Phase 1 CSE 171A Authors: Alena Fernandez Ashwin Chidambaram Brittany Cook Christopher Chiang Conrad Pereira Shen Cheng Sunny Chaubey Vaughn Fisher Professor: Subhas DesaContents About Theia 3 Theia’s Core Competencies 3 Problem Statement 3 Company Vision 4 Company Mission 4 Business Goals: 4 Annual Sales Revenue 4 Technology Strategy: 5 General Competitive Strategy 5 Objectives 5 Design Philosophy 5 Technical Areas of Interest 5 Technical Liability to Address 6 Proposed Technical Product 6 Related Technologies Functional Maps 7 Interest in ML technologies from 2004 to present utilizing Google Keyword Trends: Interest over time x percentage of interest 7 Product/Marketing Strategy: 8 Marketing Strategy 8 Plan of Action: 8 Target Demographic 8 Primary Target Market: B2C 8 Tech-Savvy & Lifestyle Consumers 8 Secondary Target Market: B2B 9 Industrial Applications Consumers 9 Product Planning 9 In House Development: 9 OEM: 9 Product Feature Offerings: 9 Product Packaging: 9 Sales/Advertising Channels 10 Developmental Goals: 10 Proposed Hardware 10 Proposed Software 11 Competitive Analysis: 12 Market Sizing: 14 Market Need Analysis 15 Product Benefits/Value 15 Proposed Product Features & Needs 15 Market (customer) Needs Analysis 15 About Theia Theia is an intelligent technologies company that focuses on wearable tech oriented towards removing the distractions of daily living to live a safer, happier, and healthier life. Theia’s Core Competencies · Marketing · Strong Customer Service · Rapid R&D · Subtle & Simple Design · Machine Learning & Dataset Analysis · Market Awareness Problem Statement As the needs of people and the use of technologies grow, people began to focus less on the world around them and move towards the world at their fingertips. This increase in lifestyle distractions sometimes leads to dangerous situations such as distracted driving and lowered spatial awareness in very active environments. We, at Theia, hope to develop an ergonomic product that enables users to be functional but less distracted in situations that have a higher risk of environmental dangers. --------- Functional Maps Needed: · Bluetooth audio (wearable) · Smart Watch · Augmented Reality · Smart Glasses For any diagram/picture need to add an explanation of what it is. Need to add Apple related items for comparison. Need financials for Theia Company Vision At Theia, our products are built with one simple phrase in mind. Simplicity is beauty. We see a future where the lines between reality and technology blur to deliver a more interconnected global platform on which people will be able to communicate and thrive. We aspire to bring the ability to see into this fantastical world with the aid of simple, and elegant wearable technology that you won’t even realize is there. Company Mission Theia designs the most stylish, and easiest to use wearable technology that leads the present into a future blended with Augmented Reality. We aspire to be the example of ...

1. Phase 1
CSE 171A
Authors:
Alena Fernandez
Ashwin Chidambaram
Brittany Cook
Christopher Chiang
Conrad Pereira
Shen Cheng
Sunny Chaubey
Vaughn Fisher
Professor:

2. Subhas DesaContents
About Theia 3
Theia’s Core Competencies 3
Problem Statement 3
Company Vision 4
Company Mission 4
Business Goals: 4
Annual Sales Revenue 4
Technology Strategy: 5
General Competitive Strategy 5
Objectives 5
Design Philosophy 5
Technical Areas of Interest 5
Technical Liability to Address 6
Proposed Technical Product 6
Related Technologies Functional Maps 7
Interest in ML technologies from 2004 to present utilizing
Google Keyword Trends: Interest over time x percentage of
interest 7
Product/Marketing Strategy: 8
Marketing Strategy 8
Plan of Action: 8
Target Demographic 8
Primary Target Market: B2C 8
Tech-Savvy & Lifestyle Consumers 8
Secondary Target Market: B2B 9
Industrial Applications Consumers 9
Product Planning 9
In House Development: 9
OEM: 9
Product Feature Offerings: 9
Product Packaging: 9
Sales/Advertising Channels 10
Developmental Goals: 10
Proposed Hardware 10
Proposed Software 11

3. Competitive Analysis: 12
Market Sizing: 14
Market Need Analysis 15
Product Benefits/Value 15
Proposed Product Features & Needs 15
Market (customer) Needs Analysis 15
About Theia
Theia is an intelligent technologies company that focuses on
wearable tech oriented towards removing the distractions of
daily living to live a safer, happier, and healthier life. Theia’s
Core Competencies
· Marketing
· Strong Customer Service
· Rapid R&D
· Subtle & Simple Design
· Machine Learning & Dataset Analysis
· Market Awareness Problem Statement
As the needs of people and the use of technologies grow, people
began to focus less on the world around them and move towards
the world at their fingertips. This increase in lifestyle
distractions sometimes leads to dangerous situations such as
distracted driving and lowered spatial awareness in very active
environments. We, at Theia, hope to develop an ergonomic
product that enables users to be functional but less distracted in
situations that have a higher risk of environmental dangers.
---------
Functional Maps Needed:
· Bluetooth audio (wearable)
· Smart Watch
· Augmented Reality
· Smart Glasses
For any diagram/picture need to add an explanation of what it
is.
Need to add Apple related items for comparison.

4. Need financials for Theia
Company Vision
At Theia, our products are built with one simple phrase in mind.
Simplicity is beauty. We see a future where the lines between
reality and technology blur to deliver a more interconnected
global platform on which people will be able to communicate
and thrive. We aspire to bring the ability to see into this
fantastical world with the aid of simple, and elegant wearable
technology that you won’t even realize is there. Company
Mission
Theia designs the most stylish, and easiest to use wearable
technology that leads the present into a future blended with
Augmented Reality. We aspire to be the example of responsible
consumerism, and to bridge the gaps that divide us.Business
Goals
Parameter
Current Quarter Goal
Quarter
Year
5 Years
Return on Investment
15%
32.65%
32.14%
33.74%
Market Share
13%
10%
12.75%
12.5%
Revenue
950 million
880 million
4.3 billion
18 billion
Gross Profit

5. 100 million
220 million
1.6 billion
4.5 billion
This current quarter Theia’s projected revenue and market share
will increase due to the increased publicity of its wearables
technology development. However, due to increased research
and development costs, the expected return on investment and
gross profit will be lower. Technology StrategyCore
Technologies
What are the core technologies that give Theia a technological
advantage over its competitors?
· Advanced R&D Capabilities with rapid turn around periods
· Extensive background in the implementation of Machine
Learning and Computer Vision
· Expertise in reverse engineering
· Years of experience in simplistic and fashionable product
design
Theia Development Philosophy
What is Theia's approach to product & technology development?
Falling under the wing of the highly skilled R&D team, Theia
boasts a world class team of experts. Accomplished in the
research of cutting edge technology and highly skilled in the
reverse engineering of products.
In addition, our core ideas team shall purchase companies that
are of interest to the areas of technology in which we are
developing. Related Technologies Functional Maps
Smart augmented reality glasses revenue worldwide from 2016
to 2022. (in millions of U.S dollars).[footnoteRef:0] [0:
Source: Statista
]

6. Bluetooth Audio keyword interest over time: Interest over time
x Percentage of interest[footnoteRef:1] [1: Source: Google
Search Trend Tool]
Global Smartwatch Shipments[footnoteRef:2] [2: Source: Wall
Street Journal (WSJ Online)
]
Projected economic impact of virtual and augmented reality
technologies worldwide from 2016 to 2020 (in billion U.S.
dollars) [footnoteRef:3] [3: Source: Statista]
Interest in ML technologies from 2004 to present utilizing
Google Keyword Trends[footnoteRef:4] [4: Source: Google
Keyword Trend Tool]
Interest over time x Percentage of interest [
Summary:
We have chosen to create functional diagrams for technologies:
customer interest in machine learning, projected economic
impact of augmented reality, smart glass technology, and
Bluetooth audio technology.
All of these technologies will be used in creating different
functions of the product, and some are the main premise of the
Theia’s smart glass product. ML will be utilized to perform
analysis on user experience data. It may also be used for the
smart glass inputs to better understand the outside world. AR

7. may be utilized for applications that will be bundled with the
product. Lastly, bluetooth audio will be used to pair to
peripheral audio devices for an integrated user experience.
These functional maps clearly demonstrate that augmented
reality, smart glass technology, and Bluetooth audio technology
are continuing to grow in popularity and as a revenue source.
Capitalizing on these market trends by creating a product that
involves them will prove beneficial for Theia.
Product/Marketing Strategy:Theia Product Differentiation
What differentiates the company's products from its
competitors?
Theia Target Market
What markets does the company serve?
·
Definition
Example
What differentiates the company's products from its competitors
Cisco:
· Reliability
· Security
· Quality of service
What markets does the company serve?
Cisco:
· Enterprises ("Fortune 500 companies")
· Service Providers
· Commercial
· Consumers
Marketing Strategy
The goal is to make these advertisements tell a story, to appeal
to viewer emotions and sentiment. A case study on Apple
showed that they invested less in advertising versus Microsoft,
yet outperformed them in every way. Since we are competing
with these large firms, investing in advertising might be a great

8. way to differentiate ourselves. We will also be greatly
emphasizing our value proposition and our goal to future proof
our technology.Target Demographic
Our key target audience will be tech-savvy consumers and
industrial consumers that can integrate our AR glasses into their
everyday.
Primary Target Market: B2C
· Tech-Savvy & Lifestyle Consumers
Handsfree
Lifestyle & Applications:
Different Visual Modes
Google maps, Waze
Weather, email, music, calendar, fitness tracker, video calling,
Pokemon Go
Blue-light blocking mode and polarized sunglasses mode
Secondary Target Market: B2B
· Industrial Applications Consumers
Engineering Application
Art Applications
Military Applications
i.e. Civil Engineers being able to use a specialized version of
CAD or AutoCAD in the smart glasses to provide real-time
visualization of their product (specs, dimensions)
i.e. Artists can do sketches and visualize these sketches
anywhere they go, more for a visualization tool versus making
actual art.
i.e. Military can use smart glasses as a support tool for training
or missions.
Product Planning· In House Development:
· Product Design of glasses
· Modified glasses lenses for AR version

9. · AI trained from data set to recognize street names from
images· OEM:
· Custom PCB sized to fit in glasses frame
· Bone conduction technologies to transmit audio
· Miniature wide angle camera
· QI charging electronic components
· Miniature microphone· Product Feature Offerings:
· Bone conduction audio
· 24-48 hr battery life
· Wireless charging
· Camera with ability to read street signs from images
· Give directions based on GPS
· HUD projector for customizability for general consumers ·
Product Packaging:
· Will be shipped inside single box with dimensions:
· 12” x 12” x 5”
· Inside, there will be a cavity in which glasses will sit snugly
inside while unfolded. Included will be a charging case, and
necessary cables.Sales/Advertising Channels
· Sold online via website marketplace
· Sold in retail stores that carry technology products such as
BestBuy but also try for optometrist offices
· Advertising done on social media platforms such as Facebook,
Youtube, Instagram, and possibly Hulu/TV
· Competitive Strategy:
· Developmental Goals:
· Identify:
· Technologies related to proposed product
· Products related to proposed product
· Construct functional map to show the evolution of these
technologies and products
Related Products Functional Map
Developmental Goals:Proposed Hardware
· Small, efficient PCB with enough onboard computing power to
deliver product offering
· Small, thin battery capable of being recharged and carry

10. enough power for at least 24 hours of continuous use
· Custom sized hardware to mimic bone conduction capabilities
· Glasses housing to be able to fit:
· Main PCB Board
· Miniature, wide angle cameras
· Audio conducting leads + relevant hardware to achieve bone
conduction audio
· Miniature projector to create a HUD superimposed onto
glasses lens
· Microphone Proposed Software
· Train Neural Net using supervised learning from a video
dataset collected from approximated eye level height to
recognize street signs, street names, traffic lights, and traffic
signals.
· Use NLP to train a personalized AI to be able to respond to
verbal cues intelligently, and with audio that is more humanistic
· Be able to communicate with cell phone using BLE (Bluetooth
Low Energy) to relay positional data and be able to pull
directions to locations from maps applications.
· For the AR activated version, software is required to run an
intuitive HUD
Competitive Analysis:
Competition:
Vuzix, Google,Everysight, Snapchat, Toshiba
Competition level: High
Suppliers:
Luxottica, Essilor, Asahi Glass Co.
Power level: Medium
Buyers:
People with impaired vision, regular consumers, company

11. employees
Power level: Low
Compliments:
Amazon (Alexa), Weather Channel (App), Google/Google Maps
(App), CAD (Software)
New Entrants:
Apple, Amazon, Facebook, Microsoft
Threat level: High
Substitutes:
Vuzix, Google, Bose, Snapchat, Toshiba, Everysight
Threat level: High
Theia is a new entrant in the AR Glasses market. We are
creating a substitute product since we were not the first movers
within this market. However, since it’s a relatively new market,
there is a wealth of potential profit. For this analysis, we will
analyze current market competition:
Key players include: Vuzix, Google, Toshiba, Everysight, and
Snapchat. There are many other key players within this market
but for now, we will be focusing on the ones at the top.

12. Competition level is high. Companies are working hard to
capitalize on this rapidly growing market. So far, Vuzix’s AR
Glasses are considered the top performing AR Glasses.
However, their pricing is very steep so we will see how they
hold up when the New Entrants come in.
The threat level for New Entrants is high. The barrier to entry is
extremely low as we see big companies such as Amazon,
Facebook, Microsoft, and most alarmingly, Apple trying to
enter this market. Apple and Microsoft are currently in its
production stage for AR Glasses with Microsoft’s HoloLens
already available for preorder.
Substitutes for AR Glasses include the main competitors in the
market.
Suppliers have medium power, as there are only a few
businesses in the world that specialize in lens crafting and
frame crafting. Luxottica makes glasses frames for virtually,
most of the frame industry so if we were to use them as our
supplier, it would be hard to be in control of the pricing as they
are a monopoly within their industry.
Consumer power is very low. Since there is insubstantial price
differentiation between products, the bargaining power of
consumers is low.
There are no low-cost providers within this industry and it is
unknown if this can even be a possibility at this time, given the
technology needed for AR Glasses and our modern environment.
Potential complements include services/features such as the
Amazon Alexa, Weather Channel App, and Google/Google
Maps. These are three add-ons that could prove to be quite
useful in conjunction with AR Glasses. Market Sizing:
Goal: Identify what approach Theia should take to be

13. successful, and direct competitors.
Market Need Analysis Product Benefits/Value
· AR Glasses have the ability to enter several markets. The
product can appeal to the entertainment industry as well as
general tech consumers looking to involve themselves in a
digitally augmented lifestyle.
· Connect to other smart products, create a more efficient
lifestyle
· GPS/mapping capability
· Internet accessProposed Product Features & Needs
· Wifi & bluetooth connectivity
· AI to aid with mapping and guiding user
· Small camera with decent resolution
· Small battery that can retain power for at least 48hrs of
continuous usage
· Qi charging capability
· Miniature microphone that can clearly pick up speaking from
the user
· Commercially available non-intrusive bone conduction
capability
· Large data set of video data from pedestrian perspective to
train a machine learning model Market (customer) Needs
Analysis
· CCS Insights forecasts:
· 24,000 units for businesses in 2019
· 1,000,000 units for businesses in 2022
· 0 units for consumers in 2019
· 4,000,000 units for consumers 2022
Apple Analysis
Step 1: Define the Problem
1. Identify a large company that might conceivably design and
develop smart glasses.
2. Answer the following questions:
a. Establish the business goals and objectives (ROI, %market
share, revenue, and growth aspirations).
b. Determine the technology strategy for the company.

14. c. Determine the product market strategy for the company.
d. Define the overall development goal and objectives to align
business goals, technology, and market strategies.
e. Develop functional/evolutionary map of technology strategy
of the firm.
f. Develop functional/evolutionary map of product market
strategy of the firm.
g. Develop functional/evolutionary map of manufacturing
strategy of the firm
Step 2: Create a Plan
1. Determine what information is available for solving the
problem.
2. What assumptions need to be made to make the solution
process manageable?
3. Delegate parts of questions to be answered to different
members of the group.
4. Using the information gathered, and interpreted, answer the
following questions:
a. Establish the business goals and objectives (ROI, %market
share, revenue, and growth aspirations).
b. Determine the technology strategy for the company.
c. Determine the product market strategy for the company.
d. Define the overall development goal and objectives to align
business goals, technology, and market strategies.
e. Develop functional/evolutionary map of technology strategy
of the firm.
f. Develop functional/evolutionary map of product market
strategy of the firm.
g. Develop functional/evolutionary map of manufacturing
strategy of the firm
Step 3: Execute the Plan
1. Determine what information is available for solving the

15. problem.
Source
Brief Explanation of Value Added
https://fourweekmba.com/apple-mission-statement-vision-
statement/
Apple's mission and vision statement
https://medium.com/swlh/what-is-apples-strategy-8e9d822732f6
Apple’s strategy
https://research-methodology.net/apple-segmentation-targeting-
and-positioning/
Apple’s target audience
https://brandongaille.com/18-apple-target-market-
demographics/
Demographics of Apple users
https://research-methodology.net/apple-segmentation-targeting-
and-positioning/
Demographics of Apple users
https://www.cbsnews.com/news/analysis-apple-ads-more-
effective-than-microsofts/
History of Apple ads
https://neilpatel.com/blog/7-key-strategies-that-you-must-learn-
from-apples-marketing/
History of Apple ads
https://www.inverse.com/article/48090-apple-ar-glasses-are-set-
for-a-revolutionary-2020-launch-report-claims
Potential release of Apple AR glasses
https://www.macrotrends.net/stocks/charts/AAPL/apple/roi
Apple’s return on investment statistics
https://www.counterpointresearch.com/us-market-smartphone-
share/
International market share of smartphones
https://www.macrotrends.net/stocks/charts/AAPL/apple/revenue
Apple’s revenue statistics
https://blogs.wsj.com/digits/2012/12/06/a-short-history-of-
apples-manufacturing-in-the-u-s/
Apple’s manufacturing history

16. http://panmore.com/apple-inc-generic-strategy-intensive-
growth-strategies
About Apple’s generic business strategy.
https://medium.com/swlh/what-is-apples-strategy-8e9d822732f6
About Apple’s strategy of defining the technology trend instead
of being defined by the trends of technology.
2. What assumptions need to be made to make the solution
process manageable?
a. We are business analysts for a medium sized company,
looking to study Apple as they are in the works of also releasing
a substitute for our “smart glasses”
b. The smart glasses technology is not yet developed by Apple,
and is assumed based on tech rumors as well as Apple’s generic
trend towards defining future technologies.
3. Delegate parts of questions to be answered to different
members of the group.
Task
Assigned
Define the problem.
Everyone
Create a plan.
Everyone
Establish the business goals and objectives (ROI, %market
share, revenue, and growth aspirations).
Chris
Determine the technology strategy for the Apple
Ashwin
Determine the product market strategy for Apple
Brittany
Define the overall development goals, and objectives to align
business goals, technology, and market strategies
Shen Cheng & Alena
Develop functional/evolutionary map of technology strategy of
the firm
Vaughn

17. Develop functional/evolutionary map of product market strategy
of the firm
Conrad
Develop functional/evolutionary map of manufacturing strategy
of the firm
Sunny
Check work.
Everyone
Draw conclusions.
Everyone
4. Using the information gathered, and interpreted, answer the
following questions:
Part (a): Business Goals and Objectives (ROI, %market share,
revenue, and growth aspirations).
· Apple’s Mission Statement: “Bringing the best user experience
to its customers through its innovative hardware, software, and
services.”
· Apple’s Vision Statement: “We believe that we are on the face
of the earth to make great products and that’s not changing. We
are constantly focusing on innovating. We believe in the simple,
not the complex. We believe that we need to own and control
the primary technologies behind the products that we make, and
participate only in markets where we can make a significant
contribution. We believe in saying no to thousands of projects,
so that we can really focus on the few that are truly important
and meaningful to us. We believe in deep collaboration and
cross-pollination of our groups, which allow us to innovate in a
way that others cannot. And frankly, we don’t settle for
anything less than excellence in every group in the company,
and we have the self-honesty to admit when we’re wrong and
the courage to change. And I think regardless of who is in what
job those values are so embedded in this company that Apple
will do extremely well.”
· Apple’s Business Goals and Objectives:

18. · Data based on recent quarter, year, 5 years
Parameter
Quarter
Year
5 Years
Return on Investment
32.65%
32.14%
33.74%
Market Share
10%
12.75%
Revenue
53 billion
259 billion
1.1 trillion
· Growth Aspirations
· Apple does not publicize its short term growth aspirations,
only its typical stockholder statements for the next quarter
(income statements, balance sheets, etc)
· Apple’s long term growth objectives are as follows:
· Obtain stellar products and services within tight timeframes,
at a cost that represents the best possible value to our customers
and shareholders.
· Maintain a similar revenue to previous quarters
Part (b): Technology Strategy of Apple
· Apple utilizes the differentiation strategy when it comes to
their products and their development. Compared to other
companies that focus on the development of products based on
the needs and opinions of their customer base, Apple redefines
what it means to be a business by sitting on the other side of the
line that divides the product and customer demands.
· What makes Apple stand out is that each product developed is

19. meant to compete with themselves. By doing this, Apple always
stays ahead of the curve and develops products that customers
don’t even realize they need. As an example:
· With the introduction of the iPod, a revolutionary device at
the time, consumers were ecstatic and loved the product. With
time, the iPhone was soon released, but people demanded
upgrades and improvements to the beloved iPod. Apple, instead,
chose to kill their iPod line and instead focus on the
improvement and development of newer and better iPhones. Of
course this was met with large amounts of backlash, however, in
the end the product that satisfied customers was the iPhone.
· The lesson from this experiment, was that consumers don’t
know what they want all the time because they don’t know what
is possible. And for a technology company to be truly
competitive, they have to be able to predict the technology of
the future and deliver quality goods that are intuitive for a
consumer to use.
· In addition to Apple’s approach to product design, they aim to
create a more connected ecosystem that allows their consumers
to more seamlessly interact with their environment, and
constantly simplifying it with the addition of a new technology.
· One of Apple’s values that allow for it to continue to thrive is
their fear of over complication. This translates to becoming one
of their greatest selling points, which is developing technology
that is simple and intuitive for any person to use regardless of
their experience level with their products.
· Shortcomings:
· Apple does not address their customer base when making large
scale changes. This causes frustration amongst their users
because they don’t understand the reason for a change.
However, this might also be a good strategic move on their part,
because customers don’t generally have the technical know-how
to understand why a change was made.
Part (c): Product Market Strategy of Apple
1. Define the Problem: What is Apple’s Product Strategy?

20. a. SP1: What is their Mission and Vision statement?
b. SP2: What is their strategy?
c. SP3: Who is Apple’s target audience?
d. SP4: What are the demographics of people that buy Apple
products?
e. SP5: What were the effectiveness of Apple’s ads?
2. Plan the treatment of the Problem:
a. Information Available:
· SP1: Apple's mission and vision statement:
https://fourweekmba.com/apple-mission-statement-vision-
statement/
· SP2: Apple’s strategy: https://medium.com/swlh/what-is-
apples-strategy-8e9d822732f6
· SP3: Apple’s target audience: https://research-
methodology.net/apple-segmentation-targeting-and-positioning/
· SP4: Demographics of Apple users:
https://brandongaille.com/18-apple-target-market-
demographics/ https://research-methodology.net/apple-
segmentation-targeting-and-positioning/
· SP5: History of Apple ads:
https://www.cbsnews.com/news/analysis-apple-ads-more-
effective-than-microsofts/ https://neilpatel.com/blog/7-key-
strategies-that-you-must-learn-from-apples-marketing/
b. Assumptions made:
· We are business analysts for a medium sized company,
looking to study Apple as they are in the works of also releasing
a substitute for our “smart glasses”.
c. Information needed:
· Knowledge of analyzing the information shown in the articles.
d. Analysis:
· SP1: Read and find Apple’s mission and vision statement.
1. Read the article
· SP2: Determine Apple’s strategy
1. Read and analyze the article to determine strategy
· SP3: Determine Apple’s target audience
1. Read the article and find information about target audience

21. · SP4: Collect demographics of Apple users
1. Read articles and collect data of Apple user demographics
· SP5: Collect data on history of Apple ads:
1. Read the article and watch the videos to determine
effectiveness of Apple ads
3. Execute:
a. SP1: Apple’s mission statement and vision statement
· Mission Statement: “Bringing the best user experience to its
customers through its innovative hardware, software, and
services.”
· Vision Statement: “We believe that we are on the face of the
earth to make great products and that’s not changing. We are
constantly focusing on innovating. We believe in the simple, not
the complex. We believe that we need to own and control the
primary technologies behind the products that we make, and
participate only in markets where we can make a significant
contribution. We believe in saying no to thousands of projects,
so that we can really focus on the few that are truly important
and meaningful to us. We believe in deep collaboration and
cross-pollination of our groups, which allow us to innovate in a
way that others cannot. And frankly, we don’t settle for
anything less than excellence in every group in the company,
and we have the self-honesty to admit when we’re wrong and
the courage to change. And I think regardless of who is in what
job those values are so embedded in this company that Apple
will do extremely well.”
b. SP2: Apple’s strategy
· Each of their devices are fundamentally competing in the same
category. (i.e. the job of the apple watch is so you don’t need to
pick up your phone as often, the job of the phone is to do more
and more things so maybe you don’t need to pick up your iPad,
the job of the iPad is to be so powerful and capable that you
never need a notebook, the job of the notebook is so that you
never need a desktop).
· Each device has the goal of moving in the direction of making
it’s bulkier, more confusing neighbor obsolete.

22. · Extreme focus in developing products
· Does not model their product based on customer demands
c. SP3: Apple’s target audience
·
d. SP4: Apple’s user demographic
· Men outnumber women 2:1
· Average age for an apple customer is 35-44
· Apple users are 94% more likely to be affluent than others
who utilize mobile devices on a regular basis
· The average household income for Mac owners is $98,500
· People who own Apple products tend to be more urban, have a
college education, and follow technology news on a regular
basis.
e. SP5: Effectiveness of Apple’s ads
· Apple spends less in advertising compared to Microsoft
· Apple spent less per dollar of revenue than Microsoft
·
· They rethink the need for advertising
· Emphasize value proposition to avoid price wars
· Simple marketing and simple products
· Targets prospects’ emotions
· Built a community of customers
4. Conclusion:
a. Apple’s product strategy is simple, and quite literally. They
choose to keep their products simple as well as their marketing.
With each new release of a product, it is designed to compete
with its sister product (i.e. iPad versus Macbook versus Mac) so
that Apple itself can stay relevant and with the times. They
prevent overmilking their products to the point of irrelevancy,
as shown when the iPhone killed the iPod. Their innovative
cycle is appealing as their user demographics are mostly college
educated, urban, and affluent people. Not only is their
product/marketing strategy efficient, but most importantly,
successful.
Part (d): Development Goals/Objectives to align of Business
Goals, Technology, and Market Strategies

23. · As of 2019, the number one objective of the company is to
broaden the scope of their sales to clientele that has never
owned any of Apple's products.
· Second, Apple is looking to come up with hassle-free goods
and services that offer customer service, customer service
management, and consumer satisfaction.
· Third objective of the company is to become the number one
business in the tech market. They are able to lead the industry
with proper research and development along with
advertisements that related to their focused consumer group.
· Another reason for Apple’s success is due to them competing
against their own products, in which they are able to innovate in
a timely manner. The table below gives a summary of the
objectives that make Apple's strategies.
Objective
Strategy
Tactics
To expand their sales to customers that are to possess any of
Apple’s products.
Expansion of Apple’s distribution network to reach out to more
customers
- Flagship department stores
- Providers of Internet services
- Third-party retail shops
To involve itself in the production of hassle-free goods and
services that offer goods and services and benefit for clients
To increase capital injections in R&D.
- Brand new features
- A better new generation of goods and services
Be the number one business in the tech market.
Be an online search machine and platform for advertising goods
and services online.
- Monitoring the works of Yahoo and Google
- R&D in advertising and online search

24. Part (e): Functional/Evolutionary Map of Apple’s Technology
Strategy
Determine the technology strategy and product market strategy
for the company.
b. Are we marketing towards visually impared or general
public?
c. Will we focus on glasses?
5. Define the overall development goal and objectives to align
business goals, technology, and market strategies.
6. Develop the functional evolutionary maps of the markets and
industry in which the company is embedded. Create functional
maps (time-based evolutionary maps) for technology, product
market, and manufacturing strategy of the firm. These maps will
be useful in the process of assessing and creating competitive
strategy.
a. Develop functional/evolutionary map of technology strategy
of the firm
· Macintosh, iPod, iPhone, iPad, Apple Watch, Apple TV,
HomePod, Software, Electric Vehicles, Glasses
Year
Technology
Competition
Purpose
1984
First Macintosh
IBM
-aimed at small business and homeowners
-Appeal to design community
1998
IMAC (personal computer)
Compaq
-aesthetically pleasing design
-all-in-one desktop computer

25. 2001
iPod
Sony (Walkman)
-portable music device
-iTunes music player software
-sleek design with scrolling wheel
2007
iPhone
Nokia
-not just a phone, a mobile computer
2010
iPad
Microsoft
-established a “family” of devices that worked together over a
cloud
-usability and simplicity
2015
Apple Watch
Nike
-augment the capabilities of your mobile phone onto your wrist
2016-2019
Air-pods
Beats, Sony, Phillips
Allow for user to connect wireless headphones through
bluetooth.

26. Part (f): Functional/Evolutionary Map of Apple’s Product
Market Strategy

27. Summary:
From these functional maps, we can observe Apple’s focus on
increasing market share and attracting new customers to use the
product. Apple accomplishes by overtime changing the
company’s strategy has evolved in the way they advertise new
products. We can see this through the timeline of the different
marketing campaigns Apple has employed over the years. By
comparing revenue and significant advertisements in each year
can reveal what form of advertising is effective and can provide
insight into how to market future products. This makes Apple's
marketing and product strategy an effective one to mirror.
Part (g): Functional/Evolutionary Map of Apple’s
Manufacturing Strategy
Source: Nikkei Review Analysis of Apple’s Supplier List
In this functional map we can see that Apple has more suppliers
in China than in the USA by 2018. Apple has more suppliers in
China to reduce production costs associated with suppliers in
the USA. This increases the profit margin for Apple since they

28. are able to produce their lineup cheaper.
Check
We have checked our work by going back to the articles and
looking at the facts and statistics presented within the article.
We also have included graphs and charts from the respective
websites to further solidify the information that was given.
The assumptions made within this problem are fair to assume
and the work is correct to the team’s knowledge. The functional
maps provide insight into how the company can market
products, and what products to develop and focus resources on
in the future. The company analysis overall offers very useful
information on Apple and their strategies, business goals, and
the future of the company.
Learn and Generalize
We learned a lot about Apple’s product strategy. It is interesting
to see the scale of their marketing as a company of this stature
and worth. It was also interesting watching all the biggest Apple
ads over the years, both the good and bad ones that regardless,
ended up being successful.
Overall, the results are significant and the company analysis
offers valuable information. This process taught the team to
produce quality functional maps that we can use to predict
future market trends and pricing. The solutions could be further
refined by including more information about apples
revenues/profits and with additional functional maps. With
Apple’s growth aspirations and annual revenues already being
extremely large, it is interesting to see how the company
chooses to strategize and increase their competitive edge in the
market.