2. Threat of Substitutes Two main competitors that produce like substitutes that have an effect with Apple is Microsoft’s computers and tablets, and Samsung’s Android. Many consumers are purchasing Microsoft tablets and Androids because they are cheaper than Apple products, however they may not work as well as an Apple. In order for Apple to stay competitive in the mp3 and tablet markets, they will need to keep their prices competitive which lowers their profit. 3.
It had to be a Nokia and a slim phone. The design aspect of cell phone was very important to me, probably because of my aesthetic inclinations and the fashionable image that I wanted to project. When I came to the USA in 2004, I was still concerned by the fact that my cell phone should look stylish and must have all the latest features in it. It definitely had to be better than the one I had in India. However, in a couple of months my ideas about cell phone changed.
Similarities of phone company carriers V. Conclusion Which is the Better Cell Phone Company Sprint or AT&T When searching for cell phone companies there are several things that should be taken into consideration. One of the most important things for me would be the price. What if any additional service does the cell company offer for instance data, texting, and calling etc.? What would be the cost of these additional services? What would be the cost of the plan in general?
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
o Capital Requirements: There are high capital requirements to enter the industry. (satellite cost=20 billion) o Economics of Scale: Because of the low monthly fees, the o revenues of the industry must be driven by economics of scale • Threat of Substitutes-Moderate The threat of substitute is when the product or service provided by a firm’s competitor meets the same needs as the ones being offered. Substitutes place the ceiling on the prices that an industry can charge and on the profits that can be earned. Because of the limitations of substitutes, the threat of substitutes for XM is moderate. o AM/FM radio: Has a cheaper price but doesn’t allow customers to hear commercial free radio o Internet radio: Has a higher monthly cost and some areas may not have access.
the attractiveness or credibility of the source, rather than the message itself. Fiske and Taylor support this idea by saying we are ‘cognitive misers’ and will always look for the easiest route when making decisions, and this often means evaluating peripheral information rather than taking the time to evaluate the validity of the message. Attitude changes brought about through this route tend to be less personally important and less permanent. Mobile phone companies could use this information to market a new mobile phone dependent on the audience they are trying to appeal to. Adverts which encourage the central route should provide detailed information about the specific features of the phone.
Marketing Mix Product – the new product that we have chosen is to create is a new mobile phone, the phone is an extension to the current range of iPhones and is the new ‘iPhone 7s’. This iPhone includes all the great features of the old iPhones including siri and iTunes etc. However, due to the complaints of customers about how easily the phones screen smashes we have decided to introduce our new technology into the phone. The new technology is new screen glass which is much stronger, the screen is now 80% more smash resistant, and this is a huge benefit as it is going to save customers a lot of money that they would have pay out on repairs. Also we have introduced a warranty which guarantees a replacement phone if the screen does happen to shatter, however this is after paying a £30 insurance cost, and this insurance also covers the phone if it has a technical problem which is irreparable.
To use refrigeration as an example to illustrate the Dual Nature of Technology I have shown some of the advantages and disadvantages in the following diagram. The advantages are shown in upright text the disadvantages in italics. Another recent technology is the Mobile Phone. The following chart shows examples of the dual nature of technology with regards to this consumable item. Advantages Disadvantages · Allows for easier voice communication when not at home or in fixed location.
You can also send texts and make calls worldwide in a short amount of time thanks to the advanced processors of the phone. A big conflict to acquiring a smartphone is the price tag that comes with it. Smartphones can be really expensive in comparison to a regular phone. After you purchase your expensive phone you are also stuck with dealing with a big phone bill. Then there are many other small price charges that you may want such as a case or insurance.
Problem Definition Cisco’s IP telephony solutions were generally targeted at the $750 billion telecommunications and equipment market. More specifically, Cisco was targeting the Internet phone systems market, which was expected to grow form $3.5 billion to $10.5 billion by 2008. While most people at Cisco were agreed that voice VARs needed to be added to the mix of Cisco’s already existing data VARs, there was hardly any agreement on the channel margins. On the one hand it would make sense to stay with Cisco’s margin structure because the new VoIP technology delivered huge cost advantages for the end user, who would pull in and generate the demand anyway. However voice VARs were entrenched with incumbent PBX firms, and to ask them to take on new product that would cannibalize their existing line, and at a lower margins, which did not make sense to the senior management at Cisco.