Comparing of the RIM Blackberry with Apple iPhone - Case Study Example

Introduction: Aim of this project is to evaluate the value proposition of the Apple iPhone, comparing and contrasting it with that of the RIM Blackberry smart phone and the suitability of the Apple iPhone's value proposition in expanding their business into the growing smart phone market. For this particular study marketing concept adopted is of Nigel F. Piercy's Market-Led Strategic Change. Marketing concept may be explained as a philosophy and as in a technological perspective manner. The whole proposal is presented in the perspective of new marketing concept of market led strategic change. As wireless technologies evolve the coming mobile revolution will bring dramatic and fundamental changes to the world. This revolution has already begun and is gaining momentum. The revolution will impact numerous facets of our daily lives and the way business is conducted and will provide important data in real time to assist decision makers exert great influence on communications between businesses and their customers and transform the way we live our lives. The challenges facing mobile services, such as changes in business strategies, investment risk, limitations in mobile devices, networking problems, infrastructure constraints, security concerns, and user distrust in mobile applications and these provoke the researcher's issues such as killer applications, usability, user interfaces, mobile access to databases, and agent technologies. To remain competitive, mobile-device vendors, developers, and network operators must provide end users with a rich and satisfying experience. Marketing have a great role in promoting wider and broader concept of IT business. Now we should see what are Apple iPhone and RIM Blackberry Smart Phones and what all concepts and business models have been used by both. Methodology: Data is mainly collected through secondary sources. Collection of information is called a data. Data is of two types. They are primary data and secondary data. Primary data are those which are collected a fresh and for the first time and thus happen to be original in character. Secondary data are those which have already been collected by someone else and which have already been passed through statistical process. Secondary data may be published or unpublished data .For this particular study secondary data used is "Market led strategic change" of Prof. Nigel F. Piercy, which is used as marketing tool and its concept. Secondary data is used for preparing company profile, and previous reports. Apple iPhone and RIM Blackberry: With all of the millions of iPhones already used by highly satisfied users including many corporate executives Apple has been pushed to add features to the iPhone to make it easier for IT staff to manage and integrate into the existing systems. This will enable iPhone users to gain access to server updates pushed from Exchange as they are updated on the server, rather than requested by the client at regular intervals like a typical email program. "When Apple announced that the iPhone would incorporate Exchange support through ActiveSync, they specifically pointed out some shortcomings of RIM's server-based system." (Kim 2008). Apple also highlighted the thousand of existing web-based applications that already work on the iPhone. One major challenge Apple faces in bumping the iPhone up to 3G is that it will require more battery power to operate and the iPhone already has significantly shorter battery life than comparing with other phones. So the company will need to improve the device's battery life but for the current users frequently need to recharge their battery every day. "Apple has given technology managers their iPhone wish list in full in an effort to make its phone more business friendly. The mission: Lure enough enterprises to the iPhone so Apple can hit its 10 million unit goal by the end of 2008." (Dignan 2008). Apple IPhone is the multimedia mobile phone, which enable internet connectivity with touch screen, virtual keyboard, camera phone and portable media player (ipod) along with text messaging and voicemail. Apple Inc said on Thursday its iPhone soon will support corporate e-mail, targeting a new market and challenging the dominance of Research In Motion Ltd's popular Blackberry devices. (Visan 2008). Apple iPhone combined features of its revolutionary multi touch user interface and advanced software architecture provide the best user experience and the most advanced software platform ever for a mobile device. The security architecture of the iPhone can best accomplished by limiting the number of applications on the device and limiting the functionality of the existing applications. One of the most successful innovations in consumer electronics is Apple's iPod device is the best storing capacity with a high memory level which guide stores and plays digital music, photos, and video. An ecosystem of firms has emerged producing thousands of iPod attachments, from iPod docks in hi-fi systems to automobile audio system connectors, alarm clocks, recorders, and a plethora of other accessories. Apple retains a lot of influence in this ecosystem, not only because it completely controls the interface connection standards to the iPod, but most importantly, because Apple established its own digital music service, iTunes.6 In fact, Apple designed the iPod so that it only plays music downloaded from the Apple service or from CDs. Apple's strategy was justified on several accounts. Apple has always designed and commercialized hardware combined with software. Apple's business model was to make money from hardware that is unique both because of its design and its software. Building on iPod's tremendous success Apple has recently entered the mobile telecom space with iPhone, which adds e-mail, web browsing, and phone capabilities. Apple is expected to sell 10 million iPhones by the end of 2008. Meanwhile, Research In Motion has 12 million subscribers, and its iconic BlackBerry is selling at a clip of about 4 million units a quarter. (BlackBerry Vs iphone: Who Wins 2008). Using a touch screen clearly is becoming more popular with the Apple iPhone. The aim is to have a Web page that can deliver a satisfactory user experience whatever the device used, whether desktop PC or cell phone. To be truly revolutionary the iPhone should play nice with the people especially in a social setting. The iPhone in fact is both a milestone and a tipping point in the mobile ecosystem. The iPhone with the beyond just voice calls emphasis, towards a high degree of entertainment and fun, combined with the fact that it is the first consumer focused launch in the wireless world that was not directed by the carriers, makes it a real watershed event in the business. In the minds of consumers, it certainly provides a richer experience. From the commercial side it really opens up the value chain. Apple has changed the dynamic in how consumers think, act, and do mobile. The iPhone essentially transcends what a mobile phone is and has changed the landscape to a wider extend. As the Apple values their customers a lot and have applied lot of innovations to take a better care of them. The Customer Relationship Management software is a vital component yet the whole business of Apple needs to understand CRM in all departments and functions of the business and behave appropriately to make CRM work. An effective CRM Customer Relationship Management will include methodologies, strategies, software, and web-based capabilities that help the company to organise and manage customer relationships. To maintain market leadership and learn more about new customer behaviour all organisations will have to risk experimenting with the new CRM marketing tools. This will require organisations to re-examine the traditional mix of marketing investments and find innovative ways to integrate these new tools and tactics into their current affairs and thus Apple will be foremost in the market led strategy. Market-led strategies are bought up with better understanding of the market in which the company is operating are developed in order to attain competitive advantage in the long run which are useful in attaining market based competitive advantage are mainly concerned about the customers involved and preferable measures are taken to well take care of them by placing and attaching to their hearts. The RIM Blackberry Smart phones are compact and slim with capabilities including a screen with built-in and light-sensing technology which helps in building up a global positioning of the system involved in mapping, expandable memory, media player, tethered modem and a battery. The Blackberry is the company designed to take its company beyond its market segment and offers phone, digital camera, multimedia capabilities and expandable memory in addition to the full experience of email, web browser, text messaging, instant messaging and organizing applications. Thus it provides the personnel to communicate wirelessly and help in securing every useful and needed time to make them more productive, flexible and effective. Research In Motion's BlackBerry handhelds took the top slot in a recent ranking of business smart phone user satisfaction, and devices from Palm and Samsung tied for second place. (Sacco 2007). Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIM's portfolio includes best products with services and embedded technologies are used by thousands of organisations around the world and include the wireless platform to the Blackberry Smart Phones and its gives guidelines to the wireless device product line, software development tools, radio-modems and software and hardware licensing agreements. BlackBerry enables the use of personal information management and its functioning includes such as calendar, address book, task list and other functions associated with personal organisers. RIM offers program which enables device manufacturers to equip their handsets with Blackberry functionality, including push technology to automatically deliver email and other data. Blackberry Smart Phones are communication tools that incorporate wireless technology to deliver mobile communications access. Utilising push-based technology on Blackberry Smart Phones that automatically delivers email and other data which are fully integrated browser and organiser applications which keen to serves its customers by achieving the company objectives. Literature Review: The essence of marketing is a transaction an exchange intended to satisfy human needs or wants. Consequently marketing occurs ant time on societal limit strive to exchange something of value with another social unit. Marketing consists of all the activities to facilitate the exchange. The challenge of marketing is to generate that revenue by satisfying consumers wants at a profit and in a socially responsible manner. For a business enterprise to realize the full benefits of marketing concept that philosophy must be translated into action. This means that the marketing activities in the firm must be fully coordinated and well managed and the chief marketing executive must be awarded an important role in company planning. As these moves occurs marketing management begins to develop. Marketing management is the marketing concept in action or an orientation of management in the scientific and systematic marketing. A significant characteristic of marketing is its peculiar and sometimes unique requirements. Marketing as a concept .and function is unique in that it faces out from a business. Its purpose is to take things to the market and bring information and ideas back from the market. Because of the dynamics of any market marketing activities and ideas are continuously changing and revising. Marketing for enterprise today will be different to yesterdays marketing and will change to something different again in the future. Because of this dynamic marketing and marketers must constantly seek and gather information. Most enterprises have established information flows whereby statistics on sales and fluctuations in these will be continuously monitored. However such statically information flows are not enough and marketers gather information and market intelligence intuitively and continuously as an everyday occurrence in doing business. This in turn contributes to and sometimes shapes the constant marketing flux. As the value of marketing to business grows and as new concepts and applications of marketing emerge and evolve so to does the need for up to date market intelligence. Thus marketers need for deep and detailed qualitative research becomes more crucial and its importance lies in the need to understand phenomena and to gain meaningful insights into circumstances and changes. Business models helps in estimating the infrastructure, core capabilities, offerings, customers and financial services. Marketing is the competitive arm of the strategic framework and prior focuses on the value chain and the creation, delivery and sustainability of customer value. Thus it turns the Customer Value Proposition into superior customer value, delivering added value packages to their customer faster than the competition by creating and sustaining customer loyalty. Marketing is pure unbridled competition and creating the competitive edge at the product/service level. Thus the marketing criteria of Apple iphone functioning bundles and delivers the value package using their corporate support structure to ensure it is delivered faster and more abundantly than the competition's value package. Depending on the strategic framework in place more of the responsibility renewal, creation and delivery of the value package may fall under the most implication of marketing strategy. Thus Apple proves to be a company which has chosen a leadership through innovations of the customer value proportion and executes totally a new business with their unique perspective of business through Apple iphone. And this type of business is used to flow products and services to Apple's customer clusters and their marketing in turns spawn a range of products and creates a value added to their brand image Market-led strategic model is adopting to provide more value to the customers. The new marketing frame work is designed to help to cope with the demand of the new customer. It is customer-oriented approach, as there are new trends and realities; mere traditional approach to the marketing is not at all successful in all cases. So a new approach is adopted which is the market-led strategic change. It is all about the concentrating on the demand or value of the customers while adopting strategic change in marketing. In this study some important factors is provided to transform the process of going to market. Business model is important for implementing innovation properly. Business models convert new technology to economic value. Business model serves to link technical input to economic out put. Value proposition is one of the components of business model. Value proposition is a description of the customer problem, the product that addresses the problem and the value of the product from the customer's perspective. Other components of business model involve market segment, value chain structure, revenue generation and margins, position in value network and competitive strategy. With the increase of competition and challenges, mere concentration of advertising, branding, new product launches is not enough to stand up in the market. The drivers of the new marketing is Value strategy, market strategy, internet strategy, process strategy and change strategy. (Fig-1) Drivers of New Marketing (Fig 1) Value strategy: Value strategy is a coherent and customer oriented and gives superior value to each of the customers in terms of matters affecting to the customers. The drivers of the value may change quickly, companies focus on the things that were important for last year will definitely fail to excel. The greatest challenge management facing is to understand and follow the drivers of value for different customer groups and their reactions. Successful companies are those which take into new areas of customer value that have been neglected by the existing competitors. Market strategy: Market strategy is a clear and strategic pathway to market which clarify value proposition and identify the way in the process of going to market. The strategic pathway is about evaluating companies learning capabilities as basis for making strategic choices, and strategizing to create new ways of going to market ensures competitive advantage. Here focus is on customer, market sensing, market choices, value proposition and key relationship. Understanding the customer and their priorities is the first step in any marketing strategy. Next choice is the market that is with in which boundaries product is going to market by understanding the availability of prospective sales. In value proposition, the challenge is to specify in detail what is offer of value to each target customer group. Competitive advantage is more important to compete in the market else no need to compete. Key relationship is about how well manager understands and manages relationship with customers, competitors, collaborators and other forces in the market place and with co-workers. Internet strategy: Internet strategy is based on exploiting and integrating the potential of the web in changing buyer-seller relations, multiple channels and developing new business model. Internet provides an amazing enabling technology that allows made to order products, genuine individualized customer relationship management, information exchange with customers, partnership, e-service and new alliances. Process strategy: Process strategy is the designing and managing clear and focused processes of decision making in creating value to the customers. This is about total integration of marketing process around customer value. It is tracking the underline process of value identification, value creation and value delivery. Simple analysis of these is helpful to identify and evaluate companies basic value processes is a good start in tackling the big problem of breaking down the barriers between departments and getting marketing. Change strategy: Change strategy is a credible and effective approach in the way of getting things done for the company and for competitive advantage and providing value to the customers. Effective change requires a resourced and realistic implementation strategy that confronts the structural and process issues that have to be aligned with new strategies. For this particular study of market perspective, the steps to transform the process of going to market are relevant. This involves: Customers: It is about the skill of the marketers in understanding and responding to customers and by retains the customers. It is merely concentrating on the each customers demand. Value: The main important issue in strategy is identifying value opportunities and meeting them. E-Business: Utilizing of the web-enabled technology is an essential part of delivering value in modern market Totally integrated Marketing: It is important to give new market led strategy while delivering value to customers. Creativity and strategy: The creative process of strategy and reinvention process is important for the new trends and new market situation Strategic pathway: It is the process of going to market is evaluated and enhanced by using the pathway template, customer focus and market sensing, market, market choices, value proposition and key relationships. Plan: The strategies have to be tuned into creative plans Strategic gaps: Main attention on the gaps between strategy aimed and strategy achieved should be studied and priority based changes can be made. Manage the key processes: Manage value processes and key decision making processes to build ownership and commitment Implementation strategy: To use strategic internal marketing as a mechanism, for managing the implementation process. These are the powerful tools for market-led strategic change which urgently needs for many companies. Analysis and Interpretation: Depending on the strategic framework in place more of the responsibility renewal, creation and delivery of the value package may fall under the most implication of marketing strategy. Thus Apple proves to be a company which has chosen a leadership through innovations of the customer value proportion and executes totally a new business with their unique perspective of business through Apple iphone. And this type of business is used to flow products and services to Apple's customer clusters and their marketing in turns spawn a range of products and creates a value added to their brand image. RIM made a name for itself with its original Blackberry smart phone, becoming the premiere email device for enterprise and government buyers, as well as heavy e-mailers in the consumer markets. But due to some of the security issues, RIM blackberry is not supported by the major mobile service providers in the market. Conclusion: It is concluded that Apple Iphones will withstand which its acceptability at worldwide. RIM blackberry is having all good features but problem is that it is not accepted worldwide because of some security problem involved it. The server installed now is not capable of identifying the providers. So it is not supported by major mobile service providers of some countries. Bibliography KIM, Arnold (2008). RIM's BlackBerry Vs iphone's ActiveSync. [online]. MacRumors.com. Last accessed 12 May 2008 at: http://www.macrumors.com/2008/03/10/rims-blackberry-vs-iphones-activesync/ DIGNAN, Larry (2008). Apple Takes iPhone Corporate in a Big Way. [online]. CNET Network. Last accessed 12 May 2008 at: http://blogs.zdnet.com/BTL/p=8179 VISAN, Marius (2008). Apple iPhone Targets RIM with Corporate E-mail. [online]. Global PWD. Last accessed 12 May 2008 at: http://www.globalpwd.com/ BlackBerry Vs iphone: Who Wins (2008). [online]. msn money. Last accessed 12 May 2008 at: http://articles.moneycentral.msn.com/Investing/Extra/BlackBerryVsiPhoneWhoWins.aspx SACCO, Al (2007). Wireless & Mobile: BlackBerry Users are Satisfied Smart Phone Customers. [online]. NETWORK WORLD. Last accessed 12 May 2008 at: http://www.networkworld.com/news/2007/110207-study-blackberry-users-are-satisfied.html Read More