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Running head: TEAM PAPER
TEAM PAPER
-A competitive analysis of the organization and offering using
Porter's five competitive forces model, and
-The criteria you will use to segment your market and select
your target market including geographic, demographic,
psychographic, and behavioral factors.
-A written positioning statement that identifies:
· Your target market
· The needs that drive purchase
· Your organization's industry category
· How your organization solves the target's needs
· Your organization's competition
· What makes your organization different from its competition
Abstract
Reason: the motivation behind this paper is to recognize a
marked item or administration to be analyzed through the
session; inspecting components of shopper conduct as they
identify with business sector division, focusing on, and
situating for it. This paper, and consequent papers, will prompt
a SWOT showcasing investigation of the picked marked item.
Technique/approach: the marked item for this paper will be
Apple's iphone. Information to be secured in this first paper will
incorporate the accompanying:
Item/Brand Analyzed
Corporate Background
Market/Industry Analysis and Competition
Market Segmentation and Target Marketing
Pertinent External Factors
Module 1 SWOT Analysis
Discoveries: Apple is a pioneer in deals and creation in US
Markets; with items that claim crosswise over target markets.
iphone 4s deals have overshadowed inner Apple brands, and
additionally other cell phone organizations in the U.s. market.
Late deals strength, on the other hand, has not settled an
industry lead. Samsung, in association with Google's Android
Operating framework, possesses the worldwide commercial
center with something like 21% of aggregate piece of the pie.
Fruit faces both innovative and political difficulties in the
biggest cell phone market, China, as it is not able to build an
organization with the biggest transporters there because of non-
4g/LTE items. SWOT Analysis area gives particular insights in
regards to marked item qualities, shortcomings, open doors and
dangers.
Conclusion: while Apple rules incomparable in US advertises
regarding deals, and is in reality a worldwide power, it has not
settled itself generally as the business pioneer. It must expand
on brand/item qualities through arrival of more up to date 4g
innovation; decrease risk to market dangers and gain by
business sector open doors (both in the U.s and internationally)
so as to overwhelm contenders, and beat the extending hole
made by Google and Samsung's developing Android client base.
Paper sort: Module 1 SLP
Presentation
Throughout the Session Long Project, I will be breaking down
the iphone 4s, a marked item from Apple, Inc.; inspecting
components of shopper conduct as they identify with business
sector division, focusing on, and situating.
This paper, and resulting papers, will prompt a complete SWOT
promoting investigation of the iphone 4s.
Segment 1: Branded Product: Apple iphone 4s
Key Features
The iphone 4s is a touchscreen-based cell phone created by
Apple Inc. It is the fifth and late era of the iphone and holds the
outside configuration of its ancestor, the iphone 4, however is
host to a reach of enhanced fittings determinations and
programming overhauls (Wikipedia.org, 2012). Robinson
(2011), before the end of last year, reported that the overhauled
A5 chipset in the iphone 4s would handle information twice as
quick as before; with gamers getting a charge out of seven times
the registering control over the standard iphone 4; a 8
megapixel Polaroid with 1080p feature recording, including face
distinguishment; and the new icloud administration which
would permit clients to store and get to the greater part of their
information remotely. With such a large amount of the new
iphone 4s' proficiencies based upon remote processing, it was at
first believed that the telephone wouldn't satisfy such grand
desires, similar to its ancestor the iphone 4 (Rothman, 2011);
notwithstanding, in the wake of exploring the iphone 4s' WLAN
integration and neighborhood WIFI exchange speed, Shimpi and
Klug (2011) presumed that not just was the execution superior
to the past model; it was superior to the greater part of the
opposition too, with a download rate of 36.7 Mbit/s.
Deals and Profit Margin: iphone 4s Sales v. ipad and ipod
For the three months consummation March 31, 2012, Gustin
(2012) reports that Apple sold more than 35.1 million iphones; a
build of 88%, year over year. Deals were heaviest in the United
States at $13b; with the Asian markets running behind at $10b
by and large. As far as unit deals, iphone trounced all other item
deals; once more, with 35.1 million units sold; contrasted with
ipad offers of 11.8 million units sold, and ipod offers of 7.6
million units sold. As per Apple's 10-Q recording of 25 April,
2012 iphone deals represented $22.7b of the general $39.2b in
net deals throughout the quarter; that is roughly 57% of net
deals from a solitary product offering. iphone 4s deals were
practically courageously in charge of the organization's Q2 net
revenue pick up, year over year, of more or less 5% (24% in
2011, to 30% in 2012). No other product offering was over $10b
in income, without taking into consideration breaking $20b.
CFO Peter Oppenheimer rather matter-of-factly affirmed these
noteworthy quarterly numbers as "amazingly effective"
(Apple.com, 2012). Ogg (2012) restates the essentialness of the
iphone to Apple as "the driver" of profit going ahead.
Piece of the overall industry
We should take a gander at aggregate deals through the real U.s.
telecom bearers to focus the effect of iphone 4s. Siegler (2012)
reports that throughout Q1 FY 2012, iphone represented the
accompanying deals rates among the huge three transporters:
At&t, Verizon and Sprint. At At&t, iphone deals were 78% of
all cell phones sold; at Verizon, iphones were 51% of all cell
phones sold; and at Sprint, albeit unsubstantiated, the number is
assessed at 60% of all cell phones sold. Taking a gander at these
three specifically, we see numbers one (Verizon), two (At&t)
and three (Sprint) in the business; and iphone deals represent
more than 63% of their deals (Yarrow, 2012). Most tellingly,
Siegler (2012) further reports that the huge three record for
roughly 80% of the US cell phone market. With Apple's iphone
item cutting out deals in the 60th percentile among the huge
three; that makes it as the best item in U.s. markets at this
point.
Cost information
It is evaluated that the generation expense of one iphone 4s
aggregates more or less $178 (Economist, 2011). While the
organization has altered expenses connected with generation of
the telephone; the dominant part of its expenses are variable,
identified with a few outside suppliers and producers. It is
evaluated t cap Apple takes home pretty nearly $368 on the
offer of each telephone ($368 out of an expected $560 on
normal for every telephone) (Mailonline.com, 2011).
Area 2: Corporate Background
Fruit Inc. outlines, fabricates, and markets Pcs, portable
specialized gadgets, and versatile computerized music and
feature players. The organization likewise offers different
related programming, administrations, peripherals, and systems
administration results. As of March 1, 2012, Apple had 361
retail stores, incorporating 246 stores in the United States and
115 stores universally (Harrer, 2012).
The Company's items and administrations incorporate iphone®,
ipad®, Mac®, ipod®, Apple Tv®, an arrangement of shopper
and expert programming provisions, the ios and Mac Os®x
working frameworks, icloud®, and a mixture of extra,
administration and help offerings. The Company additionally
offers and conveys computerized substance and provisions
through the itunes Store®, App Store™, ibookstore™, and Mac
App Store. Fruit offers its items worldwide through its online
stores, retail stores, immediate deals energy, outsider
wholesalers, affiliates, and quality included affiliates. Also, it
offers different outsider Macintosh, iphone, and ipod perfect
items, including requisition programming, printers, stockpiling
gadgets, speakers, earphones, and different adornments and
peripherals through its online and retail stores, and
computerized substance and provisions through the itunes Store.
Money related Condition
Fruit's latest quarterly comes about (for the three months
finishing 31 March 2012) included $39.2b in net deals, up very
nearly $15b for the same time period a year ago; working pay of
$15.3b, simply under twofold the former year's number; and net
income of $11.6b, up from simply $6b one year prior – a year
over year build of roughly 59%. Moreover, profit for every
offer multiplied, reporting at $12.30/offer, contrasted with
$6.40/offer one year prior.
For the six months consummation March 31, 2012, Apple posted
an amazing $85.5b in net incomes, up $34b from the earlier year
(a rough 60% increment!); working pay of simply under $33b,
more than twofold 2011's $15b; and net income of $24.7b, once
more, multiply 2011's accounted for $11.9b. Income for every
offer expanded from $12.83/experience 2011 to over $26/impart
starting 31 March 2012. Murph (2012) states "… simply to
place things in viewpoint, Apple about multiplied its benefits in
Q2 2012 contrasted with Q2 2011, and for all intents and
purpose quadrupled it contrasted with Q2 2010."
Area 3: Market/ Industry Analysis and Competition
US Market
Fingas (2012 reports that Smartphones crossed a paramount
point of reference in the U.S. back in March: simply over a
large portion of all U.S mobile phone managers had a cell phone
or something to that affect, making "other than Smartphones"
the minority without precedent for the business. At present,
Android (which is a working framework in rivalry with Apple's
ios) sits on the pile, guaranteeing 48.5% of those clients; while
Apple holds a piece of the overall industry of about 32%. Florin
(2012) proposes that that pattern could start to invert as the
iphone 4s was the hit at Verizon, At&t, and Sprint for the month
of May. Verizon's main three venders were the iphone 4s, the
Motorola Droid Razr and the Samsung Galaxy Nexus (well, that
is more Android clients tragically… ). Over at At&t, the Nokia
Lumia 900 and the Samsung Galaxy S II Skyrocket are trailing
the iphone, while the Samsung Galaxy Nexus and Galaxy S II
come next and third, individually, at Sprint. Interestingly, there
is one U.s. transporter – T-Mobile – who still does not offer the
iphone: its essential merchants are the HTC One S, the Samsung
Galaxy S II, and the Samsung Galaxy S Blaze (once more, here
are a greater amount of those bothersome Android clients).
Worldwide Market
At present Samsung is the business pioneer outside of the U.s.;
supplanting long-term worldwide titan Nokia, shockingly since
1998. Samsung sent 92 million units in first QTR Fy12; while
Nokia trailed with only 83 million (Goldman, 2012). IDC
(2011) reports that worldwide deals among the main five cell
phone makers, for the greater part of 2011, including rate of
piece of the pie were as takes after: Samsung, 94 million units
sold, with 19% piece of the pie; Apple, 93 million units sold,
with 18.7% piece of the overall industry; Nokia, (77 million
units sold, with 15.7% piece of the pie; Research in Motion,
"Edge", 51 million units sold, with 10% piece of the pie; and,
finally, HTC, 43.5 million units sold, with 9% piece of the pie.
Year over year, worldwide cell phone deals expanded 63% from
2010 to 2011; with Samsung, Apple and Nokia as the separate
pioneers.
Quick advance to 2012, IDC assesses that 686 million cell
phones will be sold in 2013; which will be 38.5% of the whole
cell market . Geologically talking, China, India and the U.s. are
the biggest markets, involving approximately 30% of the
world's portable clients (China, in purpose of certainty, is the
most obvious cell phone market). Sadly, in China, Apple has
neglected to get up to speed to Samsung, who has tripled its
lead; opening a 17% crevice in piece of the overall industry.
This, notwithstanding expectations that Apple's cell phone deals
will hop 52% not long from now (Bloomberg, 2012).
Inquisitively, China's biggest bearer, , China Mobile, isn't
helping Apple's reason as it sticks to exclusive 3g innovation
that restricts Apple's capability to infiltrate the business sector
further – that is, at any rate until China Mobile proceeds onward
to 4g engineering. China aside, Samsung rules incomparable
right now with a 20.7% worldwide piece of the pie (Whitney,
2012). Epstein (2012) offers confirmation to further help this
when he reports that for the first QTR Fy2012, Google's
Android Operating System saw its deals bounce by 145%, on
offers of 90 million units; with Samsung representing something
like 40% of the produced handsets on which Android was sold.
Obviously, it will be dependent upon late 2012 and the arrival
of the iphone 5 to check whether Apple will have the capacity
to effect Samsung's prosperity so far in 2012.
Segment 4: Market Segmentation and Target Marketing
Market Segmentation
In general, Apple fragments its businesses by topography; with
working portions of the Americas, Europe, Japan, Asia-Pacific
and retail. The Americas portion is contained both North and
South America; Europe really incorporates all European nations,
and additionally the Middle East and Africa; the Asia-Pacific
section incorporates Australia and Asian nations (other than
Japan); and, ultimately, the retail fragment which are twelve or
somewhere in the vicinity stores in 12 nations, including the
United States. Each of these fragments is assessed by net deals
and working salary.
Target Marketing
As indicated by the Apple site, the organization offers its items
to customer, little and average sized organizations, instruction,
undertaking, government, and inventive clients (Apple.com,
2012). At the point when the organization initially presented the
cell phone, its target promoting included "experts, scholars,
corporate clients, business people, and therapeutic clients".
With the coming of iphone 4s; each demographic is currently a
potential client; its October 2011 rollout was about getting the
item into whatever number hands as could be expected under the
circumstances (Garside, 2011).
Late target publicizing shows age ranges from carport band teen
rockers to center matured soccer mothers to retirees to
Hollywood Vips booking their day with Siri; nobody is
forgotten. The effortlessness of the ads is virtuoso. What Apple
acknowledged in its division methodology is that the
"application lifestyle" (Sigal, 2010) permits clients to tailor
their telephones to their particular tastes; making the telephone
extremely appealing crosswise over various business sections
(demographics); portions that may shift significantly as they
would like to think of the item on the off chance that it had
been overall outlined. Value focuses have even been dropped in
numerous regions in place that lower pay buyers can possess the
telephone too (Krazit, 2012). Obviously, paying for an
arrangement is an alternate story, however simply getting the
most recent innovation at a marked down cost was a shrewd
ploy on Apple's part. All things considered, in the event that
you don't feel rejected by an item, you may be more slanted to
go out and use your cash on it.
Area 6: Relevant External Factors
Among the most widely recognized outer variables influencing
the cell phone market at this time are expense of cohorted
arrangements, rate of remote systems administration, and
purchaser interest for inventive, exceedingly effective, yet less
expensive items. Other significant key elements incorporate
budgetary, legitimate and ecological contemplations.
* Plan costs commonly are tied up in awkward, long haul
contracts. For every last bit of its division and focusing on,
Apple realizes that its customer base – the unified with
purchasing force, even in a subsidence – will switch items
rapidly if offered something more imaginative and at a lower
value point.
* Regarding pace of remote systems administration, the key is,
no doubt on the arrange that takes into account the best system;
generally speed means nothing. (Coincidentally, "Best-in-class"
remote systems are a discussion for an alternate paper.)
* Future guru slants in the cell phone business are inclining to
increased actuality, and counterfeit consciousness. Fruit is in
front of that bend with the presentation of Siri – the "S" in 4s.
Extra patterns are Polaroids that opponent point-and-shoots; and
1080p HD, streaming feature.
* Economically, the single most awesome outside component
influencing the iphone 4s is the retreat. Humorously, the
organization is posting record deals. By lessening its value
point, Apple is capable ready to offer more telephones, as well
as extension of the client base means lower store network costs
also.
* Legally, Apple is buried in a claim with Samsung over
charged copyright encroachments. This is immense as the
organization is staking its capability to get Samsung on either
the postponement or inside and out end of Galaxy III unit deals,
which Apple cases were based upon stolen engineering.
* Lastly, there is the "green" pattern. Fruit has addressed this by
giving without mercury LED-illuminated showcases; without
arsenic showcase glass; without pvc and brominated fire
resistant free parts; and also bundling produced using post-
shopper reused fiberboard and biobased materials.
Segment 8: SWOT Analysis: Apple iphone 4s
Qualities
* Superior brand distinguishment and client administration =
dedicated client base.
* Increased storage room: 64gb; Faster processor; Siri Voice
control;
* Innovation of gadget: incorporated with industry heading
feature, design, pace and usefulness.
* "Application lifestyle" claims crosswise over target markets;
with value point taking into account extended purchaser base.
* 4s expected and addressed key outer variables (iphone 5
anticipated to do the same).
Shortcomings
* No 4g/LTE help!
* Lack of infiltration in biggest worldwide cell phone market,
China. Google Android and Samsung snatching broadening,
worldwide piece of the overall industry.
* Hardware issue: poor battery life. (This is an industry
challenge, not local to iphone alone.)
* "Application lifestyle offers crosswise over target markets;
however buys through itunes store get exorbitant rapidly.
* 4s expected and addressed key outer components; yet doesn't
offer 4g/LTE.
Good fortunes
* Improve battery life.
* Close the crevice of 48% Android clients to 32% ios clients in
US.
* Increase transporter base* Increase market infiltration into
China by means of collaboration with stretched Chinese bearers.
* Release iphone 5 so as to neutralize Samsung/Android item
offering in Galaxy III telephones.
* Litigate and/or settle "Fruit v. Samsung" suit so as to set
economic situation for iphone 5 discharge.
Dangers
* Technology lost to or stolen by contenders (as is affirmed by
Apple Inc. in "Fruit v. Samsung")
* Android deals and business interest may keep on outpaing ios
request all around.
* Start-ups from new organizations looking to addition corner in
cell phone market.
* China Mobile may stay with current advances; favoring
Android clients in Chinese market.
Conclusion
Fruit's brand quality, client administration, item
development/updates, and customer devotion have permitted it
to be a pioneer in deals and creation in U.s. markets; with items
that request promptly crosswise over target markets. iphone 4s
deals have trounced inside Apple brands, as well as other cell
phone organizations in the U.s. market. Tran (2011) reasons that
the 4s is without a doubt one of the best telephones accessible
available today; with a monstrous mixture of applications,
phenomenal outsider designer help, commonplace configuration
(for existing clients), and enhanced equipment.
At the same time, while organization CFO Peter Oppenheimer
may smile and order late, record 4s deals as "to a great degree
effective", the truth of the matter is that U.s. deals strength isn't
the same as general U.s. market strength; which is precisely
what Apple needs, however has yet to delight in much obliged
in substantial part to interest for Google's Android-empowered
telephones. Without a doubt, the 4s has cool peculiarities, yet
that is not interpreting into either U.s. on the other hand
worldwide business predominance. Deals numbers here and
abroad affirm one of Apple's key business sector shortcomings
at this time: predominantly, that clients are more concerned
with access to 4g/LTE than wanting Siri to remind them from
their tee time at the green. No place is the absence of 4g tech
more glaring than Apple's independent disappointment to break
the Chinese market; which Samsung heads at 24% of piece of
the pie. This disappointment is additionally one of Apple's key
dangers to accomplishment as the political and monetary
atmosphere in China could essentially support Android/Samsung
(and other Android related organizations) going ahead.
The certainty remains that Apple has yet to secure a lead in
worldwide markets. Right now, it trails Android/Samsung by
approximately 16 rate focuses in worldwide piece of the overall
industry; and that is with deals quadrupling since 2010! On the
off chance that Apple is to close this hole and/or assume control
over the lead; it will oblige something more than the current
iphone 4s offers (… sorry Siri… ). Maybe the since a long time
ago expected iphone 5 won't just uproot the innovative,
monetary and political boundaries that are set up in business
sectors like China; however help it to get and outpace Android
clients who as of now delight in the innovation that make it the
prevailing vicinity in the cell phone industry today.
Citation
1. Tran, Louie (2011) Apple iphone 4s: Conclusion.
Brighthand.com: news. Recovered 23 July 2012 from
http://www.brighthand.com/default.asp?newsid=18301&news=a
pple+iphone+4s+review+att+verizon+sprint&p=3#
2. Whitney, L. (2012) Samsung top phone producer; however
Apple's an expert. CNET News; recovered 22 July 2012 from
http://news.cnet.com/8301-1023_3-57435257-93/samsung-top-
wireless creator however fruits an exp
3.
Running head: STRATEGY AND POSITIONING
1
STRATEGY AND POSITIONING
2
Strategy and Positioning
421
June 16, 2014
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).
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.
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
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

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Apple iPhone 4S Market Analysis

  • 1. Running head: TEAM PAPER TEAM PAPER -A competitive analysis of the organization and offering using Porter's five competitive forces model, and -The criteria you will use to segment your market and select your target market including geographic, demographic, psychographic, and behavioral factors. -A written positioning statement that identifies: · Your target market · The needs that drive purchase · Your organization's industry category · How your organization solves the target's needs · Your organization's competition · What makes your organization different from its competition Abstract Reason: the motivation behind this paper is to recognize a marked item or administration to be analyzed through the session; inspecting components of shopper conduct as they identify with business sector division, focusing on, and situating for it. This paper, and consequent papers, will prompt a SWOT showcasing investigation of the picked marked item. Technique/approach: the marked item for this paper will be Apple's iphone. Information to be secured in this first paper will
  • 2. incorporate the accompanying: Item/Brand Analyzed Corporate Background Market/Industry Analysis and Competition Market Segmentation and Target Marketing Pertinent External Factors Module 1 SWOT Analysis Discoveries: Apple is a pioneer in deals and creation in US Markets; with items that claim crosswise over target markets. iphone 4s deals have overshadowed inner Apple brands, and additionally other cell phone organizations in the U.s. market. Late deals strength, on the other hand, has not settled an industry lead. Samsung, in association with Google's Android Operating framework, possesses the worldwide commercial center with something like 21% of aggregate piece of the pie. Fruit faces both innovative and political difficulties in the biggest cell phone market, China, as it is not able to build an organization with the biggest transporters there because of non- 4g/LTE items. SWOT Analysis area gives particular insights in regards to marked item qualities, shortcomings, open doors and dangers. Conclusion: while Apple rules incomparable in US advertises regarding deals, and is in reality a worldwide power, it has not settled itself generally as the business pioneer. It must expand on brand/item qualities through arrival of more up to date 4g innovation; decrease risk to market dangers and gain by business sector open doors (both in the U.s and internationally) so as to overwhelm contenders, and beat the extending hole made by Google and Samsung's developing Android client base. Paper sort: Module 1 SLP
  • 3. Presentation Throughout the Session Long Project, I will be breaking down the iphone 4s, a marked item from Apple, Inc.; inspecting components of shopper conduct as they identify with business sector division, focusing on, and situating. This paper, and resulting papers, will prompt a complete SWOT promoting investigation of the iphone 4s. Segment 1: Branded Product: Apple iphone 4s Key Features The iphone 4s is a touchscreen-based cell phone created by Apple Inc. It is the fifth and late era of the iphone and holds the outside configuration of its ancestor, the iphone 4, however is host to a reach of enhanced fittings determinations and programming overhauls (Wikipedia.org, 2012). Robinson (2011), before the end of last year, reported that the overhauled A5 chipset in the iphone 4s would handle information twice as quick as before; with gamers getting a charge out of seven times the registering control over the standard iphone 4; a 8 megapixel Polaroid with 1080p feature recording, including face distinguishment; and the new icloud administration which would permit clients to store and get to the greater part of their information remotely. With such a large amount of the new iphone 4s' proficiencies based upon remote processing, it was at first believed that the telephone wouldn't satisfy such grand desires, similar to its ancestor the iphone 4 (Rothman, 2011); notwithstanding, in the wake of exploring the iphone 4s' WLAN integration and neighborhood WIFI exchange speed, Shimpi and Klug (2011) presumed that not just was the execution superior to the past model; it was superior to the greater part of the opposition too, with a download rate of 36.7 Mbit/s. Deals and Profit Margin: iphone 4s Sales v. ipad and ipod For the three months consummation March 31, 2012, Gustin (2012) reports that Apple sold more than 35.1 million iphones; a build of 88%, year over year. Deals were heaviest in the United States at $13b; with the Asian markets running behind at $10b
  • 4. by and large. As far as unit deals, iphone trounced all other item deals; once more, with 35.1 million units sold; contrasted with ipad offers of 11.8 million units sold, and ipod offers of 7.6 million units sold. As per Apple's 10-Q recording of 25 April, 2012 iphone deals represented $22.7b of the general $39.2b in net deals throughout the quarter; that is roughly 57% of net deals from a solitary product offering. iphone 4s deals were practically courageously in charge of the organization's Q2 net revenue pick up, year over year, of more or less 5% (24% in 2011, to 30% in 2012). No other product offering was over $10b in income, without taking into consideration breaking $20b. CFO Peter Oppenheimer rather matter-of-factly affirmed these noteworthy quarterly numbers as "amazingly effective" (Apple.com, 2012). Ogg (2012) restates the essentialness of the iphone to Apple as "the driver" of profit going ahead. Piece of the overall industry We should take a gander at aggregate deals through the real U.s. telecom bearers to focus the effect of iphone 4s. Siegler (2012) reports that throughout Q1 FY 2012, iphone represented the accompanying deals rates among the huge three transporters: At&t, Verizon and Sprint. At At&t, iphone deals were 78% of all cell phones sold; at Verizon, iphones were 51% of all cell phones sold; and at Sprint, albeit unsubstantiated, the number is assessed at 60% of all cell phones sold. Taking a gander at these three specifically, we see numbers one (Verizon), two (At&t) and three (Sprint) in the business; and iphone deals represent more than 63% of their deals (Yarrow, 2012). Most tellingly, Siegler (2012) further reports that the huge three record for roughly 80% of the US cell phone market. With Apple's iphone item cutting out deals in the 60th percentile among the huge three; that makes it as the best item in U.s. markets at this point. Cost information It is evaluated that the generation expense of one iphone 4s aggregates more or less $178 (Economist, 2011). While the organization has altered expenses connected with generation of
  • 5. the telephone; the dominant part of its expenses are variable, identified with a few outside suppliers and producers. It is evaluated t cap Apple takes home pretty nearly $368 on the offer of each telephone ($368 out of an expected $560 on normal for every telephone) (Mailonline.com, 2011). Area 2: Corporate Background Fruit Inc. outlines, fabricates, and markets Pcs, portable specialized gadgets, and versatile computerized music and feature players. The organization likewise offers different related programming, administrations, peripherals, and systems administration results. As of March 1, 2012, Apple had 361 retail stores, incorporating 246 stores in the United States and 115 stores universally (Harrer, 2012). The Company's items and administrations incorporate iphone®, ipad®, Mac®, ipod®, Apple Tv®, an arrangement of shopper and expert programming provisions, the ios and Mac Os®x working frameworks, icloud®, and a mixture of extra, administration and help offerings. The Company additionally offers and conveys computerized substance and provisions through the itunes Store®, App Store™, ibookstore™, and Mac App Store. Fruit offers its items worldwide through its online stores, retail stores, immediate deals energy, outsider wholesalers, affiliates, and quality included affiliates. Also, it offers different outsider Macintosh, iphone, and ipod perfect items, including requisition programming, printers, stockpiling gadgets, speakers, earphones, and different adornments and peripherals through its online and retail stores, and computerized substance and provisions through the itunes Store. Money related Condition Fruit's latest quarterly comes about (for the three months finishing 31 March 2012) included $39.2b in net deals, up very nearly $15b for the same time period a year ago; working pay of $15.3b, simply under twofold the former year's number; and net income of $11.6b, up from simply $6b one year prior – a year over year build of roughly 59%. Moreover, profit for every offer multiplied, reporting at $12.30/offer, contrasted with
  • 6. $6.40/offer one year prior. For the six months consummation March 31, 2012, Apple posted an amazing $85.5b in net incomes, up $34b from the earlier year (a rough 60% increment!); working pay of simply under $33b, more than twofold 2011's $15b; and net income of $24.7b, once more, multiply 2011's accounted for $11.9b. Income for every offer expanded from $12.83/experience 2011 to over $26/impart starting 31 March 2012. Murph (2012) states "… simply to place things in viewpoint, Apple about multiplied its benefits in Q2 2012 contrasted with Q2 2011, and for all intents and purpose quadrupled it contrasted with Q2 2010." Area 3: Market/ Industry Analysis and Competition US Market Fingas (2012 reports that Smartphones crossed a paramount point of reference in the U.S. back in March: simply over a large portion of all U.S mobile phone managers had a cell phone or something to that affect, making "other than Smartphones" the minority without precedent for the business. At present, Android (which is a working framework in rivalry with Apple's ios) sits on the pile, guaranteeing 48.5% of those clients; while Apple holds a piece of the overall industry of about 32%. Florin (2012) proposes that that pattern could start to invert as the iphone 4s was the hit at Verizon, At&t, and Sprint for the month of May. Verizon's main three venders were the iphone 4s, the Motorola Droid Razr and the Samsung Galaxy Nexus (well, that is more Android clients tragically… ). Over at At&t, the Nokia Lumia 900 and the Samsung Galaxy S II Skyrocket are trailing the iphone, while the Samsung Galaxy Nexus and Galaxy S II come next and third, individually, at Sprint. Interestingly, there is one U.s. transporter – T-Mobile – who still does not offer the iphone: its essential merchants are the HTC One S, the Samsung Galaxy S II, and the Samsung Galaxy S Blaze (once more, here are a greater amount of those bothersome Android clients). Worldwide Market At present Samsung is the business pioneer outside of the U.s.; supplanting long-term worldwide titan Nokia, shockingly since
  • 7. 1998. Samsung sent 92 million units in first QTR Fy12; while Nokia trailed with only 83 million (Goldman, 2012). IDC (2011) reports that worldwide deals among the main five cell phone makers, for the greater part of 2011, including rate of piece of the pie were as takes after: Samsung, 94 million units sold, with 19% piece of the pie; Apple, 93 million units sold, with 18.7% piece of the overall industry; Nokia, (77 million units sold, with 15.7% piece of the pie; Research in Motion, "Edge", 51 million units sold, with 10% piece of the pie; and, finally, HTC, 43.5 million units sold, with 9% piece of the pie. Year over year, worldwide cell phone deals expanded 63% from 2010 to 2011; with Samsung, Apple and Nokia as the separate pioneers. Quick advance to 2012, IDC assesses that 686 million cell phones will be sold in 2013; which will be 38.5% of the whole cell market . Geologically talking, China, India and the U.s. are the biggest markets, involving approximately 30% of the world's portable clients (China, in purpose of certainty, is the most obvious cell phone market). Sadly, in China, Apple has neglected to get up to speed to Samsung, who has tripled its lead; opening a 17% crevice in piece of the overall industry. This, notwithstanding expectations that Apple's cell phone deals will hop 52% not long from now (Bloomberg, 2012). Inquisitively, China's biggest bearer, , China Mobile, isn't helping Apple's reason as it sticks to exclusive 3g innovation that restricts Apple's capability to infiltrate the business sector further – that is, at any rate until China Mobile proceeds onward to 4g engineering. China aside, Samsung rules incomparable right now with a 20.7% worldwide piece of the pie (Whitney, 2012). Epstein (2012) offers confirmation to further help this when he reports that for the first QTR Fy2012, Google's Android Operating System saw its deals bounce by 145%, on offers of 90 million units; with Samsung representing something like 40% of the produced handsets on which Android was sold. Obviously, it will be dependent upon late 2012 and the arrival of the iphone 5 to check whether Apple will have the capacity
  • 8. to effect Samsung's prosperity so far in 2012. Segment 4: Market Segmentation and Target Marketing Market Segmentation In general, Apple fragments its businesses by topography; with working portions of the Americas, Europe, Japan, Asia-Pacific and retail. The Americas portion is contained both North and South America; Europe really incorporates all European nations, and additionally the Middle East and Africa; the Asia-Pacific section incorporates Australia and Asian nations (other than Japan); and, ultimately, the retail fragment which are twelve or somewhere in the vicinity stores in 12 nations, including the United States. Each of these fragments is assessed by net deals and working salary. Target Marketing As indicated by the Apple site, the organization offers its items to customer, little and average sized organizations, instruction, undertaking, government, and inventive clients (Apple.com, 2012). At the point when the organization initially presented the cell phone, its target promoting included "experts, scholars, corporate clients, business people, and therapeutic clients". With the coming of iphone 4s; each demographic is currently a potential client; its October 2011 rollout was about getting the item into whatever number hands as could be expected under the circumstances (Garside, 2011). Late target publicizing shows age ranges from carport band teen rockers to center matured soccer mothers to retirees to Hollywood Vips booking their day with Siri; nobody is forgotten. The effortlessness of the ads is virtuoso. What Apple acknowledged in its division methodology is that the "application lifestyle" (Sigal, 2010) permits clients to tailor their telephones to their particular tastes; making the telephone extremely appealing crosswise over various business sections (demographics); portions that may shift significantly as they would like to think of the item on the off chance that it had been overall outlined. Value focuses have even been dropped in
  • 9. numerous regions in place that lower pay buyers can possess the telephone too (Krazit, 2012). Obviously, paying for an arrangement is an alternate story, however simply getting the most recent innovation at a marked down cost was a shrewd ploy on Apple's part. All things considered, in the event that you don't feel rejected by an item, you may be more slanted to go out and use your cash on it. Area 6: Relevant External Factors Among the most widely recognized outer variables influencing the cell phone market at this time are expense of cohorted arrangements, rate of remote systems administration, and purchaser interest for inventive, exceedingly effective, yet less expensive items. Other significant key elements incorporate budgetary, legitimate and ecological contemplations. * Plan costs commonly are tied up in awkward, long haul contracts. For every last bit of its division and focusing on, Apple realizes that its customer base – the unified with purchasing force, even in a subsidence – will switch items rapidly if offered something more imaginative and at a lower value point. * Regarding pace of remote systems administration, the key is, no doubt on the arrange that takes into account the best system; generally speed means nothing. (Coincidentally, "Best-in-class" remote systems are a discussion for an alternate paper.) * Future guru slants in the cell phone business are inclining to increased actuality, and counterfeit consciousness. Fruit is in front of that bend with the presentation of Siri – the "S" in 4s. Extra patterns are Polaroids that opponent point-and-shoots; and 1080p HD, streaming feature. * Economically, the single most awesome outside component influencing the iphone 4s is the retreat. Humorously, the organization is posting record deals. By lessening its value point, Apple is capable ready to offer more telephones, as well as extension of the client base means lower store network costs also. * Legally, Apple is buried in a claim with Samsung over
  • 10. charged copyright encroachments. This is immense as the organization is staking its capability to get Samsung on either the postponement or inside and out end of Galaxy III unit deals, which Apple cases were based upon stolen engineering. * Lastly, there is the "green" pattern. Fruit has addressed this by giving without mercury LED-illuminated showcases; without arsenic showcase glass; without pvc and brominated fire resistant free parts; and also bundling produced using post- shopper reused fiberboard and biobased materials. Segment 8: SWOT Analysis: Apple iphone 4s Qualities * Superior brand distinguishment and client administration = dedicated client base. * Increased storage room: 64gb; Faster processor; Siri Voice control; * Innovation of gadget: incorporated with industry heading feature, design, pace and usefulness. * "Application lifestyle" claims crosswise over target markets; with value point taking into account extended purchaser base. * 4s expected and addressed key outer variables (iphone 5 anticipated to do the same). Shortcomings * No 4g/LTE help! * Lack of infiltration in biggest worldwide cell phone market, China. Google Android and Samsung snatching broadening, worldwide piece of the overall industry. * Hardware issue: poor battery life. (This is an industry challenge, not local to iphone alone.) * "Application lifestyle offers crosswise over target markets; however buys through itunes store get exorbitant rapidly. * 4s expected and addressed key outer components; yet doesn't offer 4g/LTE. Good fortunes * Improve battery life. * Close the crevice of 48% Android clients to 32% ios clients in US.
  • 11. * Increase transporter base* Increase market infiltration into China by means of collaboration with stretched Chinese bearers. * Release iphone 5 so as to neutralize Samsung/Android item offering in Galaxy III telephones. * Litigate and/or settle "Fruit v. Samsung" suit so as to set economic situation for iphone 5 discharge. Dangers * Technology lost to or stolen by contenders (as is affirmed by Apple Inc. in "Fruit v. Samsung") * Android deals and business interest may keep on outpaing ios request all around. * Start-ups from new organizations looking to addition corner in cell phone market. * China Mobile may stay with current advances; favoring Android clients in Chinese market. Conclusion Fruit's brand quality, client administration, item development/updates, and customer devotion have permitted it to be a pioneer in deals and creation in U.s. markets; with items that request promptly crosswise over target markets. iphone 4s deals have trounced inside Apple brands, as well as other cell phone organizations in the U.s. market. Tran (2011) reasons that the 4s is without a doubt one of the best telephones accessible available today; with a monstrous mixture of applications, phenomenal outsider designer help, commonplace configuration (for existing clients), and enhanced equipment. At the same time, while organization CFO Peter Oppenheimer may smile and order late, record 4s deals as "to a great degree effective", the truth of the matter is that U.s. deals strength isn't the same as general U.s. market strength; which is precisely what Apple needs, however has yet to delight in much obliged in substantial part to interest for Google's Android-empowered telephones. Without a doubt, the 4s has cool peculiarities, yet that is not interpreting into either U.s. on the other hand worldwide business predominance. Deals numbers here and abroad affirm one of Apple's key business sector shortcomings
  • 12. at this time: predominantly, that clients are more concerned with access to 4g/LTE than wanting Siri to remind them from their tee time at the green. No place is the absence of 4g tech more glaring than Apple's independent disappointment to break the Chinese market; which Samsung heads at 24% of piece of the pie. This disappointment is additionally one of Apple's key dangers to accomplishment as the political and monetary atmosphere in China could essentially support Android/Samsung (and other Android related organizations) going ahead. The certainty remains that Apple has yet to secure a lead in worldwide markets. Right now, it trails Android/Samsung by approximately 16 rate focuses in worldwide piece of the overall industry; and that is with deals quadrupling since 2010! On the off chance that Apple is to close this hole and/or assume control over the lead; it will oblige something more than the current iphone 4s offers (… sorry Siri… ). Maybe the since a long time ago expected iphone 5 won't just uproot the innovative, monetary and political boundaries that are set up in business sectors like China; however help it to get and outpace Android clients who as of now delight in the innovation that make it the prevailing vicinity in the cell phone industry today.
  • 13. Citation 1. Tran, Louie (2011) Apple iphone 4s: Conclusion. Brighthand.com: news. Recovered 23 July 2012 from http://www.brighthand.com/default.asp?newsid=18301&news=a pple+iphone+4s+review+att+verizon+sprint&p=3# 2. Whitney, L. (2012) Samsung top phone producer; however Apple's an expert. CNET News; recovered 22 July 2012 from http://news.cnet.com/8301-1023_3-57435257-93/samsung-top- wireless creator however fruits an exp 3. Running head: STRATEGY AND POSITIONING 1 STRATEGY AND POSITIONING 2 Strategy and Positioning 421 June 16, 2014 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).
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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). 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).
  • 18. 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
  • 19. 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
  • 20. 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.
  • 21. 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 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