Your SlideShare is downloading. ×
iPhone1
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
592
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. iPhone Blue Ocean Strategy INDE 599 11-3-09
  • 2. Overview
    • Industry Pre-Launch
    • 5 Forces Analysis
    • 4 Actions Framework
    • Strategy Canvas
    • 6 Paths
    • Risk Assessment
    • Post Launch Success
  • 3. History of Industry
    • 2002-2003 2
      • Very successful iPod sales
      • No desire from Apple to create a PDA
      • Steve Jobs believes that cell phones will eventually carry the PDA information
      • Americans carried cell phones, Blackberries, & MP3 players
    • 2007
      • Cell providers marketing to kids & teens
      • Boost in consumers wanting smart-phones 3
      • Motorola losing 2% of market share 1 month after iPhone launch 3
      • Google reveals cell phone software 4
  • 4. Apple SWOT Analysis
    • Threat
    • Success of rival music stores
    • Data networks sluggish
    • Success of Palm Treo
    • Wireless carriers that dictated hardware devices
    • Highly competitiveness IT industry
    • Opportunity
    • 3G phones gaining popularity
    • Wi-Fi phones coming soon
    • Price of storage plummeting
    • Fast & efficient cell phone processors
    • Weakness
    • Existing “convergence device”-Palm Treo
    • Need to create a new OS for the phone
    • Accused of having a niche market
    • Fault screens & batteries in early iPods
    • Strength
    • iPod 16% company revenue
    • Favorable perception of brand
    • Ability to capture & retain customers
    • Launch of iTunes for music
  • 5. 5-forces Analysis on Cell Phone Industry
    • Threat of new entrants?
      • Apple would be the new entrant
      • Google, Microsoft could choose to produce cell phones, eventually.
      • Other cell phone companies may re-design their products to compete, later
    • Bargaining power of buyers?
      • Minimal—Other devices, Palm Treo, Blackberry do not integrate all technologies efficiently
    • Threat of substitutes?
      • Minimal. Palm Treo is only other existing convergence device.
      • Blackberry does not have all of the same functionality, such as MP3s
    • Bargaining power of suppliers?
      • Minimal. Suppliers will want to get involved with new project, beneficial to their sales.
    • Rivalry?
      • Medium. iPhone can revolutionize the cell industry.
      • Immediately, there will be little competition, but there will be competition from all cell phone producers once it is released. (Motorola, LG, Sanyo, Palm, Blackberry, etc)
  • 6. 4 Actions Framework
    • Raise
    • User interface & improve navigation
    • Hold more music
    • Applications-games, money management, news, etc.
    • Wireless internet on phone
    • Create
    • Device to download music directly
    • Hold more songs
    • Simple user interface, no user manual required
    • Sleek design
    • Eliminate
    • Difficulty in text messaging-use keyboard instead
    • Reduce
    • Carrying separate devices: phone, MP3, PDA
    • Requirement to always hook up to PC
    • Difficult user interface-make touch screen
  • 7. Strategy Canvas Relative Scale 2-Highest Rating 0-Lowest Rating
  • 8. Areas to Change the Rules “6 Paths” Framework
    • Alternative Industries
      • Incorporate smart-phone technology
        • iPod-MP3, email, applications
    • Strategic Groups within Industries
      • Trade up from typical cell for smart phone technology
      • Improved user interface from Blackberry
    • Chain of buyers
      • Increase iTunes users
      • Market to AT&T only
    • Complementary Offerings
      • Incorporate iPod and & iPod touch capabilities
    • Differentiation
      • Touch features, compared to Blackberry
      • Integrated applications
      • “ Cool factor”
    • Look across Time
      • Revolutionary user interface
        • Touch screen, keyboard, directly connect to App Store, linkage to Mac/PC
  • 9. Risks Assessment
    • First time Apple makes a cell phone
    • Aligning to a single cell carrier
    • Ability to successfully integrate software
    • Problems with battery life
    • Impacts to iPod sales
    • High price of product
    • Data networks sluggish
    1 2 3 4 5 6 7
  • 10. Product Impact Post-Launch
    • Product Impacts 1
      • Cell phone carriers realize that phones can win customers & bring in revenue
        • Upset the carrier-manufacturer balance of power
      • Opportunities for application developers
    • Sales
      • March 2009 6
        • 17 million iPhones sold
        • 25,000 applications sold on App Store
        • 800 million total downloads from App Store
      • October 2009-Apple Profit increases 47% 5
        • Apple sold 7.1 million iPhones in single quarter
  • 11. References
    • The Untold Story: How the iPhone Blew up the wireless industry: http://www.wired.com/gadgets/wireless/magazine/16-02/ff_iphone?currentPage=2
    • Steve Jobs: No Tablet, No PDA, No Cell Phone, Lots Of iPods: http://www.macobserver.com/article/2003/06/05.9.shtml
    • Mobile Phone Industry Already changing due to iPhone: http://arstechnica.com/apple/news/2007/08/report-mobile-phone-industry-already-changing-due-to-iphone.ars
    • Google Unveils Cell phone software & alliance: http://news.cnet.com/google-unveils-cell-phone-software-and-alliance/
    • Apple Profit Surges on iPhone Sales: http://online.wsj.com/article/SB10001424052748704500604574483631612633824.html
    • iPhone Sales hit 17 Million: http://www.pcworld.com/businesscenter/article/161725/iphone_sales_hit_17_million.html