Changes Sprint/Nextel are making for prior poor management decisions iv. Sprint/Nextel drop opportunity to be more successful d. Successful Companies i. AT&T / Cingular is the largest wireless carrier in the U.S. and will further succeed because of the iPhone’s popularity ii. Nokia expects its devices market to grow further leading to further profits iii. Verizon and T-Mobile succeed because of Sprint/Nextel’s struggles iv. T-Mobile will continue to be successful because of work with Apple over seas III.
The increase in sells in the iPhone also led to the increase in sales with the iPad as well. This really solidifies why the record company will not settle for the flat pricing price of Apple policy. Apple ability to control the download of music will definitely not work if Apple doesn’t allow for more flexible pricing. Apple must understand without music to download then there is know extra incentives or revenue that helps them maintain those increases in sales with their iPhones, iPods, or iPads. Apple future with downloads will be just find
As the debate grew more heated over the past month, it occurred to me that this debate could be viewed in terms of innovation. Is the iPad a sustaining or disruptive innovation? In The Innovator’s Dilemma, Clayton Christensen describes some of the characteristics of a disruptive innovation: It initially costs more than the item it is initially seen as replacing, for example, the initial 5 inch hard disk drives cost more on a per megabyte basis than the 8 inch drives they were seen as replacing. It doesn’t perform as well as similar previous devices; doing the same task, the new innovation is not quite as good as the existing innovation. Customers and market research did not show a great desire for the new innovation or device, e.g.
However, that market is high competitive and almost commodity-like. Company A would need to consider reducing its labor force or even moving its operation to low cost-region in order to be competitive in the iPod/iPhone headphone market. Another new customer group is the people who use noise-cancellation headphones. There are limited players in this market. Also, the quality of noise cancellation headphones vary a lot and the customers are willing to pay higher price for good product.
2. Competition with Android smart phone and tablet The intensive competition between Apple and Android with regard to smart phones and tablets is the top issue about market share. In the table of top worldwide smartphone vendors, Samsung took over the most market share since 2011, Apple became to the second one. It indicates that Apple is losing its market leader position on account that in need of innovative function or design and various apps to differentiate it from the others and the inappropriate pricing. Recommendation: Apple should keep creating innovative functions and increasing more apps, using broad differentiation strategy, adjusting the price to be accepted by customers 3.
It is a also important to note that strategy of launching iPod and other subsequent new products were very much in synchronization with the ‘Digital Hub’ strategy. Analyzing the industrial environment based on Porter’s 5 force model we get: 1. Intensity of Rivalry: Apple faced competition from other iPod players such as Zune (Microsoft), San Disk, Creative and Samsung. However despite these companies having more or less the same hardware had less than 10% of the market share because of the launch of iTunes. Within the industry the intensity of rivalry was high though Apple was vey ahead of it competitors even when it was charging a premium price which was $50 to $100 higher than the ASP of other iPods.
Their level of profitability has also significantly decreased from 20% to merely 0.4%. “Today, Apple commands just 2% of the $180 billion worldwide profits in the PC market. Their primary competitors are a combination of brands from two different spectral within the PC market.Apple is currently experiencing from rivals that they have followed their creative leads and captured a significant portion of market share and profits from Apple.’ This case emphasizes the reason for this downfall of Apple in the market, whose key success factor is to be creative and innovative. Here this case defines the core debate, which is behind the concept of product champion vs. process champion; The basic question is "what are a better driving force for economic growths: Here we have tried to find out the reason as well as recommending some positive measures, which may assist Apple in regaining it’s position in the Technological Market, using some other tactics instead of being only creative and innovative. … Purpose- Here in this study, we have tried to explore the various aspect of Apple’s Strategic system, within this periphery we have also tried to explore some related factors from other competitors from the
Analysis of Case 1 Apple Inc. in 2012: Can It Sustain Its Growth and Defend against New Competitive Threats? By Maria Venizelos October 21, 2013 1309MGMT6709080 9% Introduction Apple Inc. is known as one of the most innovative companies in the Micro Computer Industry. Apple is known for their innovation and quality from computers, to iPhones and the ability to download music through their iTunes Store. This paper will analyze their industry environment using The Five-Forces Model of Competition: A Key Analytical Tool (see Figure 1) and the Case Study: “Apple Inc. in 2012: Can It Sustain Its Growth and Defend against New Competitive Threats”, (Gamble, 2012). Figure 1 Harvard Business Review, 2008 Industry Environment Evaluating an industries environment is based on well-defined analytical tools as described in Thompson, 2012, (p. 34).
Their strategy has led them to become the market leader in some of these industries. What are the key elements of Apple’s strategy in computers, personal media players, and smartphones? Have its strategies in its core businesses yielded success? Explain. Key elements of computers -Design-Apple has been known for their sleek, modern design on allof their products -Software-Apple uses their own operating system which differentiates their product from the rest of the market.
Firstly, the effect on the demand is caused by its substitutes. When Samsung Galaxy was first introduced in 2009, there was a huge technology gap between its rival. As time goes by, closer substitutes came in the market. As a result, the demand of Samsung Galaxy decreased during the launch of new competitor products that are equal in level of technology, or quality. On the contrary, the brand’s image is vital as it affects the demand of Samsung Galaxy positively.