Introduction
Apple are one of the world’s leading companies with over $233.715 billion dollars in revenue as of 2015. Year after year they innovate the technology market with products such as the iPhone and iPad. The latter was first released in 2010 and has progressed to become more than just a tablet. The newest model, the iPad Pro will be the focus of this report. No longer “just a big iPhone,” Apple have developed the product into a device which can boast the hardware and usability of both the everyday tablet device and a personal computer. This report will analyse whether the product has the capability to succeed in today 's ever growing market for tablets, a product that 51% of UK households own. (Mintel 2014.) This will be done through
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Without these good relationships a company cannot expect to provide customers with the value and satisfaction that marketing strives for. (Armstrong et. al 2015.) These are known as Porter’s 5 Forces and he states them to be the threat of new entrants, the bargaining power of suppliers, the threat of substitutes, the current market and competitors, as well as the bargaining power of customers. (Porter, 2000 - see appendix D).
Suppliers in this market have very little bargaining power and also due to the high level of finance needed to flourish in this market, it is very difficult for new entrants to enter this market so the first real danger to Apple is the threat of substitutes. The main competitor to the tablet is the Windows Surface Pro 4. Appendix E shows the main differences between the devices.Etgar and Malhotra (1981) state that “price as an indicator of product quality is widespread” and although the iPad pro is the cheaper product, Apple’s already established history of quality innovative products should be enough to hold off the Microsoft
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However, due to Apple’s loyal customer base which fits into the “True Friends” section of the projected loyalty matrix, (appendix F) many of these customers will instantly buy the product due to it’s brand. The product is also marked in silver & gold - professional colors which appeal to business people and students. (the majority of “True Friends.”)
Internal Environment
The internal environment of a firm is are made up of the factors close to an organisation.Claudiu et al, 2011 define this more clearly as “The internal environment includes all elements that are endogenous to the organization, which are influenced to a great extent and totally controlled by it.” Due to constraints only the main factor will be analysed - the firms employee’s. A SWOT analysis has been included in the report. (see appendix G)
Employee’s at Apple are highly trained and knowledgeable about their field of work and the products the firm sell behind the scenes and front of shop. To match the professional nature and high price of the product, a sophisticated level of customer service and staff is required. Apple’s official progress report (2013) states that over 1.32M staff have been properly trained through the
Product Differentiation: Apple has been able to differentiate its products by offering innovative products that is almost perfect. “ Apple has developed some of the world’s most daring technology”. The company has been able to provide unique products that is way ahead the curve compared to its competitors’. Apple has successfully increased the demand of its products through product differentiation, the uniqueness of its products has always drawn the attention of consumers. By focusing on a particular set of consumers who are willing to pay more has enhanced the company’s premium pricing strategy which is also a stands to be a differentiator. Product design is a major factor that has enhanced all Apple’s products to be different, when the company introduced its iPod, iPhone and iPad no other similar product could match up with the features of these
Innovation in apple sets high standards that make it difficult for other companies to compete with them. Throughout the recent years Apple has been showing a non-stop development in its innovation strategies, those innovation strategies involve remarkable new products and innovative business models. Apple has been continuously succeeding in providing consumers with what the senior engineering manager in apple Michael Lopp describes as “really good ideas wrapped in really good ideas” and by Looking at apple’s sales since it started releasing its unique products we see that it strongly agrees with this description. Apple’s innovation-friendly ecosystem focuses on manufacturing its own hardware rather than just buying it, and that is one of the most important features that made them who they are today in the market.
Firstly, Apple provides sound customer services. Even though Apple is making its products simple and easy to use in order to favour various types of users, it is still a challenge to get use to most of the function in a high-tech product. For instance, many of us own an
Chokshi, Sonal, and matt Buchanan. "How Steve Jobs Made the iPad Succeed When All Other Tablets Failed | Opinion | WIRED." Wired.com. Conde Nast Digital, 31 Oct. 0013. Web. 7 May 2014. .
In conclusion, HP’s entry into the tablet market by producing the Touchpad tablet was expected to shake up this market and rival iPad. However, the success of this project was hindered by performance lags, poor choice of apps, and cumbersome design of the device. In addition, Hewlett-Packard did not generate expected sales of the device because of these shortcomings and poor pricing strategy.
Within the last decade Apple has become one of the largest growing companies in the world and the largest valued company in the United States. According to a recent article in The Guardian, a global financial news website, “Apple set a record by becoming the first company to be valued at over $700bn (£446bn).” (Fletcher, N. 2014) This comes as no surprise to the average computer aficionado and shareholder as Apple has been making a name for itself since its inception. From its earliest Macintosh models to today’s iPhones, Apple has been a trailblazer for software, technology and revolutionizing the way we communicate on a Macro level. Their dedication to innovation, quality and service has made them
Early in its product life cycle, the X5 performed very well against the other tablets. Sales grew steadily throughout 2012, but as the maturity phase begins during 2013, the sales drop off rapidly. Without the benefit of price cuts to stimulate further demand, the X5 transitions to later in...
Apple Inc. is a multinational company, based in America, which innovate, develop and sell personal computer its software named Macintosh and various other products like the iPhone and the iPad. In 1976, Steve Jobs started the apple era and the business has grown rapidly to one of todays’ iconic inventors of consumer electronics. Despite the company operates in a wide field of products, Apple is handling every of their products as a separate business unit, but with a similar and recognisable design. This report will focus on Apples last invention, the iPad, and analysis its position within the market and future perspectives (Apple Inc., 2012).
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
Overall, Apple has a creative way of marketing to the millions of people over the world. Their creative marketing coupled with their unique product meshes together to form a multi-billion dollar company. If Apple keeps using their exclusive style of marketing to a younger “hip” generation then they will be Apple customers for life.
Regarding our efforts here at Apple, we may have a few areas we need to redirect some of our energy into, to make sure we can continue such a strong brand following. If our reputation is tarnished, we could risk loosing current and future customers, leading to a decrease in overall market shares and sales.
There are many role models in the world. They may be individuals or an oranization but their success is inspiring for others and we try to find out the reasons for such a brilliant succes. This is the case with Apple as well tat has enjoyed this status since 1981.
Apple customers relate to the brand very intimately. Repeat purchases are very common. They feel a very strong attachment towards the brand because it portrays a very different image. It helps make them feel that they are flowing with the changing trends because they own an Apple product. Many Apple consumers sometimes consider their Apple product their favourite possession or say that they love the brand because they get very attached to it. Apple has portrayed itself to be a brand that the customer can have a happy and lifelong relation with. The Apple experience has created deeper attitudinal attachment in the minds of the customer.
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
Apple has made reasonable management of its human and material resources since its innovational approach demands effective strategic allocation of its resources to the development and utilization of its productive resources to support its innovative investment strategies. Effective strategic control brings power to Apple’s decision-makers to allocate its resources to confront the technological, market, and competitive uncertainties which are inherent in the innovation