Apples Macro Environment - Case Study Example

TABLE OF CONTENTS Executive Summary…………………………………………….............................. 3 Introduction………………………………………………………………………... 3 Market Situation……………………………………………………………….......... 4 Apple’s iphone 3 GS Market Share …………………………………………… 4 Marketing Mix ………………………………………… 5 Apple’s Macro Environment…………………………………………………………6 SWOT Analysis for iPhone 3GS …………………………………………………….7 Strategic Actions & Conclusion………………………………………………………9 References……………………………………………………………………………10 Executive Summary The iphone 3 GS which was introduced by Apple Company in 2009 is the most powerful and the fastest iphone from this company. Its performance is of high, and it has a better battery that stays for long. Considering other features like a camera, it contains a camera that is of high quality megapixel. In addition it also has a video recording that is easy to use and voice control feature that is hands free. With this phone one can send photos and videos by email or even post them to YouTube. The iphone also possesses an inbuilt GPS that gives coordinates of your current location once it is aligned with a map. For users who are visually impaired, iphone 3 GS has a VoiceOver screen reader feature that allows users to use voice to access information from the iphone. For instance, one can direct the iphone to play internally stored songs. It also offers safari which is an advanced mobile web browser. Other features include cut, copy and paste almost in all its applications his is in addition to a landscape keyboard Introduction Apples Company was founded by Wozniak Steve, Jobs Steve, and Wayne Ronald. This company started as a computer maker in the city of London, but has expanded in the last thirty years to other cities a round the world, and also in product differentiation, including the manufacture of electronic goods (Hunter & Westerman, 2007). It was initially known as Apple Computer Inc, but has since changed to Apple Inc. Apples Company is considered to be an American international company that manufactures computer software products and consumer electronics (Lara, 2008). The company was known in the computer field for its iphone, Ipod, and Macintosh computers. Software produced by Apple Company includes iTunes media browser, iLife multimedia, and Mac OS X. Market Situation The introduction of the iphone 3 GS has won the hearts of many consumers especially the ones ready to embrace change and versatility in the mobile industry. It mainly commands great market share in consumers who value the technology used in its manufacture (Pine & Davis, 1999). The high price for the iphone has been out of the range for many consumers but this has not stopped those who value quality from acquiring this product. It is believed that iPhone will become more popular as its price drops with time. The demand for iPhone 3 GS has been great in the world prompting the need for the company to produce enough to cater for the global market. Apple’s iphone 3 GS Market Share The introduction of iPod into the world market was a milestone for the Apple Company. Following the launch, Apple’s share value has since increased with 2500% from $7 to $180 per individual share. As at July 2008, the Apple stock market capitalization was $160 billion. A total of 17.5 million iPhones had been sold as at December 2008. Out of these, 11.4 million were 3G iPhones. According to a report by the research company Gartner, the extraordinary features of the iphone 3GS has made Apple share of Smartphone in the market to increase to around 15%. The iPhone 3GS mainly targets customers who have the need to benefit from the many features that the smartphone has (McDaniel, 2008). These include clients who need to access entertainment on their palm. Apple’s target market for this iphone includes professionals, students, corporate heads, businessmen, and even health care workers. Currently the market share for iphone is relatively low compared to other phones mainly because of its price. Continued improvement in its features and reduction in price means that iphone 3 GS will continues having an increase in the market share in years to come. Marketing Mix Product: Apple Company has manufactured other products that are already in the market. These include iPods, iPad, iTunes, iPhone Program, Wi-fi Based Stations, Servers, portable computers, iPhone 3G, and iPhone 3GS which is the latest product in the market from Apple. Pricing: Apple has been known to reduce the prices of most of its products after launching. The launching price for the iPhone 3GS was $199 a price that is likely to reduce with time (Suneja, 2000). Apple Company uses skimming and premium pricing strategies for its products. Place: Apple Inc. headquarters is located at Cupertino, California. The company also deals with consultants some of whom have been appointed to distributers of Apple products to different parts of the world (Kimmel, 2010). Apple also has qualified technicians who are located in Asia, Africa, Europe, and in America for handling its products. Apple has more than 210 stores located all over the world. Promotion: Apple offers a one year warranty on all its products including the iPhone 3GS. Apple also offers training on the use of its products through its team of certified trainers. Apple online store offers promotion by giving free shipping services for orders of a certain amount (Cantrell, 2009). The company also gives back to school offers aimed at capturing the student population. People: the Chief Executive officer for Apple is Stephen Jobs. He is also part of the company’s executive board. Process: Apple pays attention to customer needs and puts emphasis on quality customer service. The company also has a wide distribution network that includes Wal-Mart Shopping malls. Apple’s Macro Environment The Role of Marketing in Apple company is carried our by a strong team of experts who design advertisement campaigns that are aimed at informing the world on the availability of new products from the company. The international media for instance was used in the launch of the iPhone 3GS. Such kind of marketing requires huge amounts of capital that can be raised by a multinational Corporation such as Apple Company. In order to carry out effective marketing for the Apple, the marketers need to understand both the internal and external environment of the company. The external environment (macro environment) involves the other companies that offer similar products or who provide competition to the apple company. The macro environment of the Apple Company includes companies that influence its operations (Suneja, 2000). These may include its competitors such as Microsoft, Google, and Nokia. Apple company can do very little to manage the powerful macro environmental forces that are brought by these external companies. It is therefore necessary for the marketing team that represents Apple Company to understand the operations of these multinationals so that Apple can know how to improve on its products better than the competitors. SWOT Analysis for iPhone 3GS Strengths The iPhone 3GS has a high level of innovative touch screen that is unique compared to other products in the market. It combines many functions present in other mobile products but in this case all in one device. Another strength of this product is the ease to use it due to the touch screen features with Mac OS X application incorporated into the iPhone 3GS making the gadget even more user friendly. Apple has been known to produce quality products that are particularly designed to meet the needs of clients (Kumar, 2009). The company is known for the manufacture of other products such as iPods and Macintosh computers. Brand awareness has therefore been one of its major strengths in the market. The quality of iPhone 3GS is unmatched in the market as it is quite bright and scratch resistant. It is also relatively light with a beautiful metallic finish that is also durable. The constituent software are comprehensible in utilization and significantly resistant to viruses. Weaknesses Unlike most smart phones the Apple brand does not pay particular attention to business clientele (Kleiner, 2003). It therefore lacks the reputation of supporting the corporate clients but instead it mainly serves as a source of entertainment. The introduction price for the iPhone 3GS is relatively high for normal clients. With its high price, the target market is reduced to high end clients who can pay high prices to access entertainment. Prolonged use of touch screen interfaces may make the user to suffer from a problem referred to as ‘gorilla arm,’ where long term use of a solid surface becomes quite uncomfortable. When human arms are kept at waist level for a long time inputting data on a touch screen, the arm movement is affected and at times becomes slightly painful and clumsy. Opportunities Growth in demand for the apple products will continue propelling Apple to continue designing more products and more so targeting the business clients who prefer to have advanced computing solution (Bohm, 2009). As technology advances and becomes more affordable smart phones will also become cheaper and this will be an opportunity for the companies to even target people who are only interested in entertainment. When Apple attracts this market share, it will also have the opportunity to convince the iPod users to upgrade to iPhone 3GS. The features in the iPhone 3GS can be updated and therefore give room to the introduction of new feature to match the changing trends and consumer tastes. Future products of the Apple Company will also have to be both software and hardware upgradeable. In order to meet the global market demand for its products, the Apple Company may decide to partner with some formidable mobile companies with an aim of expanding the market share for its iPhone 3GS. This eventually will have a positive impact as it will cut overheads in marketing and consequently increase revenue collection. Threats With the increased completion in the market, other with similar or better products may come up posing a big market threat to the Apple Company. This means that Apple has to continue investing heaving on product innovation and new technology to outdo its competitors. The company must be on the look out for any counterfeits of its products that might hit the market especially from the Asian countries. The price of the iPhone 3GS is likely to go down if other smart phone companies produce cheaper phones with similar functions as iphone 3GS. It is also quite difficult to venture into some markets such as the Asian market where smart phones have been in used for a long time and therefore it’s not a new phenomenon there. The compatibility of Mac OS software which is used in the iPhones may prove to be a threat as it may undermine development since iPhone 3GS can be upgraded without having to buy a new hardware. This might limit market expansion for Apple products. Strategic Actions and Conclusion Apple Company has strategically placed itself as one of the main companies in the world that are concerned with innovation (Aktas, 2010). This has made the company to undergo a metamorphosis of some sort transforming from a computer company to manufacturer of iPhones and developer of computer and phone software. In order to capture appropriate market share for its products, Apple has continuously been investing highly in research and development. As a result the company has been launching new products one after the other. Some of its products that have been produced through strategic actions from market research include iPods, iPads, and the iPhone 3 GS, which is currently the newest product in the market. It is important for the Apple Company to carry out market research to understand the need of the corporate world. It should consider coming up with a strategic action to make products that will attract both the corporate world and those seeking pure entertainment (Campbell, 2004). The company should also consider coming up with smart phones that are relatively affordable even to the low-end clients. This will discourage other companies from coming up with cheaper models of iPhones that have very few features compared to the Apple products. References Aktas, A. ( 2010). Analysis of Mobile Marketing and Advertising. Boston: GRIN Verlag. Bohm, A. (2009). The SWOT Analysis. Boston: GRIN Verlag. Campbell, D. (2004). Global and transnational business: Strategy and management. London: John Wiley and Sons. Cantrell, R. (2009). Outpacing the competition: patent-based strategy. London: John Wiley and Sons. Hunter, R., & Westerman, G. (2007). IT risk: turning business threats into competitive advantage. Washington: DELME. Kimmel, A. (2010). Connecting with Consumers: Marketing for New Marketplace Realities. London: Oxford University Press. Kleiner, E. (2003). The successful business plan: secrets & strategies. California: The planning Shop. Kumar, S. (2009). Consumer Behavior and Branding. New Delhi: Pearson Education. Lara, J. (2008). Multinational Corporations. London: Routledge. McDaniel, C. (2008). The future of business: The essentials. Princeton: TIME Books. Pine, B., & Davis, S. (1999). Mass Customization: the new frontier in business completion. New York: Harvard Business Press. Suneja, V. (2000). Understanding business: a multinational approach. New York: Routledge. Trehan, R. (2009). Business Environment. New York: FK Publications. Walter, S. (2010). Expansion opportunities for businesses. New York: GRIN Verlag. Read More