CONCERNS AND MITIGATION MEASURES 1
Concernsand Mitigation Measures for iPhone Introduction in the Market
The Apple Company is committed to introducing the best apps forSmartphone to be used in mobile communication, portable digital musicand personal computing experience to consumers, government agencies,businesses, creative professionals, educators and students throughits innovative services, peripherals, software, hardware, and otherInternet offerings." In recognizing the market trends, SteveJobs before his death claimed that he wanted to transform the companythrough making the apps development the center of the users’digital lifestyle. Notwithstanding Apple Smartphone App`s currentsuccesses, the company is faced with ever-changing competition ondifferent multiple fronts (Arthur, 2012). Thus, there are concernsand mitigation measures or plans which need to be push forward byApple on developing the apps for Smartphone to the Smartphone oriPhone industry. The concerns will mainly revolve both on strategiesto fight rivalry and recommendations for mad to enhance theeffectiveness of its strategies for better outcomes.
Use of success factors indicators
A balanced use of strategic and financial controls will aid inensuring that Apps for Smartphone benefits from performance feedbackand communicate the crucial drivers of future operation. Thefollowing criteria will be used to measure the success of App.
Increased Revenues by product and region
High Net income
High Cash flow – amounts and sources
Improved Customer satisfaction
Increased customer Growth
High portion of Market share
Internal Business Processes
Cost management for pricing flexibility
Product quality for apps
Learning and Growth
Training and cross-organization sharing programs
R & D investment
New product introductions
Apple Apps business strategy will need to leverages the firm`sunique ability to design and develop internal operating systems oriOS, hardware, software application, and services to present with new product and solutions which are differentiated based on seamlessintegration ease-of-use, and innovative design. Marketing will needto begin with aesthetic and simple apps design, which can beinitiated to customer interest in Apple Smartphone products. In anindustry encompassed with low profit margin and cost cutting, theapple business will need to get focused on revelation of radicalconcepts and attractive designs to enable its products be unique. Ifit is differentiated its brand loyalty will increases whereas itsprice sensitivity will reduce.
Since competitors have been seeking to imitate Apple`s appssuccessful products and the innovative complementary relationshipsbetween iTunes and iPod, Apple will need to continue to introduce newground-breaking design of apps which is perfectly timed to acquirefirst moving advantages (Arthur, 2012).
The company will need to re-invent itself in entering the new productcategory and eliminate price competition in the product market. Identification of emerging trends and exploitation of advantages ofearly market penetration needs to be fundamental to Apple’s successin the distribution of apps, and plans to achieve similar results inmobile phone connectivity. Apple will need to seek to change thebehavior of people rather than competing in the market for theincremental innovations.
The product differentiation of Apple’s apps will decrease itsdependence on revenues from a single market. The diversification ofmarket will also allow the company to share technologies, activitiesand resources along product lines, and the skill transfer and corecompetencies will build competitive advantages that are difficult tobe emulated by the competitors. Apps reseller agreements, wirelesscarrier contracts, valued supply chain relationships, and innovativeco-branding arrangements will need to support the firms’differentiation strategy and links the success of all strategicpartners. The company`s strategic partners need to provide aneffective avenue for attaining big share of product market. Inaddition, affiliation with strong brand names can be employed tobuild consumer confidence and enhance the Apple’s apps marketingexposure.
Apple`s concern will also need to involve the seeking ofopportunities to generate market demand for apps products in theglobal market. It is common knowledge that when the domestic or localmarkets are mature and the commodity pricing tactics have infiltratedthe industry, it’s possible to expand into international markets.Through discovering new markets, the impact of declining pressure onprices is minimized. In addition, selling and operating beyonddomestic market enhance the firm’s ability to outpace competitorsand initiate knowledge in the company to expand its innovativeskills.
Protection of the brand
Apple needs to protect the brand image of its apps and invest a lotin company’s competitive advantages in areas of marketing andinnovation in order to guarantee strategic success. It can do thisthrough the following
Engage cautiously in the low end market which is able to destroy the Apple’s apps reputation which is the leading technology Smartphone Company.
Manage the exposure of brand carefully
Invest in research and development in order to lead in technology discoveries and remain ahead in radical product
Upgrade and maintain the design appeal to reduce new entrants
Expand the range of intellectual property and product range through introduction of new technologies or business, licensing and joint development projects if it is doomed in production of viable commercial innovations to be the first mover in the market.
It needs to enhance the existing product in various areas to maximize the life and value of the product. This is through Smartphone peripherals and hardware, consumer electronics products, systems software, networking and communications solutions and software, mobile communication devices, Internet services and solutions and applications software. In addition it will be necessary to determine when to be involved in obsolesce to take full advantage of its status as a market leader.
It will also need to constantly do assessment to determine if it is far from internal strengths or working beyond its manageable and known markets.
Apple will also need to reach and define customer base deeply andbroadly. Enhancing quality image security will enhance it’s to getmore consumers. Through expansion of Apple’s apps distributionnetworks to reach more of its customers effectively and provide ahigh-quality sales and post-sales supports to enhance the penetrationof market. It needs to build customer bonds for instance through its retail membership type of culture and one on one programs toguarantee long term loyalty of customers and sustain its customerbase. Its retail stores will provide the company with theopportunities to identify customer needs and expectation and issue aplatform for forwarding ideas and initiating attention.
Global market location
Concerning global sector, Apple’s apps will need to continue toestablish it as a global player. As it expands its reach to variousparts of the world beyond the current locations, great efforts shouldbe advanced to identify the customer preferences in such regions toensure that marketing efforts and service offerings are targeted toaddress customer needs for those regions.
Apple will need to make partnership with other apps partners whichcan provide opportunity for accessing new groups of customers andthis is crucial in the company`s target to enlarge its market. It isalso worth important to pay attention objectives and the needs ofstrategic allies, mainly the concerns of content providers. It willneed to revolutionize the smart phone and Internet video industriesas it did in the music download industry through unique carrierservices and good media content and these are depends on strongrelationships with phone service partners and key media. Limitedmovie downloads would highly diminish the success of Apple TV, andstandard carrier service will make it hard to differentiate theiPhone from its rivals. Through searching means by which power ofApple`s brand name and market share can have benefits on its partnersand protection of their business interests will illustrate thatrelationship terms offers mutual value and profits the industry atlarge. Apple will need to establish partners who are engaged andmotivated in Apple`s success as internal stakeholders.
Also, its product line can acquire benefits from complementary,unique products and co-branding opportunities, especially if they canaid eliminate resistance the company’s proprietary technology inthe market.
In conclusion, the Apple can continue being the market leader inproduction and marketing of iPhone apps if it will implement plansto outdo the competitors and improve on its technology. It will needto further manage costs vigilantly to maintain flexibility of pricesand improve its position on competition in relation to low-pricedcompetitors. In addition, it can leverage Apple’s 70% share in themusic phone market in order to strengthen the performance andoperations of its applications. Above all it needs to develop the topmanagement team and an effective succession strategy in order toavoid over-dependence on one individual to steer the interests of thecompany.
Arthur, C. (2012). Digital wars: Apple, Google, Microsoft and thebattle for the Internet. London: Kogan Page.