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Strategy Analysis & Formulation of Apple Inc.
Transcript of Strategy Analysis & Formulation of Apple Inc.
Apple's STP Strategy
Marketing mix consists of:
The Strategic Gap
Three Customer segments
The Hard Worker
The Growing Candidate
High Life living
The following tables illustrate the financial performance of Apple and implementation and control of the new market strategy.
In conclusion, the marketing strategy formulated for Apple Inc. is to increase market share as well as provide consumers with affordable products which are value for money. In addition, it is also to regain their position as market leaders in the smartphone industry which was taken from them by their main competitors, Samsung.
Apple Inc. is a multinational corporation
Established in 1977, headquartered in California
Market leader in consumer electronics and media sales industries
Products include the iPhone, iPad, Mac, iPod, Apple TV
Overview of Product Market
Mobile communication and media devices, personal computing products, and portable digital music players etc.
Apple and Samsung alone have 45.5% of the market share of all mobile phones
Overview of Industry
The cell phone industry is one of the fastest-moving industries worldwide
Asia Pacific region dominates this industry.
The global cell phone industry is expected to reach an estimated $334.8 billion in 2017
Developing regions are expected to demonstrate significant growth
Apple's Strategic Gap
Identifying the strategic gap
to close the gap
Discussion of the strategic gap
for solving the gaps
The Hard Worker
Hard working employees
Low amount of income
Teenagers and University students
Reason for targeting this segment is so that Apple can expand their product range
Cost effective - affordable alternative
The Growing Candidate
Middle-class income category
Own a SME or working within the business sector
Reason for choosing this segment is to retain Apple loyalists.
Introduce more innovative products that are more sophisticated and meet the needs of potential and existing customers
High life living
Earn a significant amount of income
Known as corporate giants
Spend lavishly and choose to buy branded products
Reason for choosing this segment is because high profit revenues can be generated.
Create new designs that exceed past any competitor that offers the newest technology innovations and methods
Strengths & Opportunites
Weaknesses & Threats
Differentiated marketing strategy
Creation of custom market programs to suit each target market
Apple is well coordinated and is able to accomodate the new marketing strategy
Position by price and quality
Introduction of iPhone 5C can increase market share
Apple products generally known to be expensive
Cheaper, affordable phones will now be available to market.
Introducing the "cheaper" iPhone 5C
Low cost to produce
Apples products are sold in retailers, wholesalers and distributors located in low-middle income earning regions
Use of traditional advertising
Tailored service & technical support
Maintains 'try before buy' method
Implication of changes
Increase productivity & sales therefore increasing market share
Will no longer be regared as a company that charges premium prices
Larger segments will be targeted
Distribute to more regions
An increase in brand loyalty and awareness of product
Based on Jim Harvey's speech structures
Masterful at marketing technologically-based products to consumers and developing features that people value
Best design team in the world
Delivering the best products by incorporating the design and delivery
Leading their customers instead of following them.
Design & Technology
Competitve Situation & Past Performance
Competition from LG, Lenovo, ZTE, and mainly Samsung.
Overtaken by Samsung as the world's most profitable Smartphone maker.
In the second quarter of 2013 Apple endured a $4.6 billion operating profit for their handsets
World's most profitable handset vendor for four consecutive years until Samsung.
Apple's profit margin for its handset division recently declined
Phone market is predicted to increase by 7.3% year over year in 2013
More than 1.8 billion mobile phones will be shipped this year
Smartphones will represent virtually all of the mobile phone market in many of the world's most developed economies by the end of 2017
Room for growth and improvement with regards to sales and market share in these emerging markets
Problems & issues facing Apple
Purpose and plan
Formulate a new marketing strategy for Apple Inc. and provide a thorough analysis
Outline marketing concepts such as a strategic gap analysis, competitor analysis, STP strategy, marketing program and the financial and non-financial analysis
The new strategy formulated for Apple Inc. is to retain and increase market share with the introduction of the iPhone 5C
Opportunity in the market
The difference between where Apple is and where Apple's Competitors are is a gap
The negative competitive intelligence gaps
Market share Indexes
Apple in recent quarter is down on market share
Apple's competitors have closed the gap
Retaining market share is a main priority
The gradual loss of supremacy in the Smartphone market due to slow innovations and new product roll-outs has allowed competitors to catch up
Changing the appearance of their products and technology as consumer are becoming less interested in the design and look of the phone.
Apples' competitors have identified the strategic gap on being cheaper from which Samsung and other leading Google androids.
The Buyer Profile
How customer choose?
How do they respond?
Will they buy it (again)?
Country of birth