle class income earners who have various tasks such as communicating with their clients to close deals and at the same time communicate with their family members (Turner, 2008). Secondary consumers involve the young generation aged 20-35 years who are attracted to communication devices that offer entertainment at the same time. Another consumer of the Iphone may be corporations that want their employees to stay ahead of technology in their communication. To make the iphones sell with an annual sales of $10-$50 million sales apple company has come up with a value driver by introducing a new version of operating system known as iOS 4 which has added functions that are suitable to the consumer. 4.0 Competitor Analysis Apple is not the only firm that produces iphones but other bigger companies like Samsung, IBM, Sony and HP share in the revenue collected out of this product. Though the high competition, Apple has had a 50% share in the market since the year 2005 making it have better control. Also by having quality iphones that have a software suite that detects computer viruses makes the company have a competitive advantage (The week in marketing , 2010)The only weakness that may make Apple’s iphone to be outdone by its competitors is the high prices that it seems to offer for its products. The iphone competes with the palm pre which runs different applications at the same time which the Iphone does not. This makes the Apple Company look for strategies that can keep it still preferred to the consumers. 5.0 Collaborators To make quality iphones, Apple has collaborated with other partners for equipment needed to make up this device such as large cell phone service providers namely Verizon, Cellular one and Sprint. In provision of current software, Apple partners with large firms that offer software devices in the whole world. 6.0 PESTEL analysis 6.1 Political In the environmental analysis there are several factors as political and legal environment where Apple has the sole responsibility of knowing the taxation rates of each country where they export their products and they should also know how much profit they are to get in all countries they deal with. To make this possible, Apple Company should be aware of all laws concerning exportation of technological devices in other countries. 6.2 Economical In the economic environment, Apple has to take a close study at the economic situation and growth in all countries in which it is investing their products. By doing this, the company will be able to know where demand is high and the season which is best to trade in. 6.4 social-cultural With the ever growing population and the ever rising need for technology in communication, there is the need to address the social and cultural environment where people need more education on operating the Iphone (Miller, 2008). The use of iphones does need some literacy on technological devices hence not applicable for those who are illiterate. This factor also needs to be considered in the design for the phone. Different views may affect the sales of the product in different regions of the world as to how compatible the product is. 6.4 Technological In the technological environment, there is a lot of technology use in the world hence there is the need to make people aware of internet usage. This therefore will lead to Apple having future plans to link a wireless connection in institutions of higher learning and in hospitals. There is also a high level of E-Technology such as online bidding and billing activities hence the need for Apple Company to involve such applications in the iphone. 7.0 Marketing strategies 7.1 Product To attain a lot of success in the sale of iphones, the product has to market for itself. One of the product strategies that Apple has is a one year warranty whereby incase of any damage within the first year of use, the company can replace another set (Silverman, 2007). It also has a less weight compared to other iphones making it easy to carry around. The battery has a long life and it is easy to replace as the accessories are easily found. It has a wireless connection and the speed which is 4G is incredibly suitable for sourcing of any information in the internet. 7.2 Pricing Iphone comes in a variety of models .For low models, they go for $349 and the high models go for $399 making the product affordable to all ages. With this, there is an assurance of dominating the iphone market for a long time. 7.3 Distribution Apple aims at a worldwide distribution where it will set up retailer shops in other countries and by the use of a website, consumers can request for the iphone using online services. In the retailing shops, Apple has come up with a strategy of attractive images of the iphone making the company have a better standing ground before it officially launches its product all over the world. 7.4 Marketing In order to have a wide variety of consumers, there has to be a lot of communication which will be done through advertising in the media. Through this, Apple will have a dynamic way in which it will be promoting its product and at the same time looking at the target consumers (Burrows, 2008). To make this possible, there will be discounts offered on any purchase of the iphone and also there will be public awareness on other products offered apart from the iphone. Conclusion To give a summary of the above global marketing plan, the report has made an analysis of the strengths and weaknesses of the Apple Company and the iphone product. The report has also considered how the company succeeds among other iphone producing companies. it has also looked at strategies in which it makes the product attractive to its consumers and finally with the help of the PESTEL analysis the report has made it possible to look at how the environment can be affected by the use of the iphone. With a strategy of how the target consumers will be attracted to the product, it is a sure way that there will be massive sales once the product is officially launched. Appendix References Burrows, P. (2008). THE iPHONE IN THE GRAY FLANNEL SUIT. Businessweek, (4075), 030-032. Eddy, N. (2011). Apple iPhone 5 Anticipation Growing: Survey. Channel Insider, 1-2. Miller, S. (2008). Marketers Anxiously Await Chance to Add Apps to iPhone. Brandweek, 49(17), 16. Silverman, D (2007, Jul, 10). Apple's silence helped the iPhone hype. Chron.com:Computing, Retrieved Apr 26, 2009, from http://www.chron.com/disp/story.mpl/front/4954824.html The week in marketing. (2010). Marketing (00253650), 10-11. Turner, D. (2008). APPLE PUSHING IPHONE FOR BUSINESS. Eweek, 25(8), 17. Read More