Week 6 presentation of COMM 5980 - New Media Ecology

1. Week 2 Discussion
1. Supply and demand curves:
Supply of free news online is increased, people becomes unwilling to pay for subscription fee.
2. The world is flat:
Facebook enables users to connect with others all over world.
3. Moore’s law: Availability of gmail storage space increases over years.
4. Metcalfe’s law: Instagram users connect with each others.
5. The long tail: Pet-Sitting service is not common but there is a demand for it. Service provider can make a website and people can
search for it online when they need it.
6. Freemium: Apple Music, Netflix, iCloud

2. What may happen 10 years later:
• Smartphone will dominate the technology market.
• Personalized service would be more common with more
comprehensive data base.
• The in-store retails will shrink and be replaced by online shops

3. SWOT Analysis of iPhone
• Halo effect ：Apple
established an image of
innovation and creativity
successfully.
• Well established
ecosystem, suc as iTunes
and Appstore.
• Customers loyalty is
very high and price
insensitive.
• Too similar：No
significant difference
between the different
generation of iPhone.
• Lack of product
diversification – iPhone
merely focus on the high-
ended consumer market.
• Technology
improvement of mobile
computing with wireless
networking, help Apple to
develop better iPhone at
a lower cost.
• Constantly growth of
mobile devices demands.
Keen Competition: Google
Android, Samsung
Huawei, Xiaomi, LG, etc.
• Compare with Android
Phone at same hardware
specification, iPhone is
much more expensive.
• The lost of Jobs.

4. Porter’s Five Forces of iPhone
1. Threat of New Entry
a. High cost of brand development
b. High capital requirement
2. Supplier Power
High level of supply for most components of iPhone
products.
3. Threat of substitution
High availability of substitutes but low performance of
those substitutes.
4. Buyer Power
Low switching cost
Easy for customers to change switch from iPhone to
other devices with similar features and low cost
5. Competitive rivalry
High aggressiveness of other companies such as LG &
Samsung. With rapid innovation, omnipresent
advertising and imitation

5. Key Partners
• Manufacturers
• Distributors
• Telecom service
providers
Key Activities
• R&D
• Product design
• Manufacturing
• Marketing
• IOS maintenance
and upgrade
• Retail store
operations
Value Propositions
• Good performance
• Simple yet user
friendly
• Good camera
quality
• Leading design of
smartphone
• Synchronization
with iCloud, iTune
and other Apple
products
Customer
Relationships
• Apple stores
• App store
• Genius bar
• iTunes
Customer Segments
• Young generation
• Tech savvy
• Mass market
Key Resources
• IT talents
• Sales & marketing
talents
• Apple brand
• Innovative design
Channels
• Distributors
• Telecom service
providers
• Apple stores
• iTune
Cost Structure Revenue Streams
Business Model Canvas - iPhone
• R&D
• Manufacturing
• Retail stores rental
• Labour cost
• Server
• Marketing
• Sale of products
• Sale of apps

6. Blue Ocean Strategy
Variety of
Model
Price Weight Battery Life Security Design Camera
Quality
App Store iTunes/
Apple Music
iCloud Apple Pay
Apple iPhone Samsung Andriod Phone
eliminate reduce raise create