CLA 1
Competitive Analysis
Marketing Management Part 2
Competitive Analysis
Competitive analysis is a technique for identifying competitors and evaluating their strategies to determine the strength and weakness of our brand. In this report, competitive analysis of the iPhone, a product of Apple Company, is presented compared to Samsung.
Samsung-As the Competitor
The Consumer electronics category is expanding day by day. The current leaders of this category are Samsung and Apple that hovers about 11% of the share in the market. Earlier, the market was ruled by Motorola and Nokia, but with the launch of the iPhone in 2007, the market was taken over by Apple . With its large multi-touch user interface, the product rapidly became popular among users. In 2013, the galaxy series was introduced by Samsung that gave high competition to Apple. With the massive advertisement and unique features, Samsung galaxy became the most popular brand in the world.
Objectives
iPhone
· Create groundbreaking products.
· Dictate and innovate technology movement.
· Global expansion
· Digitalization and technological innovation.
· Increase market share and profitability
· Brand recognition and development
Samsung
· Inspire customers via innovative products
· Lead innovation in technology
· Lead the mobile industry
· Inspire communities with products
· Gain profitability and market share.
Strategies
Samsung and Apple use different competitive strategies to dominate the market.
Apple uses the blue Ocean strategy. Apple created new demand in the market by utilizing the blue ocean strategy. Apple dominated the market with its flagship iPhones that blended art and technology . On the contrary, the Red Ocean strategy is used by Samsung. Samsung gained a competitive advantage by venturing into the market with a flood of smartphones developed at low prices within a short time. Apple takes a lot of time in launching a new iPhone as it relies on external suppliers. Samsung took advantage of this weakness and developed components for its Smartphone.
Strengths
Weaknesses
Competitive Analysis
Industry
The mobile phone industry is dominated by Apple and Samsung, accounting for 11% of the market share. iPhone accounted for 29% of the smartphone’s sale and Samsung to 37% of the smartphone sales by 2019. Apple's revenue in the year 2020 was $137.7 billion, with iPhone accounting for 50% of all the sales. Samsung sold 255.7 million units in the year 2020 and generated revenue of KRW 61.5 trillion. Galaxy S series accounts for 50% of all the sales.
Market
Samsung accounted for 21% of the market share, and Apple accounted for 49% of the market share in the US by the year 2020. Samsung has divided its market into segments, including demographic, geographical, psychological, and behavioral characteristics. Samsung penetrates deeply into regions, especially Asia. Most of the Samsung users are adults belonging to both genders. Samsung does not define its pro ...
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CLA 1Competitive AnalysisMarketing Management Part
1. CLA 1
Competitive Analysis
Marketing Management Part 2
Competitive Analysis
Competitive analysis is a technique for identifying competitors
and evaluating their strategies to determine the strength and
weakness of our brand. In this report, competitive analysis of
the iPhone, a product of Apple Company, is presented compared
to Samsung.
Samsung-As the Competitor
The Consumer electronics category is expanding day by day.
The current leaders of this category are Samsung and Apple that
hovers about 11% of the share in the market. Earlier, the market
was ruled by Motorola and Nokia, but with the launch of the
iPhone in 2007, the market was taken over by Apple . With its
large multi-touch user interface, the product rapidly became
popular among users. In 2013, the galaxy series was introduced
by Samsung that gave high competition to Apple. With the
massive advertisement and unique features, Samsung galaxy
became the most popular brand in the world.
Objectives
iPhone
· Create groundbreaking products.
· Dictate and innovate technology movement.
· Global expansion
· Digitalization and technological innovation.
· Increase market share and profitability
· Brand recognition and development
2. Samsung
· Inspire customers via innovative products
· Lead innovation in technology
· Lead the mobile industry
· Inspire communities with products
· Gain profitability and market share.
Strategies
Samsung and Apple use different competitive strategies to
dominate the market.
Apple uses the blue Ocean strategy. Apple created new demand
in the market by utilizing the blue ocean strategy. Apple
dominated the market with its flagship iPhones that blended art
and technology . On the contrary, the Red Ocean strategy is
used by Samsung. Samsung gained a competitive advantage by
venturing into the market with a flood of smartphones
developed at low prices within a short time. Apple takes a lot of
time in launching a new iPhone as it relies on external
suppliers. Samsung took advantage of this weakness and
developed components for its Smartphone.
Strengths
Weaknesses
3. Competitive Analysis
Industry
The mobile phone industry is dominated by Apple and Samsung,
accounting for 11% of the market share. iPhone accounted for
29% of the smartphone’s sale and Samsung to 37% of the
smartphone sales by 2019. Apple's revenue in the year 2020 was
$137.7 billion, with iPhone accounting for 50% of all the sales.
Samsung sold 255.7 million units in the year 2020 and
generated revenue of KRW 61.5 trillion. Galaxy S series
accounts for 50% of all the sales.
Market
Samsung accounted for 21% of the market share, and Apple
accounted for 49% of the market share in the US by the year
2020. Samsung has divided its market into segments, including
demographic, geographical, psychological, and behavioral
characteristics. Samsung penetrates deeply into regions,
especially Asia. Most of the Samsung users are adults belonging
to both genders. Samsung does not define its products to any
class in society. Based on consumer personality and lifestyle
segments are created. It depends upon the benefits that
consumer’s desire from smartphones.
Apple is mainly rooted in international markets, especially the
US targeting the urban population. The age group between 20-
45 years of age use iPhones having high purchasing power. In
the behavior category, Apple is for loyal customers who wil l
only buy Apple products. Apple customers usually have a high
living style and make up the upper class in society.
Porter Five Forces Model
4. Degree of Competition
iPhone faces strong competition in the market. Samsung,
Huawei, Google, Nokia, OnePlus, and several other brands have
emerged in the market. One of the factors is low switching cost
that makes this industry highly competitive. This threat is dealt
with by developing unique products and investing in R&D.
Bargaining Power of Buyers
Two powers here are; collective and individual bargaining
powers. Individual power is weak as the loss of a single
customer will not hamper Apple's revenue. However, the
collective power of customers in the marketplace is a strong
force as it may lead to mass defections. Brand loyalty to iPhone
is built with its unique features and innovative designs.
Threats of New Entrants
This threat is relatively low as massive capital is required to
invest in R&D, brand recognition, and the manufacture of a
unique product portfolio to threaten the iPhone's market share.
Hence the competition exists between large firms that are
already established.
Suppliers Bargaining Power
This power for Apple products is weak due to the presence of
several potential suppliers and ample supply. The switching cost
is relatively low for Apple to exchange its suppliers. Moreover,
for many suppliers, Apple is the major buyer; therefore, they
are reluctant to lose the business.
Threat To Substitution
In Porter's model, substitutes are not competing for products
rather products that can take the place of any product. In the
case of the iPhone, the substitute could be a landline phone.
Hence, the substitute power is relatively low for iPhone as a
landline telephone does not provide as much access as an
iPhone.
Competitive Analysis Matrix
5. Marketing Strategy
Marketing Mix 7 Ps
Product
Even though Apple offers premium products at premium prices,
it still maintains high-profit margins and market share.
However, technology is ever-changing; therefore, iPhones with
innovative features should be manufactured.
Place
Apple has stores all over the globe, and more than 200 million
iPhones are sold each year. Therefore, to make iPhones
accessible to all, more stores should be set up in major areas of
countries to increase sales.
Price
Despite its premium price, iPhone is among the best-selling
smartphones around the globe. Apple should continue
manufacturing iPhones with cutting-edge technology to match
the premium price.
Promotions
Apple has developed its brand recognition without any
advertisements or marketing campaigns. For iPhone users, the
curiosity lies in the fact that every next version of the iPhone
will have added features that persuade them to buy. Apple must
set up events and conferences for announcing the release of the
new iPhone.
People
Apple hired more than 75000 people since its creation. The
technological giant ensures that they have the best staff that are
highly trained and provide the best results to customers.
Process
Firstly, product designing occurs in isolation from all other
departments. The executive team, Engineering team, and supply
chain teams work together to make decisions regarding the
manufacture of the best products. The product is packed in
special packaging and launched through professionals detailing
its features.
Physical Evidence
6. iPhones are sold online and in physical stores that are simple
and sophisticated with attractive and updated physical evidence
for proving customers with an exceptional experience.
References
Aljafari, A. (2016). Apple Inc. Industry Analysis Business
Policy and Strategy. International Journal of Scientific &
Engineering Research, Volume 7, Issue 3, March-2016 406
ISSN 2229-5518 IJSER
2016https://www.ijser.org/researchpaper/Apple-Inc-Industry-
Analysis-Business-Policy-and-Strategy.pdf
Cain, G. (2021). Samsung vs Apple: Inside The Brutal War For
Smartphone Dominance. Forbes. Retrieved 29 May 2021, from
https://www.forbes.com/sites/forbesdigitalcovers/2020/03/13/sa
msung-vs-apple-inside-the-brutal-war-for-smartphone-
dominance/?sh=6e2e134e4142.
Ferguson E, (2019). Apple Inc. Five Forces Analysis (Porter’s
Model) - Panmore Institute. Panmore Institute. (2021).
Retrieved 29 May 2021, from http://panmore.com/apple-inc-
five-forces-analysis-porters-model-case-study.
Fedorova, V. & Gladka, O. (2019). DEFINING PERSONNEL
MARKETING STRATEGIES. VERSLAS: TEORIJA IR
PRAKTIKA / BUSINESS: THEORY AND PRACTICE ISSN
1648-0627 / eISSN 1822-4202.
https://doi.org/10.3846/btp.2019.14
Gogolova, M. & Vrtana, D. (2019). Marketing Strategy Applied
In The Environment Of An International Company.
Globalization and its Socio-Economic Consequences
2019.https://doi.org/10.1051/shsconf/20207401037
Janka, W et al. (2017). Apple Products: A discussion Of The
Product Lifecycle. The International Conference On
7. Management Sciences and Management Innovation Volume 31
(MSMI 2017). 10.2991/mini-17.2017.36
Payne, B. (2017). Brand Positioning and its Usefulness for
Brand Management: the Case of Apple Inc. Newcastle Business
School Student Journal, Vol. 1, Issue 1, pp. 51-57. ISSN 2207-
3868.
https://novaojs.newcastle.edu.au/uonsbj/index.php/uonsbj/articl
e/view/10
Tien Hoang, N. (2019). International Distribution Policy
Comparative Analysis Between Samsung And Apple.
International Journal of Research in Marketing Management and
Sales 2019; 1(2): 24-27.
https://www.marketingjournal.net/article/view/13/1-1-11
1
PA 2
Marketing Mix & Marketing Strategies for Product Life Cycle
Srinadh Uddaraju
BUS 510 Marketing Management
Professor : Geraldine Goodstone
June 13 2021
srina
Cross-Out
srina
Highlight
8. 2
Marketing Mix & Marketing Strategies for Product Life Cycle
Professional Assignment 2
Stages of Product Life Cycle
There are four stages in the product life cycle; the Introduction
phase, growth phase,
maturity phase, and decline phase. Although all products go
through these stages in life, the
curve shape and the cycle duration may vary significantly.
Introductory Phase
At this stage, iPhone 13 and iPhone 13 pro in three different
colors, red, black, and grey,
will be introduced in the market. But for the iPhone, the low
pricing strategy would not be
adopted. It is a high-end product, and its price will be kept high
for maintaining the exclusivity
of ownership (Zhang et al.,2017). The company will not start
making profits by the first day;
rather, sales boost with time.
Marketing Objectives
9. ● Gain share in the market
● Maintain high cost
● Attract premium market segment
● Gain a competitive advantage in the market
● Create demand for the product
● Prompt customers for product usage
Level of Competition:
There is excessive competition in the marketplace. Some of the
competitors of the iPhone 13 are;
● Samsung Galaxy S series
● Samsung Galaxy Note series
3
● Xiaomi Mi Ultra series
● OnePlus pro series
These smartphones offer several features at low prices
compared to the iPhone.
Marketing Strategy:
At this stage, the product strategy will be used;
10. iPhone Product Strategy:
A new product of the iPhone 13 will be launched by the start of
the year. Technological
specifications would be updated, and a unique operating system
will be offered that will run at a
higher speed than any of its competitors. It will promise a more
flexible environment for working
and multitasking at a light speed (Thabit & Raewf, 2018). More
innovative apps will be offered
in the apple store.
Growth Phase
At this stage, the audience would have built affinity with iPhone
13 and iPhone 13 max
pro. In order not to let down the audience, the quality of the
product will be maintained. At this
stage, more money will be spent on marketing for targeting a
wider audience and making it the
top most brand among the target group. Customers will provide
reviews, features would be
shared, and marketing activities will be conducted to boost
sales.
Marketing Objectives:
● Boast sales
11. ● Maintain product quality
● Enhance customers reach
● Target wider audience
● Increase share in the market
4
Level of Competition
At this stage, competitors, especially Samsung, will explore
new ways of attracting
nonusers by providing premium benefits and offers to the target
market. Samsung usually
launches several smartphones every year, having different
features and prices suitable for
attracting different market segments (Janka et al., 2017). At this
stage, Samsung will decrease
prices and use different distribution channels and retail stores
for selling.
Marketing Strategy:
At this stage, the Promotional marketing strategy will be used
for iPhone.
iPhone Promotional Strategy:
12. Due to numerous differentiating factors, iPhone always
succeeds in creating its unique
position in the market. For the promotion of the iPhone 13, a
new tagline would be developed
(Marshall & Johnston, 2019). Advertisements will portray the
changes in the world with the new
iPhone launch. Dramatic launchin events will be set. Social
media marketing will be utilized
where different platforms will talk about the unique features of
the iPhone 13.
Maturity Phase
At this stage, iPhone sales will level off due to increased
competition in the market. The
average unit sales would be at peak, but no more investment
will be made in promotional
campaigns. To be competitive, the price of the product will be
lowered. A new iPhone would
have been launched at this stage, and iPhone 13 and iPhone 13
max pro will then target
customers who prefer low-priced products by providing them
with pricing discounts and other
promotional tactics (Kofi et al., 2017). This stage would mark
stabilization of sales.
13. Marketing Objectives:
● Target new market segment
5
● Reduce product price
● Maintain market share
● Maintain product sales
Level of Competition:
iPhone will experience excessive competition from newly
launched smartphones. Other
already existing brands, including Samsung, OnePlus, LG,
Xiaomi, etc., will lower their prices.
Samsung usually offers incentives to retailers who boast sales.
Domestic and international
boosters are added for improving the quality of service.
Marketing Strategy:
iPhone will use the pricing marketing strategy.
Pricing Strategy:
iPhone uses a skimming strategy and maintains high prices of
its products. At this stage,
14. to boost sales, the price of the iPhone 13 would be lowered to
make it accessible to a wider
audience as a new iPhone model would have been launched
already, offering premium price to
customers.
Decline Phase
This stage marks the ending of the product or the beginning of a
new cycle. With every
new iPhone launched, the previous iPhone gets superseded
(Rodriguez et al., 2015). To maintain
iPhone, its price would be lowered, and it would be distributed
to different retailers and markets.
However, the focus will shift to newly launched iPhones at this
stage, and all previous models’
production will be discontinued.
Marketing Objectives:
● Get public attention to the newly launched iPhone
6
● Lower price
● Sell all manufactured models of iPhone
15. ● Discontinue production
Level of Competition:
At this stage, competitors will reduce the product's price and
distribute their products at a
different location for targeting wider customers.
Marketing Strategy:
Distribution strategy will be used for marketing
Distribution Strategy:
The production of iPhone 13 and iPhone max pro will be
discontinued, and all the
developed models will be sent to different locations for sales.
Retailers would be offered
incentives for selling them (Fedorova & Gladka, 2019). Apple
sells its iPhones through
independent stores in malls, i-Stores, and online websites like
eBay, Amazon, Alibaba, etc. Many
iPhones are sold in the second-hand market around the globe
due to their status symbol and
durability.
7
16. References
Fedorova, V. & Gladka, O. (2019). DEFINING PERSONNEL
MARKETING STRATEGIES.
VERSLAS: TEORIJA IR PRAKTIKA / BUSINESS: THEORY
AND PRACTICE ISSN
1648-0627 / eISSN 1822-4202.
https://doi.org/10.3846/btp.2019.14
Janka, W et al. (2017). Apple Products: A discussion Of The
Product Lifecycle. The
International Conference On Management Sciences and
Management Innovation Volume
31 (MSMI 2017). 10.2991/mini-17.2017.36
Kofi Q. Dadzie, David K. Amponsah, Charlene A. Dadzie &
Evelyn M. Winston (2017) “How
Firms Implement Marketing Strategies in Emerging Markets: An
Empirical Assessment
of The 4A Marketing Mix Framework”, Journal of Marketing
Theory and Practice, 25:3,
234-256, http://dx.doi.org/10.1080/10696679.2017.1311220
Marshall, G., & Johnston, M. (January 27, 2018). Marketing
management. 3rd Edition. ISBN13:
9781259637155
Rodriguez, E., et al., (2015)."A Life Cycle Assessment of
17. Apple's iPhone." Conference 2015.
https://www.ideals.illinois.edu/bitstream/handle/2142/73760/46
2_ready.pdf?sequence=2
&isAllowed=y
Thabit, H. & Raewf, M. (2018). “The Evaluation of Marketing
Mix Elements: A Case Study.”
International Journal of Social Sciences and Educational Studies
4(4):100 – 109
10.23918/issues.v4i4p100
Zhang, Y., Ren, S., Liu, Y., Sakao, T., & Huisingh, D. (2017).
“A framework for Big Data-driven
product lifecycle management.” Journal Of Cleaner Production,
159, 229-240.
https://doi.org/10.1016/j.jclepro.2017.04.172
https://doi.org/10.3846/btp.2019.14
http://dx.doi.org/10.2991/msmi-17.2017.36
http://dx.doi.org/10.1080/10696679.2017.1311220
https://www.ideals.illinois.edu/bitstream/handle/2142/73760/46
2_ready.pdf?sequence=2&isAllowed=y
https://www.ideals.illinois.edu/bitstream/handle/2142/73760/46
2_ready.pdf?sequence=2&isAllowed=y
http://dx.doi.org/10.23918/ijsses.v4i4p100
https://doi.org/10.1016/j.jclepro.2017.04.172
18. PA 1
APPLE INC. COMPANY
The market has grown more competitive than ever as lot of
startups are entering to sells products or services. This put
emphasis on the products how they are being marketed to make
them standout of the competition whether it may be low prices
or appealing, targeting a particular demographic to establish
themselves. For a consumer it comes down to the value
proposition of the products as it directly relates to customer
satisfaction and helps in building up long term relationship, in
other words customer loyalty (Marshall, 2019). This paper aims
at the SWOT and PESTEL analysis for Apple Inc.
SWOT analysis for Apple Inc. Company
Apple Inc. is a company based in the US which deals with
multinational technology. It was started in 1971. Its main
offices are in California, US. Since its start, it has made many
products.
Strengths of Apple Inc.
One of the strengths of Apple Inc. is that they produce
wide spectrum of various products that help the company to
make a lot of profit. Apple has products like Mac, iPhone,
Apple Watch, Apple TV, software, services like apple music,
iCloud and many more. The company established itself with its
products as customer oriented high-tech products with
compelling features. Another strength enjoyed by the Company
is the technical prowess of its workforce (Tilak et al., 2017).
Apple has a strong brand image. Since its start, Apple has been
known to produce good and quality products which enabled the
company to win a big market share. It was able to capture a
19. market share of 46% in Q1 2020 in United states (Hindustan
times, 2020). Apple has also been the most successful Company
since its start. In the computer world, the Company has been the
best performing for a long time. Apple has been recognized for
its success in solving phone theft challenges. Apple is capable
of financing all its projects because it's financially stable. This
has helped the Company to carry out successful research on
whatever they want to work on. Apple has been able to develop
amazing designs. All their products make unique designs that
are pleasing to customers.
Weaknesses
Apple products are expensive compared to other companies. The
pricing strategy applied in Apple Inc. is premium in nature.
Apple Inc. products are priced higher than the capability of
most customers. Apple doesn't recognize middle-class people
while pricing their products. Products from Apple Inc. are not
compatible with products from other companies. The are bound
by the iOS eco-system and are not compatible for cross platform
devices that are not from Apple Inc. and their products limit to
use only software from their providers.
It's impossible for one to install any software from other
sources. There are fewer variations in their phone designs (Tien
2020). For example, iPhone 2 is almost similar to iPhone 6.
This makes customers switch to another brand to try something
new. In contrast, other companies have tried to manufacture
varying phones with different designs and good looking. Apple
targets niche customer and only focused on first-class buyers
while avoiding other classes of customers.
Opportunities for Apple
There is a high demand for laptops and computers. In
recent days computers and laptops are highly used (Adel, Omar
& Abdulammeer 2021). Almost every sector is making use of
computers in its operations. Some of these sectors that have
embraced the use of computers are the education sector,
medication, business sector and others. There is also increased
dependency on technology. People depend on smartphones and
20. laptops much. The rate of dependency on laptops and
smartphones is still increasing. There is a globalization of
market which is helping people getting gadgets easily. Due to
this, individuals are now capable of ordering a product and
getting it after a while.
The threats for Apple Inc
There is a drop in demand for tablets and smartphones.
This has been a result of people using one phone for a long
time. People are reluctant to shell out huge amount of money
before buying a new phone while the old one is still functioning
well (Beyel & Blake 2019). There are new competitors in the
field. There are new manufacturers making the same products as
Apple. These new competitors are giving their product at a
lower price. Apple Inc is also facing the challenge of imitation.
Once Apple Inc launches its product to the market, a counterfeit
of the same is manufactured immediately by other
manufacturers.
PESTEL analysis
Apple is well known for being capable of managing well
its external environment (Nepal et al., 2018). Apple has been
able to achieve this due to good management. This Company
has also been able to utilize all the opportunities around it.
Apple Inc. Company success has also been a result of strategic
handling of stress. This part of the paper will discuss how the
Company manages its external environmental factors.
Political factors related to the Company’s activities
The political factors within this Company affect it
positively (Payne 2017). The political environment has been
providing opportunities for Apple Company. There is stable
politics in areas where Apple carries out its businesses. The
politics in these areas have also improved trade free laws. The
only political factor that is a threat to Apple is the trade
disputes between countries where it has its businesses. For
instance, the trade dispute between China and the United States.
Most of these factors have led to the success and expansion of
the Apple Company.
21. Economic factors affecting Apple Company
Most of these economic factors have a benefit to thi s
Company. Apple Company caries its activities mostly in
developed countries. The economy of these developed countries
is always stable hence giving an opportunity to Apple to shine.
Apple Company carries out its activities in countries with the
rapid growth of the economy. This growth has enabled the
Company to be able to realize huge profits from its sales.
Sociocultural factors
There has been a rapid use of smartphones in most
societies. Smartphones are one of the products of Apple
Company. The increased use of phones makes it to be an
opportunity for the Company. Most cultures now highly depend
on digital systems. Apple Inc. mostly deals with these systems,
so this highly favours them. This makes Apple have higher sales
and a good profit ratio.
References
Apple's iOS gains market share in Q1 2020 but stays behind
Google's Android: Report. (2020, Apr 11). The Hindustan
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Adel, A. F. S., Omar, A., &Abdulammeer, H. D. (2021).
EMPLOYEES’PERFORMANCE ON APPLE COMPANY.
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Retrieved https://novaojs.newcastle.edu.au/uonsbj/index.php/uo
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