Case Study- Google, Apple, and Microsoft Struggle for Your Internet Experience 1) Compare the business models and areas of strength of Apple, Google, and Microsoft Apple, Google and Microsoft each have their own strengths and uniqueness. These three top companies create and innovate new ideas to change the way we experience the internet. Apple began their dominance in the smart phone and mobile internet experience with their iPhone and iPad. These two major introductions to the Apple line up along with their already popular iPods represented 62% of the 2011 revenues. Currently Apple is a dominant force in the market of mobile, music and computers and with each generation wanting more of these Apple products, there is no sign of them slowing down.
Google currently possesses a plethora of communication, and exploration tools which could further empower that of facebooks capabilities with this merger. By placing the power of each of these online tools in Smartphone’s, mobile software, and advertising, Google has the opportunity to potentially aid in future inevitable tech wars by this acquisition. Thus, transporting facebook to a place that was in other words, deniable, ten years ago. How would a merger benefit Google? Facebook has become a portal that has pulled all ages and races of users together in one place.
Apple can do well to acquire growing cloud service company since cloud is clearly not its core competency. Social Media is another segment where Apple has been a laggard. Being a technology company, it cannot afford to lag behind its competitors in emerging technologies and future business potentials. Facebook, Google and Twitter clearly dominate the social media business and it is virtually impossible for Apple to acquire any of these businesses. It can do well to partner with any of these companies and make available any of its online services like facetime, iCloud or iTunes to the users at these social networking sites.
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.
ln 2010, the smartphone market was dominated mainly by Nokia (33.1%) followed by RIM (16.1%), Apple (15.7%) and Samsung (7.6). However, in 2011 Samsung was ranked as the leading smartphone vendor followed by Apple, Nokia, HTC and RIM etc. Researches had revealed that the combination of elegant hardware with software (like popular android services), systematic and widespread global distribution etc., were some of the key strategies for the growth of Samsung in the handset market especially in the smartphone segment. ln 2011, smartphones penetrated around 29% of the global handset market and was expected to increase at a higher growth rate by 2015. Analysts forecasted that the compounded annual growth rate of smartphones would be around 24.9% in 2015 and this would further account for 75.8% of the revenue of the total handset sales in the same year.
Apples primary strategy was to create innovative and differentiating products that were superior and had a very user friendly experience. In 2013, after loss of Steve Jobs, Apple did not focus on innovation and faced competition from new entrants like Samsung and other companies which offered similar products at a less price. Apple started losing its differentiating factor and as a result also the market share. The high pricing strategy which was very successful earlier, failed to increase the sales. Instead of sticking to its previous strategy of coming up with new unique products, Apple for the first time engaged itself in price wars.
I want to see how Apple’s iOS fares against the major player in crucial mobile death match with Google’s Android. With iOS all you can do is launch apps and create folders. With the iOS you have to use the operating system designed by apple and is virtually controlled by them in every way with android the phone is yours. Some may argue that iOS is easier to use but that’s not necessarily true. It may be simpler but once you tackle the learning curve of android everything becomes second nature without sacrificing customization and efficiency.
What I have just described is the process of getting an upgrade at the end of your contract, this is how Apple penetrate the market as when you upgrade, you will most likely go with a newer version of your old phone as you are used to the operating system and how the phone works. Apple released Apple TV in 2006; it allows the TV to access iTunes, Pictures & internet apps like Netflix. This is an example of Apples diversification. Apple uses market development to expand across different markets, for example they can provide anything from one of the top of the range smartphones on to the best tablets or pc’s/laptops. They have one of the best customer services by having stores that you can take your apple product in to and they’ll try to fix it in 10 minutes or they give you a new one.
Have its strategies in its core businesses yielded success? Explain. Elements of Apples strategy in computers Style, unique capabilities (technology and programs unique to Apple) Demand for apple computers might grow because people want to integrate them with their iPads or iPhone. But, Apple computers lack price competitiveness. No Apple computer designed for price conscious buyers.
Not only do they sell these items the company sells high end computers to its customers. Apple markets its personal computers has the best computers on the market that feature top of the line features that other companies cannot match. 2. Describe the role of Apple stores as an important part of its marketing strategy? Apple’s retail stores are an important part of its marketing strategy because it has become the face of the company.