Group discussion2 comm5980 for iPhone

1. iPhone
YU, Xixuan (1155128328)
van der Jeugd, Eline (1155139589)
LI, Yiran (1155128272)
ZHOU, Jielu (1155136946)
WANG, Xiliu(1155136945)
REN, Ruiwen(1155131527)

2. SWOT
Strengths Weaknesses
● Price
● Customer lock in
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● Easily broken screen
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Opportunities
● Other Apple products and byproducts
● Application market
● Technology
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Threats
● New brands emerging in the market
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● Privacy concerns
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● Unique ideas are easy to copy (eg. touchscreen, interface,
minimalist style)
● Too high expectations
● Brand loyalty
● Design
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● Icon: Steve Jobs, Apple
symbol
● Customer lock in
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● Byproducts
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3. Porter’s Five Force
1. Competition in the industry - High Pressure
● How many competitores exist in the industry?
- - Huawei / Samsung
● What are the size of your close competitors?
- Samsung domains Korean market
- Also Japanese prefers their own local brands
- Huawei will threaten Apple’s market in China, especially when the 5G emerges in the market
In general, Asian market has few competitive brands with Apple.

4. Porter’s Five Force
● How does the quality of their product and services compare to yours?
- Samsung: Galaxy Fold / Screen design
- Huawei: Camera quality (Leica) / 5G / Price
● Where rivalry is intense, companies can attract customers with
aggressive price cuts and high-impact marketing campaigns.
- iOS system / high customer loyalty

5. Porter’s Five Force
2. New entrants into the industry - Medium Pressure
● How loyal are the end users in this industry?
- High loyalty (iOS + Mac OS creates an outstanding and closed ecosystem in the phone
market)
● How troublesome or hard is it for the end users to switch and use
another product?
- - HARD (Learning cost and iCloud) / Customer lock-in

6. Porter’s Five Force
● Does it require a large seed capital to enter this industry?
- YES
- Fixed cost : Manufacturer / Employment / Engineering / App store
- Variable cost: Marketing and Advertising
● Do entries to this industry regulated by government?
- - Depends on the country. Some governments check safety issues.
- The phone industry has relatively high level of freedom compare to other industries, like
gasoline, medicine, etc.
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7. Porter’s Five Force
● How hard is it to gain access to the distribution channels?
- It’s necessary to have essential capital to gain access to the distribution channels. Or you
have already had your own distribution channels.
● How long does it take for new staff to acquire the necessary skills to do
the work?
- Compound talents (design thinking and computing thinking)
- Short term with high costs(hiring experienced staff).
- Long term with low costs(training beginners).

8. Porter’s Five Force
3. Power of suppliers - Low Pressure
● How many potential suppliers do you have?
- A large scale of potential suppliers
( Low bargaining power of suppliers)
● How unique is the product or service that they provide?
- Core technologies are self-manufactured.

9. Porter’s Five Force
● How expensive would it be to switch from one supplier to another?
- The cost would be low
- Apple is the first party, thus there will be a large numbers of industries and manufacturers
competing to become the suppliers of Apple.
“The more you have to choose from, the easier it will be to switch to a cheaper alternative.”

10. Porter’s Five Force
4. Power of customers - Medium Pressure
● How many buyers are there?
General trend is upward

11. Porter’s Five Force
● How many companies are there for the buyer to choose from?
According to the research on “10 Most Sold Smartphones in 2019”
Samsung / Xiaomi / OPPO (in 2019)
● How big are their orders?
Global Market share
Samsung 21%
Apple 12%
Huawei 12%
Xiaomi & OPPO 8%

12. Porter’s Five Force
● How many with it cost them to switch from your products and services
to those of a rival?
The cost is not only money, but also other things such as information (customer lock in).
Example: if you are used to using icloud on your iphone you cannot transfer this to a Samsung
phone. (customers’ lifestyle)
● Do you depend only on a few buyers to sustain your sales?
Yes
iPhone users are loyal to Apple. Iphone is a relatively expensive product but iphone users
will still buy it. (brand loyalty)

13. Porter’s Five Force
5. Threat of substitutes - Medium to High Pressure
● How many close substitutes are available?
We think that there are no substitutes for the loyal iPhone users, whereas with the
technologies developing, other brands will become the strong competitors for iPhone, and
customers may have high willingness to shift their consumption.
Example: Samsung Galaxy S10, Huawei P30, Xiaomi 9

14. Porter’s Five Force
● How pricey are the substitutes?

15. Porter’s Five Force
● What is the perceived quality of the substitutes?
Samsung: big screen, high definition screen
Huawei: Camera, 5G

16. Business Model Canvas

17. Blue Ocean Strategy Canvas
iPhone 4 Blackberry bold 9700
Release Time: Dec. 18,2010Release Time: June 24,2010

18. Blue Ocean Strategy Canvas
These attributes were
viewed as key to the
decision of selecting a
smartphone.

19. Blue Ocean Strategy Canvas