1. If you would be working for Apple (Ipad or Iphone) what techniques would you pursue in order prevent circumstance like what is taking place today to Nokia Apple Inc. has currently had an amazing break-through in the technological race when it firstly launched Iphone in 2007. Considering that when, there was a transformation in the technology field specifically, in the Personal Computer (PC) industry includes: mobile phone and tablet computer. If I worked for Apple Inc., in order to retain along with to enhance the position of Apple in Today’s market, I would use, deploy and develop the Relationship marketing with “Distinction” techniques based upon 4P consists of: Product-Price-Promotion-Place.
Item
First of all, people need to admit the fact that the present success of Apple was developed on the fantastic items. Compared to Nokia, Apple currently produced a crucial competitive advantage that raises company to a new level. The failure of Nokia was a cost lesson for others mobile phone manufacturer worldwide.
The primary reasons leading Nokia to this moment circumstance is business currently missed an important opportunity in mobile phone revolution in addition to its items. Despite the fact that, later on Nokia unveiled mobile phone Lumia however it did not satisfy the consumers’ demand and expectation. Nokia item’s designs are not attractive and stylish as Iphone. In addition, the items are outdated user interface, absence of applications and out-of-date technologies compared to Apple’s products.
Consequently, Nokia loose its prominent brand value in the smart phone industry. Meanwhile, Apple understood and took that opportunity then turned it into substantial success.
Hence, Apple ought to continue the item differentiation strategy. It primarily focuses on investing more in creating and establishing the new and ingenious innovations, which are totally various from competitors’. The products ought to be generally updated and updated in both its particular outlook (thinnest, most lightweight, unique, fashionable and outstanding) and functions (hassle-free, ease-use, assistance applications and service and so on). This is the only method to make company continue keep its crown as innovator in the extensive technological competition.
Price
Secondly, despite the Apple is assessed as “the tech industry’s high-price leader” with Premium price, people are still willing to purchase its products at a particular price. The main point is price set based on the “product Differentiation strategies”. Therefore, in order to exist and grow in the price war, the company not only retain the same price strategy but also use more the pricing Skimming and Reference strategies: launching a same product line but in different price points depending on the features and drive capacities. It may be better for Apple than using the penetration pricing strategies by suddenly decreasing the price to expand or approach new market.
Promotion
In order to get the large impact from media and society, one key in the Apple’s marketing is its traditional promotion strategies by creating hype and excitement before the launch of products. Apple is considered as “Phenomenon” and each marketing communication relating to “Word of mouth” created huge impact on consumer behavior. Organizing significant campaigns with special slogan to introduce and get emotional response about the new products, which concentrate on the consumer psychology: the curiousness, self-esteem, desire and passion in new technologies Place
Finally, expanding and opening new multi-distribution channels with high sales volume (retail store chain and online sales). Simultaneously, more creating the strong relationship with worldwide retail partners. In conclusion, Relationship Marketing based on “Differentiation strategies” focusing on customer retention and satisfaction, which in order to enhance, increase customer loyalty and sustainable development. Apple Inc. has to understand the market dynamic to keep its track as market driven by inventing the unique and creative product lines as well as innovation technology.
2. On the other hand, if you would be working for a competitor of Apple (Tablet or mobile), what strategies would you adopt in order to compete against Apple Apple (Iphone and Ipad) is considered as the biggest rival in the PC industry of Samsung (Galaxy S), Nokia (Lumia), Google (Nexus), Amazon (Kindle Fire). Even though, Apple has been dominating the PC industry but its target market selection is “Market specialization”. The weakness of Apple is the limited market share because of the premium price and most Apple content can only run on its selected devices. If we are competitors of Apple, we can use the Apple’s strategies to compete against it. It means we should also apply the “Differentiation strategies” to provide more perceived value to consumer.
Every time, Apple releases new product or any application, we might prepare to create and unveil our amazing different products with adding more value proposition. Take for instances, to accompany with product, we can offer new innovative or free (or low cost charge) applications, software, movies, TV shows, games, e-books, cloudy computing or even more drive capacity etc. Although, we do not have as strong customer loyalty as Apple has, our competitive advantage is offering the same product’s quality with a competitive price which is less than Apple’s but still not too low to confirm our position in the market. In addition, as some Apples’s competitors (eg: Kindle of Amazon) did, they used the bundle pricing strategies combine two or more products and sell these at a reduced price or offer programs: buy once but easy to access content on other devices ipad, iphone, tablets . Then little by little getting the expansion international scale with “Full market coverage” (different product lines suitable for every customers) through different market entries, distribution channels and marketing communication campaigns.
3. Make a SWOT analysis for Apple (Ipad and Iphone)
Apple’s SWOT analysis
a. Define what are the biggest threats and opportunities for Apple in the future
Threats
Nowadays, the high technology industry seems to be in the “Saturation” but in the future, people still believe there would be remarkable changes. In the future, the most threats that Apple may face is the intensive and high level in technology competition. The threats might be coming from both existing and emerging competitors. The growing in the market share leads to the consequence that there growth in perception and needs/demands of customers. In addition, there are more and more counterfeit and fake products overflowing market that affect directly to the company image and sales. If Apple cannot find the solution, soon company is surpassed by others competitors.
Opportunities:
Ranking as a top leading innovator brings many open-opportunities for Apple. The biggest opportunity of Apple is changes in technology offer new and innovative products. The company can even get and deploy from the outsourcing for its research and development. Creating the technology revolution and changing desire of information age affecting to most generations. As one of the most famous philosophies of strategic marketing pioneer – Regis McKenna: “Markets for new innovative products do not exist, they have to be created, and defined”. Therefore, creating and expanding the product/service lines by Apple could help them define its market, raise sales and increase their product portfolio.
b. Define what are the biggest strengths and weaknesses of Apple today
Strengths
In 2012, this is the second time when Apple is ranked the world’s most valuable brand according to “The 2012 BrandZ Top 100 Most Valuable Global Brands”. It is said that the Apple’s brand success is driven by three elements confidence, competence and customers. Might be the reason why people purchase Apple’s product because they just care about its brand and image. As the David Haigh stated in the annual report on the world’s most valuable global brands: “Brands are the most valuable assets in business today.
They drive demand, motivate staff, secure business partners and reassure financial markets. Leading edge organizations recognize the need to understand brand equity and brand value when making strategic decisions” – David Haigh, CEO, Brand Finance plc. Apple is successful in creating its identity and emotional branding that all most the whole world can recognize. Long term brand building will engage consumers on a variety of touch points that create the high loyalty.
Weaknesses
Entering the Niche market with the premium price strategies, which can considered as Apple’s weakness. The price wars between competitors will also affect to Apple’s profits. Moreover, the company’s target market selection is “Market specialization” then it quite limits the market share cause products provided by Apple meet the demand of middle/ upper class and people are interested in innovation technology.
Reference
Mr. Francois Simon’s lecture and materials
http://www.tutor2u.net/blog/index.php/business-studies/comments/nokia-and-strategic-change-the-essential-a2-business-case http://theapplephenomenon.blogspot.fi/
http://www.brandfinance.com/images/upload/bf_g500_2012_web_dp.pdf http://www-sul.stanford.edu/mac/mckenna.html
http://www.wpp.com/wpp/press/press/default.htm?guid={92b52c53-fc68-45e0-aaea-34fe6fbd769b} http://www.amazon.com/gp/feature.html?ie=UTF8&docId=100071977 http://www.saleschase.com/blog/2012/04/03/little-known-secrets-of-apples-pricing-strategy/ http://www.saleschase.com/blog/2012/03/13/the-best-of-apples-marketing-strategies/ http://blog.openviewpartners.com/apples-marketing-strategy-history-repeats-itself/ http://blogs.gartner.com/eric-knipp/2009/09/28/cost-leadership-and-differentiation/ http://www.slideshare.net/kaushiik10/apple-inc-marketin-and-distribution-strategy
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