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Copy of Strategy Analysis & Formulation of Apple Inc.

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Justina Giedraityte

on 20 May 2014

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Transcript of Copy of Strategy Analysis & Formulation of Apple Inc.

Strategy Marketing Analysis of Apple Inc.

Competitor Analysis
Apple's STP Strategy
Marketing Program
Marketing mix consists of:
Physical Evidence
The Strategic Gap
Customer Profiling
Three Customer segments

The Hard Worker
The Growing Candidate
High Life living

Financial Forecast
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.

Smartphones “iPhone’”

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

Implication on
strategic performance
of Apple

Implications on
competitive advantage
of Apple

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
Extensive targeting

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.
Key Changes
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
Financial Performance
Based on Jim Harvey's speech structures
Internal Analysis
Dynamic Capabilities

Masterful at marketing technologically-based products to consumers and developing features that people value

Distinctive Capabilities

Best design team in the world

Delivering the best products by incorporating the design and delivery

Leading their customers instead of following them.

Core Competencies

Design & Technology

Company Background
Competitor Gap
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

Market Analysis
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

Distribution Gap
The gradual loss of supremacy in the Smartphone market due to slow innovations and new product roll-outs has allowed competitors to catch up

Product-line Gap
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)?


Life stage

Country of birth






Made by
Rovshan Jamalov
Full transcript