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Strategic Uncertainties for Apple - PowerPoint Presentation Example

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The paper "Strategic Uncertainties for Apple " discusses that generally speaking, Apple’s look is always simple and clean and the packaging for the iPad is true to the brand. The art on the cover of the box is a life-size photo of the product inside…
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Strategic Uncertainties for Apple
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APPLE, Inc Discuss leadership and other factors that you see as important relevant. What do you view as the key or exceptional factors that contribute to the companys leadership position in the market and to its success? Industry leadership in this business is determined by how well the company can sustain a constant stream of innovative ideas which are capable of commercialization. [See #7 below for competitive advantages, which are the key factors for the company’s leadership position.] The personal leadership style of Steve Jobs had much to be desired. He was exacting and uncompromising, a quality that made him difficult to work with, according to his subordinates and officers (Elliot and Simon, 2011, p. 47). Steve Jobs introduced a corporate philosophy of recognizable products and simplicity in design and use. 2- What external factors do you see as important for the companys strategic marketing? The relevant external factors include the opportunities and threats in the SWOT analysis, and all the PEST considerations. 4-What do you view as strategic uncertainties for the company? The largest strategic uncertainty for the company is the long-term effect of the untimely death of Steve Jobs. It will be recalled that Steve Jobs was ousted from the company in 1985 but subsequently returned as its CEO in 1996 when his company NeXT was acquired by Apple, Inc. During the interim that Jobs was not with the company, Apple floundered because its products were not taking off in the market. It was only with Jobs’s return and the breakthrough with the iPod in 2001 that the company began to recover. 5-Discuss the companys market analysis in terms of the key trend or issues. Among the key trends and issues in the IT and electronic consumer industry, at the top is security. This is the reason why Apple has developed an operating system which is more resistant to security issues than the competitor system, Windows. Another issue is price which Apple addresses with a strategy of value for money (see individual pricing for some products in #7 below). While some products admittedly command a higher price than competitors, the price is usually justified by the quality that Apple products offer. Finally, a key trend is the rise of mobile computing and decline of the personal computer, which Apple has pioneered with its mobile products. 6-What do you think is the companys segmentation strategy? What are the needs/unmet needs of its customer segments and how is the company addressing these needs? Apple has abandoned conventional wisdom about horizontal market segmentation (i.e., differentiating different version of a product for different customers), and has instead segmented its products vertically (creating one particular product for a particular use case, such as an iPad for reading, an iPod for listening, and iPhone for apps). Apple targets a specific market and then provides a product for it with unstinting quality (Schramm, 2010). 7-Discuss the companys competitive landscape. Who are the companys direct and most formidable competitors? Discuss the companys differentiation and competitive advanta`s differentiation and competitive advantage. Apple’s direct competitors: There are several, because Apple has a diversity of products; however, there are few that come close to posing a threat to the firm insofar as innovative personal electronic hardware and support applications are concerned. HP Laptops lack the style and flair of Apple’s MacBook, and suffer from security problems of Windows. Dell Laptops still sport the beige or gray color and also suffers in styling. Samsung Galaxy Tab tablet also designed to challenge the iPad. However, the product runs Android 2.2, an operating system not designed specifically for tablets. Also, the display is tiny at 7 inches. In contrast, Apple’s iPad has better software, a bigger screen, and more appealing programs in the App Store. RIM’s PlayBook is designed to compete with iPad, however it lacks 3G connectivity which Apple has, and has a new operating system that will take people some time to get used to. It also lacks some of the corporate functionality that the iPad has. Motorola Droid X, the most popular Android-based handsets on the market. Device falls short in overall software usability compared to iPhone, and fails in depth of features that Apple’s iPhone has. RIM’s BlackBerry Torch (smartphone). While the BlackBerry Torch has a touchscreen, but its designers still feel that keyboards are necessary and are having trouble letting go of old standards. Furthermore, its browsing experience is much inferior to Apple’s iPhone. Google’s Logitech Revue, answer to the Apple TV, but while admittedly having slightly better quality, costs $300 compared to Apple TV’s $99. Apple’s competitive advantages: Brand: The Apple name is associated with quality, innovation, reliability and trendy sophistication, a reputation it has rebuilt beginning with the emergence of the iPod in 2001. Customers have built sufficient band loyalty to anticipate new products as they emerge, spurring strong sales right after product introduction. Simplicity: Apple’s look is always simple and clean and the packaging for the iPad is true to the brand. The art on the cover of the box is a life-size photo of the product inside. No words, no sell copy. Since this is exactly what the customer can’t wait to get their hands on, it’s the perfect marketing message, building anticipation and making the product the star. The only other art on the package is the Apple logo and the product name on the sides of the box. The product specs (16GB, 3G, etc.) and copyright are hidden on the back at the bottom. Nothing gets in the way of the brand. Consistency: The packaging and the product are as beautiful, clean, and easy to access as every other Apple product. Opening this box felt just like opening the package for my iPhone and my iPod, and this trademark simplicity and consistency are exactly what Apple buyers want and expect from the company. Even the accessories in the box are familiar. The iPad uses the same USB cable as other Apple products. Ease of Use: Apple’s TV advertising for the iPad notes that “you already know how to use it,” and if you’re at all familiar with other Apple products, they’re right. The product’s controls and user interface are so intuitive that you can quickly get up to speed and start using the product. There’s no thick owner’s manual in multiple languages, just a simple, two-sided card that leads you to product instructions on the web and in the product itself, though you really don’t need them unless this is the first time you’ve purchased from Apple. Quality: The silk paper stock for the box and “how to use” card are extremely high quality, with a soft, rich finish, a dull varnish, a slightly creamy color, and a silver metallic foil stamp on the Apple logo. Even the box feels great to the touch. Instead of looking for ways to save money with a cheap box and an inexpensive paper stock, Apple made the package an extension of the product itself. Four key lessons about branding and marketing strategy in Apple: Know what your customers expect from your brand and deliver it in all aspects of your product, from the product design to the package you ship it in. Your brand is much more than your logo: it’s everything the customer experiences when they interact with you. Evaluate all your customer touchpoints to be sure they truly reflect your brand. Simplify your message and communicate it as directly as possible. Edit copy to its essence and wherever you can, use visuals to make your points. Be you, all the time. Great brands convey a company’s persona and they do it so consistently that the company feels like something more than a commercial enterprise. Your brand persona should be a reflection of who you are and what makes you different from every other company in your marketplace. Keep it consistent and keep it real. (Gianfagna, 2010) Elliot, J & Simon, W L 2011 The Steve Jobs Way: Leadership for a New Generation. Vanguard Press, Philadelphia, PA Gianfagna, J 2010 “Branding in the Package: Lessons from Apple’s Master Marketers.” Smart Marketing Strategy. Accessed 25 February 2012 from http://www.gianfagnamarketing.com/blog/2010/05/21/branding-in-the-package-lessons-from-apples-master-marketers/ Reisinger, D 2010 “Desktops and Notebooks: Apple Product Matchups: 10 Competitors That Pale.” eWeek.com. Accessed 25 February 2012 from http://www.eweek.com/c/a/Desktops-and-Notebooks/Apple-Product-Matchups-10-Competitors-That-Pale-in-Comparison-539288/ Schramm, M 2010 “Apple’s segmentation strategy and why it works.” TUAW. Accessed 25 February 2012 from http://www.tuaw.com/2010/10/02/apples-segmentation-strategy-and-why-it-works/ Read More
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