UNDERSTANDING MARKETING AND OPEN INNOVATION: Case Apple

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  • 1. TAMPERE UNIVERSITY OF TECHNOLOGYFaculty of Business And Built EnvironmentSAAD JAMILUNDERSTANDING MARKETING AND OPEN INNOVATION: Case AppleAppsSeminar Report
  • 2. ABSTRACTOpen innovation has transformed the way organizations are introducing newproducts and services, by actively utilizing external ideas too. Especially insoftware sector, there are plenty of developers innovating new software products,most of which then are available online for customers. It is interesting to see howmarketing of such ‘open innovations’ is done and what the possible challenges are.This paper gives an insight into understanding of marketing of open innovations inmobile apps development domain. Mobile apps distribution companies like Apple,Android and Ovi store are introducing numerous apps each day based on theconcept of open innovation. Proper marketing of these apps is quite a big challengewhich is being faced by all these companies as well as developers. All mobileapplication distribution companies are facing a lot of problems in terms ofsegmenting their apps properly. Because of the poor segmentation, customers aregenerally lost while searching for their desired app. In order to improve thecustomer experience, the mobile apps distribution companies should introducebetter segmentation techniques or otherwise the app stores will be split up intosmaller niche stores to target the customers in a better way.The main outcome of paper is to analyze segmentation of apps in app stores and topropose a potential teaching segment professional application for Apple app store.B2B professional apps are not properly segmented in Apple app store because ofwhich professionals find it hard to locate the desired app. One such category washighlighted in this report related to the teachers and editors in which commentingand editing of text written by others is of primary concern. Lots of apps are alreadyavailable in Apple app store but lack of available features and proper segmentationmakes them unattractive for professionals. After analyzing some major apps, acomprehensive app for teaching segment is proposed in this report which, with thehelp of proper segmentation and target marketing, has potential to become a sourceof increased revenue for developers as well as Apple app store.
  • 3. PREFACEStudying the basic concepts of marketing process, as a part of the course “Basics ofIndustrial Management” of the International Master’s degree program in TUTmotivated me to select this seminar paper topic. My academic IT/Telecombackground as well as work experience in IT sector helped me to apply themanagerial concepts into the IT industry. This paper discusses the concepts ofmarketing in open innovation domain, how marketing has evolved over the yearsand the current marketing practices in the IT sector.I would like to thank Dr. Jouni Lyly-Yrjänäinen for the knowledge sharing andguidance throughout the process of my work. In addition, I would like to expressmy gratitude to my friends, peers and colleagues whose contribution helped me towrite this paper in the best possible way.Tampere, September 2012Saad Jamil
  • 4. TABLE OF CONTENTSABSTRACT ______________________________________________________ iiPREFACE _______________________________________________________ iii1 INTRODUCTION ____________________________________________ 11.1 Background __________________________________________________ 11.2 Objective of the Paper__________________________________________ 12 RESEARCH METHODOLOGY AND PROCESS__________________ 32.1 Research Methods _____________________________________________ 32.2 Research Process ______________________________________________ 33 UNSERSTANDING MARKETING AND OPEN INNOVATION _____ 53.1 Introduction to Marketing ______________________________________ 53.2 Marketing Process _____________________________________________ 63.3 Open Innovation and Communities _______________________________ 74 CASE STUDY: APPLE APPS _________________________________ 104.1 Comparison of App Stores and Professional Apps Segment __________ 104.2 Positioning of Teaching Segment Apps ___________________________ 124.3 Analysis: Marketing in App Store _______________________________ 145 CONCLUSIONS ____________________________________________ 16REFERENCES __________________________________________________ 18
  • 5. Jamil, S.11 INTRODUCTION1.1 BACKGROUNDAccording to Lyly-Yrjanainen et al. (2010), selection of right marketing mix hasalways been a very critical task for business people ensuring the success of theirproducts. However, lately the focus has been shifted from products to services.Most of the services are based on software and available in Internet. During the lasttwo decades, an industrial revolution has taken place in the software industry,which has completely transformed the way business is done. The concept of openinnovation (Chesbrough, 2006) has been adapted by many organizations and firmsnow are using external ideas as well as internal ideas when developing newproducts and services.For example, each day thousands of mobile apps, developed by external developersor development companies, are released by Apple, Android and Ovi store. Thesethree most popular app stores are competing with each other fiercely in order toprovide the best possible apps to their respective customers. However, these appstores should develop ways to ensure that the customer can actually find the rightapp in the jungle of all the possibilities offered today. Furthermore, there is noproper professional B2B category in app stores, which makes it really hard fordifferent professionals to search for their desired app.1.2 OBJECTIVE OF THE PAPERThe understanding of marketing in software industry is interesting because openinnovation has been truly adapted by software developers. At the same time, itseems that software developers are not particularly proficient when it comes tomarketing of their products. Yet, at the same time, understanding of the marketingprocess is crucial for long-term success. Since the number of applications is huge, aclassification (i.e. segmentation) of apps market is needed. Furthermore, it is alsointeresting to analyze how app store manages the complexity resulting fromthousands of individuals submitting their apps to be distributed through app store,i.e. how does the customer search for and eventually find the right application.Hence, the objective of this paper is……to analyze marketing of open innovations by looking into development ofmobile phone apps and to propose a potential teaching segment professionalapplication.
  • 6. Jamil, S.2The paper is structured in five parts. Figure 1 shows the structure of the paper.Figure 1. Structure of Paper.First, the introduction outlines the background information to the paper and theobjective. This is followed by research methods and process. Third, the marketingand open innovation process will be explained. The fourth chapter then presentsmobile apps development case with focus on teaching segment. Finally, theconclusion will be based on the results and findings of this research to try andprovide a comprehensive overview of how marketing of open innovations is takingplace in mobile apps world and what are the areas for further research.Introduction ResearchmethodsMarketing &openinnovationCase study:Apple appsConclusion
  • 7. Jamil, S.32 RESEARCH METHODOLOGY AND PROCESS2.1 RESEARCH METHODSAccording to Gummeson (1993), two methodologies exist in research process fordata generation: qualitative and the quantitative approach. First, quantitativeapproach used data collection and analysis to determine a relationship between twovariables. Second, qualitative research methods focus on personal experience fromresearcher and seek to explore the phenomena to understand it properly (Mack etal., 2005). Gummeson (1993) has proposed five qualitative data generationmethods as illustrated in Table 1.Table 1. Qualitative research methods (Gummeson 1993).Research MethodsExisting MaterialQuestionnaires SurveysQualitative InterviewsObservationAction ScienceData analysis can be either primary or secondary. Existing material mentioned inTable 1 refers to all kinds of secondary data. In other words, it refers to the sourcescontaining data gathered by a third party for another purpose (Krishnaswami &Satyaprasad, 2010).In qualitative methods data collection and analysis occur at the same time(Gummeson 1993). Therefore, this research is basically the interpretation of theinformation gathered in the field through qualitative analysis.2.2 RESEARCH PROCESSThis paper focuses on marketing of open innovations by looking into developmentof mobile phone apps and to propose a potential teaching segment professionalapplication. The research approach was mostly qualitative and the data collectionwas mostly based on existing materials. In this case, reviews were made on existingliterature that deals with marketing and open innovation. Apart from that somereviews were made on the literature available on internet about the mobile apps andmarketing issues. This was also supported by the writer’s views based on hisknowledge of the topic based on the previous work on this report. This issupplemented by the fact that in qualitative research, the individual researcher is
  • 8. Jamil, S.4also a part of scientific process (Gummeson, 1993). Details of the data collection isexplained in the below paragraphs.First in order to highlight the potential professional apps segment, data wascollected on the professional B2B apps from Business insider website. This datawas about the price of top 10 most expensive professional apps. Based on this datacollection process the price range of professional apps was determined whichturned out to be in between 100 to 1000 USD. Second, different apps wereanalyzed which focuses on annotation features. For the purpose of this study 4major annotation apps (GoodReader, iAnnotate, iBooks & PDF Expert) wereanalyzed for Apple app store only. So the major source of data collection andanalyses was Apple iTunes store which is an authentic database for all Apple apps.Apps were analyzed based on two criteria’s which were functions and file typesthey are supporting. For functions, criteria of analysis was set to text editing,freehand and voice editing while for file types 3 most popular types (word, powerpoint and pdf) were analyzed. Data was also collected on the price of each app inorder to make comparisons. Figure 2 shows the timeline of research process.Figure 2. Timeline of the Research Process.As observed from the Figure, the research process initiated with the generation of atopic between May and June, 2012 which was influenced by the author’s personalmotivation and the previous work during the previous courses. Following this wasthe literature review of marketing issues in app store and focus was on teachingsegment apps in particular. Teaching segment apps were analyzed based on thedata collected from iTunes website. Data such as price and features was collectedfrom each app in iTunes and was used for positioning of teaching segment apps.Similarly, various Internet blogs and communities were visited to find out moreabout the problems related to marketing of these apps. The report writing processelapsed between August and September, 2012. The final report was submitted forassessment in September as well.Topic andGeneralLiteratureReviewReview ofDifferentTeachingsegment appsReportWriting andEditionReportSubmissionMay-June,2012July, 2012 August, 2012 Sep, 2012
  • 9. Jamil, S.53 UNSERSTANDING MARKETING AND OPENINNOVATION3.1 INTRODUCTION TO MARKETINGThe term Marketing has been derived from the word ‘market’ which meanslocation where exchange between buyer and seller occur. Thus, the term marketingdeveloped from the idea of going to market to sell goods or services (Geetanjali,2010). According to Sharma and Joshi (2008), marketing is a business disciplinethat deals with developing programmes to attract and retain customers. Consumerbehavior has been changing rapidly and it is dependent on three factors:globalization, technology innovation and deregulation. These trends provideendless opportunities for companies to have better marketing deals by identifyingcustomer needs and ensuring profitability by meeting these needs (Kotler, 2001).As illustrated in Figure 3, when different technologies are competing with eachother for any product or service not always the best technology wins. Marketingmakes the real difference.Figure 3. Role of Marketing in different technologies.There are various definitions for marketing stated by different authors, some ofwhich are illustrated in Table 2.Table 2. Key Marketing Definitions.Definition Author TypeMarketing is a societal process by whichindividuals and groups obtain what theyneed and want through creating, offering,and freely exchanging products and servicesof value with others.Kotler (2001) SocialDefinitionMarketing is the activity, set of institutions,and processes for creating, communicating,delivering, and exchanging offerings thathave value for customers, clients, partners,and society at largeAmericanMarketingAssociation(2007)ManagerialDefinitionTimePerformanceMarketing makesthe differenceDifferenttechnologies
  • 10. Jamil, S.6As illustrated in Table 2, first definition talks about the social side of marketingwhile the second one focuses on the managerial perspective. The common thing inthese definitions is that they both focus on building a relationship betweenorganization and customer through mutual exchange of information. Thisrelationship forms the basis for the marketing process.3.2 MARKETING PROCESSMarketing process involves analyzing the market opportunities, target marketselection, developing the right market mix and in the end monitoring the all themarketing efforts. The complete process revolves around the customers and themain objective of marketing process is to build a solid and cost-effectiverelationship with customers (Karunakaran, 2008). This complete marketing processis depicted in Figure 4.Figure 4. Marketing Process (Adapted from Meldrum & Mcdonald 2007).When different technologies are competing with each other for new products orservices, success in marketing process makes on of the competing products to geton top. While the others lags behind after a certain period of time. This isillustrated in Figure 5.Figure 5. Marketing process makes a product to come on top.In terms of B2B marketing, finding the right offering to customers is generallydone through either technology push or market pull. According to Herstatt & Lettl(2000), technology push is a process in which an evolving technology provides adriving force for a new product or service in the market. So, basically innovation isdirected by the advances in technology (Nemet, 2009). Market pull however startsfrom identifying the customer needs first and based on that new technology isAnalyzemarketopportunitiesTargetMarketSelectionDevelopingMarketingMixManagingcurrentMarketFeedbackTimePerformanceProduct comeson top becasueof marketing
  • 11. Jamil, S.7introduced and product is offered to the customers (Chidamber, 1994). These twoprocesses are illustrated in Figure 6.Figure 6. Basic concept of technology push and market pull.To summarize, in order to market a certain product or service, it is important tounderstand the customer need first. Once the customer need is clear, it becomeseasy to segment the product or service properly. That is the reason most of theorganizations are adapting market pull strategy when introducing new innovativeservices in the market.3.3 OPEN INNOVATION AND COMMUNITIESIn order to understand the paradigm shift to open innovation, it is necessary tocompare it with traditional close innovation model. According to Chesbrough(2006), in the previous closed based innovation different projects can enter onlythrough R&D and there is only one way for them to exit to market in the end. OpenInnovation on the other hand is a paradigm that assumes that firms can and shoulduse external ideas as well as internal ideas, and external as well as internal paths tomarkets, as they look to advance their technology (Chesbrough, 2006). This isillustrated in Figure 7. Open Innovation business model utilizes internal as well asexternal resources of an organization to create a value added product such asinsourcing and licensing. R&D is generally considered as an open system and anyimportant idea can come from inside or outside the organization and similarly it canbe marketed from inside or outside the company as well.Figure 7. Open Innovation Model (Chesbrough, 2006).TechnologyInnovationProductofferingMarket trialsCustomerneedTechnologyinnovationProductoffering
  • 12. Jamil, S.8According to Chesbrough (2006), open innovation has generally been confusedwith open source software practice, which is not true. Both have some similaritiessuch as the use of external resources to create value but open innovation businessmodel uses as a source of both value creation and value capture while open sourcesoftware focus only on the value creation part.According to Seppänen et al. (2007), software developers are relying on the usercommunities in order to target their customers better. In fact software developmentin itself has become global community in which the users and the developers are apart of one family that collaborates with each other, share ideas and feedback todevelop the applications better. This is the primary reason why open sourcepractice has taken over the traditional propriety model as the customer valuecreated in the open source model is for the whole network as compared to aspecific individual or a company. There are numerous actors involved in thecommunity and sharing the application within the community members allows themembers to update and modify it as per their core competencies (Seppänen et al.2007). So the responsibility of the actual product is not in the hands of one firmonly, but in the hands of numerous contributors that have an interest in thatparticular software.Communities are basically run through number of web pages, blogs, online videosand social media. It is the responsibility of the project administrators to providesuch a platform where users can provide feedback on the design of the product,reviews and further development ideas in terms of value added features and, apartfrom that, there should be no entry barriers to join a particular community (Dixon,2007). With the help of community involvement in the earlier part of softwaredevelopment life cycle, the time to market and errors or bugs can be removedbefore the final product is even available for release to market.There are some drawbacks for the active involvement of communities in thesoftware development. Conflict of objectives among the firm and the community isone of the major disadvantages as the firms focus on getting revenue while, formost of the developers in the community, money is not a big motivating factor.Similarly customer segmentation is not considered important in the open sourcecommunity model as compared to the proprietary model (Seppänen et al. 2007).Role of customer is vague as generally all software developers are considered ascustomers because they create products based on their own understanding ascompared to the actual customer needs.Apple has used open innovation model successfully (Pontiskoski & Asakawa,2009). The first thing Apple did was to allow anyone to create and marketapplications instead of limiting it to only big software development firms whichhave huge development charges (https://developer.apple.com/). In return Apple
  • 13. Jamil, S.9offers incentive in terms of money to the developers for creating, developing andmarketing the apps in an open environment through App store. This process isillustrated in Figure 8.Figure 8. Apple App development process (https://developer.apple.com/).The concept of open innovation has been adapted by many other mobile applicationdistribution companies as well. The use of open innovation by these companiesenables them to know about customer desires better by connecting them with thepreferred content created both within and outside the organization.DevelopmentteamCreate aprojectDevelop anAppPublish appin App store
  • 14. Jamil, S.104 CASE STUDY: APPLE APPS4.1 COMPARISON OF APP STORES AND PROFESSIONAL APPS SEGMENTThere are plenty of mobile app stores currently available to the users. Apple’s iOS,Google’s android, Microsoft Windows, Nokia’s symbian, RIM’s blackberry arefew of the examples. However, iOS and Android are the two most popular appstores at the moment (Goadrich & Rogers 2011). With the overwhelming increaseof apps in each app store, customers are facing huge difficulties to find the rightapp. Because of this, customers are looking for either better segmentation in appstores or stores focusing on particular types of apps. This leads to two possiblescenarios for mobile app stores, illustrated in Figure 9 and Figure 10.Figure 9. Current and expected growth of app stores.Figure 10. Mobile app stores converting into niche stores.First, currently the entire mobile app stores are somewhere in the early stages in theproduct life cycle and are competing with each other to move towards the growthstage. In order for one particular store to become the leader, it should improve thesegmentation and findability of apps (Figure 9). If that does not happen, there is therisk that the current mobile app stores will be overrun by number of small storeseach focusing on apps for a particular niche market (Figure 10). In fact the numberof niche stores (Gair and Miginis, 2011) is increasing as the market of app stores isshifting towards more target-oriented store. Apple app store has a clear advantageto be the leader because of quick access of apps, security, high quality standard forcontent, direct billing and working with a single device type (Ghezzi et al. 2011),though findability still presents a problem, especially for specialty apps.
  • 15. Jamil, S.11Mobile apps can be classified as either B2B or B2C apps. According to Ghezzi etal. (2011), B2B apps are professional apps which deal with firm’s internal businessprocess while B2C apps fulfill individual consumer needs. Apple has generallycovered all the categories, but when it comes to professional apps which includes,for example, security persons, teachers, medical staff & lawyers (as illustrated inAppendix 1) there is no clear category defined. Professional apps according toFrommer (2009), in business insider are generally in the price range of USD 100 &1000 as shown in the Figure 11. As, these professional apps are not very wellsegmented in the app store, users generally do not know about them. Furthermore,they are difficult to find in the App Store.Figure 11. Some Professional Apps Price Range on Apple App Store.There are lots of professional categories which are not being targeted properly bythe Apple app store and the professionals are finding dissiculties while searching adesired app. One such segment which has been identified as a part of this report isteaching segment in which reading and commenting other people’s text forms keyelement of the work. At the moment the most sophisticated tool for it is Word’s‘track-and-trace’ function, not very elegant and requires a real computer. However,touch screen provides a very interesting platform for an application in which onecan simply click the text, write short comment or even record a voice messageconnected to that part of the text. Figure 12 shows this concept.Figure 12. Concept of editing in teaching segment apps (taken from itunes).
  • 16. Jamil, S.12So, based on the above mentioned need, the idea in this report was to analyze thedifferent teaching segment apps. The criteria for analyzing the teaching segmentapps was based on the how much functions and file types they are supporting asillustrated in Figure 13.There are already some apps available for this purpose on Apple app store. Eachone of them has different characteristics and satisfies certain criterias. So, for thisreport some of the best apps were selected and mapped on the positioning chart toanalyze if there is any requirement for a new professional app for teachingsegment. These details will be explained in the next section.4.2 POSITIONING OF TEACHING SEGMENT APPSThe first problem is that teaching segment is not properly defined and most of theapps are directed towards extensive readers only. So, it is quite tough for a normalteaching professional to search for this app in the first attempt as the teacher willhave to browse through many categories before finding the desired app. Secondly,all the existing apps are not compatible with all the file types for editing and theydo not support all the features. Positioning of some of the most important apps forthis purpose are shown in Figure 14.Figure 14. Positioning map of teaching applications.pdf Word Power PointTextFreeHandVoiceeditingFile TypesFunctionsFigure 13. Criteria for teaching segement apps.
  • 17. Jamil, S.13As shown in the positioning map, there are 4 apps that are competing with eachother for the editing and annotation features. In terms of file type support,GoodReader supports three most important file types used by editors and teachersbut it lacks in the voice editing funtion. However, iAnnotate app has all thefunctions including voice editing function but it does not support any other file typeapart from pdf. The price comparison for all these apps is shown in Figure 15. As itcan be seen in the chart, these apps are basically categorized in the B2C app sectionand not in the professional apps price category.Figure 15. Price comparison of editing apps.As shown by the positioning analysis, there could be a need for one comrehensiveapplication designed specifically towards teaching segment. It should combine allthe features and should be compatible with all the file types commonly used byresearchers and teachers. Such an app can be priced high on app store based on thenumber of features and the professional target segment and can be a source ofpotential increased revenues if marketed properly. The problem is that manyinnovators or apps developers are not aware of these simple marketing proceduresas they are mostly developers with strong have technical background yet not sofocused on the customer needs. However, if the developers did practice thesesimple principles, they could be able to increase their sales and exposure.Different mobile application distribution companies have divided their appsaccording to categories. Thus, for many developers the segmentation starts at apoint of time when the app is ready and is about to be published in one of thecategories available in the relevant app store. Thus, according to Julian (2010),many developers think that segmenting is the last step of their marketing plan. Butto do that successfully, the developers must understand the demographicperspectives relevant to their apps (Steven, 2010). However successful developersalways try to push even one step further to find about more about customer reviewswhich tells about what features are missing in the app, emerging from the fact thatsome target users might still be ignored and segmentation hence needs to beredefined, resembling market pull approach.
  • 18. Jamil, S.144.3 ANALYSIS: MARKETING IN APP STOREMost of the marketing that is taking place in apps business is through onlineadvertising. Selling apps is one of the hottest businesses in the online communitytoday (Ven, 2011). Marketing and advertising of these apps to the right segment isquiet a huge challenge for the developers. According to Hughes (2009), marketingtools have generally been upgraded in the recent years (like social media) but thebasic concepts in marketing are still the same whether it is innovative appsdevelopment or making any other software product. So if the innovators want tomake money with their apps, first of all they have to follow the basic marketingprinciples and, hence, segmentation after an app is pushed to an app store basicallyfails. This is illustrated in first part of Figure 11. One of the most importantquestions to answer while making an app is what problem is it solving and who thetarget users are (Hughes, 2009). After that innovators can send a strong marketingsignal to the customers with the help of constant upgrades using open innovationplatform. This is illustrated in second part of Figure 16.Figure 16. Marketing scenarios of mobile apps.According to Ghezzi et al. (2011), the basic idea behind the app store is to givethird parties access and inexpensive tools to create and publish apps in app storethrough which they receive a certain share of revenues. Apple app store providesmuch more value added as compared to other app stores because of its strongreputation, single device and iTunes platform as illustrated in Figure 17. Throughthese subscriber is offered a single interface to connect to the Apple app store andmobile business proposition of app store is linked with iTunes distribution andbilling mechanism.Figure 17. App store value added is more.TimePerformanceApple value addedis moreTechnologyinnovationProductofferingMarket trialsCustomerneedTechnologyinnovationProductoffering
  • 19. Jamil, S.15As seen in the Figure, the technology evolves through periods of incrementalchange followed by discontinuities (Anderson & Tushman, 1990). App stores arealso following the same pattern. Currently all the app stores are in the incrementalphase of development as mentioned in previous section as well. With the passageof time some app stores will discontinue while Apple with its high value addedaccording to the reasons mentioned is expected to be the leader. Currently infinitenumbers of mobile apps are threatening a large base of users so some substantialsteps are required in marketing of these apps, which would encourage developers tocreate high quality apps.
  • 20. Jamil, S.165 CONCLUSIONSOpen innovation has been adapted by various organizations as a means for productdevelopment. In open innovation paradigm firms utilize internal as well as externalresources to create innovative products or services. Open innovation framework hassuccessfully been adapted to the development of mobile apps. Numerous apps arebeing created each day and distributed though companies like Apple, Android andOvi store. However, in the overload of apps, finding the right app is becoming achallenge for the customers.Objective of this paper was to analyze marketing of open innovations by lookinginto development and distribution of mobile phone apps. The paper first introducedtheoretical concepts of marketing, open innovation and communities. After thatsome insights into how software development has evolved into open source modelwere given. Last chapter discussed about open innovation and how marketing ofopen innovations is taking place in mobile apps development.The important findings from this paper were that, first, it is important fordevelopers to understand the basic concepts of marketing when dealing withmarketing of their apps. Distributor companies provide platforms for developers topromote their apps but it seems that it is the responsibility of developers to segmentand position their apps in the best possible way. Second, with the number of appsincreasing, it is becoming increasingly challenging to find the right app. As there isa huge number of apps being produced and uploaded on each app store every day,the important question is how to target the right market segment efficiently so thatthey have no problem in finding the desired apps and the procedure is convenientfor them as well.One such possible category was highlighted in the report which relates to theteaching segment. As illustrated in Figure 18, the apps currently available supporteither certain file types or have certain features available. So, for a potentialsegment like editors and teachers who works will all the file types and want to usefunctionalities like voice editing there is a need for an app which covers allpossible file types and have all necessary functions.
  • 21. Jamil, S.17Figure 18. Positioning map with the desired new app.At the moment, all the mobile app distribution companies are competing with eachother in the introductory stage of product life cycle. In order for any particularcompany to move forward, better segmentation and findability of apps should beemphasized. If not done successfully, all app stores may be overrun by small nichestores where each app store will be for a desired set of target customers. Because ofthe overwhelming number of apps, consumers are getting lost while searching fortheir desired app so, with the help of niche stores, customer satisfaction as well aspurchasing behavior especially for B2B market can improve dramatically. Onesuch possibility for making the niche stores might be that mobile app distributionfirms allow different telecom operators to promote their apps to specific targetcustomers. In this way, telecom operators will act as a distribution channel for theapps. But it remains to be seen and further research needs to be carried out if theapp stores move towards niche stores with the telecom companies in future.Desired App
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