Thursday, September 8, 2016

Ch. 2 - Strategic Planning For Competitive Advantage


Apple is one of the most monumental and prosperous tech companies in our era today. They have captivated the hearts of their consumers, with groundbreaking innovations for everyday usage. As an example, professionals like the EMT (Emergency Medical Technician), who uses their iPad as an on-the-go ECG/EKG monitor to see their patient's heart rate, CO2 levels, respiratory rate, and body temperature in emergency situations. They would also use their iPhone's to communicate to other colleagues quickly. This is done by just pressing down the microphone button for a few seconds located in iMessage keyboard, which works just like a walkie talkie radio. You may ask yourself, what does it take to get to the positioned route that Apple is taking? Well, there are a lot of key elements here, which include: strategic planning, the managerial process of constructing and conserving a fit between the organizations objectives and resources, and evolving market strategies and opportunities. 

Apple sets their prices at a fixed standpoint and they never bargain for less. They also carry out their prices the same all over the globe, which means there is no room for under retail pricing/sale. However, if there is another refreshed model of product(s) coming out next year, then the previous products will decrease in price.

 One of their most popular and famous product line from the iPhone series is the iPhone 6S or the 'S' models of their phones. This is a perfect example of Market development, which means attracting new customers to existing products, with few little changes in the product. Attracting new customers as well additional sales amongst existing customers bringing in new customers    

Apple has been a very dominant company for over four decades. They continue to develop and grow each year and use many principles of strategies, These strategies include: strategic planning, market penetration, SWOT analysis, and competitive advantage. 

Apple has stated their business mission as follows, "we believe we're the face of the earth to make great products and that's not changing. We're constantly changing focusing on innovating. We believe in the simple, not the complex" - Apple CEO Tim cook

Performing SWOT Analysis allows companies to identify their competitive advantages. Here are some for the iPhone series.



 Strengths:       
  • Strong brand image and advertisement
  • Sophisticated supply chain-infrastructure  
  • High profit margins in sales 
  • Effective innovation process 
  • Jony Ive - Chief Design Officer at Apple Inc. leads the way, making high quality products being built and designed
  • Returning customers demanding more new products every year                            
Weaknesses: 
  • High pricing of the products
  • Steve Jobs is not alive to give great curated ideas for products
  • Behind competitors in certain areas with specs and designs features
  • Forcing users to switch to the latest product by reducing support for previous products this didn't do well with apple customers
  • Icloud security concerns  
Opportunities:
  • Market Share Growth 
  • Creation Of new product lines
  • Purchasing Beats Electronics for 1 billion dollars 
  • Distribution network Expansion
  • Demand for smartphones are growing 
Threats: 
  • competition, competitors like samsung continue to cut into apple's market share, especially with cheaper offerings for similar featured products
  •  intensifying competition from india and china
  • lawsuits on patents     
Apple is huge on simplicity, design and presentation. I'd like to say They cater more to professionals such as doctors, business people, teachers, To anyone who can afford their product really. Especially hipsters, also people who are on the move fast. who want everything done in quick speed of time. and want an elegant and luxurious product. That not only performs well, But can subdue things such as paying for your coffee off your IPhone at merchants and Not having to carry your wallet, To hailing a car from the uber app from your wrist with apple watch. These are some of the things why people crave to get their hands on apple products such as their flagship product the IPhone. Competitive advantage is a set of its distinctive attribute, of a company and its products. That are recognized by the target market as remarkable to those of the competition. The main competition for apple in the market are companies like Samsung, Sony, Microsoft. For example one of apple's marketing strategic methods in selling is, They tell the consumers what their product does exactly at keynote events and relate it the real word scenarios and show visuals life videos and photos with analysis of data from previous years of sales and growth from it. Apple has advantages over its competition in few areas like health, which is a huge thing for apple because its competitors fail to do so and don't target that area like apple does. with this healthy living  mindset. Apple attracts athletes this way, health and fitness coaches to doctors, Also the general public it attracts them to actually go and work out also this way for the negative people its shedding light to people who think technology is making people more lazy and ruining lives when in reality it's shaping up lives and encouraging to making healthy life choices by exercising  





Apple's competitive advantage, implementing health into their products



Strategic marketing planning from the legend Steve Jobs 


No comments:

Post a Comment