10/31/2011

1
MarketingAssignment1 MarketingAssignment1
APPLE INC. APPLE INC. APPLEINC. APPLEINC.
CourseworkinMarketing
Students:DarenaChurchulova,10004799
Nadka Popova,10004820
Vasilka Kukusheva,10004811
Program: MBA
Lecturer: Dr.V.Blagoev
THEOVERALLUKMARKETSIZEAND THEOVERALLUKMARKETSIZEAND
TRENDS/PROJECTIONS TRENDS/PROJECTIONS
Appleretailstores
ComputerSector
CommunicationsSector
OtherRankings
APPLE APPLE PRODUCT PRODUCT DISTRIBUTION DISTRIBUTION CHANNELS CHANNELS UK: UK:
AppleOnlineStore
AppleRetailStores
DirectSalesForce
Premium Reseller Stores PremiumResellerStores
AuthorizedResellers
ThirdPartyCellularNetworkCarriers(Vodafone,
Orange,O2,Tmobileandothersmallones)
APPLE APPLE RETAIL RETAIL STORES STORES
AccordingtoMintel(2009):
AllowAppletocontrolitsbrand&provideadditionalmarketingtool
Growthhasbeenconsistentlystrongasaresultofexpansion,strongretail
formatandproductdemand
Constantinnovationsandhighprofileproductlaunchesdriveinterest
Highlevelofcustomerserviceandvalueaddedinstoreexperience
APPLERETAIL(Cont) APPLERETAIL(Cont)
AccordingtoMINTEL(2009),AppleRetailisthefastestgrowingoperatorin
thesector,withsalesmorethandoublingin2008thankstosixnewstore
openingsanditsverydesirableandinnovativeranges.
Figure2:UK:Leadingretailers ofPCs, marketshares,2007and2008
35 00
29.30
12.40
9.50
2.70
5.80
4.10
0.90 0.90
26.30
11.60
8.90
5.70 5.60
4.50
1.00 0.80
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Market share 2007 (%) Market share 2008(%)
UKPCMARKET UKPCMARKET
InQ22010,theUKmarketremainedtheweakestofthelargerPCmarketsinWestern
EU.PCshipmentsincreasedwith15.1%comparedtothesameperiodlastyear,
andmobilePCmarketgrewwith17%,withconsumerPCleadingthewaywith
morethan30%growthcomparedtoprofessionalmobilegrowth.Alsoappliesfor
desktops.Thisindicatestherecoveryoftheprofessionalmarketisbeingdelayed.
Nochangeisexpectedintheremainingof2010(Goasduff,L. 2010)
Fi 3 U it d Ki d PC V d U it Shi t E ti t f 2Q10 (Th d f U it ) Figure3:UnitedKingdom:PCVendorUnitShipmentEstimatesfor2Q10(ThousandsofUnits)
22.40
20.50
15.90
7.60
5.90
27.60
18.90
17.10
23.70
8.30
5.20
26.70
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Acer HP Dell Toshiba Samsung
Electronics
Others (incl.
Apple)
2Q10 Market Share (%) 2Q09 Market Share (%)
10/31/2011
2
COMPUTERSSECTOR COMPUTERSSECTOR BRANDSHARES BRANDSHARES
Figure4:Estimatedbrandsharesinthelaptopsector,2006and2008 (Source:Mintel,2008)
15.00 14.00 15.00 15.00
11.00
13.00
17.00
30.00
14.00 15.00 14.00
8.00
0.00
19.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
A T hib H l tt P k d D ll S VAIO P k d B ll/NEC* Oth (A l
Figure 5:Estimated brand shares in the desktop sector,2006and 2008 (Source:Mintel,2008)
15 16
3
11
3 2
50
20
16
14
0
3 2
45
0
10
20
30
40
50
60
Dell HewlettPackard Acer PackardBell/NEC* Apple FujitsuSiemens Others
2006(%) 2008(% est)
Acer Toshiba HewlettPackard Dell SonyVAIO PackardBell/NEC* Others(Apple,
Lenovo, Samsung) 2006 (%) 2008 (%est)
COMPUTERSSECTOR COMPUTERSSECTOR BRANDSHARES BRANDSHARES(Cont) (Cont)
AlthoughtheApplebrandisnow
firmlyembeddedintheconsumer
psyche,asahomecomputing
optionitsappealisfairlylimited
Figure 6:Brand ofcomputer owned,October 2008
Base: 2,000 internet users aged 16+ (Source: GMI/Mintel,
2008)
27
5
Other
Dontknow
%
%
toabout3%ofthesample.Their
muchhigherpricesthan
WindowsOScompetition,and
thereluctanceofPCusersto
learnanewoperatingsystem,still
remainmajorbarriersformost
consumers (Mintel,2008).
20
8
8
8
6
5
3
3
3
2
1
1
1
Dell
Acer
HP
PackardBell
Compaq
Toshiba
Apple
Fujitsu
Advent
I donotowna computer athome
Asus
Lenovo
Mesh
GLOBALTRENDS GLOBALTRENDS PCs PCs
AccordingtoDatamonitor Plc(2010),theworldwide
mobilePCsmarketsegmentisforecasttorecordstrong
growthincomingyears.In2009therewasagrowthof
15%formobilePCs(laptops,notebooks,netbooksand
tabletPCs)anddeclineindesktops.Theforecasted ) p
increasein20092014is19%.
Apple isoneofthetopfiveleadingplayersinthe
mobilePCsmarketsegment.
Itisverypossiblethatthetrendofincreasealsoaffects
theUKmobilePCsmarketshare,includingApple.
UKCOMMUNICATIONSEQUIPMENTMARKET UKCOMMUNICATIONSEQUIPMENTMARKET
The UK communications equipment market
(coversfixedlineandmobile)accountsfor12.2%
ofthetotalEUmarket.Itgrew with acompound
annual growth rate (CAGR) of1.6%,over the
same period to reach $1 3 billion in 2009 The same period,toreach $1.3billion in 2009. The
performanceofthemarketisforecastedto
decelerateinthefiveyearperiod20092014,and
theUKmarketwilldeclinewithacompound
annualrateofchange(CARC)of0.9%or1,2
billionin2014(Datamonitor Plc,2010).
COMMUNICATIONSSECTOR COMMUNICATIONSSECTOR BRANDSHARE BRANDSHARE
AgainaccordingtoMintel(2010b),theAppleiPhoneisstillanichebrand
2%ofmarketshare,comparedtothemarketleaderNokia 64%whichhas
beenhistoricallydominantplayerintheUKhandsetmarket.
GLOBALTRENDS GLOBALTRENDS SMARTPHONES SMARTPHONES
AccordingtoDatamonitor Plc(2010),the
worldwidesmartphonesshipmentswhich
accountfor15%in2009willdoublein2010,in
2012willincreasetoover35%andmorethan
halfin2013.
Applebecamethethirdlargestplayerinthe
smartphonemarketsegmentin2009since
launchingitsfirstmobiledeviceiPhone,in2007.
Itisverypossiblethatthetrendofincreasealso
affectstheUKsmartphonesmarketshare,
includingiPhone.
10/31/2011
3
OTHERRANKINGS OTHERRANKINGS
AccordingtostatisticsforJuly2010(Mintel,2010b),APPLEInc
ranksonthefollowingplaces:
Top100Internetproperties:rank10
th
with15,6milunique
visitors
Top 100 entertainment properties: iTunes Software (App) rank Top100entertainmentproperties:iTunesSoftware(App)rank
2
nd
with12miluniquevisitorsandiTunes 12
th
,with4mil
uniquevisitors
Top100Retailproperties:Apple.comWorldwidesitesrank3
rd
with8,7miluniquevisits.
Arndtetal.(2010)rankedAppleIncfirstoutofthe50Most
InnovativeCompaniesin2010&2009.
THEMAINMARKETSEGMENTS THEMAINMARKETSEGMENTS
THEIRSIZEAND THEIRSIZEAND
TRENDS/PROJECTIONS TRENDS/PROJECTIONS TRENDS/PROJECTIONS TRENDS/PROJECTIONS
GeographicSegmentation
DemographicSegmentation
PsychographicandBehavioral
Customerneeds
Othersegmentation
AppleInc.managesits
businessprimarilyon
thebasisof
geographicsegments
whichare5:
GEOGRAPHICCHARACTERISTICSTHAT GEOGRAPHICCHARACTERISTICSTHAT
DETERMINETHEMARKETSEGMENTATION DETERMINETHEMARKETSEGMENTATION
TheAmericas
EMEA
Japan
Retailsegment
Othersegments
Locationoftheretailstores 29outof84
internationalandoutoftotal317
worldwideareinUK:
Concentratedinthelargeurbanareasand
cities 4 in London (The largest Apple
GEOGRAPHICCHARACTERISTICSTHAT GEOGRAPHICCHARACTERISTICSTHAT
DETERMINETHEMARKETSEGMENTATION DETERMINETHEMARKETSEGMENTATION(Cont)
cities 4inLondon(ThelargestApple
retailstoreintheWorldislocatedthereat
CovetGarden(Kiss,J.2010);2inBristol
SouthEastpart higherconcentration
greaterurbanization(fig.12)
Desirableandhightrafficlocations
Age16 25
o Highprice is an obstacle!!! Does not possess purchasing power;
need financial support from their parents
o 17 % unemployment rate in UK (18 24 years old)
o Brand Loyalty is not a driving force for purchase behaviour; want
value for money (Mintel, 2010c)
DEMOGRAPHICCHARACTERISTICS DEMOGRAPHICCHARACTERISTICS
o Young People and their wishes are driving force though for their parents to
purchase (53% Christmas gift from their parents)
o Introduction of payment price spreads the high retail cost over years (73%
personal savings; )
o 77% portable computers (85 % of students); 42% Smartphone; 46%
portable music player
o Appearance and design matters for more females: males (71% : 61%)
o 50.4 % ( 20042009) broadband increase higher than the average
penetration in this demographic group; social media sites use.
o This age group are leaders in accessing Internet through their mobile phones
(Mintel, 2010 )
DEMOGRAPHICCHARACTERISTICS DEMOGRAPHICCHARACTERISTICS(Cont)
Age25 50
o Highdisposableincome;strongpurchasingpower
o BrandAwareness;BrandLoyalty
o Parents indirecttargetforthetechnologycompanies drivenbytheirchildren
o Alreadyexistentcustomers;Familiesandindividualswhichaffiliatethemselveswith
theBrand
o Women are more fascinated than men with the design rather than with the o Womenaremorefascinatedthanmenwiththedesignratherthanwiththe
technicalspecification(Mintel,2010c)
Age 50+ ? trends/projections
EthnicityandNationality WhiteBritish,WhiteIrish,WhiteandBlack
Africans,WhiteandBlackAsians
Income highdisposableincome
10/31/2011
4
Psychographic
o Businesspeople
o Youngpeople(esp.Students
whoarefinanciallysupported
bytheirparents)
o Gamers
Behavioural
o Heavy users
o People associate themselves
with their Apple device
o Easy and comfortable to carry
o App Store and iTunes source
PSYCHOGRAPHICANDBEHAVIORAL PSYCHOGRAPHICANDBEHAVIORAL
o Readers
o Peoplehighincome
sophisticated
o Peoplewhoenjoylisteningto
music
o Usersofsocialnetworks
Facebook,Twitter
o App Store and iTunes source
of amusement
o Used in everyday life turned
to be ones business partner,
amusement centre ,
communication and social
mediator and facilitator
Newandinnovativetechnologiesappliedinallproductand
solutions;superioreaseofuse;seamlessintegration;
innovativeindustrialdesign(AppleInc.10K/A,2010,p.27)
Waytoreplaceheavier,bulkiercomputers extradeviceto
carryaround
ex: IPad satisfies the needs of customers who are mainly
CUSTOMERNEEDS CUSTOMERNEEDS
whichdeterminethemarketsegmentation
ex:I Pad satisfiestheneedsofcustomerswhoaremainly
Websurfer;notetaker;(MossbergW.,2010);readersand
gamersVS.CustomersNeedstocreatingandeditgiant
spreadsheetsorlongdocuments;elaboratesystemsfor
organizingemails(Hunt,P.2010)
Broadband(highspeedWiFiInternet) growinglikewild
fireneedfor3Gsoftwaredevices(Pigford,J.2009)
CUSTOMERNEEDS CUSTOMERNEEDS
whichdeterminethemarketsegmentation
AppStoresandiTunes nearly200000
applications gaming,educational,music,
movies,books strongmerchandizingskillsand
excellentcustomerservice(Mintel,2009)
AppleRetailStoressinglebranded,highprofile
venues promotebrandawareness,tradeon
aspiration,innovation,experienceandexcellent
customerservice;experiencedtechnicalsupport;
demoareasconsumeradoption(Mintel,2009)
(AppleInc.10K/A,2010)
MainbuyersofAppleproductsfallin5
categories:
Homeusers/Consumers
Small and mediumsized businesses (SMB)
MARKETSEGMENTATION(Cont) MARKETSEGMENTATION(Cont)
Smallandmedium sizedbusinesses(SMB)
Education
Corporate,GovernmentandCreative
customers
Others ITtechnologiesandscientificmarket
(AppleInc.10K/A,2010)
MAJORMACROANDGLOBAL MAJORMACROANDGLOBAL
ENVIRONMENTALINFLUENCESON ENVIRONMENTALINFLUENCESON
THE MARKET THE MARKET THEMARKET THEMARKET
Threats
Opportunities
MAJORMICRO&GLOBALENVIRONMENTAL MAJORMICRO&GLOBALENVIRONMENTAL
INFLUENCESONTHEMARKET INFLUENCESONTHEMARKET THREATS THREATS**
Economicconditions(tightercredit,unemployment,negativefinancialnews,
declinesinincomeorassetvalues,costsincrease);
ForeignCurrencyExchangeratesfluctuation;WeakeningoftheUSdollarvalue;
StockPrice;
InternationalTradeRegulations(tariffs,antidumpingpenalties;increasedduties7
taxes);
Patents Trademarks Copyrights and Licensing; Patents,Trademarks,CopyrightsandLicensing;
Legalization(laws,regulationsandindustryimposedstandards);legalproceedings;
Aggressive&Intensecompetition;
Thirdpartymanufacturers dependenceforkeycomponents;
Distributors,carriersandresellers;
Thirdpartydigitalcontent(iTunesStore);patentsandintellectualproperty;
softwaredevelopers;
Cellularnetworkcarriers(insomecountriesareexclusive);
*Source: Form10-K whichApple Inc. filedwiththe US Securities andExchange Commission(SEC) for Fiscal Year Ended
September 25, 2010.
10/31/2011
5
MAJORMICRO&GLOBALENVIRONMENTAL MAJORMICRO&GLOBALENVIRONMENTAL
INFLUENCESONTHEMARKET INFLUENCESONTHEMARKET OTHER OTHER**
Businessseasonality(aftertheintroofiPhoneandiPadthisis
nolongerthecase);
Politicalinstability,war,terrorism,publichealthissues,natural
disastersandothercircumstances;
Legal proceeding Apple is involved in large number of legal Legalproceeding Appleisinvolvedinlargenumberoflegal
proceedings.
*Source: Form10-K whichApple Inc. filedwiththe US Securities andExchange Commission(SEC) for Fiscal Year Ended
September 25, 2010.
MAJORMICRO&GLOBALENVIRONMENTAL MAJORMICRO&GLOBALENVIRONMENTAL
INFLUENCESONTHEMARKET INFLUENCESONTHEMARKET OPPORTUNITIES* OPPORTUNITIES*
FocusedR&Ddrivesinnovation
Newbusinessstrategiesandacquisitions
Technologycreatescompetitiveadvantage Brandloyalty
EnvironmentalLaws(todatetheyhadnosignificanteffecton
h i l di i i i thecompanyscapitalexpenditures,earningsorcompetitive
position)
*Source: Form10-K whichApple Inc. filedwiththe US Securities andExchange Commission(SEC) for Fiscal Year Ended
September 25, 2010.
THEMAINMARKETCOMPETITORS THEMAINMARKETCOMPETITORS
THEIRMARKETSHAREAND THEIRMARKETSHAREAND
STRENGTHS/WEAKNESSES STRENGTHS/WEAKNESSES
bl k Tabletsmarket
Mobilephonesmarket,Smartphones
Operationalsystems
PCmarket
Gamingmarket
Mp3playersmarket
Appleincompetitiveenvironment Appleincompetitiveenvironment
Rapidlyevolving industry
Intensecompetition
Rapidtechnologicaladvancesinhardwareand
software
Frequentintroductionofnewproducts
(Datamonitor,2010)
TabletMarket TabletMarket
26%growthoftabletshipments
4.4millionunitsinQ32010
Appleistheclearmarketleader
Impressive95%sharewiththeiPadandbeating
Androidintosecondplace(Evans, J. 2010)
Figures 14 and 15. (Source: Evans, J . 2010)
Comparisontableoftablets Comparisontableoftablets (EdwardsC.,2010,October25)
Operating
system
Screen
size
Weight
lbs
Battery
life
Launch Connect
ivity
Price Bonus
Apple
iPad
iOS 9.7-in. 1.5
(680g)
10 h. Apr.
2010
Wi-Fi,
3G
$499 High-definition screen,
Thousands of apps
available
Dell
Streak
Android 5-in. 0.5
(220g)
10 h. Aug.
2010
Wi-Fi,
3G
$299 Connects to cellular
networks to make
calls
Archos
10.1
Android 10.1-in. 1 12 h. Nov.
2010
Wi-Fi $299 High-definition
graphics
Samsung
Galaxy
Android 7-in. 0.8
(380g)
7 h. Nov.
2010
3G $400 Gyroscopic sensor, front
and rear cameras,
Galaxy
Tab
g
flash support
Toshiba
Folio
Android 10.1-in. 1.7 <7 h. Nov.
2010
Wi-Fi $550 High-definition
graphics
RIM
PlayBook
BlackBerry
tablet
7-in. 0.9
(400g)
N/A Early
2011
Wi-Fi,
3G
N/A Syncs with BlackBerry
devices; corporate
apps; multitasking
Optimus
Pad LG
Android n/a n/a n/a n/a n/a Lighter and thinner
HP Slate Windows 7 8.9-in. 670g 5 h. Wi-Fi $799 1,8GhZ processor
HTC
Google
Chrome
Google
Chrome
26 Nov.
2010
Wi-Fi subsidis
edby
Verizon
(US)
Web Based
Applications,
Multitasking
10/31/2011
6
Brandtrustandawareness Brandtrustandawareness
(BarberN.,2010)
Figure16(Source:vouchercodes.co.uk)
Figure17(Source:vouchercodes.co.uk)
STRENGTHSANDWEAKNESSESOF STRENGTHSANDWEAKNESSESOF
APPLESIPAD APPLESIPAD
Strengths
Highdefinitionscreen
Hugerangeofapplications
Competitorsnotavailableforthe
h lid
Weaknesses
Nocamera
Nomultitasking
Noflashsupport
holiday(BulikB.,2010)
Customerservice:GeniusBars
Appleislikereligiontoitsfans.
Independentstrategy
Jobsknowshe'snevergoingto
getfired,sohedevotesyearsto
attainApple'shighstandards
(Manjoo,F.,2010)
Makepeoplelooking
forwardtonewer
versions
(Manjoo,2010,July)
RESEARCHINMOTIONWEAKNESSES RESEARCHINMOTIONWEAKNESSES
Smaller screensize
Isitforconsumersortheenterprise?
No3G.
Thetimingisoff.
StrongcompetitionofiPad(Reisinger,D. 2010)
MOBILEPHONESMARKET MOBILEPHONESMARKET
Figure18:Handsetusage,bybrand,July2010(Mintel,2010a)
Base:974athomeinternetusersaged1664whohaveamobilephoneinthehousehold
31%
4%
4%
2%
8%
Nokia
Samsung
22%
16%
7%
6%
Sony Ericsson
LG
Apple iPhone
Blackberry
Motorola
HTC
Other
STRENGTHSOFNOKIA STRENGTHSOFNOKIA
Usedby34%ofrespondents
Nokiaisthemarketleader.
Greaternumberofmodels andahighernumberof
budgethandsets
Nokiahashistoricallybeenadominantplayerinthe
UKhandsetmarket.
Over55saremorelikelytoownaNokiathanany
otherhandsetbrand
More accessible.ThecheapestNokiacosts4.95,
comparedtotheAppleiPhoneat342.50
SMARTPHONES SMARTPHONES
Smart phonesareincreasinglypopular,ownedby
28%ofinternetusers.
TheUKmarketofsmartphonesisdominatedby
Apple. Apple.
Apple:recordprofitsof2.1billion(in3months).
Nokiahasappearedalaggard inthesmartphones
sector.
Nokia hassufferedfromdelaystothelaunchofthe
N8.
Nokia:a40%dropinprofits(in3months)(Mintel,2010b)
10/31/2011
7
CUSTOMERSATISFACTIONWITH CUSTOMERSATISFACTIONWITH
SMARTPHONES SMARTPHONES
Figure 19. Source: Carton P., 2010
3.OPERATIONALSYSTEMS 3.OPERATIONALSYSTEMS
Nokialostsharefrom
44.6%to36.6%.
Androidphonesgrewtheir
salesdramatically,leaping
from3.5%to25.5%to
becomethesecondbiggest gg
smartphoneOSinayear,
replacingRIM
ResearchInMotionsawits
sharefallfrom20.7%to
14.8%,fallingintofourth
position.(Arthur,C. 2010)
Ontheleft:Figure20. (Source: Arthur, C.2010)
APPLEVS.GOOGLE APPLEVS.GOOGLE
(Burrows,P.2010)
APPLE GOOGLE
Datefounded 1976 1998
CEOs SteveJobs EricSchmidt
Marketcaps $190billion $186billion
Motto Thinkdifferent Dontbeevil
Keytosuccess Elegance Algorithms
Theemployeeswhomatter Designers Engineers
Howdecisionsgetmade BecauseStevesays
so
Data,data,
data
Bigchallenge Doesanyonebut
Jobshaveavision?
Cantheymake
moneyon
anythingbut
search?
4.PCMARKET 4.PCMARKET
Company Market share
2007 (%)
Market share
2008 (%)
PC World 29.3 26.3
Dell 12.4 11.6
Currys/Currys digital/ 9 5 8 9
UK: Leading retailers of PCs, market shares
Currys/Currys.digital/
Dixons Travel stores
9.5 8.9
Apple Retail 2.7 5.7
Comet 5.8 5.6
Dabs.com 4.1 4.5
MISCO 0.9 1.0
Micro Anvika 0.9 0.8
Figure 21. (Source: Mintel, 2008)
THEMAINMARKETSTRENGTHSOF THEMAINMARKETSTRENGTHSOF
APPLEONTHEPCMARKET APPLEONTHEPCMARKET
It'stheentireexperience hardware,
software,andcontentdistribution.Apple
understands that better than anyone and understandsthatbetterthananyone,and
noneofthehardwarecompaniesarewillingto
investthemoneytoreallytakethemon.
(Copeland,M.V.2010)
GAMINGMARKET GAMINGMARKET
Major gamesstudios aredevelopinggamesfor
iPhoneandiPodtouch;
Directcompetitors: SonysPSPconsoleand
NintendosDS;
Sony islaunchingPlayStationPhone(Daily
Telegraph/Mintel,2010).
Nintendo: ThedemandforitsWiiconsoleis
slowingdueto"increasedcompetitioninthe
handheldbusinessfromApple'siPhone"(Hartley,
A.2009).
10/31/2011
8
THEMAINMARKETMP3PLAYERS THEMAINMARKETMP3PLAYERS
MARKET:WILLSMARTPHONES MARKET:WILLSMARTPHONES
REPLACEMP3PLAYERS? REPLACEMP3PLAYERS?
ThemainiPodcompetitoristheiPhone.And
nowIpad(Kolakowski,N.2010);
Sound quality: many smartphones cant Soundquality: manysmartphonescan t
comparetoMP3players;
Mostpeopleprobablywouldntwanttotakean
expensivesmartphoneintothegym;
Mobilesbatteryissue(Trup,N.2010).
STRENGTHSOFIPOD STRENGTHSOFIPOD
ItsApple'sTrojanhorseforitsentire
productportfolio;
Goodlooks;
F diff t d l Fourdifferentmodels;
Extremelywellengineered;
Themainadvantage:iTunes(Evans, 2009)
IPODANDCOMMPETITORS IPODANDCOMMPETITORS
iPodTouch
+:Thebenchmarkforotherplayers.Greattouchscreen,fast
processorandlotsofbuiltinsoftware.IntegratedWiFiprovides
accesstotheiPhoneAppStore.
:LacksFMtunerandintegrateddigitalcamera.
iPodNano
+:Ultraportablesize,greatinterface,nowfeaturesvideocam.
Relativelyinexpensive.
:NotasflexibleorsophisticatedastheTouch.
MicrosoftZuneHD
+:Gooddesign,bigtouchscreen,HDvideooutput,FMtunerand
WiFi,integrateswellwithZunemarketplace.
:Lacksextensiveappsupportandperipherals.
SonyXSeriesWalkman
+:Gooddesign,greatsoundquality,incorporatesnoisecancellation
technology.IntegrateswellwithPCbasedmusicservices.
:Relativelyexpensive,lacksappstoreandperipherals.(TaylorP.,
2010,January22)
IDENTIFICATIONOFSEGMENTS IDENTIFICATIONOFSEGMENTS
OFFERINGENTRY/GROWTH OFFERINGENTRY/GROWTH
OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES
Entryopportunities
Growthopportunities
SEGMENTSOFFERINGENTRY SEGMENTSOFFERINGENTRY
OPPORTUNITIES OPPORTUNITIES
Deskfree"computer amachinethatletsyouslumponthe
couchwithawirelesskeyboardwhilesurfingonagiant
projectedscreen.
Surfacethatcanrecognizehandwritinggestures,inordertolet
yousignyournameonatouchscreenwithoutusingastylus. y g y g y
InsteadoffussingwithflatwindowsonyouriMac,cubes,
prisms,andpyramidswouldrepresentapps,andyou'drotate
onein3Dspacetointeractwithdifferentpartsoftheprogram.
Alltheseare mentionedinrecentApplepatentfilings.(Manjoo,
F.2010).
SEGMENTSOFFERINGGROWTH SEGMENTSOFFERINGGROWTH
OPPORTUNITIES OPPORTUNITIES
AppleShouldfocusitseffortstoexpandthesizeofits
marketsegmentofpeopleovertheageof50(50+)(S.
Hanson,2010)
+peoplewithhighpurchasingpower(inUK);theyknow
what they want and they are ready to spend money on it whattheywantandtheyarereadytospendmoneyonit.
+Appledesignseasytouseandoperatewithdevices
AppleInc.Combinesanddoprojectswitheducation
institutionsandothercompanies,thuscreatingnewuseful
applicationsandanditsproducts/solutionsbecomingmore
andmoreusefulineverydaylife. ex.WithNOVARTIS
(apple.com/uk)
10/31/2011
9
REFERENCES(1) REFERENCES(1)
AppleInc.10K/A, October272010 (2010)[online]
Availableat:<https://www.apple.com/investor/>[Accessed10November2010]
AppleInc.,2010.Apple.com/uk/, Appsforgoodhealth[online]Availableat:
http://www.apple.com/uk/iphone/business/profiles/novartis/ [Accessed20November2010]
AppleInc.,2010.apple.com/uk/ Appleretailstorelist [online]Availableat:
http://www.apple.com/uk/retail/storelist/ [Accessed15November2010]
Arndt,M.Einhorn,B.andCulpan,T.(2010).The50MostInnovativeCompanies. Businessweek, Issue4175
[online] 25 April through EBSCOhost databases/Business Source Premier from University of Wales [online]25April.throughEBSCOhostdatabases/BusinessSourcePremierfromUniversityofWales
InstituteCardiffdatabase[Accesseddate:7November2010]
Arthur,C.(2010,November10)Visualisingthesmartphonemarketchange:Androidleaps,Nokiawobbles,
Guardian [online]Availableat:http://www.guardian.co.uk/technology/blog/2010/nov/10/smartphone
marketgrowthgartnerq32010 [Accessed20November2010]
Barber,N.(2010,November18)TabletWars:TheStateoftheMarket[online]Availableat:
http://www.vouchercodes.co.uk/mostwanted/tabletwarsthestateofthemarketwithinfographic
5114.html, [Accessed28November2010]
Bulik,B.(2010,October25)'WEPADS'TAKEONTHEIPAD,AdvertisingAge 10/25/2010, Vol.81Issue38,
p2020
Burrows, P.(2010,January25)AppleVSGoogle,BusinessWeek;1/25/2010, Issue4164,p2834,Available
throughEBSCOhostdatabases/BusinessSourcePremier.fromUniversityofWalesInstituteCardiff
database[Accessed10November2010]
REFERENCES(2) REFERENCES(2)
Carton,P.(2010,November19)ConsumersWeighinonTheirNewSmartPhones iPhonevs.Motorolavs.
BlackBerryvs.Samsungvs.HTC,ChangeWave,[online]Availableat:
http://www.investorplace.com/23576/newsmartphonesiphonevsmotorolavsblackberryvssamsung
vshtc/[Accessed23November2010]
Copeland,M.V.(2010,March10),TheiPadchangeseverything,Fortune,00158259, 3/22/2010, Vol.161,
Issue4, AvailablethroughEBSCOhostdatabases/BusinessSourcePremier.fromUniversityofWales
InstituteCardiffdatabase[Accessed25November2010]
DatamonitorPlc.(2010).AppleInc.:CompanyProfile. Publicationdate:21May2010.[online]Available
throughEBSCOhostdatabases/BusinessSourcePremierfromUniversityofWalesInstituteCardiff
database[Accesseddate:7November2010]
DatamonitorPlc.(2010).AppleIndustryProfile.CommunicationsEquipmentinEurope.PublicationDate:
May2010. [online]AvailablethroughEBSCOhostdatabases/BusinessSourcePremierfromUniversityof
WalesInstituteCardiffdatabase[Accesseddate:7November2010]
DailyTelegraph2010,November1st/Mintel,SonyconfirmsPlayStationPhonerumours[online]Available
through:UniversityofWalesInstituteCardiffdatabase[Accessed10November2010]
Edwards,C.,(2010October25)TabletMania:What'sNowandWhat'sNext, BloombergBusinessweek,
Issue4201,p4646[online]Available at:www.businessweek.com [Accessed16November2010]
Evans,J. (2010 November2)Apple'siPadcarves95%tabletmarket, competitionisdust [online]Available
at:Macworld.co.uk[Accessed10November2010]
REFERENCES(3) REFERENCES(3)
Evans,J.(2009.January21)IpodVsCompetitors[online]Availableat:
http://www.articlesbase.com/gadgetsandgizmosarticles/ipodvscompetitors732230.html [Accessed25
November2010]
Goasduff,L. 2010.GartnerSaysWesternEuropePCMarketGrew19.6PercentinSecondQuarterof2010.
[online]Availableat:<http://www.gartner.com/it/page.jsp?id=1426814>[Accessed14November2010]
HansonS.,2010.GreyPower.Director[online]Availableat:
http://www.director.co.uk/magazine/2010/6_June/older_consumers_63_10.html [Accessed22
November2010]
Hartley,A.(2009, July30
th
),NintendoadmitsAppleiPhoneisDScompetitor[online]Availableat:
http://www.techradar.com/news/gaming/nintendoadmitsappleiphoneisdscompetitor
621316#ixzz14shf0W5E [Accessed10November2010]
HuntP.,2010.WhowillbuyaniPad?GigaOm[online]Availableat:http://gigaom.com/apple/whowill
buyanipad/ [Accessed12November2010]
KissJ.,2010.ApplechoosesLondontoopenitsbiggeststoreintheworld.CoventGardenshopwillbe
300thretailoutletandcouldbemostprofitableforthepopularbrand.[online]Availablethrough
guardian.co.uk:http://www.guardian.co.uk/uk/2010/aug/05/applelondonbiggeststore [Accessed14
November2010]
Kolakowski,N.(2010,October19),ApplesJobsSlatesBlackBerry, Android[online]Availableat:
eweekeurope.co.uk[Accessed28November2010]
REFERENCES(4) REFERENCES(4)
Manjoo,F.(2010).AppleNation.(coverstory).FastCompany,(147),68112.Retrievedfrom
BusinessSourcePremierdatabase.
Mintel.(2010a).DigitalTrendsAutumn UKSeptember2010.[online]Availablethrough:
UniversityofWalesInstituteCardiffdatabase[Accessed13November2010]
Mintel.(2010b).MobilePhonesandNetworks ReignitingTheReplacementCycle UK
January2010. [ereport]Availablethrough:UniversityofWalesInstituteCardiffdatabase
[Accessed13November2010] [ ]
Mintel.(2009).PCsandLaptops UK August2009.[online]Availablethrough:Universityof
WalesInstituteCardiffdatabase[Accessed13November2010]
Mintel.(2008).PCsHardware UK December2008.[online]Availablethrough:University
ofWalesInstituteCardiffdatabase[Accessed13November2010]
Mintel.(2010c).TheYouthTechnology UK October2010.[online]Availablethrough:
UniversityofWalesInstituteCardiffdatabase[Accessed20November2010]
MossbergW.,2010.LaptopKiller?PrettyClose.iPadIsa'GameChanger'ThatMakes
BrowsingandVideoaPleasure;ChallengetotheMouse.TheWallStreetJournal[ejournal]
Availableat:
http://online.wsj.com/article/SB10001424052702304252704575155982711410678.html
[Accessedon20November2010]
REFERENCES(5) REFERENCES(5)
PigfordJ.,2009.Thanks,Apple:WirelessBroadbandExploding.GigaOm[online]Availableat:
http://gigaom.com/apple/thanksapplewirelessbroadbandexploding/ [Accessed18
November2010]
Taylor,P.(2010,January22)ItscompetitorsstillcannottouchtheiPod[online]Availableat:
http://blogs.ft.com/techblog/2010/01/itscompetitorsstillcannottouchthe
ipod/#comments [Accessed28November2010]
Trup,N.(2010,January4) MP3playermarketisstillgrowing,PCRetailIndustry [online] p ( y ) p y g g y [ ]
Availableat:www.pcronline.biz [Accessed28November2010]
Reisinger,D. (2010,September28)RIM'sPlayBookTabletWillFalter:10ReasonsWhy
[online]Availableat:http://www.eweek.com/c/a/ITInfrastructure/RIMsPlayBookTablet
WillFalter10ReasonsWhy470010/ [Accessed16 November2010]
10/31/2011
10
THE END
AfterthedeathofMoses,EinsteinandSteveJobseachinhistimefalls
intoHeaven.
Godwelcomesthemandgenerouslysays:
Ifduringyourearthlytimeyouhavenotfoundtheanswertovital
question,nowistherighttimetoask!
Mosessays: y
IveneverunderstoodhowtoproperlyexecuteYourwill.
Einsteinasks:
IwouldliketolearnthelawswithwhichYouhavecreatedthe
world.
ItisSteveJobsturn:
Andme,Iwouldliketoknowwhythehellyouaresittingonmy
place?!