This document provides a market research project on Apple Inc. conducted by a group of students. It includes an environmental scan covering Apple's economic impact, relevant technology trends, political/legal factors, and socio-cultural trends. It also performs a SWOT analysis and discusses Apple's mission, competition, target markets, product positioning, pricing, distribution, promotion, and recommendations.
A comparative study between Apple and SamsungVivek Shah
The Apple brand and logo are currently more recognized around the Western world, and in London and New York, you cannot walk down the street without seeing a sea of white headphones and people playing with their iPhones. The Brand Finance Global 500 2013 puts Apple and Samsung right at the very top of the best brands in the world, ahead of Coca-Cola and Google.
Samsung smartphones are broadly comparable, feature-for-feature, with competitors like HTC, Sony, LG and now Nokia, so why has it become so dominant? A big part of the answer lies in its sheer marketing muscle – Samsung spends a bigger chunk of its annual revenue on advertising and promotion than any other of the world's top-20 companies by sales – 5.4%, according to Thomson Reuters data. Apple spends just 0.6%, and General Motors 3.5%.
Adverts mocking Apple fans, and heavy investment in product placement and in distribution channels have strengthened its Galaxy mobile brand. Samsung now sells one in every three smartphones and has more than double Apple’s market share.
Moon Ji-hun, head of brand consultant Interbrand's Korean operation, adds: “When your brand doesn't have a clear identity, as is the case with Samsung, to keep spending is probably the best strategy. But maintaining marketing spend at that level in the longer term wouldn't bring much more benefit. No one can beat Samsung in terms of ad presence, and I doubt whether keeping investing at this level is effective.”
Apple may sit in top position now, but has lost its mojo over the last couple of years through lackluster product releases and perceived lack of innovation. Samsung is catching up and is already no. 2. The Samsung brand can be improved and it isn’t loved by some like Apple, but I am impressed with the leadership team for seizing the opportunity to leapfrog all its other competitors, through investment and execution with conviction.
The presentation is made under the guidance of Professor Sameer Mathur, IIM Lucknow The presentation gives an insight about how the company works and what are its marketing strategies and how they implement them. It also tells what are the factors responsible for such tremendous growth of the company.
A comparative study between Apple and SamsungVivek Shah
The Apple brand and logo are currently more recognized around the Western world, and in London and New York, you cannot walk down the street without seeing a sea of white headphones and people playing with their iPhones. The Brand Finance Global 500 2013 puts Apple and Samsung right at the very top of the best brands in the world, ahead of Coca-Cola and Google.
Samsung smartphones are broadly comparable, feature-for-feature, with competitors like HTC, Sony, LG and now Nokia, so why has it become so dominant? A big part of the answer lies in its sheer marketing muscle – Samsung spends a bigger chunk of its annual revenue on advertising and promotion than any other of the world's top-20 companies by sales – 5.4%, according to Thomson Reuters data. Apple spends just 0.6%, and General Motors 3.5%.
Adverts mocking Apple fans, and heavy investment in product placement and in distribution channels have strengthened its Galaxy mobile brand. Samsung now sells one in every three smartphones and has more than double Apple’s market share.
Moon Ji-hun, head of brand consultant Interbrand's Korean operation, adds: “When your brand doesn't have a clear identity, as is the case with Samsung, to keep spending is probably the best strategy. But maintaining marketing spend at that level in the longer term wouldn't bring much more benefit. No one can beat Samsung in terms of ad presence, and I doubt whether keeping investing at this level is effective.”
Apple may sit in top position now, but has lost its mojo over the last couple of years through lackluster product releases and perceived lack of innovation. Samsung is catching up and is already no. 2. The Samsung brand can be improved and it isn’t loved by some like Apple, but I am impressed with the leadership team for seizing the opportunity to leapfrog all its other competitors, through investment and execution with conviction.
The presentation is made under the guidance of Professor Sameer Mathur, IIM Lucknow The presentation gives an insight about how the company works and what are its marketing strategies and how they implement them. It also tells what are the factors responsible for such tremendous growth of the company.
Analysis of Apple iPhone's Indian market entryAbraham Cherian
A paper examining possible strategies for Apple iPhone's market entry into India. Though written in April 2017, most factors considered here are still relevant and Apple appears to be following the path described. This paper was written by Abraham Cherian, NItesh Gupta, Fannie K Weaver, and Elisa Wilkins.
A project Report is a document which provide detail on the picture of proposed business. The project Report gives detail on E-marketing strategies of Oppo
The presentation is made under the guidance of professor Sameer Mathur, IIM lucknow. This presentation tells a few details about the apple company and how it begun and what its current position is, what are the current marketing aspects of the company and what are their future scopes of expansion. The presentation also describes why the company is such a good innovator.
Introduction of Apple, Vision, Mission, Current Apple Products, Innovative Characteristics of Apple, Innovation Strategy at Apple, Apple: Products of Success, Recent Innovation at Apple, Apple's Shift from Radical to Incremental Innovation, Opportunities Ahead for Apple.
Analysis of Apple iPhone's Indian market entryAbraham Cherian
A paper examining possible strategies for Apple iPhone's market entry into India. Though written in April 2017, most factors considered here are still relevant and Apple appears to be following the path described. This paper was written by Abraham Cherian, NItesh Gupta, Fannie K Weaver, and Elisa Wilkins.
A project Report is a document which provide detail on the picture of proposed business. The project Report gives detail on E-marketing strategies of Oppo
The presentation is made under the guidance of professor Sameer Mathur, IIM lucknow. This presentation tells a few details about the apple company and how it begun and what its current position is, what are the current marketing aspects of the company and what are their future scopes of expansion. The presentation also describes why the company is such a good innovator.
Introduction of Apple, Vision, Mission, Current Apple Products, Innovative Characteristics of Apple, Innovation Strategy at Apple, Apple: Products of Success, Recent Innovation at Apple, Apple's Shift from Radical to Incremental Innovation, Opportunities Ahead for Apple.
A descriptive presentation about Apple Inc. Covering the History, company profile, Product line, competitors and SWOT analysis. Mostly all aspects are covered in it.
For my final, capstone marketing class, marketing strategies, my team and I were confronted with the challenge of developing a marketing plan for a specific industry, and a company within that industry. We chose the smartphone industry, and within that, the company Samsung. After thorough research, we presented a marketing plan to evaluate their marketing mix moving forward.
Strategic Management Presentation - Apple Inc.Colby Nelson
The presentation slides for a Strategic Management class at Biola University. We presented on Apple Inc. and through a semester long study came up with recommendations for Apple to implement to create more sustainable competitive advantage.
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Strategic Improvement3
Business Plan Assessment: Strategic Improvement
Strategic Planning & Implementation
9/6/2021
Strategic Improvement
The purpose of the strategic plan in week two assignments was to show how Mexican Chipotle plans to work towards its damaged reputation and earn consumer trust and confidence. As highlighted in the assignment, Chipotle has faced ethical blows in its operation, which led to its closure. However, after resuming its functionality, the company had lost its positive public image, affecting consumer trust and confidence. Therefore, developing a great and workable strategic plan is vital and paramount for Chipotle because it will restore its public image and improve its competitive advantage and attract more customers. Thus, Chipotle's strategic plan aims to attract customers, increase the company's competitive advantage, and increase the general productivity of the company.
The key objectives of Chipotle’s strategic plan are to maintain its existing customers and do the best it can to attract more customers. Such objectives can only be achieved if the company strategically plans and approaches market development aspects. For instance, after Niccol took over, he employed differentiation as a market development initiative in the company (Thompson, 2019). This is a strategy that targets a narrow market, hence improving the company’s overall competitive advantage. Chipotle intends to give its customers variations of products to choose from with a target for a narrow market. This will increase the competitive advantage within the company and strengthen its overall operations in the business market.
The strategic plan reveals that Chipotle is focused on improving its processes to ensure the safety of both the people and the environment. The company intends to strategically differentiate its products, with a focus on the production of food with only natural ingredients. Initially, Chipotle used to process products from both natural and synthetic materials. However, after the ethical blow where many customers suffered from food poisoning, the company has learned its lesson and resolved to focus on the safety and health of the consumers (Thompson, 2019). Niccol has ensured that Chipotle sources its rice, beans, and cilantro from organic suppliers. This implies that Chipotle is focusing on having the best food quality instead of saving money on ingredients. This will eventually turn the company into a healthy living entity, which will change the narrative regarding the reputation of the company into what consumers love.
Chipotle has a performance culture based on employee development and promotion of employees from within the company. Employees are given a path of ascension and opportunities to advance their employment levels and job positions. More so, the company provides the workers with a bal ...
Over the last five decades, Apple Inc. has succeeded in creating a business empire in the technological industry. Apple’s I-products are among the most loved technological items across the world. In the business world, Apple’s IT products and operations are unmatched. To this end, Apple Inc. growth is remarkable and shows no signs that it will decline in the near future. This is typified by the fact that the company keeps setting new sales records for every product that it introduces into the market. Whatever Apple Inc.’s does only catches its competitors unaware and therefore they play the role of catching up by mimicking its strategy though largely unsuccessfully. This paper examines the impact of various internal and external organizational environments that affect Apple Inc. As such, the paper will keenly explore the extent to which the organizational environment affect Apple. Among the various external and internal environments that will examined in this paper include economic, social, technological and economic factors. It will also give the implications that these factors have on Apple Inc. if the company is to continue with its success story.
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Week 3 Assignment 1
Globalization and technological advancements have significantly influenced how modern businesses work to increase their competitive edge and financial performance standards. Furthermore, the strategic management framework and the resource-based framework may be used on enterprises to help them accomplish overall projected ambitions. For this assignment, I chose a company that many are familiar with. The Apple Company is among the most significant international businesses. Apple was formed in 1976 and is a global technology company that develops and sells computer hardware and software, internet service providers, and gadgets, along with various things. It is headquartered in the United States and works in various industries, including cellular telephone manufacturing. It is regarded as one of the greatest technological multinational firms in market share (Abdukarimova, 2021). Apple's earnings have increased due to its strong market sector growth and performance compared to its biggest rivals in the competitive market.Globalization
Globalization could be referred to as the progression through which companies make a worldwide influence or start to operate on a worldwide platform. It would be understood that globalization has culminated in removing obstacles, which has boosted imports and exports. The removal of restrictions has enabled Apple to grow into new markets and increase its competitiveness and earnings. Presently, this firm works in 24 nations and territories and has approximately 500 outlets, and its commodities are sold in most places in the world. It has extended Apple's consumer base, requiring the business to raise manufacturing power to satisfy growing consumer needs and requirements (Mamaghani, 2016). As a consequence, the firm employs a combination of direct and indirect distribution techniques to improve on-time deliveries and prevent unnecessary complications and delays.
The degree of competition in the marketplace wherein Apple's Current works has significantly grown due to globalization. The firm is presently facing severe pressure against companies such as Samsung, Nokia, and Toshiba, among many others, on a worldwide platform. The rivalry is mostly focused on pricing, responsiveness, and manufacturing efficiency, as certain businesses can accomplish low operating costs and therefore implement superior pricing tactics. The consumer wants in the sectors where Apple works are incredibly competitive, requiring firms to be extremely attentive to prevent deficits. Nevertheless, the more significant rivalry has led to the development of high-quality items that benefit buyers (Puncheva-Michelotti et al., 2018). Therefore, competing firms are the potential of producing items comparable to some of those made by Apple and selling goods at a discounted cost. Apple is concentrated on delivering high-quality goods that meet the demands of buyers worldwide, which has impacted company activities and its ...
110Week 3 Assignment 1Globalization and teSantosConleyha
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Week 3 Assignment 1
Globalization and technological advancements have significantly influenced how modern businesses work to increase their competitive edge and financial performance standards. Furthermore, the strategic management framework and the resource-based framework may be used on enterprises to help them accomplish overall projected ambitions. For this assignment, I chose a company that many are familiar with. The Apple Company is among the most significant international businesses. Apple was formed in 1976 and is a global technology company that develops and sells computer hardware and software, internet service providers, and gadgets, along with various things. It is headquartered in the United States and works in various industries, including cellular telephone manufacturing. It is regarded as one of the greatest technological multinational firms in market share (Abdukarimova, 2021). Apple's earnings have increased due to its strong market sector growth and performance compared to its biggest rivals in the competitive market.Globalization
Globalization could be referred to as the progression through which companies make a worldwide influence or start to operate on a worldwide platform. It would be understood that globalization has culminated in removing obstacles, which has boosted imports and exports. The removal of restrictions has enabled Apple to grow into new markets and increase its competitiveness and earnings. Presently, this firm works in 24 nations and territories and has approximately 500 outlets, and its commodities are sold in most places in the world. It has extended Apple's consumer base, requiring the business to raise manufacturing power to satisfy growing consumer needs and requirements (Mamaghani, 2016). As a consequence, the firm employs a combination of direct and indirect distribution techniques to improve on-time deliveries and prevent unnecessary complications and delays.
The degree of competition in the marketplace wherein Apple's Current works has significantly grown due to globalization. The firm is presently facing severe pressure against companies such as Samsung, Nokia, and Toshiba, among many others, on a worldwide platform. The rivalry is mostly focused on pricing, responsiveness, and manufacturing efficiency, as certain businesses can accomplish low operating costs and therefore implement superior pricing tactics. The consumer wants in the sectors where Apple works are incredibly competitive, requiring firms to be extremely attentive to prevent deficits. Nevertheless, the more significant rivalry has led to the development of high-quality items that benefit buyers (Puncheva-Michelotti et al., 2018). Therefore, competing firms are the potential of producing items comparable to some of those made by Apple and selling goods at a discounted cost. Apple is concentrated on delivering high-quality goods that meet the demands of buyers worldwide, which has impacted company activities and its ...
Financial Report of Apple Inc. for the year 2014 with full analysis of SWOT, PEST analysis, BCG Matrix, Ratio Analysis, Observations, Recommendations & Conclusion
Strategic Management 7
Week 3 Assignment 1
Phabian Smith
Strayer University
BUS 499: Business Administration Capstone
Dr. Keller
Dr. Gardner
July 21, 2019
Week 3 Assignment 1
Apple Inc. is one of the companies whose history and development are well documented. Apple is known for designing, developing, and selling of computer and computer software, consumer electronics, and provides various online services. The company has developed into one of the major computer manufacturers in the world. This is because of the regular reliability on the development of new innovative technologies and globalization that has expanded its customer base. Technology and globalization have played a key role in the functioning of the organization since its formation 1976. The company’s global expansion and their focus on technological innovation in their business activities and products have made them a unique competitive advantage.
Globalization
Globalization can be considered as the integration of the interchange of ideas, culture, views, and products in the world. Globalization has enabled communication and interaction between individuals from various spheres resulting to free flow of products from one place to another without geographical barrier. In fact, globalization has made the world a global village. For Apple Inc. the increased integration of globalization has enabled it to become one of the biggest companies in the world. It has affected the business strategy of the company. With the extended market and the increasing demand for Apple products, the company has implemented the differentiation strategy which has prompted it to produce software, phones, and electronics with unique features. This has been facilitated by research and development to enhance technological innovation which is the cornerstone of its competitive advantage. At the same time, globalization as impacted on the operational and employment practices of the company. Today, Apple has the ability to access every part of the market and outsource production plants in different parts of the world. It has therefore been successful in the manufacture and launch of products in new markets. It is also important to note that globalization has enabled Apple to attract and employ talented, committed, experienced and innovative candidates. Most importantly, globalization has had significant impact on the resources and profit maximization of the company because going global has enabled it to increase its market share.
Technology
The effective application of technology in various aspects of the company has benefited it beyond expectations. Technology change has been a key factor in the success of the company. It has played a major role in the change to a mobile computing society by developing personalized technology devices that would serve the different needs of the people. Ha.
Design Thinking and Innovation at Apple IncSHREYANSH VATS
The following presentation is based on a case on Apple Inc about how Apple goes about implementing innovation and design thinking at their firm, and how there's a shift with the arrival of Tim Cook. The case was a part of our course called BusinessInnovation in New Environment (BINE)
Similar to Apple company market research project mkt305 (19)
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
3. When we think of innovative computer and cellular phone technology that is constantly
ever-changing, worldwide success, and brand and customer loyalty like no other, what company
usually comes to mind? Apple Inc. Now called Apple Inc., the company began as a manufacturer
of personal computers and it was first called Apple Computer, Inc. ("History of Apple Inc."). The
company we now know as Apple was not as internationally successful as it is today, but after a
few bumps in the road and under the leadership of its founder and former CEO Steve Jobs the
company was back on its feet. Steve Jobs managed to rebuild the company and Apple began to
make its return in 1998 with the introduction of some of its early hardware products including
iMac, iBook, and the Power Mac G4 ("History of Apple Inc."). The year 2001, however, was a
very important year for the company. It was the year that Apple introduced the iPod line and
Apple products started to become increasingly popular worldwide. From that year forward, the
company not only changed people's perception of music through the introduction of the iTunes
music store but also changed the way people communicate with one another since the release of
the iPhone ("Technology: Changing the Way we CommunicateMediaCAST Blog | MediaCAST
Blog."). The release of the iPad has helped consumers stay organized and entertained while also
offering mobility. Furthermore, without Mac desktops and laptops there would be no "mac users"
and media professionals wouldn't have the option of using a computer that is more reliable than
its competitors (Finnie).
Aside from being a top technology company worldwide, Apple has also paired up with
the (RED) charity to enhance its marketing strategy. The goal of this collaboration with (RED) is
"to fight for an AIDS-free generation by 2015" ("Apple - (PRODUCT) RED - Help fight AIDS
in Africa."). In order to do this, Apple has created red products and every time a consumer
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4. purchases one of the red products, the profits go to AIDS programs in Africa. The charity has
collected more than $50 million from Apple ("Apple - (PRODUCT) RED - Help fight AIDS in
Africa.). In addition to using cause marketing, the company has shown considerable interest for
its effect on the environment, specifically its environmental footprint. One of Apple's main goals
is to create environmentally friendly products. Apple aims to do this by designing products that
require less material and not only lessen carbon emissions but eliminate common toxic
substances that are used in manufacturing products ("Apple - The Story Behind Apple's
Environmental Footprint."). Additionally, Apple also reduces greenhouse gas emissions by
running several of their data centers on 100% renewable energy.
Apple's aim has been to provide consumers, businesses, students, and educational
institutions with the best personal computing experience. Not only has Apple Inc. redefined how
consumers use computers at home, school, and work but has also given consumers a whole new
perspective on the mobile phone and music industry all while exemplifying social responsibility
and environmental sustainability for its stakeholders. Apple's worldwide success is evidence that
the company has succeeded in accomplishing its mission in being one of the world's top
innovative companies.
Environmental Scan
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5. Economic Impact
Apple has created entirely new products and entirely new industries, by focusing on
innovation. Apple Innovations as a result have created or supported more than 500,000 jobs for
U.S. workers (Apple). With the different products that Apple has available to sell, consumers buy
a lot of supplies which brings money into the economy. Apple products are the first things
someone can name as being a want. Technology is something that is always modern, and
everyone wants to stay up to date with. Apple has always comfortably beats its revenue
estimates, originally when the iPhone was unveiled it was universally revered. Apple‟s release of
its products can impact US gross domestic product (GDP), Apple‟s shares have risen 50% this
year, making Apple the most highly valued company on the American stock market. In the past
11 years Apple has launched three products- the iPod, iPhone, and iPad that have created brand
new markets, fulfilling desires that consumers did not even know they had (Carmen Ballagan).
Apple has proven that it is possible to earn high margins with brilliant designs and by offering
consumers ways to access the internet effortlessly wherever they go. Apple shows that, even in a
period of recession, consumers are willing to pay for the must-have gadgets. Innovation has been
widely touted as the key to long term economic prosperity (Carmen Ballagan). Apple and the
U.S. tech industry have successfully coordinated global value chains to develop and manufacture
their products while focusing their own efforts on design, marketing, branding, and distribution.
Innovative products such as American technology products are designed and marketed by U.S.
companies; they create valuable jobs for American workers even if the products are
manufactured offshore (InformationWeek). Apple‟s tremendous success with their innovative
products in recent years has driven growth in U.S. employment.
Technology & Industry Trends
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6. Technology will always be an ever growing industry and the demand for efficient and
smart technological advancements has become more apparent. Everything is changing, consumer
products such as phones and tablets to the way your home computer accesses the Internet. Dual
core and Quad core processors have become the norm in smart technology; as a result people
should expect more powerful devices, smart devices in our pockets are far more powerful than
the desktop computers people dreamed of in the 1980s, as a result they could soon replace our
wallets as well (InformationWeek). Smartphones also bring computing power in the palm of our
hands, (NFC) or Near Field Communications, which is already part of many
smartphones.Imagine tapping your phone to a receiver at a register, instantly paying for an item
without fumbling for your wallet, or being able to load your transit card onto your phone, using a
simple tap to deduct money for every trip on the train (CNN). All things you can do now with a
smartphone would have seemed like science fiction only a decade ago.Because of Technology &
Industry Trends, it has also become easier and cheaper to add Internet connectivity over a mobile
network than to build physical telephone lines. Cheap tablets will bring changes in education,
health care, retail, automobiles.
Political-Legal (laws that impact the industry)
Large companies like Apple can financially support the political process in several ways.
They may give direct contributions at the state and local level. Companies like Apple engage in
political spending indirectly by supporting trade associations. Since 2002, Apple has been a
moderate political spender; the company has contributed approximately $580,000 in corporate
funds to political activities (Political Transparency and Accountability Profile). The debate over
“Net Neutrality” has been an ongoing problem for large technology companies like Apple.
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7. Congress and the FCC want to impose regulation if need be. Net Neutrality changes the way the
Internet operates (Political Transparency and Accountability Profile).
The push for modernization of the American healthcare system would provide
government money for infrastructure development and implementation for health care providers.
The adaptability of Apple‟s key products in innovation health centric ways could bring new
sources of revenue, because Apple creates new and innovative technologies it could raise the
future value of Apple.
Social-Cultural Trends
Internet and connectivity to the social world is driving a demand for access everywhere,
using high-speed wireless technologies. Smartphones, and other ultra-portable connected
devices, allow users to carry and have access to the Internet everywhere they go these are fast-
growing compared to traditional personal computers (InformationWeek). Apple and other
manufacturers face a loss of relevance in the new technological landscape, driven by consumer
preference. Apple‟s substantial investment in research and development in highly popular
devices, and is at the forefront of this transition. The production and shipment of Apple‟s devices
use considerable sources of carbon emissions and pollution, which may come under scrutiny as a
consumer concern for the environment, which continues to grow (Brian Masi). Apple has already
made commitments to green manufacturing practices as well as implementing the use of eco
-friendly components, and packaging. This proactive step can be used as a marketing tool to
harvest greater respect from concerned customers. Further, the Chinese economy continues to
grow despite worldwide economic contraction. The Chinese economy becomes more and more
developed, increased wages nationwide will increase the costs of production for Apple and its
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8. OEM partners. The increase in quality of life and disposable income to Chinese citizens will
provide a larger customer base for Apple to tap into (InformationWeek). Strict Carbon emissions
regulations impose a considerable financial burden on the production of Apple‟s products,
driving up costs and shrinking margins. Apple‟s initiative in implementing green practices sets
them apart from many competitors who will also feel the burden of regulation.
SWOT ANALYSIS
Strengths Weaknesses
-Early innovator of computer and non-computer -Price. Apple products in general are normally
technology products such as iPod, iPhone, mac higher priced than their competitors and consumers
computers, and apple TV ("MBA Lectures » Blog that are price sensitive tend to opt for lower priced
Archive » SWOT Analysis of Apple.") or cheaper alternatives. (Harrer)
-Apple is an internationally successful company --Some of Apple's products experience technical
("MBA Lectures » Blog Archive » SWOT Analysis problems and consumers complain that there's a
of Apple.") lack of customer care and having to purchase the
AppleCare package in order to resolve any
-High level of Brand loyalty among customers problems. (Crook)
(Goodson)
-iTunes purchased content such as eBooks, movies,
-The iTunes store is a big part of Apple's revenue. TV episodes and some music work only on apple
People buy music and applications conveniently for devices and computers. This Digital Rights
their Apple devices (Hornshaw) Management protection prevents users from
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9. moving iTunes content to other devices that are not
- Apple products are reliable, and it is a well-known apple devices.(Aimonetti)
company globally.
-Users would have to get used to the formatting of
-Apple is financially solid, no debt, and $13 billion their Apple products, and has a weak integration
net income in Dec 2011 quarter. between windows software and their apple
software.
Opportunities Threats
-Apple could think about possibly expanding its -Competitors such as Dell, HP, and Lenovo
iTunes store into China which counts for a major offering cheaper personal computer alternatives for
part of its revenue. (AP) students on a tight budget (Smith, “The 5 Cheapest
High-Quality”)
-Apple's collaboration with Bodhi to create an
exclusive handbag for Apple targeted for apple -Samsung will be releasing its Samsung galaxy
enthusiasts with a fashion sense. This will generate note 2 which is a direct competitor to the iPhone 5.
extra revenue/income for the company. ("Samsung Galaxy Note II vs. Apple iPhone 5)
(PRNewswire-iReach)
-Critics say that Android Jellybean is better than
-Apple can think about committing to be a iOS 6 overall. Which will have consumers opting
company that uses 100% renewable for android jelly bean phones. (Smith, “Android
energy.(Joshua) Jellybean vs. iOS 6”)
-Increase their advertising through new possible -Windows 7, and Google operating systems.
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10. avenues, ex: the fashion industry, film industry.
Mission Statement
Apple designs Macs, the best personal computers in the world, along with OS X, iLife,
iWork and professional software. Apple leads the digital music revolution with its iPods and
iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and
App Store, and is defining the future of mobile media and computing devices with iPad (Apple).
Apple is committed to bringing the best personal computing experience to students,
educators, creative professionals and consumers around the world through its innovative
hardware, software and Internet offerings.
Competition
Apple creates computers, phones, tablets, music players, operating systems, television
set- top boxes, lifestyle, productivity software, professional media software, wireless routers, and
also sells movies and music. Products created by Apple are intuitive and easy to understand and
learn. Apple offers great customer service and in- store service experiences. Further, Apple stays
at least two years ahead of its competitors, having geniuses in design, software, and retail; Apple
has the cash to invent components, and manufacturing processes (Brian Masi).
Apple‟s direct competitors are Google, Samsung, HP, and RIMM. Apple by forging the
modern smartphone layout first and patenting its screen-centric design, Apple now finds itself in
the position of being able to force competitors to tread warily in their layout of smartphone
elements (Raymond Meyers). Apple has perfected the precision and responsiveness of screens,
the iPhone showed the potential of new screens by increasing their size, given the screens a hard
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11. glass surface that responded to light finger gestures (The Economist). Majority of other
technology companies have fewer design patents than Apple, design has become an advantage in
consumer choice as weak design patents will have to catch up. Competitors have fewer design
patents because they are less driven by design, unlike Apple much of the industry has produced
predictable standard computer boxes, laptops, and phones and make a minimal investment in
design (TechPinions). Apple ignored the competition and remained convinced that the original
iPhone‟s 3.5 inch screen was sufficient and stuck with it, however when Apple finally embrace a
larger screen size with the iPhone 5, it did not follow directly in its competitors‟ footsteps, rather
it implemented the new phone‟s larger screen in a way that clung to the original iPhone‟s design
goal of being usable with one hand. When Apple unveiled the iPad, competitors released
knockoff tablets with different screen sizes. Apple responded to the iPad‟s competitors by
releasing the iPad mini which is $329, while the Kindle Fire costs $159 and the Google Nexus 7
starts at $199.
Target Market
Apple‟s products and software target numerous markets as each offers an assortment of
features specifically catering to the needs of each individual. Apple targets users who are
typically between ages 14 and 55 plus. Apple's computers all target home users, schools, and
media and design professionals. The newest iMac computer that will be released in November
gives home users the option of conveniently having an all-in-one desktop with faster
performance capabilities and a new storage option called fusion drive. This form of storage helps
to manage files in order to expand performance ("Apple - Press Info - All-New iMac Features
Stunning Design, Brilliant Display & Faster Performance"). iMac computers are aimed towards
11
12. education institutions. Apple offers iMacs to schools at a discounted price (Choi).
Graphic designers, television, movie professionals are also a target of Mac computers.
Graphic designers tend to use mac computers for several reasons: Mac OSX is open source
friendly, mac computers typically come with built in tools made with designers in mind, and
Apple builds their computers with all media professional consumers in mind (Nutter). Even
though you can't really customize Mac OSX like you can in windows, Apple picks the right
software making the computers easier to use. Programs built in mac computers are targeted
directly at television and movie professionals called Final Cut Pro. The program is used mainly
for video and audio editing (Arvidson). Apple's iPhoto software is available on mac computers
which lets those who are photo enthusiasts browse, edit and share photos ("Apple - iPhoto - New
full-screen views, emailing photos, and more.").
College, High School students and faculty and staff of K-12 and higher education
institutions are another group targeted by Apple's Education store. College, High School students
and faculty can receive discounts if the Apple devices are purchased through the institution
("Apple Education Pricing."). College students are also a major target because universities are
now working with wireless carriers in order to make these phones more accessible and affordable
for students. Small to large sized businesses are now providing their employees with iPhone‟s in
order for them to be mobile and stay in contact with the company. The iPhone attracts teenagers,
high school students and college students by its sleek design and availability of applications.
Their peers all have the advantage of being owners of the device so having one is a way of
"fitting in" with the crowd ("iPhone:Target Audience."). The phone also has a stylish design and
12
13. it targets those who want to make it a fashion statement. Loyal iPhone users are known for
staying up to date with the latest technology so the device also targets those who are tech-savvy.
Through the integration of iTunes in Mac computers, iPod devices, iPad devices, iPhone,
and Apple TV, Apple targets music enthusiasts. The iPod line in general targets music, video, and
photo enthusiasts. Consumers can store their collection of music and photos into certain iPod
devices ("Apple - iPod classic - Features - 160GB. 40,000 songs. And more"). In addition,
depending on the amount of storage available on the specific iPod, the device can store a certain
number of hours of video. The iPod shuffle targets consumers on a tight budget because of its
affordable cost. The iPod Nano specifically targets athletes because of its Nike plus integration.
Athletes are now able to track the distance they have ran and can use wireless headphones when
working out ("The All New iPod Nano Includes Built-in Nike+ and Bluetooth"). Older
generations are now being targeted more by Apple because the devices are not difficult to use.
Students can purchase keyboard docks for their iPad devices conveniently in order to take notes
during class. Instead of having to carry a heavy laptop around, travelers can view movies on iPad
devices during their flights (Marshall). Consumers who are avid users of iTunes, Netflix, Hulu
Plus, and YouTube are the main target for the Apple TV device. The Apple TV device allows
users to seamlessly connect to these streaming services. Consumers must own a widescreen
HDTV to use the Apple TV device ("Apple TV - Buy the New Apple TV").
Apple incorporates the use of geographic, demographic, psychographic, and product
related-segmentation into its marketing strategies. Geographically, Apple's retail stores are
located in highly populated cities around the world. Specifically, retail stores are located in large
13
14. shopping centers and highly populated streets in these major cities ("Apple Store."). Apple uses
demographic segmentation widely when marketing its various products. Apple devices are most
commonly segmented by consumer and business income levels and resources as most of its
products are priced significantly above its competitors. They are also segmented by age levels.
Its age levels vary from teenagers to adults ages 55 and older. Certain iPod models offered by the
company could be segmented by gender as they come in a variety of colors. There are both
masculine and feminine colors available for consumers to choose from. Apple's household target
seems to be mainly middle to upper class households who have that extra income to spend on
these "luxury" products although about 28 percent of households earning $30,000 a year or less
are the exception (Kingsley-Hughes). In addition to middle and upper class households, Apple
now targets teenagers as parents are now finding the need to purchase family plans through
wireless carriers which allows the teens to own an iPhone. The touch model of the iPod product
line also conveniently allows teenagers to have almost the full power of the iPhone without
having to spend a monthly cost to own it. Apple doesn‟t specifically say that it targets its
products for business professionals or media professionals but the products are segmented
demographically according to occupation.
Apple is a "lifestyle" brand ("Marketing Minds - Apple's Branding Strategy."). Whether
you're a teenager or college student who is fashionable and likes to stay on top of school, a
business professional who wants a device that conveniently satisfies your organization needs, or
just a consumer ages 14 to 55+ trying to fulfill that entertainment and convenience need, Apple
devices will suit a variety of different lifestyles. The company offers an assortment of software to
consumers which target specific audiences and their various needs. Students can work on papers
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15. and presentations for school using Microsoft office Mac for students and Musicians can create
and edit compositions and record themselves and their band using Apple's Logic Studio software
("Logic Studio - Apple Store (U.S.)."), just to name a few. Students also have the option of
staying on top of school through apps such as blackboard and the advantage of checking school
email with an iPhone or iPod touch device, professionals can suit their business needs efficiently
because the Apple iPhone integrates features that allow individuals to connect to Microsoft
Exchange and read corporate email, and everyday consumers ages 14 to 55 plus can readily use
apple devices that fit their personal needs on the go ("Apple - iPhone in Business - Integration.").
Product related segmentation is another major marketing strategy used extensively by the
company. Every Apple device is targeted specifically to different groups of consumers and
businesses and features in the products are built around their needs (Sigal). A few examples
include Apple's just released iPod Nano which includes the Nike plus software targeted directly
towards athletes and with its dual-core A5 chip gamers can enjoy faster and more realistic
graphics on the touch model of the iPod line ("Apple - iPod touch - Features."). Apple is
popularly known for its integration of video editing software in its mac computers. This is
another area the company excels in. Apple not only integrates its mac computers with the iMovie
software but also offers a variety of editing software targeted mainly at Media Professionals
(Andrei). Besides coming up with products that meet specific consumer needs, Apple uses a
range of methods to create and build their reputable customer loyalty. Apple's retail stores are
dedicated to serving the needs of all new and existing customers and are considered "friendly"
places where consumers can look at and test out the company's products (CRM Editors). The
staff in these retail locations that are well educated on these products and are there to assist
15
16. customers with whatever need they have (CRM Editors). By selling products to new consumers
that are on their lower end on price range, they effectively promote their higher end products
because consumers who become satisfied with their iPod or iPhone, for example, will most likely
buy a mac computer in the future. The company focuses mainly on "building" that customer
loyalty by using these and other strategies (Peiguss). Apple doesn't really offer loyal customers
any discounts or rewards. Sometimes offering loyal customers rewards for being loyal is not
really necessary if you are a company who is known for having top quality products that stand
out above the rest (Peiguss). Customers will generally be loyal if there are only a few
competitors out there offering the same product and your product offers better quality overall.
These are just a few examples of what the company does in order to segment their products.
Product and Positioning
Apple is a computer company that specializes in the production of personal computers
and computer accessories. Apple has produced many different types of products and is primarily
known for the advancement of multimedia personal computers. Most people that are involved
with video, music, pictures, and sound use Apple computers for their projects because of the
quality of the equipment that Apple uses. "The Group's principal activities are to design,
manufacture and market personal computers and related software, peripherals and personal
computing and communicating solutions" (Winthrop Corporation, 2006). Apple has many
different products other than the personal computer.
It is widely recognized that Apple is a premium brand that demands and earns a price
premium. This price premium spans the entire Apple product lineup encompassing the
Macintosh, iPod, iPhone, software, and accessories. Apple's positioning is aligned with targeting
a less price sensitive customer. As a result, Apple's culture and internal activities are structured
16
17. to meet the needs of these customers; strategists call this needs-based positioning. Apple has
created a culture and a set of activities to differentiate itself from rivals in order to meet the needs
of their target customers.
If Apple were to attempt to compete for all customer segments, it would have to lower
product prices. The danger with such an approach is that it would not only undermine and erode
the company's premium brand image but it would also undermine the company's culture and
internal activities. So what has Apple done in recent history to the Macintosh product line to
demonstrate this premium positioning? Each new Mac revision has either maintained or been
subjected to modest price increase while Apple has simultaneously improved product features. A
few examples include the introduction of the unibody MacBook and MacBook Pro, larger
displays on the iMac, and the replacement of the $499 Mac mini with a higher priced model.
The motive is clear; protect the brand position via a tradeoff. The criticism to reduce prices has
been ignored by Apple. Why hasn't Apple lowered Mac prices? In strategic terms, Apple has
conducted a trade-off. Continue to appeal to customers that have a willingness to pay (WTP)
instead of appealing to a wide range of customer segments that have varying price sensitivities.
A larger customer base would not only undermine the company's strategic position but it would
also be misaligned with the company's internal activities. At a basic level of analysis, a price
reduction will set a precedent that will not be easily reversed. More damaging however is the
potential for brand erosion and customer confusion about the brand.
Apple's positioning, brand image, and loyal following have created an entry barrier that
PC vendors must cross in order to enter the premium computer market, a market that the
Macintosh has exploited for years. Customer loyalty, advertising, lower price sensitivity of
target customers (relatively inelastic demand), sunk costs, patents and innovation speak to this
17
18. point. Apple products appeal to buyers who are not price conscience and therefore, price
elasticity is not a major concern.
Pricing
The different types of pricing strategies Apple uses is that they set their products and
offers different price ranges for each product based on the amount of storage (gigabytes) the
product offers. Apple‟s strategic pricing of their products has helped the company succeed,
because whenever a new Apple product comes out, many customers are already waiting in a
never ending line to buy this hot new product. After a quarter or so, Apple lowers the price of
the product for example, when the original iPhone was released one quarter later, “Apple cut the
retail price by $200 each (gave $100 rebate coupon to all of the earlier buyers” (Seeking Alpha).
David Bui CEO and Founder of Saleschase.com said “The most potent weapon in
Apple‟s pricing strategy is differentiation. Differentiation is what allows Apple to price its
products at a premium and compel customers to compare Apple products with other Apple
products, rather than with lower-priced products from other reputed marketers. Apple products
look, feel and seem very different from competitors‟ products” (Saleschase.com). This shows
that Apple is a stronger competitor in comparison with some of the other technological
companies who are companies out there.
The similarities of the iPod, iPhone, iPad, iPod Touch, iMac, is that for each product one
can purchase a product with the capacity varying from as little as 2G, to as much as 64GB from
all of the different models and products Apple offers. In fact, they all have versions that you can
purchase with more capacity capability. It is interesting because people want to pay that extra
18
19. money to get the best features on their product, whereas the oldest versions would just be less
extravagant and less “cool” than the hottest version out.
Recently Apple released the iPhone 5 that everyone has been raving about. The price that
is set based on the capacity of the phones is 16GB for $199, 32GB for $299, and 64GB for $399
(Apple). Due to the iPhone 5, Apple lowered the prices for both the iPhone 4S and the iPhone 4
models. Both phones are significantly lower priced than when they have first come out, the
iPhone 4S now stands at $99 for the 16GB, and the iPhone 4 is now free for the 8GB (Apple).
Based on Apple‟s quality of their products and exemplary customer service it is easy to say that
they are pricing their products at reasonable prices, because of their well-known products all
over the world, Apple‟s profit margin does not cease to continue to rise each year. The extent of
Apple‟s products is that an average person would be able to purchase at least one of their
products if not more.
Promotion
An average customer would most likely find out about the firm‟s products through
friends and just the people around them. Due to high demand for their products, there is a vast
majority of people who own and prefer their products over companies‟ products, therefore this is
one of the ways Apple is able to advertise their products which is through consumers. As seen in
some of Apple‟s advertisements in the back of our packet; since the iPod had come out there
have not been a vast amount of advertising done in the media to promote their products. In all of
the examples that we provided for each of the individual Apple products, their advertising
method always displays simplicity and uniqueness
19
20. When it comes to Apple‟s Promotions, they offer many different promotions that allow
many people to purchase their products. The largest promotion is that each year before the
school year starts Apple offers a “Back to school” promotion in which a student or a teacher
decides to purchase an iMac or MacBook (desktop or laptop), they would get a $100 for
applications along with their purchase. They also offer students and teachers the option of
buying an iPad and get $50 for applications. Apple also has an “Apple Educational Discount”
where throughout the year students and teachers are also able to save up to $200 on a new Mac.
A few years ago Apple had the same promotion but offered students only to give a free iPod
Touch when a MacBook laptop was purchased. But that offer no longer stands.
Some of the other promotions that Apple also offers year round is for their iPad mini, if it
is bought online then customers will be able to get free shipping and receive a free engraving as
well. When it comes to ordering online from Apple they offer free shipping on $50 or more,
which is almost every single product from Apple product, unless someone were to buy a iPhone
case or something small like so. Many “high end” companies often offer the option of having
the product shipped to one‟s house, or buying it online and picking it up in the store, Apple offers
this to their customers.
Apple despite having such a vast amount of products at different price ranges from as
little as $20 iPhone cases, to the iMac for $1,299, Apple is still able to lower existing products
and continue to offer reasonable prices to their customers based on each version and the capacity
of the product. When it comes to advertising, Apple used to do a lot of advertising for their
iPod‟s when they were first introduced. Recently, Apple has almost been doing no advertising on
their products. But even though almost no advertising is done anymore, the Apple store is almost
always consistently packed on a daily basis. Most of all their advertising is done through their
20
21. customers and their well -known products; Apple‟s image is also branded based on their sleek,
most trendy items in the technology world.
When Apple announced that they would finally be coming out with the long anticipated
iPhone 5, just by hosting just one conference to introduce the iPhone 5, thousands of people lined
up to purchase the iPhone , on the opening day to purchase their new iPhone 5, many people
even pre-ordered their phones. Because Apple products are sold worldwide and Apple is such a
well-known brand, it is easy to publicize their products though their store fronts and their
customers only.
Distribution
Apple spends certain resources to expand its stores so that it can get its prospects
undivided attention. Apple‟s 372 stores collectively generated $4.1 billion in revenue. That‟s a
vast sum, and one that might lead you to believe that Apple sells most of its gear through its own
stores. But that‟s not the case, according to a new study by Consumer Intelligence Research
Partners (CIRP).
Between December of 2011 and August of 2012, CIRP surveyed 1,227 U.S. consumers
who purchased an iPhone, iPad, or Mac, and found that while Apple Stores sold by far the most
Macs and iPads during the period, they didn‟t sell nearly as many iPhones as the company‟s
retail partners.
In the U.S., Apple‟s retail stores, along with the company‟s online storefront, sold 47
percent of the Macs and 40 percent of the iPads purchased by the survey sample during
December 2011 and August 2012. But they only sold 21 percent of the iPhones. AT&T and
Verizon stores both sold more than Apple, with 28 percent and 26 percent shares of sales,
21
22. respectively. And Best Buy and Amazon (via fulfillments) together sold nearly as many iPads as
Apple itself.
Apple has around 250 stores in the U.S., while Best Buy and Best Buy Mobile total
1,300, and AT&T, Sprint, and Verizon have over 5,000 combined,” CIRP partner Mike Levin told
“AllThingsD. Clearly, the Apple stores are much more productive on a per-unit basis, but their
relatively low store count keeps them reliant on the carriers and Best Buy, not to mention
Walmart, Target and others, for the vast majority of their retail sales
Ultimately, Apple‟s retail partners are as critical to the company‟s success as its own
stores. Sure, the typical Apple Store might cater to 17,000 visitors per week, but that foot traffic
translates to a smaller-than-expected share of the company‟s overall business. As CIRP co-
founder Josh Lowitz told AllThingsD, “Everyone who lives in an Apple Store city thinks that is
where everything happens, but you can‟t sell 40 million plus iPhones in a year through just 250
stores.”
Recommendations
Apple is an innovative company that does not mean that everything done by the company
is perfect. Every company has room for improvement and Apple‟s future of innovations is
definitely one of them. Implementing some, or even all, of the following recommendations,
Apple could greatly increase it sales worldwide, and become an even better company than it
currently is.
22
23. There are several ways Apple can promote their products yet they go by simple strategies
such as personal selling, “word-of-mouth,” and product differentiation. The late co-founder of
Apple, Steve Jobs, was greatly known for his speeches and how he promoted Apple without
using a lot of their marketing budget, through public relations. Though these are all great ways to
promote Apple, there are still many ways they can improve or work on to attract new customers
or gain the customers of their competitors.
Although Apple is considered a shopping product, where people plan to buy it after
considering competitors‟ prices, it is priced as a prestigious product in the technology industry.
They are considered the “technology industry‟s „high price‟ leader,” which simply means they
sell their products at a higher end value, knowing that their loyal customers will pay this price.
They should market to sell their products at a slightly lower price, to still make profit but also to
synchronize with customer satisfaction. It is known that once Apple comes up with a new
product, or expands the depths of their products, they lower the prices of the least up-to-date
product. There are consumers who appreciate this because they do not need the new, big thing,
but Apple has customers who like to keep up-to-date, especially with Apple‟s innovative
products. Apple‟s loyal customer base is one of the largest in the industry and strategizing in a
way that makes them feel they are an exclusive member might make them happy to spend more.
Ways that Apple can do this is by starting an Apple Loyalty membership. If they are a member in
this Loyalty program, they get perks that do not apply to non-members. For example, if the
member spends a certain amount, $500, annually, (not including a laptop that already costs a
thousand dollars), they can get a product in store for free, or for a lesser price than valued, such
as head phones or an iPhone case. It is easy to buy a laptop cover, or phone case elsewhere,
23
24. especially at a lower price than Apple sells it for, but if Apple had this incentive; consumers
might have more initiative to buy from them.
Apple can or should also promote their iTunes Application by providing customers in the
Loyalty Program ten dollars‟ worth of iTunes services for every $250 they spend. This type of
CRM (Customer Relationship Management) would definitely increase customer satisfaction
while promoting Apple‟s products (Contemporary 321). They should also organize little events
that only Loyalty members are invited to, where they can explore new technologies or let the
members be the first to know of the new products they are working on. This would be a great
way to keep the customers on their toes, excited about the upcoming products but also making
them feel special and important to the company.
Apple is a leader in the technology industry because they are unique in what they do and
they stick to their originality. Whether it be product differentiating, where all their products,
inside and out, are cluster free, or if it is the way they advertise their products, which is not very
often. You might sometimes see an ad for the iPod and a girl or boy dancing to it, or different
colored backgrounds with the Apple brand mark centered in white. Apple recently came out with
a commercial that introduced the new Apple headphones, a never before seen headphones which
are shaped to fit your ear hole, instead of the custom round earpiece. Apple would also do great
in product placement, as many celebrities already use their products. But if it were seen on more
television shows or movies, it would be attract more consumers and other target markets. These
simple strategies are a great way for Apple to save money on their budget but they should
definitely consider making more advertising through the television. As an innovator of
technology, maybe they can find a way to use their new feature, holographic, through the
television to promote such a neat service.
24
25. When deciding what other promotions Apple can undergo, we automatically thought of
guerilla marketing as that is a fast and easy way to go viral, especially for Apple, which is
already the topic of conversations. We researched and found that there was not much guerilla
marketing that Apple already used so that type of promotion would definitely be one to consider.
We did, however, find one way they managed to have marketed seamlessly through their
consumers. With each product bought from Apple, they provide you with a sticker with their
brand mark, and people would stick that on in their house, computers, cars, backpacks,
notebooks or anywhere they pleased (Vertigo). Regardless where it was stuck, it was easy
advertising for Apple to have come up with, that other competitors have not yet achieved. More
tactics like these would be beneficial for Apple to remain the leader in innovation and in
technology, in remembrance of the greatest guerilla marketer and innovator himself, Steve Jobs.
It is easy to buy a laptop cover, or phone case elsewhere, especially at a lower price than Apple
sells it for, but if Apple had this incentive; consumers might have more initiative to buy from
them. This would also help stabilize sales throughout the year, and not just during the beginning
of a school year.
One way to create product diversification is to create a "phablet" to compete with
Samsung‟s note II. The tablet will be smaller than the iPad mini but bigger than the iPhone.
Specifically a 6 inch tablet with the availability of a phone. This will also add product length to
Apple's tablet line which includes the iPad and iPad mini. Creating this "phablet" will allow
Apple to target a whole new market which would include consumers that want a mobile device
larger than a smartphone but smaller than an actual tablet like the iPad or iPad mini ("Phablet.").
With the creation of this "phablet" device, price should be a big concern. Apple should try a new
pricing strategy and maybe make the price of their product lower than its competitors but still
25
26. higher than what it costs the company to make the product in order to make a profit. In order to
lower its product cost; however, apple must reduce production costs. This can be done by
increasing its use of recycling in its products and cutting down energy costs. Energy can be cut
down by using energy efficient computers, lighting, and machinery (Ellyn).
Another example of product diversification is if Apple creates a music streaming service
similar to other streaming services such as Spotify and Rdio. The new streaming service would
allow users who do not want to buy music on the iTunes store a chance to listen to music
unlimitedly without downloading it. Users would be able to listen to whole albums and even new
releases would be available the same day albums come out. The service would be relatively
comparable to other streaming services such as Spotify and Rdio but instead of offering it for
free to consumers, Apple could charge a fee but one that is less than competitors. For example,
Rdio allows unlimited web streaming of music for $5 a month, Apple could charge users $1.99
per month on a monthly basis to use their service or $25 on a yearly basis ("Rdio - Pricing.").
This would allow Apple to target a whole new market while also generating some extra revenue
without overcharging consumers that just want the option of listening to music without having to
download it.
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