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Running Head: Competitive Analysis of the Organization
6
Competitive analysis of the organization
It is important for any organization to thrive and succeed in
their business markets. It is also vital for these particular firms
to develop the need to analyze their competitor’s needs and
strategies. Understanding competitor analysis however is
important in ascertaining marketing planning strategies and
processes. Strong competitors perhaps can hinder best
performances of the firm and its general success, and at an
advanced stages, it can lead to total failures. Competitive
analysis however enables firms to anticipate their close
competitor’s actions and that can enable the organization to
exploit competitor’s weaknesses. The strategy also enables
firms to identify their most unique selling points. The
identification of the selling points however can be strengthened
trough marketing campaigns. Competitive analysis however
enables and aids successful competitors to continuously develop
their best marketing strategies in acute response to the changes
in the market place.
Based on porter’s five competitive forces, these strategies were
developed basically as a framework for assessing and evaluating
the business competitive strength and the firm’s business
position. This strategy believes in the notion that five forces
exist that determines the competitiveness and attractiveness of
the market. It also identifies greatly where power lies in a
business situation. Porter’s specifications are therefore
important in realizing the strengths of the organization current
competitive position, and it also predicts the organizational
strength in the future. The forces however can be used by
strategic analysts at advanced stages to realize if new products
or services that prevail in the business environment are
potentially profitable.
They can also use it to ascertain the areas that posses more
strength, this will help in improving weaknesses and helps to
avoid mistakes.
Porters five forces of competitive positions
Supplier power is the certainty of how suppliers make it easy to
drive and raise prices. Normally, supplier power is driven by
the number of suppliers for each particular input, the available
of their products and services, the strengths supplier posses and
the relative cost of switching from one particular supplier to the
other. Suppliers posses power when: there are very few
suppliers of a particular product, when substitute don’t exist,
when the product is extremely important to the potential buyer
who cannot do without it and also the degree of differentiation
of inputs
Buyer power.Buyer’s posses the potential of lowering prices.
This is normally ascertained by the number of buyers existing in
the market. It is also related to the individual buyer to the
organization. Cost of the buyer that determines the switching
from one supplier to the other is also determining factor.
Business with few buyers is not productive simply because they
often dictate business terms to potential buyers.
Competitive rivalry. For a business to prosper in any given
modern society there should be a number and capable
competitors in the market. Many competitors however who offer
undifferentiated products and services will definitely tend to
reduce market attractiveness.
Treat of substitution. Existence of substitute goods and services
in the market place may make buyers to develop the mind of
switching to alternative responses due to price increases. Buyers
at this particular point may prefer lower prices to the higher
one. This strategy reduces the supplier power and also market
attractiveness will be lower
Treat of new entry. Existence of profitable markets entices and
attracts new suppliers. Due to the existence of strong business
ethics that governs this site, such as strong and durable barriers
to entry, e.g. economies of scale government policies and the
capital requirement, could perhaps decline profitability to a
competitive rate. There are factors that limit the treat of new
entrants also known as barriers to entry. These are high fixed
costs, top government restrictions, scarcity of resources, brand
equity, capital requirements and also economies of product
differences.
Target market refers basically to the potential customers
organization who wishes to offer its products and service to,
and to particularly whom it directs its marketing effort. In
developing marketing plan, it is essential to develop target
market. Samsung Company for instance finds its more potential
to supply its products because it has more markets than any
other company.
Samsung company for instance posses the need that drives
purchase. Firm’s posses the inner drive that transform into more
globalised and integrated standardized firms. They also have the
need to extend performance improvement by simply extending
the use of best standard best practices and offered solutions
across the companies’ local operations.
Samsung Company is an organization that is diverse and it
produces variety of products to its available consumers. Their
products are of high quality and thus fetching more markets
globally. Its major concern in production is electronics e.g.
mobile phones, televisions and radios.
The effective products that the industry and the market sector
target attain and meet the basic needs of the individual. This is
because the electronics that Samsung company produces posses
massive increase in speed and the effectiveness of
communication, multitasking, research and access to
information.
Nokia Company is a primary competitor of Samsung because of
their smart-phone sales. Nokia however does not surpass
Samsung, but majority of consumers use their products.
Actually, all of the Android smart-phones are competitors to
Samsung .Due to this trends of competition, Samsung have been
forced to come up with new ideas to keep their electronics sales
high.
The organization is different from its competition trough the
price it offers to its commodities. The prices should be
affordable and easily available to its buyers. This will also
enable beat the competition pricing on the front line products
and services. The added value services such as the free
shipping, buy one get one sales are also the common incentives.
Convenience of the products by consumers is also a necessity
that differentiates one firm from the other. This can be carried
out by use of online shopping. Customers also need a firm that
have absolute trust and produces viable products.
References
1. Robinson, E A. G. The Structure of Competitive Industry.
Chicago: University of Chicago Press, 1959. Print.
2. Wright, Martyn. Managing Competitive Crisis: Strategic
Choice and the Reform of Workrules. Cambridge, U.K:
Cambridge University Press, 2000. Print.
3. Whitley, Richard. Business Systems and Organizational
Capabilities: The Institutional Structuring of Competitive
Competences. Oxford: Oxford University Press, 2007. Print.
4. Competitive Regional Clusters: National Policy Approaches.
OECD Publishing, 2007. Print.
Running head: PRODUCT, PRICING, AND CHANNELS
1
PRODUCT, PRICING, AND CHANNELS
2
Product, Pricing, and Channels
Strategy and Positioning
Overview
Apple Inc. incorporated in 1977. Their business model has been
design, production and promotion of personal computers,
messaging and communication devices, mobile media, laptops
and other portable digital equipment. The company also
produces a wide range of associated software applications,
secondary merchandise and services; the most well known
among these: iPhone, IPod, iPad, Mac Book, IOS and OSX
systems. Apple recently purchased a seed company from Silicon
Valley that focuses on smartphone applications and sells
products and software to government buyers (Reuters, 2014).
Computers have existed for several decades. Essentially, the
computer, as we know it, is a very crude substitute for an
external brain. No computer on Earth has ever been able to
approach the complexity and capacity of the human mind.
Technology’s attempts to simulate the complexity of even a
small segment of the brain still seem overwhelmingly futile. In
light of these limits, one logical solution is to develop a device
that will join forces with a user’s mind rather than competing
with it. One might assume that the characteristics of such a
device would be present too much complexity; however, it may
be very simple. Much like a computer or smartphone, the brain
runs on electricity.
The chemical reactions that occur when we produce a thought
create a reaction within our brain cells (or neurons). This
electrical impulse releases chemicals (neurotransmitters) which
in turn control the degree of energy of other electrical impulses.
It is this impulse which controls the level of release (and type
of) neurotransmitter that will influence the next electrical
impulse. The psychiatric world commonly refers to this process
as neural “firing.” It is common knowledge that these electrical
impulses can travel to a set of electrodes when attached to the
scalp of a subject. The key to harnessing and controlling how a
thought is captured and translated lies within this practice. If a
smart phone is able to translate refractory periods, it may be
able to decipher thought through an interface.
Controlling machinery with thought involves capturing the
thought impulse. Each impulse would travel to a receptor center
which developers would model after a neural receptor cell. The
idea of communication is to transfer thought to another person.
The interface that can send a message directly to another
person’s brain might, at some point, circumvent the need for a
device (Oxbridge Biotech Roundtable, 2014).
SWOT Analysis
Strengths
Strengths of the Offering.
The biomedical engineering aspect of a prospective device is
fairly straightforward. The developer could model the non-
invasive device link to the brain after the EEG and neuro-
prosthesis mechanisms. The primary goal is to eliminate typing
and speech through the smart-phone and either accepting or
rejecting the reproduction of the thought, prior to transmitting
the message to the recipient. This will enable the user to avoid
miscommunication or unintended words or messages. To
accomplish this, the built-in receptor would also function as a
filter or thought sifter. If this device is intuitive, it may, at
some point, develop the capability to “auto-sift” as the program
learns what thoughts the user tends to transmit accidentally and
what messages he or she wishes to convey in a given
circumstance or to a certain contact (Oxbridge Biotech
Roundtable, 2014).
Strengths of the Company.
Apple’s strengths lie in its reputation. The company’s marketing
and advertizing capabilities are strong, and its production,
manufacturing and distribution is available through numerous
channels in the United States.
Weaknesses
Weaknesses of the Offering.
The capability and knowledge available in the area of neuro-
prosthetics as it relates to electronic based non- invasive
technology is not as abundant on the biomedical engineering
side. Understandably, devices that are exclusively for medical
purposes hold a position of priority in this field of research. The
efforts to establish adequate manufacturing and testing might be
a challenge (Michigan News University of Michigan, 2014).
Weaknesses of the Company.
The weaknesses of Apple are in their product span, pricing
levels and in their delivery conduits in Asia and India. The
company also demonstrates limitations in area of product
innovation, which this offering might help to remedy. Another
of Apple’s major weakness is in system compatibility.
Compatibility with software and hardware systems is a major
challenge, as is the overall integrative functionality with other
operating systems. This weakness may shed light on the
company’s heavy dependence on iPhone, iPad and Mac Book
sales (Reuters, 2014).
Opportunities
Opportunities of the Offering.
The offering would address the challenge the company has been
enduring with regards to innovation and advancement. It would
also possibly be a viable alternative to the iPhone and iPad and
would offer the market an alternative to these products; thereby
diminishing the dependence that the company has on iPad and
iPhone demand. The product would be a huge advancement in
technology and, if developed well, may eliminate and preclude
competition for an indefinite period of time; which would boost
profitability and share prices tremendously.
Opportunities of the Company.
Opportunities for Apple are mainly in the areas of acquisition of
other similar companies in the market space, mobile payment
capability, and clip-on gear. The biggest opportunity for Apple
(or any company in its sector) is the discovery and development
of a product that, like the iPhone, becomes a product that
consumers covet more than any other device. That has always
been the ultimate opportunity in this market space.
Threats
Threats to the Offering.
The threats exist mainly in patent claims and resulting lawsuits.
There are other companies and research groups who are working
on similar technology. Competition threats exist with these
same groups. Other companies or developers may seek patents
or have already received pending patents on similar technology
(Reuters, 2014).
Threats to the Company.
The company is currently “king of the mountain.” Apple has a
strong market share and industry position at the top; other
companies want to push it down and take its place. The
company is perpetually attempting to innovate with the same
products. The competition is the biggest threat at the present
time. The companies that pose immediate threats are Microsoft,
Android, Nokia and Samsung (Reuters, 2014).
Competitive analysis of the organization
It is important for any organization to thrive and succeed in
their business markets. It is also vital for these particular firms
to develop the need to analyze their competitor’s needs and
strategies. Understanding competitor analysis however is
important in ascertaining marketing planning strategies and
processes. Strong competitors perhaps can hinder best
performances of the firm and its general success, and at an
advanced stages, it can lead to total failures. Competitive
analysis however enables firms to anticipate their close
competitor’s actions and that can enable the organization to
exploit competitor’s weaknesses. The strategy also enables
firms to identify their most unique selling points. The
identification of the selling points however can be strengthened
trough marketing campaigns. Competitive analysis however
enables and aids successful competitors to continuously develop
their best marketing strategies in acute response to the changes
in the market place.
Based on porter’s five competitive forces, these
strategies were developed basically as a framework for
assessing and evaluating the business competitive strength and
the firm’s business position. This strategy believes in the notion
that five forces exist that determines the competitiveness and
attractiveness of the market. It also identifies greatly where
power lies in a business situation. Porter’s specifications are
therefore important in realizing the strengths of the organization
current competitive position, and it also predicts the
organizational strength in the future. The forces however can be
used by strategic analysts at advanced stages to realize if new
products or services that prevail in the business environment are
potentially profitable.
They can also use it to ascertain the areas that posses more
strength, this will help in improving weaknesses and helps to
avoid mistakes.
Porters five forces of competitive positions
Supplier power
is the certainty of how suppliers make it easy to drive and raise
prices. Normally, supplier power is driven by the number of
suppliers for each particular input, the available of their
products and services, the strengths supplier posses and the
relative cost of switching from one particular supplier to the
other. Suppliers posses power when: there are very few
suppliers of a particular product, when substitute don’t exist,
when the product is extremely important to the potential buyer
who cannot do without it and also the degree of differentiation
of inputs
Buyer power
Buyer’s posses the potential of lowering prices. This is
normally ascertained by the number of buyers existing in the
market. It is also related to the individual buyer to the
organization. Cost of the buyer that determines the switching
from one supplier to the other is also determining factor.
Business with few buyers is not productive simply because they
often dictate business terms to potential buyers.
Competitive rivalry. For a business to prosper in any given
modern society there should be a number and capable
competitors in the market. Many competitors however who offer
undifferentiated products and services will definitely tend to
reduce market attractiveness.
Treat of substitution. Existence of substitute goods and services
in the market place may make buyers to develop the mind of
switching to alternative responses due to price increases. Buyers
at this particular point may prefer lower prices to the higher
one. This strategy reduces the supplier power and also market
attractiveness will be lower
Treat of new entry
Existence of profitable markets entices and attracts new
suppliers. Due to the existence of strong business ethics that
governs this site, such as strong and durable barriers to entry,
e.g. economies of scale government policies and the capital
requirement, could perhaps decline profitability to a
competitive rate. There are factors that limit the treat of new
entrants also known as barriers to entry. These are high fixed
costs, top government restrictions, scarcity of resources, brand
equity, capital requirements and also economies of product
differences.
Target Market
Releasing new products is uncommon for the Apple
organization. Consumers know Apple for its production of
computers in the early 2000’s. However, in October of 2001
Apple released the iPod which was their first non-computer
product. The iPod was a great idea that took the place of the
compact disc player by introducing hard-drive based digital
music player. Although this new product was guaranteed to be a
great selling product and consumers found the iPod to be
amazing, the sales for the IPod were not high. The reason for
the low sales of the iPod was because of the pricing. The iPod’s
pricing began at 399.00 dollars when it first came out; therefore
the target market for the IPod was primarily wealthy consumers.
The iPod did make a turnaround in late 2003, because apple
made it available for windows computers to download ITunes.
ITunes allows consumers to bypass compact disc altogether.
Consumers were able to download music from ITunes on to
their IPod which made the Apple company over 70 million
dollars. With the company making so much money from the
transformation, the prices for IPods began to fall. To this day
this product has changed the way that the world listens to music
through one of Apples product.
Apple understands that there are many trials and errors that
come from marketing a new product. This is why coming up
with a product that interacts with peoples brains will take time
to market but will be a big success (Sanford, 2014).
A product is currently in development that interacts with the
human brain. The company can target this product to many
types of consumers because of the technology intrigue.
However, when this product becomes public, the company
would do well to attract the interest of the loyal Apple
customers first. The design of the product must be a
representation of Apple Inc. The second most important focus of
the target market is consumers between the age of 18- 34.
People in this age bracket are more likely to buy new
technology. The product should not be so expensive that Apple
loses some of its target market. It is very important that the
target market can afford this product, so there is not a situation
similar to 2001 with the introduction of the iPod.
The Needs that Drive Purchase
The Need for the target market to buy this product is apparent
because of how much easier life can be for the product’s
consumers. Logically, a consumer would want to use this
product because it takes hands free to another level. To imagine
a product that interacts with one’s mind to accomplish daily
tasks (answering emails inconspicuously in the middle of
meetings, accessing information without speaking or touching,
use while driving a vehicle) it would be very convenient for a
consumer to answer phone calls or play music just by thinking
of whatever they want. The product would allow consumers to
multitask in many different areas whether it be home, business,
or leisure.
Industry Category
Apple Inc. is in the technology sector. This product would
specifically fall within the Radio and Television Broadcasting
and Wireless Communications Equipment Manufacturing sub-
sector (Investorguide, 2014).
Solves the Target's Needs
This product will meet specific needs of the typical individual
that this industry and market sector targets. It will do so with a
massive increase in the speed and effectiveness of
communication, multi-tasking, research and access to
information. This is just the beginning: the public market will
perceive this device as limitless with regards to what it can do
and how closely it can assimilate with (and familiarize itself
with) the individual user.
Organizations Competition
Samsung is Apple’s primary competitor because of their smart-
phone sales. Samsung does not surpass Apple, but a lot of
different consumers use their products. Actually, all of the
Android smart-phones are competitors to Apple because Apple
only sells the iPhone. With Samsung, Windows, LTC, and many
other smart-phone companies competing to make the most sales,
Apple is forced to come up with new ideas to keep their phone
sales high. The Mac-Book is a computer made by Apple the
Mac-Book’s competition is the windows computer. When
considering overall sales, Windows has sold more computers
then Apple.
The last piece of major technology for Apple is the iPad.
Although the iPad started the beginning of the android tablets,
the tablets are still major competition to the iPad. When Apple
releases this new technology, it will not be long before
Androids begin making the same product.
What makes the organization different from competitors?
Apple is different from its competition in that Apple is its own
brand. For example, one could say that Dell competes with the
Mac-Book made by Apple. The Dell computer is made by Dell,
but uses windows operating system. Unlike Dell Apple uses its
own operating system therefore makes it a unique brand. Apple
also ensures that it is close to impossible for their products to
catch viruses. The Apple brand also stands apart from it
competition because of its individuality consumer get from their
products and like most luxury brand names Apple stands apart
from the rest. Apple stands apart because other companies
really don’t have their own design team and find themselves
following behind Apples lead. It is difficult for Apples
competition to sale more than apple when the competition is
usually copying ideas from Apple (Barjarin, 2014).
Needs Leading to Consumer to Purchase
Logical Needs
Consumers buy smart-phones for convenience and
communication freedom. If a business person is on the road
frequently, he or she will have access to information and can
respond in a timely way. This device will expedite
communication well beyond any prior capabilities. Surely this is
an evolutionary product. It will become more and more
streamlined as it evolves. The limited knowledge that we have
and are working with must be used to streamline use and
eliminate any glitches, so that the end result is customer
satisfaction. The purely logical use for this product is to bridge
gaps in communication, time and space while avoiding any
overly invasive aspects (Oxbridge Biotech Roundtable, 2014).
Emotional Needs
The human desire for the latest gadget is the primary reason for
the massive market share that the cell-smart-phone industry
enjoys. Since its introduction to the market, the cell phone has
been an increasingly sought after item. It was not as common
when it first broke into the market. This may be the reason that
people began to covet the latest cell phone or smart phone, as
they began to become more available; because at one time, it
was an item for which only some people had a use. People
generally want what they can’t have, and if the latest device is
updated to remain perpetually out of reach, it will keep people
reaching.
Product, Pricing, and Channels
The Apple I device integrates and incorporates with the user on
a level that no other product has achieved. It is a new product in
every way and will eventually take the place of the smart-
phone, as the number of users increase. It will effectually phase
out the iPhone and iPad, as well all other types of smart-phones.
Product Description and Target
The headset will have electrodes discreetly built into it. The
electrodes will detect, transmit and measure the neural activity
in the posterior area of the superior temporal gyrus of the
dominant hemisphere: specifically, activity that controls the
following features: speech, writing, communication, visual and
auditory perception. The device simply controls and directs
signals traveling from this area to the proper receptors to enable
the appropriate functions. So, instead of pressing a button or
clicking a mouse, the device harnesses the actual electronic
signal which then causes the appropriate response within the
device. This device then sends a signal through a wireless
network as a smart-phone would do (Vendavo, 2014).
The device will have a “thought filter” function to inhibit any
erroneous or otherwise undesirable information from
transmitting. The filter will have an intuitive gauge on it, which
“learns” the individual user’s typical pathways of transmission
to seek out the appropriate preclusion in each message or
command. The appropriate target market is the business market
that requires communication and eventually, everyone that uses
a cell or smart-phone. The “Apple I” will meet the needs of its
target market by saving time and, therefore, money. Everything
will happen faster. Ideally, business will transact more quickly
and efficiently. Communication will become less cumbersome
more streamlined and effective (Oxbridge Biotech Roundtable,
2014).
Marketing and the Product Lifecycle
Throughout each phase of the product lifecycle, the marketing
approach will adjust to reach the proper number of individuals
and companies within its scope of pursuit. The Apple I will
phase into the market so the marketing strategies must match
the phases appropriately
Introduction Phase
The success of the initial skim pricing strategy will determine
the speed at which a competing product evolves into a viable
competitor. The distribution will start selectively and will grow
with increasing demand levels. The introductory target will be
innovative, pioneering technology oriented buyers (Value
Management Advisors, 2012).
Growth Phase
The product will maintain its quality with some slight pricing
adjustments. Price strategy will adjust to penetrate the market if
competition surfaces. Distribution channels will become
broader, and the target will become more inclusive (Value
Management Advisors, 2012).
Maturity Phase
The company will begin to enhance the product’s features and
insight. As the technology develops, the user integration will
become more and more effective and specialized. The aptitude
of the operating system will continually evolve in its ability to
assimilate to the individual user. The distribution channels will
be vast, and the pricing strategy will adjust more toward
economy pricing levels according to the level of competition at
this stage (Value Management Advisors, 2012).
Decline Stage
The Apple I will continue and Apple will add additional
features to adapt as the technology becomes more intuitive and
intelligent. Unlike the iPhone, this product is not as susceptible
to banality. The possibilities for additions and features are
endless. The distribution channels can decline slightly, and the
target can stay the same (Vendavo, 2014).
Value through Packaging
Apple’s packaging is unique to its own brand. In buying Apple
products, a consumer gets a detailed, durable, and unique box
that has a picture and a brief description of the product. The
iPhone and the iPod are example of how Apple adds value to
their packaging. Most MP3 players come in plastic and have the
name written between the plastic with paper. Though such
packaging doesn’t make the product look cheap, it does make
the product seem as if it is generic and anybody could afford it.
The iPod packaging however comes in a box that has a sliding
top; this makes the product appear to be special, and one could
say the product almost seems as if it were gift wrapped by
Apple. The IPhone is packaged the exact same way to ensure
that consumers immediately recognize the packaging as an
Apple product. Apple has set the standard high for its IPhone
and iPod product line packaging, and it is imperative that the
next product aligns with this packaging standard.
The “Apple I” is the name the company will propose for the
product upon distribution. It will have to keep the same classic
Apple look, so it does not detract from the Apple brand.
However, there must be some changes in order to incorporate
this new product. The biggest change proposal is in the altering
of the shape of the packaging. The manufacturing team will use
circular packaging to give the effect that the product is meant to
go on top of the head of the user. The packaging will also have
the name and a brief description on the outside of the packaging
to ensure consumers begin to know the product, itself, as a
brand. The product will come in many different colors so all of
the packaging will match the product color. On the inside, the
product will be cradled by soft packaging (similar to that of
jewelry) to ensure that the product is not harmed, but most
importantly, to give the illusion that the product is priceless;
like the thoughts and the mind of each individual user. This
product needs to keep the essence of Apple’s signature name
and brand but must incorporate the new technology in the
packaging. The goal is to have consumers look at the product’s
packaging and know instantly, that it is an Apple product
(Vendavo, 2014).
Pricing Strategy
The skimming strategy for this product is appropriate at launch
because the buyers will be those who will be willing to take
some risks themselves. The product is not going to need to
penetrate the markets initially. Initially, there will be scattered
distribution with skim pricing because it is a big jump from the
smart-phone to a device that communicates activity from the
user’s frontal lobe. There will be a period of adjustment in
terms of pricing levels and user compatibility. The product will
have to price according to these distribution phases (Value
Management Advisors, 2012).
Product Launch
The initial price of $650.00 for the device should be proposed
to distribution channels. This price will include all necessary
gear. Some users may perceive this price as unaffordable, but
the capacity of the product will encompass and, possibly
eliminate the need for the Mac and the iPhone.
Understandably, there will be some trepidation and even more
curiosity with regards to a product that can essentially read
thoughts. It is this fear and curiosity that will be useful for the
sale of the product. The product’s functions are the main draw
once the buyer overcomes his or her initial curiosity and fear.
Distribution
Online distribution channels will not allow the proper
promotion process of initiation with a product like this. The
company will need intermediaries to assist with product
introduction (Value Management Advisors, 2012).
Channeling Value
A mix of direct and indirect distribution channels would be
most effective at launch. This product should be available
online directly from Apple, but should also be available through
intermediaries such as Radio Shack, Verizon, AT&T, Best Buy,
CNet and other online retailers. The product should be made
available in retail stores as advertising starts to invoke curiosity
(advertising should be aimed directly at buyer curiosity). The
majority of the distribution channels should be through retailers
that conduct in store “test drives” of the product. The “test
drive” will add value in that it will cater to each individual
user, immediately. The user will see, firsthand, how the product
immediately begins to “understand” him or her and integrate
with immediate functional (frontal lobe) activities. Users are
going to want to see an immediate unique integration with no
invasive characteristics. Once the Apple I achieves this
user/device trust level, the functionality can be a multi-level
exploration into a world that no one has ever known. A “test
drive” should give the user the experience of immediate,
“thought to function” transfer and demonstrate a high speed
grandiose capability of thought to action processing (Value
Management Advisors, 2012).
Conclusion
The Apple I has the potential to change the mobile device
market. The method of presentation is going to determine how
quickly this will happen. The competition will follow the
product through its distribution channels, but this product will
lead the market exclusively for a significant period of time. It is
during this time period that Apple will focus most on
developing and perfect the unique functions of the product. The
pricing strategy and distribution phases will extract maximum
profitability.
Despite the competition in the global market and new products
release, Apple Inc remains to be active. Today, the use of
phones is one of the recent technologies that have improved the
entire world. Communication and other needs have been
simplified by the new communication devices. However, in
spite of the numerous products that the Apple Inc. releases into
the market, the use of iPhone has been outstanding. The product
has more than a few features that much the current generation.
Statistics have reviewed the 60% of the world’s population
admire the new design of iPhone because it has substantial
features. iPhone has incredible features that much most
computers. This electronic device can be used as a laptop
because it has similar and even enhanced features. The target
market of this device was mainly for the new generation. This
paper will describe the efficiency of iPhone phone and its
impact to the current generation.
In the current world, everything has turned digital. Today, the
use of Smartphone has influenced considerable factors that have
effectively enhanced communications and other factors. This
has influenced a great challenge to the upcoming generation
because of the new devices and the course outline they cover in
their institutions. However, Apple Inc. created a suitable device
that can meet all the need of the current generation. In general,
the target market of the iPhone phone is the current and the
upcoming generation. Research shows that most youths are
attracted to iPhones because their brains are intelligent, and
they believe that this is the right device. The device can link
several websites and carry out complex problems that the
current youths face. Also, the Smartphone has suitable features
compared to other phones. This phone is widely used because of
its speed and efficiency compared to other handsets (Kourdi,
2009).
All iPhone phones are lightweight weighing approximately
112grams. For instance, the weight of iPhone 5 is based on its
thinness unlike the weight of Samsung Galaxy S3. Apple
organization executives argues that the handset has many
features that make the Smartphone outstanding than most
computer systems. Most people claim that when it comes to
comfort, they prefer iPhone phones. The phone has a wider
screen which has simple settings for operation. The phone
offers suitable and quality pictures since the introduction of the
high technology by Apple organization. Despite the incredible
features of the phone, it is clear that new phases in the current
generation continue to improve the effectiveness of the product
(Kourdi, 2009).
The marketing efforts of the company have influenced more
than a few changes. Some of these changes have increased
revenues of the organization. Apple Company has manufactured
different types of iPhone phones in order to meet the needs of
their target market. This has enabled most youths to afford the
phones and use them to solve most of their puzzles. Statistics
show that the speed of the phone has assisted many students in
collages to have positive attitude in their education. This is a
clear indication that the phone is contributing much to what is
studied in collages. The company can increase its marketing
efforts through advertisement and manufacturing of more
iPhones. This will attract different races globally. In general,
iPhones are incredible devices that meet the needs of the current
generation (Kourdi, 2009).
References
Arnold, N. (2014). Who are Apples 3 Biggest Competitors .
Retrieved from http://wallstcheatsheet.com/stocks/3-of-apples-
competitors.html/?a=viewall
Barjarin, T. (2014). 3 Ways Apple Sets Itself Apart from the
Competition. Retrieved from
http://techland.time.com/2012/07/30/3-things-that-set-apple-
apart-from-the-competition/
Investorguide. (2014). Stock Profile AAPL. Retrieved from
http://www.investorguide.com/stock-profile.php?ticker=AAPL
Kourdi, J. (2009). Business strategy: A guide to taking your
business forward. London, Eng: Economist in association with
Profile Books.
Michigan News University of Michigan. (2014). New cochlear
implant could improve hearing. Retrieved from
http://ns.umich.edu/new/releases/101
Oxbridge Biotech Roundtable. (2014). Brain Computer
Interface: Technologies for the Brave New Brain. Retrieved
from http://www.oxbridgebiotech.com/review/research-and-
policy/brain-computer-interface/
Reuters. (2014). Apple Inc (AAPL.O). Retrieved from
http://www.reuters.com/finance/stocks/companyProfile?symbol
=AAPL.O
Sanford, G. (2014). Apple Company History . Retrieved from
http://apple-history.com/h8
Value Management Advisors. (2012). Tech Pricing Challenges.
Retrieved from
http://valuemanagementadvisors.com/2012/11/tech-pricing-
challenges/
Vendavo. (2014). customers industries technology. Retrieved
from http://www.vendavo.com/customers/industries/technology/

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Running Head Competitive Analysis of the Organization .docx

  • 1. Running Head: Competitive Analysis of the Organization 6 Competitive analysis of the organization It is important for any organization to thrive and succeed in their business markets. It is also vital for these particular firms to develop the need to analyze their competitor’s needs and strategies. Understanding competitor analysis however is important in ascertaining marketing planning strategies and processes. Strong competitors perhaps can hinder best performances of the firm and its general success, and at an advanced stages, it can lead to total failures. Competitive analysis however enables firms to anticipate their close competitor’s actions and that can enable the organization to exploit competitor’s weaknesses. The strategy also enables firms to identify their most unique selling points. The identification of the selling points however can be strengthened trough marketing campaigns. Competitive analysis however enables and aids successful competitors to continuously develop their best marketing strategies in acute response to the changes in the market place. Based on porter’s five competitive forces, these strategies were developed basically as a framework for assessing and evaluating the business competitive strength and the firm’s business position. This strategy believes in the notion that five forces exist that determines the competitiveness and attractiveness of the market. It also identifies greatly where power lies in a business situation. Porter’s specifications are therefore important in realizing the strengths of the organization current competitive position, and it also predicts the organizational strength in the future. The forces however can be used by strategic analysts at advanced stages to realize if new products or services that prevail in the business environment are
  • 2. potentially profitable. They can also use it to ascertain the areas that posses more strength, this will help in improving weaknesses and helps to avoid mistakes. Porters five forces of competitive positions Supplier power is the certainty of how suppliers make it easy to drive and raise prices. Normally, supplier power is driven by the number of suppliers for each particular input, the available of their products and services, the strengths supplier posses and the relative cost of switching from one particular supplier to the other. Suppliers posses power when: there are very few suppliers of a particular product, when substitute don’t exist, when the product is extremely important to the potential buyer who cannot do without it and also the degree of differentiation of inputs Buyer power.Buyer’s posses the potential of lowering prices. This is normally ascertained by the number of buyers existing in the market. It is also related to the individual buyer to the organization. Cost of the buyer that determines the switching from one supplier to the other is also determining factor. Business with few buyers is not productive simply because they often dictate business terms to potential buyers. Competitive rivalry. For a business to prosper in any given modern society there should be a number and capable competitors in the market. Many competitors however who offer undifferentiated products and services will definitely tend to reduce market attractiveness. Treat of substitution. Existence of substitute goods and services in the market place may make buyers to develop the mind of switching to alternative responses due to price increases. Buyers at this particular point may prefer lower prices to the higher one. This strategy reduces the supplier power and also market attractiveness will be lower
  • 3. Treat of new entry. Existence of profitable markets entices and attracts new suppliers. Due to the existence of strong business ethics that governs this site, such as strong and durable barriers to entry, e.g. economies of scale government policies and the capital requirement, could perhaps decline profitability to a competitive rate. There are factors that limit the treat of new entrants also known as barriers to entry. These are high fixed costs, top government restrictions, scarcity of resources, brand equity, capital requirements and also economies of product differences. Target market refers basically to the potential customers organization who wishes to offer its products and service to, and to particularly whom it directs its marketing effort. In developing marketing plan, it is essential to develop target market. Samsung Company for instance finds its more potential to supply its products because it has more markets than any other company. Samsung company for instance posses the need that drives purchase. Firm’s posses the inner drive that transform into more globalised and integrated standardized firms. They also have the need to extend performance improvement by simply extending the use of best standard best practices and offered solutions across the companies’ local operations. Samsung Company is an organization that is diverse and it produces variety of products to its available consumers. Their products are of high quality and thus fetching more markets globally. Its major concern in production is electronics e.g. mobile phones, televisions and radios. The effective products that the industry and the market sector target attain and meet the basic needs of the individual. This is because the electronics that Samsung company produces posses massive increase in speed and the effectiveness of communication, multitasking, research and access to information.
  • 4. Nokia Company is a primary competitor of Samsung because of their smart-phone sales. Nokia however does not surpass Samsung, but majority of consumers use their products. Actually, all of the Android smart-phones are competitors to Samsung .Due to this trends of competition, Samsung have been forced to come up with new ideas to keep their electronics sales high. The organization is different from its competition trough the price it offers to its commodities. The prices should be affordable and easily available to its buyers. This will also enable beat the competition pricing on the front line products and services. The added value services such as the free shipping, buy one get one sales are also the common incentives. Convenience of the products by consumers is also a necessity that differentiates one firm from the other. This can be carried out by use of online shopping. Customers also need a firm that have absolute trust and produces viable products. References 1. Robinson, E A. G. The Structure of Competitive Industry. Chicago: University of Chicago Press, 1959. Print. 2. Wright, Martyn. Managing Competitive Crisis: Strategic Choice and the Reform of Workrules. Cambridge, U.K: Cambridge University Press, 2000. Print. 3. Whitley, Richard. Business Systems and Organizational Capabilities: The Institutional Structuring of Competitive Competences. Oxford: Oxford University Press, 2007. Print. 4. Competitive Regional Clusters: National Policy Approaches. OECD Publishing, 2007. Print.
  • 5. Running head: PRODUCT, PRICING, AND CHANNELS 1 PRODUCT, PRICING, AND CHANNELS 2 Product, Pricing, and Channels Strategy and Positioning Overview Apple Inc. incorporated in 1977. Their business model has been design, production and promotion of personal computers, messaging and communication devices, mobile media, laptops and other portable digital equipment. The company also produces a wide range of associated software applications, secondary merchandise and services; the most well known among these: iPhone, IPod, iPad, Mac Book, IOS and OSX systems. Apple recently purchased a seed company from Silicon Valley that focuses on smartphone applications and sells products and software to government buyers (Reuters, 2014). Computers have existed for several decades. Essentially, the computer, as we know it, is a very crude substitute for an external brain. No computer on Earth has ever been able to approach the complexity and capacity of the human mind. Technology’s attempts to simulate the complexity of even a small segment of the brain still seem overwhelmingly futile. In light of these limits, one logical solution is to develop a device that will join forces with a user’s mind rather than competing with it. One might assume that the characteristics of such a device would be present too much complexity; however, it may be very simple. Much like a computer or smartphone, the brain runs on electricity. The chemical reactions that occur when we produce a thought create a reaction within our brain cells (or neurons). This
  • 6. electrical impulse releases chemicals (neurotransmitters) which in turn control the degree of energy of other electrical impulses. It is this impulse which controls the level of release (and type of) neurotransmitter that will influence the next electrical impulse. The psychiatric world commonly refers to this process as neural “firing.” It is common knowledge that these electrical impulses can travel to a set of electrodes when attached to the scalp of a subject. The key to harnessing and controlling how a thought is captured and translated lies within this practice. If a smart phone is able to translate refractory periods, it may be able to decipher thought through an interface. Controlling machinery with thought involves capturing the thought impulse. Each impulse would travel to a receptor center which developers would model after a neural receptor cell. The idea of communication is to transfer thought to another person. The interface that can send a message directly to another person’s brain might, at some point, circumvent the need for a device (Oxbridge Biotech Roundtable, 2014). SWOT Analysis Strengths Strengths of the Offering. The biomedical engineering aspect of a prospective device is fairly straightforward. The developer could model the non- invasive device link to the brain after the EEG and neuro- prosthesis mechanisms. The primary goal is to eliminate typing and speech through the smart-phone and either accepting or rejecting the reproduction of the thought, prior to transmitting the message to the recipient. This will enable the user to avoid miscommunication or unintended words or messages. To accomplish this, the built-in receptor would also function as a filter or thought sifter. If this device is intuitive, it may, at some point, develop the capability to “auto-sift” as the program
  • 7. learns what thoughts the user tends to transmit accidentally and what messages he or she wishes to convey in a given circumstance or to a certain contact (Oxbridge Biotech Roundtable, 2014). Strengths of the Company. Apple’s strengths lie in its reputation. The company’s marketing and advertizing capabilities are strong, and its production, manufacturing and distribution is available through numerous channels in the United States. Weaknesses Weaknesses of the Offering. The capability and knowledge available in the area of neuro- prosthetics as it relates to electronic based non- invasive technology is not as abundant on the biomedical engineering side. Understandably, devices that are exclusively for medical purposes hold a position of priority in this field of research. The efforts to establish adequate manufacturing and testing might be a challenge (Michigan News University of Michigan, 2014). Weaknesses of the Company. The weaknesses of Apple are in their product span, pricing levels and in their delivery conduits in Asia and India. The company also demonstrates limitations in area of product innovation, which this offering might help to remedy. Another of Apple’s major weakness is in system compatibility. Compatibility with software and hardware systems is a major challenge, as is the overall integrative functionality with other operating systems. This weakness may shed light on the company’s heavy dependence on iPhone, iPad and Mac Book sales (Reuters, 2014). Opportunities
  • 8. Opportunities of the Offering. The offering would address the challenge the company has been enduring with regards to innovation and advancement. It would also possibly be a viable alternative to the iPhone and iPad and would offer the market an alternative to these products; thereby diminishing the dependence that the company has on iPad and iPhone demand. The product would be a huge advancement in technology and, if developed well, may eliminate and preclude competition for an indefinite period of time; which would boost profitability and share prices tremendously. Opportunities of the Company. Opportunities for Apple are mainly in the areas of acquisition of other similar companies in the market space, mobile payment capability, and clip-on gear. The biggest opportunity for Apple (or any company in its sector) is the discovery and development of a product that, like the iPhone, becomes a product that consumers covet more than any other device. That has always been the ultimate opportunity in this market space. Threats Threats to the Offering. The threats exist mainly in patent claims and resulting lawsuits. There are other companies and research groups who are working on similar technology. Competition threats exist with these same groups. Other companies or developers may seek patents or have already received pending patents on similar technology (Reuters, 2014). Threats to the Company. The company is currently “king of the mountain.” Apple has a strong market share and industry position at the top; other companies want to push it down and take its place. The company is perpetually attempting to innovate with the same products. The competition is the biggest threat at the present
  • 9. time. The companies that pose immediate threats are Microsoft, Android, Nokia and Samsung (Reuters, 2014). Competitive analysis of the organization It is important for any organization to thrive and succeed in their business markets. It is also vital for these particular firms to develop the need to analyze their competitor’s needs and strategies. Understanding competitor analysis however is important in ascertaining marketing planning strategies and processes. Strong competitors perhaps can hinder best performances of the firm and its general success, and at an advanced stages, it can lead to total failures. Competitive analysis however enables firms to anticipate their close competitor’s actions and that can enable the organization to exploit competitor’s weaknesses. The strategy also enables firms to identify their most unique selling points. The identification of the selling points however can be strengthened trough marketing campaigns. Competitive analysis however enables and aids successful competitors to continuously develop their best marketing strategies in acute response to the changes in the market place. Based on porter’s five competitive forces, these strategies were developed basically as a framework for assessing and evaluating the business competitive strength and the firm’s business position. This strategy believes in the notion that five forces exist that determines the competitiveness and attractiveness of the market. It also identifies greatly where power lies in a business situation. Porter’s specifications are therefore important in realizing the strengths of the organization current competitive position, and it also predicts the organizational strength in the future. The forces however can be used by strategic analysts at advanced stages to realize if new products or services that prevail in the business environment are potentially profitable.
  • 10. They can also use it to ascertain the areas that posses more strength, this will help in improving weaknesses and helps to avoid mistakes. Porters five forces of competitive positions Supplier power is the certainty of how suppliers make it easy to drive and raise prices. Normally, supplier power is driven by the number of suppliers for each particular input, the available of their products and services, the strengths supplier posses and the relative cost of switching from one particular supplier to the other. Suppliers posses power when: there are very few suppliers of a particular product, when substitute don’t exist, when the product is extremely important to the potential buyer who cannot do without it and also the degree of differentiation of inputs Buyer power Buyer’s posses the potential of lowering prices. This is normally ascertained by the number of buyers existing in the market. It is also related to the individual buyer to the organization. Cost of the buyer that determines the switching from one supplier to the other is also determining factor. Business with few buyers is not productive simply because they often dictate business terms to potential buyers. Competitive rivalry. For a business to prosper in any given modern society there should be a number and capable competitors in the market. Many competitors however who offer undifferentiated products and services will definitely tend to reduce market attractiveness. Treat of substitution. Existence of substitute goods and services in the market place may make buyers to develop the mind of switching to alternative responses due to price increases. Buyers
  • 11. at this particular point may prefer lower prices to the higher one. This strategy reduces the supplier power and also market attractiveness will be lower Treat of new entry Existence of profitable markets entices and attracts new suppliers. Due to the existence of strong business ethics that governs this site, such as strong and durable barriers to entry, e.g. economies of scale government policies and the capital requirement, could perhaps decline profitability to a competitive rate. There are factors that limit the treat of new entrants also known as barriers to entry. These are high fixed costs, top government restrictions, scarcity of resources, brand equity, capital requirements and also economies of product differences. Target Market Releasing new products is uncommon for the Apple organization. Consumers know Apple for its production of computers in the early 2000’s. However, in October of 2001 Apple released the iPod which was their first non-computer product. The iPod was a great idea that took the place of the compact disc player by introducing hard-drive based digital music player. Although this new product was guaranteed to be a great selling product and consumers found the iPod to be amazing, the sales for the IPod were not high. The reason for the low sales of the iPod was because of the pricing. The iPod’s pricing began at 399.00 dollars when it first came out; therefore the target market for the IPod was primarily wealthy consumers. The iPod did make a turnaround in late 2003, because apple made it available for windows computers to download ITunes. ITunes allows consumers to bypass compact disc altogether. Consumers were able to download music from ITunes on to their IPod which made the Apple company over 70 million
  • 12. dollars. With the company making so much money from the transformation, the prices for IPods began to fall. To this day this product has changed the way that the world listens to music through one of Apples product. Apple understands that there are many trials and errors that come from marketing a new product. This is why coming up with a product that interacts with peoples brains will take time to market but will be a big success (Sanford, 2014). A product is currently in development that interacts with the human brain. The company can target this product to many types of consumers because of the technology intrigue. However, when this product becomes public, the company would do well to attract the interest of the loyal Apple customers first. The design of the product must be a representation of Apple Inc. The second most important focus of the target market is consumers between the age of 18- 34. People in this age bracket are more likely to buy new technology. The product should not be so expensive that Apple loses some of its target market. It is very important that the target market can afford this product, so there is not a situation similar to 2001 with the introduction of the iPod. The Needs that Drive Purchase The Need for the target market to buy this product is apparent because of how much easier life can be for the product’s consumers. Logically, a consumer would want to use this product because it takes hands free to another level. To imagine a product that interacts with one’s mind to accomplish daily tasks (answering emails inconspicuously in the middle of meetings, accessing information without speaking or touching, use while driving a vehicle) it would be very convenient for a consumer to answer phone calls or play music just by thinking
  • 13. of whatever they want. The product would allow consumers to multitask in many different areas whether it be home, business, or leisure. Industry Category Apple Inc. is in the technology sector. This product would specifically fall within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sub- sector (Investorguide, 2014). Solves the Target's Needs This product will meet specific needs of the typical individual that this industry and market sector targets. It will do so with a massive increase in the speed and effectiveness of communication, multi-tasking, research and access to information. This is just the beginning: the public market will perceive this device as limitless with regards to what it can do and how closely it can assimilate with (and familiarize itself with) the individual user. Organizations Competition Samsung is Apple’s primary competitor because of their smart- phone sales. Samsung does not surpass Apple, but a lot of different consumers use their products. Actually, all of the Android smart-phones are competitors to Apple because Apple only sells the iPhone. With Samsung, Windows, LTC, and many other smart-phone companies competing to make the most sales, Apple is forced to come up with new ideas to keep their phone sales high. The Mac-Book is a computer made by Apple the Mac-Book’s competition is the windows computer. When considering overall sales, Windows has sold more computers then Apple.
  • 14. The last piece of major technology for Apple is the iPad. Although the iPad started the beginning of the android tablets, the tablets are still major competition to the iPad. When Apple releases this new technology, it will not be long before Androids begin making the same product. What makes the organization different from competitors? Apple is different from its competition in that Apple is its own brand. For example, one could say that Dell competes with the Mac-Book made by Apple. The Dell computer is made by Dell, but uses windows operating system. Unlike Dell Apple uses its own operating system therefore makes it a unique brand. Apple also ensures that it is close to impossible for their products to catch viruses. The Apple brand also stands apart from it competition because of its individuality consumer get from their products and like most luxury brand names Apple stands apart from the rest. Apple stands apart because other companies really don’t have their own design team and find themselves following behind Apples lead. It is difficult for Apples competition to sale more than apple when the competition is usually copying ideas from Apple (Barjarin, 2014). Needs Leading to Consumer to Purchase Logical Needs Consumers buy smart-phones for convenience and communication freedom. If a business person is on the road frequently, he or she will have access to information and can respond in a timely way. This device will expedite communication well beyond any prior capabilities. Surely this is an evolutionary product. It will become more and more streamlined as it evolves. The limited knowledge that we have and are working with must be used to streamline use and
  • 15. eliminate any glitches, so that the end result is customer satisfaction. The purely logical use for this product is to bridge gaps in communication, time and space while avoiding any overly invasive aspects (Oxbridge Biotech Roundtable, 2014). Emotional Needs The human desire for the latest gadget is the primary reason for the massive market share that the cell-smart-phone industry enjoys. Since its introduction to the market, the cell phone has been an increasingly sought after item. It was not as common when it first broke into the market. This may be the reason that people began to covet the latest cell phone or smart phone, as they began to become more available; because at one time, it was an item for which only some people had a use. People generally want what they can’t have, and if the latest device is updated to remain perpetually out of reach, it will keep people reaching. Product, Pricing, and Channels The Apple I device integrates and incorporates with the user on a level that no other product has achieved. It is a new product in every way and will eventually take the place of the smart- phone, as the number of users increase. It will effectually phase out the iPhone and iPad, as well all other types of smart-phones. Product Description and Target The headset will have electrodes discreetly built into it. The electrodes will detect, transmit and measure the neural activity in the posterior area of the superior temporal gyrus of the dominant hemisphere: specifically, activity that controls the following features: speech, writing, communication, visual and auditory perception. The device simply controls and directs
  • 16. signals traveling from this area to the proper receptors to enable the appropriate functions. So, instead of pressing a button or clicking a mouse, the device harnesses the actual electronic signal which then causes the appropriate response within the device. This device then sends a signal through a wireless network as a smart-phone would do (Vendavo, 2014). The device will have a “thought filter” function to inhibit any erroneous or otherwise undesirable information from transmitting. The filter will have an intuitive gauge on it, which “learns” the individual user’s typical pathways of transmission to seek out the appropriate preclusion in each message or command. The appropriate target market is the business market that requires communication and eventually, everyone that uses a cell or smart-phone. The “Apple I” will meet the needs of its target market by saving time and, therefore, money. Everything will happen faster. Ideally, business will transact more quickly and efficiently. Communication will become less cumbersome more streamlined and effective (Oxbridge Biotech Roundtable, 2014). Marketing and the Product Lifecycle Throughout each phase of the product lifecycle, the marketing approach will adjust to reach the proper number of individuals and companies within its scope of pursuit. The Apple I will phase into the market so the marketing strategies must match the phases appropriately Introduction Phase The success of the initial skim pricing strategy will determine the speed at which a competing product evolves into a viable competitor. The distribution will start selectively and will grow with increasing demand levels. The introductory target will be innovative, pioneering technology oriented buyers (Value Management Advisors, 2012). Growth Phase
  • 17. The product will maintain its quality with some slight pricing adjustments. Price strategy will adjust to penetrate the market if competition surfaces. Distribution channels will become broader, and the target will become more inclusive (Value Management Advisors, 2012). Maturity Phase The company will begin to enhance the product’s features and insight. As the technology develops, the user integration will become more and more effective and specialized. The aptitude of the operating system will continually evolve in its ability to assimilate to the individual user. The distribution channels will be vast, and the pricing strategy will adjust more toward economy pricing levels according to the level of competition at this stage (Value Management Advisors, 2012). Decline Stage The Apple I will continue and Apple will add additional features to adapt as the technology becomes more intuitive and intelligent. Unlike the iPhone, this product is not as susceptible to banality. The possibilities for additions and features are endless. The distribution channels can decline slightly, and the target can stay the same (Vendavo, 2014). Value through Packaging Apple’s packaging is unique to its own brand. In buying Apple products, a consumer gets a detailed, durable, and unique box that has a picture and a brief description of the product. The iPhone and the iPod are example of how Apple adds value to their packaging. Most MP3 players come in plastic and have the name written between the plastic with paper. Though such packaging doesn’t make the product look cheap, it does make the product seem as if it is generic and anybody could afford it. The iPod packaging however comes in a box that has a sliding top; this makes the product appear to be special, and one could say the product almost seems as if it were gift wrapped by Apple. The IPhone is packaged the exact same way to ensure
  • 18. that consumers immediately recognize the packaging as an Apple product. Apple has set the standard high for its IPhone and iPod product line packaging, and it is imperative that the next product aligns with this packaging standard. The “Apple I” is the name the company will propose for the product upon distribution. It will have to keep the same classic Apple look, so it does not detract from the Apple brand. However, there must be some changes in order to incorporate this new product. The biggest change proposal is in the altering of the shape of the packaging. The manufacturing team will use circular packaging to give the effect that the product is meant to go on top of the head of the user. The packaging will also have the name and a brief description on the outside of the packaging to ensure consumers begin to know the product, itself, as a brand. The product will come in many different colors so all of the packaging will match the product color. On the inside, the product will be cradled by soft packaging (similar to that of jewelry) to ensure that the product is not harmed, but most importantly, to give the illusion that the product is priceless; like the thoughts and the mind of each individual user. This product needs to keep the essence of Apple’s signature name and brand but must incorporate the new technology in the packaging. The goal is to have consumers look at the product’s packaging and know instantly, that it is an Apple product (Vendavo, 2014). Pricing Strategy The skimming strategy for this product is appropriate at launch because the buyers will be those who will be willing to take some risks themselves. The product is not going to need to penetrate the markets initially. Initially, there will be scattered distribution with skim pricing because it is a big jump from the smart-phone to a device that communicates activity from the user’s frontal lobe. There will be a period of adjustment in terms of pricing levels and user compatibility. The product will have to price according to these distribution phases (Value Management Advisors, 2012).
  • 19. Product Launch The initial price of $650.00 for the device should be proposed to distribution channels. This price will include all necessary gear. Some users may perceive this price as unaffordable, but the capacity of the product will encompass and, possibly eliminate the need for the Mac and the iPhone. Understandably, there will be some trepidation and even more curiosity with regards to a product that can essentially read thoughts. It is this fear and curiosity that will be useful for the sale of the product. The product’s functions are the main draw once the buyer overcomes his or her initial curiosity and fear. Distribution Online distribution channels will not allow the proper promotion process of initiation with a product like this. The company will need intermediaries to assist with product introduction (Value Management Advisors, 2012). Channeling Value A mix of direct and indirect distribution channels would be most effective at launch. This product should be available online directly from Apple, but should also be available through intermediaries such as Radio Shack, Verizon, AT&T, Best Buy, CNet and other online retailers. The product should be made available in retail stores as advertising starts to invoke curiosity (advertising should be aimed directly at buyer curiosity). The majority of the distribution channels should be through retailers that conduct in store “test drives” of the product. The “test drive” will add value in that it will cater to each individual user, immediately. The user will see, firsthand, how the product immediately begins to “understand” him or her and integrate with immediate functional (frontal lobe) activities. Users are going to want to see an immediate unique integration with no invasive characteristics. Once the Apple I achieves this user/device trust level, the functionality can be a multi-level exploration into a world that no one has ever known. A “test drive” should give the user the experience of immediate, “thought to function” transfer and demonstrate a high speed
  • 20. grandiose capability of thought to action processing (Value Management Advisors, 2012). Conclusion The Apple I has the potential to change the mobile device market. The method of presentation is going to determine how quickly this will happen. The competition will follow the product through its distribution channels, but this product will lead the market exclusively for a significant period of time. It is during this time period that Apple will focus most on developing and perfect the unique functions of the product. The pricing strategy and distribution phases will extract maximum profitability. Despite the competition in the global market and new products release, Apple Inc remains to be active. Today, the use of phones is one of the recent technologies that have improved the entire world. Communication and other needs have been simplified by the new communication devices. However, in spite of the numerous products that the Apple Inc. releases into the market, the use of iPhone has been outstanding. The product has more than a few features that much the current generation. Statistics have reviewed the 60% of the world’s population admire the new design of iPhone because it has substantial features. iPhone has incredible features that much most computers. This electronic device can be used as a laptop because it has similar and even enhanced features. The target market of this device was mainly for the new generation. This paper will describe the efficiency of iPhone phone and its impact to the current generation. In the current world, everything has turned digital. Today, the use of Smartphone has influenced considerable factors that have effectively enhanced communications and other factors. This has influenced a great challenge to the upcoming generation because of the new devices and the course outline they cover in their institutions. However, Apple Inc. created a suitable device that can meet all the need of the current generation. In general,
  • 21. the target market of the iPhone phone is the current and the upcoming generation. Research shows that most youths are attracted to iPhones because their brains are intelligent, and they believe that this is the right device. The device can link several websites and carry out complex problems that the current youths face. Also, the Smartphone has suitable features compared to other phones. This phone is widely used because of its speed and efficiency compared to other handsets (Kourdi, 2009). All iPhone phones are lightweight weighing approximately 112grams. For instance, the weight of iPhone 5 is based on its thinness unlike the weight of Samsung Galaxy S3. Apple organization executives argues that the handset has many features that make the Smartphone outstanding than most computer systems. Most people claim that when it comes to comfort, they prefer iPhone phones. The phone has a wider screen which has simple settings for operation. The phone offers suitable and quality pictures since the introduction of the high technology by Apple organization. Despite the incredible features of the phone, it is clear that new phases in the current generation continue to improve the effectiveness of the product (Kourdi, 2009). The marketing efforts of the company have influenced more than a few changes. Some of these changes have increased revenues of the organization. Apple Company has manufactured different types of iPhone phones in order to meet the needs of their target market. This has enabled most youths to afford the phones and use them to solve most of their puzzles. Statistics show that the speed of the phone has assisted many students in collages to have positive attitude in their education. This is a clear indication that the phone is contributing much to what is studied in collages. The company can increase its marketing efforts through advertisement and manufacturing of more iPhones. This will attract different races globally. In general,
  • 22. iPhones are incredible devices that meet the needs of the current generation (Kourdi, 2009). References Arnold, N. (2014). Who are Apples 3 Biggest Competitors . Retrieved from http://wallstcheatsheet.com/stocks/3-of-apples- competitors.html/?a=viewall Barjarin, T. (2014). 3 Ways Apple Sets Itself Apart from the Competition. Retrieved from http://techland.time.com/2012/07/30/3-things-that-set-apple- apart-from-the-competition/ Investorguide. (2014). Stock Profile AAPL. Retrieved from http://www.investorguide.com/stock-profile.php?ticker=AAPL Kourdi, J. (2009). Business strategy: A guide to taking your business forward. London, Eng: Economist in association with Profile Books. Michigan News University of Michigan. (2014). New cochlear implant could improve hearing. Retrieved from http://ns.umich.edu/new/releases/101 Oxbridge Biotech Roundtable. (2014). Brain Computer Interface: Technologies for the Brave New Brain. Retrieved from http://www.oxbridgebiotech.com/review/research-and- policy/brain-computer-interface/ Reuters. (2014). Apple Inc (AAPL.O). Retrieved from http://www.reuters.com/finance/stocks/companyProfile?symbol =AAPL.O Sanford, G. (2014). Apple Company History . Retrieved from http://apple-history.com/h8 Value Management Advisors. (2012). Tech Pricing Challenges. Retrieved from http://valuemanagementadvisors.com/2012/11/tech-pricing-
  • 23. challenges/ Vendavo. (2014). customers industries technology. Retrieved from http://www.vendavo.com/customers/industries/technology/