Industry Analysts are speculating that as Apple expands coverage of the iPhone especially in Asia, Apple will have to slash the price of the iPhone. This expectation appears logical, given the laws of supply and demand. However, will the iPhone loses its 'coolness' and ultimately, its desirability and profit as Apple expands? This presentation provides a systematic framework for analyzing and answering the above question. The Trade-Off Map as well as ideas from Kevin Maney's new book, "Trade-Off," play a key role in the analysis.

1. Inexpensively Leapfrogging the Competition THE TRADE-OFF MAP & STRATEGY FOR THE IPHONEShould Apple Cut Down the Price of the iPhone? Dr. Rod King

3. Cost (Price)

4. Differentiation (Social Status/Cachet)

5. Inaccessibility/Unavailability

6. Personalization (Identity/Character)

7. Complexity (Time)TOOL ALTERNATIVES: ……………… Trade-off Quotient (TQ) = Pain/Delight = Inconvenience/Fidelity = Customer Exp. Quotient SELECTION/ACTION: ……… Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

8. TRADE-OFF MAP For Total Customer ExperienceStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal Zero Trade-off (“What customers ultimately want: Free, Perfect, Now”) MARKET (CUSTOMER JOB): …………………………………. Period/Year: …………….………………………………………….. High Luxury Spot Disruption Spot (+): DELIGHT Low Strategic Choice Low High (-): PAIN Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

9. TRADE-OFF MAP Illustrating All StrategiesStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal Zero Trade-off (cf. “Wrecking-ball moment”) ‘Hit’ Zone MARKET (CUSTOMER JOB): …………………………………. Period/Year: …………….………………………………………….. High-end SuperHit Sweet Spot Luxury Spot Disruption Spot Oasis Volcano DELIGHT: Fidelity Low-end Green Ocean No Man’s Land Red Ocean Fidelity Belly Convenience Inconvenience PAIN: Inconvenience Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

13. Scenarios for Apple’s iPhone Should Apple drastically cut down the price of the iPhone?

14. TRADE-OFF MAP for the iPhoneExperienceStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal(“Should Apple drastically cut down the price of the iPhone?”) Zero Trade-off (cf. “Wrecking-ball moment”) ‘Hit’ Zone MARKET (CUSTOMER JOB): Communication/Information Processing at Work/Home/Outdoors Period/Year: 2007 to Date Luxury Spot (2009) SuperHit? Sweet Spot? High Disruption Spot? Oasis? DELIGHT: Fidelity Low Fidelity Belly (Super-)convenience Low High PAIN: Inconvenience Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

18. Scenarios for Motorola’s RAZR Should Motorola have drastically cut down the price of the RAZR?

19. TRADE-OFF MAP for the RAZR Experience(“Should Motorola have drastically cut down the price of the RAZR?”) Zero Trade-off (cf. “Wrecking-ball moment”) ‘Hit’ Zone MARKET (CUSTOMER JOB): Communication/Information Processing at Work/Home/Outdoors Period/Year: 2004 to 2007 Luxury Spot (iPhone - 2007) High Volcano (2004) DELIGHT: Fidelity No Man’s Land (2007) Low Fidelity Belly (Super-)convenience Low High PAIN: Inconvenience Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

23. BRAND EQUITY PROFIT (REVENUE) COMPETITIVE POSITION IN SECTOR CUSTOMER LOYALTY Higher level criteria for assessing impacts of a business strategy: CUTTING DOWN THE PRICE OF THE IPHONE CORE COMPETENCE (KNOWLEDGE) SHAREHOLDER VALUE STRATEGIIC FIT IN VALUE NETWORK ECOSYSTEM GROWTH/SUSTAINABLILITY Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

24. WHO? WHAT? WHERE? WHY? DECISION-MAKING QUESTION: SHOULD APPLE CUT DOWN THE PRICE OF THE IPHONE? WHEN? HOW MUCH? HOW? WHAT NEXT? Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing