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Corporate Strategy

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by

Chloe Lessard

on 29 October 2013

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Transcript of Corporate Strategy

Under the surface
Tip of the Iceberg
INTRODUCTION
What is the strategy clock?
Created in
1996
by
Cliff Bowman
and
David Faulkner

Based on Michael Porter's
researches
The smartphone market today
The iPhone 5c on the strategy clock
Differentiation
Focused Differentiation

Limits
of the clock analysis
Perception of the price
How does the customer perceive the price?
High
Low
Apple is trying to give a low cost image to the product
Brand phenomenon
The actual Apple success is mainly explained by its brand image
Cost leadership

Product differenciation

Market segmentation
More
specialized
than Porter's competitive strategy
3 strategic positions
8
Better quality than the iPhone 5
Cheaper but with a higher profit margin than the IPhone 5

Strategy adapted to Apple purposes (higher profit margin instead of higher price)
The Smartphone market is maturing
More specialized target
Apple’s iPhone 5c is plugged on a cheap niche market as it’s the first middle-top of the range smartphone made for a young audience
Superficial aspect of the product
Non-Value product
Same innovations as the iPhone 5
Who are they targeting?
Disadvantages for the customer
Failure zone
Higher price for less performance
Highly competitive market
IPhone 5C:
27% of Apple’s sales
May the clock analysis be wrong?
CONCLUSION
The iPhone 5c has disappointed

The clock analysis is relevant


2007
2010
2013
The first iPhone
starts spreading
Economic boom:
9 smartphones
on the market
Two new iPhones
are launched:

5c
5s
"Low cost"
"High-end device"
The smartphone market in dates
High capital requirements

High sunk costs limit competition

Strong brand names are important

Industry requires economies of scale

Customers are loyal to existing brands

High switching costs for customers

Entry barriers are high
Intensity of rivalry
Bargaining power of suppliers
Volume is critical to suppliers
Threat of substitutes
Substantial product differentiation

Tablet computers

Switching to substitutes


Limited number of substitutes
Bargaining power of customers
Low dependency on distributors

Product important to customer

Large number of customers
Threat of new competitors
Large industry size

High growth rate

Relatively few competitors
small
size
market
Very costly
F
5
O
R
C
E
S
http://www.hongkiat.com/blog/future-smartphone-features/

http://www.lesechos.fr/20/05/2010/lesechos.fr/300382178_les-grands-acteurs-du-marche-des--smartphones-.htm

http://www.zdnet.fr/actualites/chiffres-cles-les-ventes-de-mobiles-et-de-smartphones-39789928.htm

http://www.lefigaro.fr/societes/2013/08/08/20005-20130808ARTFIG00396-le-marche-des-smartphonesse-prepare-a-atterrir.php

http://www.mindtools.com/pages/article/newSTR_93.htm

http://news.yahoo.com/report-raises-questions-apple-iphone-5c-strategy-151551680.html

http://www.technologyevaluation.com/search/for/example-of-strategic-clock-in-telecommunication-industry.html
THANK YOU
The iPhone 5c on the market
Case 2 : iPhone 5c
Full transcript