Preliminary Strategy Audit
aewtts
m1_paper.docxRunning head: APPLE MARKET ANALYSIS 1
APPLE MARKET ANALYSIS 4
Introduction
Apple Incorporation is an American based multinational company that designs and manufactures consumer electronics, software, and commercial servers and distributes digital media content. The company’s major products include the iPhone, iPad, iPod, and Macintosh computers. Apple has established itself as a leading manufacturer of consumer electronics and media sales.
Customer
The target customer for the IPhone includes teenagers, college and university students, businessmen, kids, and adults. Teenagers use the iPhone to socialize, access the internet and social media and to listen to music. College and university students on the other hand use the iPhone to record notes in a well-organized format. The iPhone has a business quality that business people find very useful. Apple products allow businessmen to communicate and send documents to customers easily. Learning game apps are downloaded on apple devices which are given to kids and can aide in teaching young children. For adults, the iPhone allows them to make calls, get directions, view documents, take pictures, and connect to the internet. As Saini (n.d.) points out, Apple products are built to suit every age group.
Many of the iPhone customers chose the phone because they wanted a phone that is easy to use, has a media player, good applications, ability to take good pictures and videos. Teenagers for example, want a device that can allow them to play music, access the internet and allow them to have gaming apps. College students want a phone that is light and easy to carry and can assist them with taking notes and staying organized. Business people want a device that simplifies their business activities. Adults on the other hand want a phone that makes their life easier and allows them to communicate effectively.
The iPhone is able to satisfy all the above wants. It is mobile, lightweight, produces quality pictures and videos. The phone also has good applications and operating system allowing individuals to easily access social media and the internet. The business system of the phone allows for one to carry out business activities easily. The phone allows one to communicate effectively through calls and text message as well as through the email.
Competitor Analysis
Out of all of the smartphone manufactures, the IDC (2015) ranks Apple number two. Apple’s biggest competitor is Samsung with other competitors being Motorola, Nokia, and Lenovo. The features offered by Apple are what sets it apart from its competitors. The Apple brand is very strong and has brand loyalty from their customers.
The company’s strengths include the fact that the company is a leader in innovation and technology. The company has excellent brand loyalty from their customers, many of them own multiple Apple products. Apple also benefits from the fact that the company has its own operating system, which they use in their products. All the applications used in apple devices are produced by Apple Inc. allowing them to increase their sales. As Sun (2015) states, “if customers want to remain within Apple's ecosystem and keep their digital purchases, they must continue buying iOS devices” (para. 4).
Competitive Advantage/Sustainability
Vertical integration has given Apple a competitive advantage. They owns chip manufacturers, control manufacturing, follow strict software standards, and operates in a nearly closed ecosystem of proprietary retail stores. Utilizing vertical integration, Apple has more control of its value chain and its component costs than their competitors.
Apple also has a strong brand appeal that gives it a competitive advantage. Despite having some low specifications, the iPhone is sold at more expensive prices than other brands with better specifications. “Apple is also one of the few electronics brands to be considered a luxury brand” (Sun, 2015, para 9). Unless the competitors can match the brand appeal, they are less likely to make more sales.
|
Consumer Wants/Needs Chart |
|||||
|
|
Apple |
Samsung |
HTC |
Blackberry |
Nokia |
|
OS |
2 |
2 |
2 |
2 |
2 |
|
Screen Size |
1 |
2 |
1 |
1 |
2 |
|
RAM |
1 |
2 |
1 |
1 |
1 |
|
Storage |
2 |
2 |
2 |
2 |
2 |
|
Camera |
2 |
2 |
2 |
2 |
2 |
|
Weight |
2 |
1 |
1 |
1 |
1 |
|
Processor |
1 |
1 |
1 |
1 |
1 |
|
Media Player |
2 |
2 |
2 |
2 |
2 |
|
APP’s |
2 |
1 |
1 |
1 |
1 |
Key:
0 = need not met
1 = need partially met
2 = need fully met
References
IDC. (2015). Smartphone Vendor Market Share, 2015 Q2. Retrieved from http://www.idc.com/prodserv/smartphone-market-share.jsp
Saini, J. (n.d.). Apple Inc.’s Target Market. Retrieved from http://appleinccasestudy.weebly.com/apples-target-market.html
Sun, L. (2015). Apple Inc.'s Sustainable Competitive Advantages. Retrieved from http://www.fool.com/investing/general/2015/05/18/apple-incs-sustainable-competitive-advantages.aspx
