Continuation problem!!! Part 7
APPLE’S MARKET EXPANSION
MARKET EXPANSION
Market expansion is a necessary move for growing companies.
Companies such as Apple need to expand their marketing position.
Tapping into new positions helps in maximizing the customer base and market.
Market expansion requires an underlying strategy to be made.
Every business is always focused on expanding its reach not only expanding this reach beyond its operational market but also beyond its operational basis. It is important for companies to make this move if it seeks to grow and achieve maximum success both locally and globally. One company that has been able to achieve this reach and expansion level is Apple Inc. The company has continuously grown and developed to become one of the biggest technological companies in the world. The company still continues to seek an expansion to its current reach. The firm understands the need to maximize its customer and market base to ensure maximum success.
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APPLE’S MISSION, VISSION AND VALUES
Apple’s vision statement details its position and strategy to achieving continued success and growth.
Its vision statement provides the company’s innovation strategy.
The company’s mission statement changes over time.
Apple values inclusion and diversity.
(Rowland, 2017)
Apple’s vision statement offers a detailed explanation on how the company seeks to achieve its continued success and growth rates. Its vision statement states, “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.” (Rowland, 2017).
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DIVERSITY AND INCLUSION
Apple takes a holistic approach to diversity.
Its culture is a representation of all peoples.
Its diversity helps in promoting creativity and innovation.
Its inclusivity helps in promoting diverse ways to viewing things.
(Apple, 2017)
Apple has many values that it holds dear. Nevertheless, the most important value that it focuses on involves the issue of inclusion and diversity. The company understands the need to ensure that it focuses on diversity (Apple, 2017). Diversity in a company helps not only in achieving maximum success but also in reaching even the populations deemed unreachable. Apple’s inclusion of diversity in its organizational culture has helped the company to represent every possible people in the world. Moreover, this has helped in promoting the company’s creativity and innovation levels. In addition, it has helped in driving new ways of viewing things within the organization.
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APPLE’S CURRENT CULTURE
Ability to work under pressure.
High secrecy level.
High level of innovativeness and creativity.
Inclusivity and diversity.
(Dudovskiy, 2017)
The company has a diversely strong culture that is focused on ensuring the company is ready to embark on realizing its set goals and objectives. The company’s culture has enhanced the ability of its employees to work under high pressure and still yield the needed results. Moreover, Apple’s current culture has enabled it to increase its levels of innovativeness and creativity. This is evident in the way Apple differentiates its products and in the way it enters new markets successfully (Dudovskiy, 2017). Moreover, its current culture is focused on inclusivity and diversity. Finally, its culture is highly secretive. All its employees only get to see the final product they have been working on when it is officially launched and unveiled.
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APPLE’S COMPETITIVE ADVANTAGE
Its brand.
Its services.
Its value propositioning.
Apple’s valuation.
(Huber, 2017)
The enterprise has many competitive advantages that have continually helped it achieve success over time. One of its largest competitive advantages involves its brand. The company’s brand is very powerful (Huber, 2017). Notably, the company’s brand has continually helped the company to have large sales volumes with the company selling not only to its old customers but also to its new customers. In addition to its brand, the company’s high quality services and products has continually earned it the respect it needs in the market. Finally yet importantly, its valuation and value propositioning has helped Apple in achieving success through providing it with the means of embarking in all its desired undertakings.
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REFERENCES
Apple. (2017). Inclusion & Diversity. Retrieved on 17 August 2017, from https://www.apple.com/diversity/
Dudovskiy, J. (2017). Apple Organizational Culture – Secrecy and Maximum Benefit from Human Resources. Retrieved on 17 August 2017, from http://research-methodology.net/apple-organizational-culture/
Huber, J. (2017). Apple’s Key Competitive Advantage. Retrieved on 17 August 2017, from http://sabercapitalmgt.com/wp-content/uploads/2017/02/Apple-2017-01-31.pdf.
Rowland, C. (2017). Apple’s Vision Statement & Mission Statement. Retrieved on 17 August 2017, from http://panmore.com/apple-mission-statement-vision-statement
ENVIRONMENTAL SCAN OF APPLE
An Analysis of the Smart Phone Industry
Competition drives innovation, research and development.
There are only three major players; Apple, Microsoft, and Google as far as software is concerned (Cecere, Corrocher, & David, 2014).
Opportunities for development are vast.
Since 2013, smart phone have been responsible for more than half of mobile phone sales globally (Cecere, Corrocher, & David, 2014).
Although Apple was the first company to manufacture smart phones, there have been new players in t industry. As far as software development is concerned, the major players are Apple, Microsoft, and Google. Apple generally dominates the high end market with its iOS for iPhones. However, Android has a lion share of the market at 87% followed by Apple at 12%. Android also has a wide geographical market where it dominates in Africa, Asia and South America. On the other hand, Apple is popular in North America and Australia. There are vast opportunities for development as research and development continue to introduce new consumer friendly features in the market (Cecere, Corrocher, & David, 2014).
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Apple’s Position in the Smartphone Industry
The industry is versatile, competitive, and driven by innovation.
Success in the industry depends on the development of problem solving apps and consumer friendly attributes (AndroidPub, 2017).
Apple owns a market share made up of high end consumers.
Apple’s primary competitors are Android and windows based phones (AndroidPub, 2017).
Apple is an innovation driven organization. The company manufactured the first smart with features such as touch screen capability that has since been adopted by other smart phone manufacturers. The company invests significantly in research and development. Furthermore, Apple continues to provide consumer friendly features such as music store and payment options. However, the company is also facing stiff competition from rivals such as Google, with its Android phones, and Microsoft with Windows based phones. Apple’s success in the industry will depend on how well its products meet consumer needs. The primary threats for the organizations are the relatively high cost of its smart phones as compared to Android and Windows, and the fact that the phones can only work with apps specifically developed for iOS (AndroidPub, 2017).
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Analysis of Strategic Initiative Against Environmental Scan Findings
Apple needs to expand its market share to close the gap between the company and Google based Android.
To ensure competitiveness, the company should look beyond its high end consumers and manufacture pocket friendly phones as a way of diversifying.
Extensive research is necessary to ensure that company ventures in new markets effectively.
Internet security is one of Apple’s strong points.
Studies demonstrate that Apple owns a small portion of the market share at only 17%. Essentially, this means that there is an inherent ambition in the company to increase market share. However, the issue of expansion should be approached with caution. This is because Apple primarily serves high end consumers. An attempt to offer cheaper phones might upset the brand popularity. In areas such as Asia and Africa, only a small segment of the population can afford iPhones. This implies that the company will need to conduct extensive market research to look for alternative ways of market expansion (AndroidPub, 2017).
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Market Expansion
There is still need for Apple to expand its market share and geographical presence.
Expansion should be driven by extensive research.
There is the possibility of upsetting Apple’s high end customers
An alternative approach should be developed.
For a company like Apple, market expansion cannot be pursued blindly. From the analysis, there is the realization that people buy Apple phones because they are associated with prestige. It can be compared to a car like Porsche. The product is designed for people who want to stand out from the crowd. This significantly limits Apple’s expansion strategies. Offering cheaper phones is not an option because it could mean losing high end clients. Extensive market research is relevant in order to come up with the best strategy to enter markets dominated by Android. The initial concept of expansion cannot be abandoned. However, it should be approached with caution.
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Emerging Issues from the Analysis
Apple’s culture should drive market expansion initiative.
Apple should protect its high end customers jealously.
Both internal and external evaluation tools are important in environmental scanning.
Strong internal factors can cushion an organization from external threats
Apple has a strong and consistent organizational culture that has ensured its sustainability in the industry. The organization should use its internal strengths to drive expansion. Furthermore, the strengths can also help the company in mitigating external threats. The company should invest significantly in innovation now that rivals like Android and Microsoft are also presenting stiff competition. Apple faces the threat of losing its high end consumers as a result of expansion. Whatever strategy it adopts, it is imperative that the company strives to protect these consumers. From the analysis, there is the realization that both external and internal evaluation tools are important in strategic decision making.
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References
AndroidPub. (2017). Apple Vs Android - A Comparative Study 2017. Retrieved August 30, 2017, from AndroidPub: https://android.jlese.eu/apple-vs-android
Cecere, G., Corrocher, N., & David, R. (2014). Innovation and Competition in the Smartphone Industry: is there a Dominant Design. Elsevier , 85-106.
APPLE MARKETING STRATEGY
Apple’s Product Portfolio
Electronics and computing technology
Hardware components
Mac Computers, IPod, IPhone, IPad tablets, Apple watch smart watch
Software's
IOS and OS X, Safari, iTunes
Services
App Store, iTunes Music Store, iCloud
Currently, Apple is one of the top manufacture’s of electronics globally. Initially, the company focused on hardware development before expanding its product portfolio to include a range of software and services (Martin, 2016) . Some of the common products associated with the company include Mac Computers, IPod, IPhone. Significantly, the products are offered to wide target market comprising of teenagers, university students, adults, business people, and kids.
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Target Market: Demographics
College and University students: Product such as iPads, IPhone and Mac Books
Business people: Services and hardware
Teenagers: iPods
Adults: iPhones
Young Children: iPads and iPods
The company focuses on a wide range of consumers in the target market including teenagers, university students, business people, adults and Young children. specifically, the target market is focused on users who decide on the products to use (Martin, 2016) . The products attracts different demographics whereby university students find iPhone and Mac books easy to use, teenagers use iPods for listening to music, adults use the phones to make calls and business people who use the software and hardware to maintain efficiency in their endeavors.
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Target Market: Behavior and Needs
Sense of belonging and achievement
Degree of loyalty
Advanced features and capabilities
Self expression
User status
The behavioral aspects and needs of the consumers shape the wide array of the target market. Notably, the consumers are characterized by the benefits sought from the available products as defined by the availability of advanced features and the speed of service offered (Martin, 2016) . Additionally, the target marked share the sense of belonging and achievement for using the products. The use of apple products is characterized by user status that signifies one’s social standing and self expression.
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Target Market: Motivation
User friendly experience
Beauty in design of the products
A symbol of what one wants to project regarding their social status; Lifestyle
Unique products
Despite the fact that the devices operate in a closed ecosystem, users are intrigued by the high level of service offered. Apple store services are dummy proof providing the users a friendly experience. Significantly, the products are aesthetically pleasing to the target market an aspect that intensifies user attachment (Martin, 2016) . For years, the company has paid substantial attention to the details of their product as it is a source of motivation that impacts the buyer’s decision. Notably, users carry the products as a statement about themselves, primarily to signify their lavish lifestyle. Self-expression is an influential aspect associated with this brand as it creates attachment to the product.
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Target Market: Goals
Ease of Use; both for the products and accessible services
Innovative; establishes the competitive edge
High-quality; target consumers are attracted to high quality products.
Extra Functional
Goals is an additional feature of the target market as their main interest is ease of use of the available products. By providing products and services that can be readily accessed to the users, their buying potential can be influenced (Martin, 2016) . Additionally, users are interested In possessing innovative products. The existing competition in today’s electronic industry calls for the development of innovative products to establish competitive advantage. On the other hand, stiff competition has heightened the need to develop high quality products as it influences the buying decisions of users.
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Size of the Target Market
Establishing a global market
Market segmentation is not of significance
Anyone looking for high quality and great value
Targeting users at a global scale
Apple offers an array of products covering different demographics including teens, adults, business people and children. additionally, the company intends to offer high quality products and services to provide user friendly experience (Martin, 2016) . This requires the company to establish a global market rather than focusing of a small market niche. The products are essential across the world thus no need for market segmentation as users can choose products that meet their needs. Significantly, this will comprise of anyone looking products of high quality and great value.
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Resources
Financial Resources
Market Research
Marketing
Implementing strategies
Human Resources
Diverse workforce
Stakeholders
To implement the strategic plan, both human and financial resources will be required. Primarily, financial resources provide the mechanism of adoption operational efficiencies such as conducting market research and developing strategic partnership (Bisk, n.d.). Significantly, human resources in the form o labor enhance implementation of the plan by facilitating the management programs.
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Marketing Strategy and Vision
Effective marketing strategy that defines the business and its related product and services
Describes the market position and role of the products in the market
Profiles the target consumers
To achieve the set vision, it is important to develop an effective marketing strategy. Specifically, the marketing strategy has to incorporate a number of aspects including precise definition of the business and the offered products and services. With this, the strategy outlays the diverse product portfolio that can be linked to the firm’s vision. Additionally, the marketing strategy will feature a description of the market position and the role of the products and services in the target market. profiling the target consumers provides a basis of identifying their needs. This will include their buying patters, what products they are interested in and specific locations they want to buy. Thus, this intensifies the ability to achieve the set vision.
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Marketing Strategy and Vision (cont.)
Identifying the overarching business goals
State the marketing goals and establish strategies to support the set objectives.
Market research
Profiling competitors
Significantly, the marketing strategy further supplements the ability to meet the set vision by as it sets specific marketing goals to be achieved. The set goals must be inline with the overarching business goal that are linked to the firm’s vision. Additionally, the marketing strategy will feature a set of strategies to support the set objectives. by incorporating supporting strategies, the plan will be linked to the overall business vision (Bisk, n.d.). Gathering marketing information is essential part of marketing strategy. This information will range from the target market and the existing trends to profiling the existing competitors. with this information, effective strategies can be developed to address consumer needs and provide competitive advantage thus contributing to the company vision.
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Measuring the Marketing Strategy
Marketing goals
Key performance indicators
Gathering performance information
Reviews on what is working
Measuring the marketing strategy provides vast information on whether it is linked to the set vision. To measure its performance, the first aspect is determining the marketing goals to check if it is still on course (Bisk, n.d.). Additionally, key performance indicators such as profits and daily sales highlight on the performance of the marketing strategy. Significantly, collecting information is resourceful as it provides a comprehensive description on what is working to achieve the set goals.
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Indicators
Financial Metrics
Profit
Projected revenue compared to the actual revenue
Cost of goods sold
Sales by region
Comparing factual budget with actual overhead
Financial metrics are key indicators on the performance of the marketing strategy. Profits will provide a better understanding of the returns generated by the company. By comparing the projected revenue and the actual revenue, a better understanding on the performance will be attained (Bisk, n.d.). The information related to the costs of goods sold highlights whether the company is outdoing its competitors. additionally, sales per region signifies the locations that are meeting the set objectives. therefore, a better feedback can be attained on the underperforming sections. Significantly, comparing the actual overhead with the factual budget can highlight on the existing deviations from the set plan.
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Indicators (cont.)
Customer Metrics
Customer satisfaction and retention
Identifying the net promoter score
Existing number of users
Number of new customers
The marketing strategy equips the organization the capability to meet their needs which is linked to the overall vision. Therefore, customer satisfaction and retention provides substantial information related to the effectiveness of the strategy (Bisk, n.d.). Additionally, identifying the net promoter score entails conducting a survey to ascertain how likely the customers can recommend the company to people they know. This provides a reflection on the effectiveness of the strategy. The number of customer is straightforward similarly to the accrued profits. This signifies whether the company meets their needs. Specifically, the number of new customers highlights on the effectiveness of the strategy as it signifies whether the company is gaining.
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Indicators (cont.)
Process Metrics
The number of product defects
Customer support Tickets
The process metrics details on the efficiency of the organizational processes to meet the needs of the target market. specifically, the number of product defects provides a percentage on defective products within the market. this implies that the strategy is not effective as the products do not meet the needs of the consumers. Considerably, customer support tickets are related to the provision of quality services to the consumers. This provides a reflection of the effectiveness of the customer service which is liked to the organization’s vision.
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Leadership Qualities
Customer Centricity
Team building
Adaptability
Revenue accountability
The effectiveness of the marketing strategy is dictated by the leadership qualities implemented in the organization. To execute the marketing strategy, customer centricity is of importance as it provides insight on market share (Olenski, 2015). Establishing team building is important as it is impossible for the leader to work alone in the different areas that require expertise (Olenski, 2015). Additionally, the ever changing markets calls for adaptability to enable the leader is pursing right investments. Additionally, leaders should be accountable of the revenue to drive collaboration.
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Innovative Qualities
Consistency
Uniqueness Exposure
Competitiveness
Before implementing the marketing strategy, innovative quality have to be adopted within the organization. Uniqueness entails creating brand identity whereby the company will be known of its innovative products. Customers come back to business whereby they expect the same level of quality offered during their first experience. Therefore, this requires consistency to have the competitive advantage. However, gaining the competitive advantage in today’s business world is not easy thus requiring the company to make a name for itself to improve and thrive. Exposure is essential as it entails reaching the customers through the use of different channels. Other than the internet and the social media, the firm can deploy the use of other approaches.
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References
Bisk, (N.d.). Understanding Marketing Strategy. Executive Education University of Florida. Accessed 13 September from https://essentialsofbusiness.ufexec.ufl.edu/resources/marketing/un derstanding-marketing-strategy/#.Wbj79rIjHIU
Martin, (2016). The Apple Product Strategy. Accessed 13 September 2017 from https://www.cleverism.com/apple-product-strategy/
Olenski, S. (2015). Traits of Successful Marketing Leaders. Accessed 13 September from https://www.forbes.com/sites/steveolenski/2015/01/07/4-traits- of-successful-marketing-leaders/#496c4e4b3fde