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.
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.
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
Martin Gonzalez Mr. Lyle Advanced Writing – Comparison April 7, 2012 Automatic versus Manual One important thing is that most manual cars tend to be one thousand dollars cheaper than their automatic models. If you need to save money, purchasing a manual car would be a much better choice. Automatic cars cost more because they need more parts in their gear box and in the engine so they can be automatic instead of manual gear shifting. Also, when it comes to serious repairs to a car, manual cars are cheaper because they don’t have those extra parts automatic cars have so it could save you a lot of money that way too. And for those people who like to save gas, manual cars tend to waste five percent to fifteen percent less gas than its ajutomatic model.
Large businesses are willing to pay dearly for operating systems that support dozens of processors and thousands of users, but a small business would be loathe to pay the same price when all they want is to run a small volume web server. By creating multiple versions with different feature sets, Microsoft is able to maximize their profits by gaining both types of customers. 2. What are the new features or enhancements made to Windows Server 2008? How is Windows Server 2008 different from Windows Server 2003?
Recommendation: Apple should keep creating innovative functions and increasing more apps, using broad differentiation strategy, adjusting the price to be accepted by customers 3. Large market demand in Asian countries As the decreasing sales of personal computer in Japan and Europe, Asian countries became the largest market in 2011, especially China. The preference of inexpensive feature devices in Asian countries is a challenge for Apple’s premium pricing. Recommendation: To adjust the price to be accepted by customers and reduce the cost on each part of value chain. 4.
Oracle, SAP and IBM at the large enterprise level and Microsoft in the mid to small enterprise levels. However, the technology evolves continually in the hi-tech industry. There are always oppertunities for startups to disrupt technologies. However, such startups will lack the ability to scale and support an enterprise ready application. More often, such successful startups end up being bought up and consolidated.
For example, when Apple first released their new product the ‘iPhone’ not too long ago, the technology was one of a kind. Other brands such as Nokia or Sony Ericsson did not have the same level of technology as Apple had at the time, so there were no substitutes for iPhone, and the demand for iPhone became price inelastic. This means that when the price of iPhone increased, the quantity demanded did not drop by very much because it was in such a high demand that people were willing to pay for it. However, nowadays we see other brands such us Nokia and
However, due to the higher prices, there is a certain segment to which these brands can appeal to – this strengthens the power of the buyers. Because of the high competition and many brands within the industry – there are low switching costs for the buyer. This is complemented by online shopping, which means that the retailers do not even need to be physically in the same place. This lowers the switching costs for the buyer and increases their power. The rise of the ethical social consumer and the information availability that came with the internet made the buyer demanding and less likely to develop loyalty towards a brand – this increases their power.
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.