Discuss About the Research and Innovation in More Technology?
For over a decade now, Apple's smartphone iPhone has gained popularity in the consumer market. This is so because iPhone is considered one of the best smartphone. Its functionality is fantastic especially with the iPhone flagship that uses A models of processors that is extremely fast compared to any smartphone in the market. Other than the speed there are several other factors that makes iPhone to be the preferred smartphone gadget my many like its camera which not only produces the best photo quality like with iPhone several due to the phone having dual cameras at the back with the latest image processing technology but the phone itself is considered to support the best video recording capability of any smartphone available in the market. iPhone has also made its name through the company Logo. The logo clearly depicts the company's reliability and innovation. This has made it certain that loyal and potential consumers f their products are at all times aware of their existing products. iPhone company has been known to have financial leverage over small companies that is mainly channeled towards research and development. Hence, other than the company spending million on an advertisement, the company fuels the economy with new development and ideas that are later bought by other small companies as they try to keep up with the smartphone technology space made by iPhone making iPhone the most trusted, loved and respected smartphone brand in the market.
iPhone is a smartphone that ensures the success of its company by focusing more on conduction research and development project and becoming the first in all times to introduces in the smartphone technology in the market. This makes the company's products marketable and popular among most of the consumers since they have created that sense of trust, reliability and the ability to keep them on the forefront with any new emerging smartphone technology.
Scope definition of work by budget
The apple company has gained leverage to other smartphone companies by being the first to introduce new technology or improve on the existing one. And since these companies would like to maintain their market share in the market they buy the technology from iPhone. Much of the company budget is not focused on advertisement rather it's focused on research. Allocation of their funds to non-media spending has been more compared to media spending since the company doesn't spend much on products promotional campaign.
Scope definition of work by deliverables
Apple's iPhone has so much capitalized on research and development and this account for increase work volume in the attempt to bringing in new technology in the smartphone industry. The complexity of the deliverables varies proportionally with the technology used in the production of new variables and the type of resources used in their development.
Scope definition of work by strategy
The company scope has for long being define by the strategy undertaken in bringing in new smartphone technology or improving on the existing ones. Through strategic brand and category requirement Apple has reinvented the scope of work base on the existing remunerations and requirements to come up with deliverables that are considered as an invention or an improvement in the smartphone industry.
Since the company uses the cheap labor from China, this could cut away the cost of production hence the company enjoys a larger profit base. With the current trends, an increase in the dollar exchange rates could make it almost impossible for Apple's iPhone company to sell their products outside America in places like Europe and Australia. The development of high-end iPhone consumer products could shy away from customers especially in the middle and low class from buying the product since they are quite expensive.
Apple's iPhone product will be affected by the growth in consumer spending that has been predicted in the coming years making the purchase of the product impossible to some customers. To some, the products decline in the rate of purchase will make the company to stop supply their products in those areas say Africa for example. There is also a social, cultural effect when iPhone's consumers in Apple major markets such as the United States and part of Europe will withdraw their emotional attachment to the product and adopt cheaper products like Samsung, Blackberry and Google Nexus and Pixel smartphones that have been known to provide steep competition to iPhone (Cusumano 2013). They may not be as fast as iPhone but some of these phones have been known to surpass iPhone in certain areas say like Samsung S7 edge gains the advantage of being waterproof and Google Pixel XL being known to bring the best customer experience as a result of its fluid Android operational experience and optimization and again for the best camera experience in the smartphone category. Some people will be shy from buying iPhone product because of their expensive and stylish design. Some socio-conscious consumers will even go to the vast extent of refusing to buy the product as they become concerned about the product being manufactured in China since China products have been widely known to be counterfeit.
Apple company as a whole has recently launched an easier payment method, the Apple Pay which is considered service sector with high financial regulation. The government could be forced to increase its level of regulation with the Apple company, and the government oversees its cash inflow and outflow. This has also been predicted to cause an enormous increase in the level of financial litigation arising from the Apple Pay financial services. There has been prospects and rumors of the company entering into the automobile manufacturing business. This is considered one of the highly regulated sectors since lives are at stake and a small error in the design or manufacture of the car could cost lives. Hence this will call for an increased insurance, regulatory and litigation costs to be met by Apple company. The company can also be politically affected since the company relies on a number of products that fall under intellectual property laws with the example of music and software. This provides a loop in which the company could be hacked on its privacy making it's a highly vulnerable and thus under close supervision by the law.
Apple's iPhone faces stiff competition from Samsung and Google as they have been known to duplicate and even surpass iPhone in some area of technology when it comes to smartphone technology. Some of the technology like Apple Pay have been successfully copied by Google as they have come up with their payment app, the Android pay and since most smartphone users prefer Android to its ease of operation they payment application is now a major threat to apple's invention and threats to de-throw it in terms of popularity in the market. This makes most of Apple's signature invention and services to be no longer unique and thus a reduction in their market share since they can obtain the very same technology as Apple offer but at a lower price. Apple has a limited customer base when it comes to bringing in new products to the market. The example of cars and Apple television will have a very limited market as giants like Porsche, Benz and Toyota have flooded the automobile industry and Samsung and LG have flooded the Television industry. The flexibility of using smartphones, tablets, and phablets will highly decrease the demand for Apple's personal computers, and this will lower their sales. The use of iPhone A-series operating system has highly limited on the number of application that can be installed on their phones and this has made the company lose a lot of customers as many turns to the likes of iPhone's smartphone competitors such as Samsung, Google, Xiaomi, Huawei, Lenovo and LG who have Android as their operating system and thus they have unlimited access to applications (Hughes 2010).
Natural environment forces
Apple has been for long associated with environmental pollution due to their inability to control their disposal of non-working electronic components and devices. Expenses of disposing of these wastes could be very high especially with the Lithium batteries, and Apple could be forced to take responsibility of these wastes since they are hazardous to our environment. The company has also failed to control pollution in production industry in China. There has a growing concern especially those that have led to side effects to the locals, and this could lead to increased regulation requirements which may lead to increasing the cost of production in the near future. In an effort to reduce greenhouse effect caused by greenhouse gasses and the burning of fossil fuel, Apple's company in China may be forced to increase their electricity and manufacturing bill to meet the required energy production. There is also an effect brought about by climate change which could have an effect on apple's transoceanic shipping hence limiting their supply.
External environment – near environment
Despite there being a drop in several countries economic status such as the United States, iPhone has had a continuous increase in demand for their product. The situation is so much that there are more demands than the company can supply. This effect is felt through the company's economy, and they have moved the stock market. The chief economist of United States was once noted saying that the iPhone has a measurable impact on the country's economy (Xing and Detert 2010). The chief reported that despite it being a small smartphone gadget and costing a fortune and yet a large fraction of the country's population have it. The report released from his department shows that despite there being factors influencing the country's economy, the sale of iPhone has contributed to a significant a quarter to a third of the country's annual economic growth when computed with the gross domestic product.
Apple's iPhone has a declining number of sales by 15% when compared to the volume of sale in its last quarter. Apple's report showed that the company has maintained the fifth position having obtained a 7% smartphone market in the year 2016. The reason for this was the mixed demand for the iPhones, the existence of overstocked volumes, strong competition from other smartphone companies such as Huawei, OPPO, Lenovo, and others were considered the key factor for the drop in market share among the consumers. In a country like China, a report showed that there were more iPhones in their network when compared to other brands. The situation was also noted that iPhone customers ranked first when it comes to customer loyalty. However, the country noted that the highest vendor was Huawei which accounted for about 17.5% of smartphone shipment in the country. The fastest growing smartphone market is OPPO with a 13.9% market share whereas iPhone comes fourth with a 6.9%. The reason for the drop is associated with many factors such as its high price, limitations when it comes to installation of the certain application, the shift in consumer loyalty as they realize they could get the same experience from other android and windows devices.
Distribution channels and buyers (intermediary customers)
Apple was seen to lose its grounds all over the world in the last market quarter. This was as a result of domestic rivals that made iPhone lose its touch in the smartphone category. Apple's iPhone shipment in the country of manufacture, China, was noted to fall by a 25% every year and the number of total units resulting to a 7.3 million in the second quarter. However, the overall China market for smartphones depicted a rise in the shipment of 3.7%. This reduction in shipment is as a result of the stiff competition the company gets from emerging smartphones like Samsung, OPPO, and Huawei
End user customers
The end user customers survey of iPhone gadgets, a report done to 2,275 iPhone owners, 59% of them admitted to having a blind loyalty to the product. The research found out that those users who had started using iPhone products for an earlier age would not even dare consider researching other products for purchase or upgrade considerations in future. From the research, 78% admitted that they could not imagine using a different kind of smartphone at the moment while a further 52% said that they were so much impressed with the device. This shows that the end users of the Apple's iPhone Products show a form of brand loyalty that any other smartphone company would dream to possess.
It has been noted that the company Apple is responsible for any health or unhealthy supply progress to parts that constitute the make of iPhone. Like other commodity in the market, the rule of supply and demand to applies for iPhone. The higher the demand will make the company supply more of the phones. However, the rise in demand has enabled the company to supply their products at a much higher price. The iPhone shipment has, however, decline in the first quarter of the year 2016. Research based on this results showed that iPhone's supply chain in the inclusion of design, sourcing, development, manufacture and distribution is entirely different from another form of smartphone supply chain. There have been cases of reported harsh condition in working environments in the iPhone companies with examples of Taiwan where there was an outburst of fire. Cases of employees' suicide attempts have also been reported due to harsh working conditions.
Critical success factors
Summary of opportunities
For the next five years, iPhone has established a huge base in their marketing strategy that has ensured opportunities that will unfold in due time. This comes with the factors Apple is adding and gaining more customers adding them up to the group of loyal customers in each quarter. The company will ensure customer loyalty given their huge and rich application store and the broad service ecosystem, and this makes iPhone be a key and loved brand worldwide. iPhone has also established itself in China and has started selling their products in the country. In fact, the number of sales in China has recently surpassed the purchase in the United States which held the base market for iPhone product. And since China has a much higher population, with highly densely populated towns like Shanghai the company has more opportunities where a certain level of convincing through advertisement and marketing could gunner the company huge sales and thus huge profits in return. The number of the middle class who have started to love iPhone products in China is high, and this will lead to increased sales in future. Given that the Chinese have taken Apple products to be a status symbol, this demography will lead to high sales of Apple products in future. An opportunity that iPhone has in the future is its innovative culture. Given that the company spends millions in research and innovation exercises, iPhone has an opportunity in the future through coming up with a brand technology in their smartphones that will attract a larger market share from the Android community. iPhone has also started to tap its market in India and very soon they will be among the top considered markets for iPhone.
Summary of threats
Android operating system popularity poses as the main threat to iPhone. Provided by Google, the operating system has been accepted by all due to its ease of operation. Several brand mobiles, with the different manufacturer, specifications, and features and at different process have also been released making iPhone seem like one of the hardest to operate and with limited choices.
Competition from other phone manufacturing company also poses a threat to iPhone. Companies such as Google, Blackberry, Huawei, LG, and Alcatel developed complex technology in their hardware and software design and have some have been able to de-throw iPhone in certain areas such as the battery life in Motorola. This has made customers change from buying iPhones to Android phones.
The threat posed by hackers of wiping iPhone devices. The threat of deleting all iPhone users' pictures, videos and messages caused uncertainty in some iPhone customers for a long time. These hackers using stolen email addresses accounts and their passwords did treat the companies by claiming they will remotely wipe every iPhone (Hoog and Strzempka 2011).
The Apple organization has the capability of producing enough iPhone gadget to serve every consumer that requires the smartphone. Based in China provides them with the required cheap labor force that can work round the clock in producing the device. The organization is also capable of providing safe and relaxed working environment to its human resource to avoid cases of suicide attempts and accidents. The organization is also capable of introducing a totally new technology into the smartphone category since they have all the resources and the expertise they require to do so.
From the revenue, they get the organization can comfortably conduct market and invention research that will improve the quality of technology used on their iPhones. This will enable them to attain a higher market for their products especially when they conduct marketing advertisements in readily available market like China and India. They can also lower the prices of their iPhone if they want to make more sales.
The biggest marketing objectives that iPhone has is to lead the smartphone mobile market. The company has implemented the strategy to be an online search machine that will promote online advertising. The company also has an objective to increase in profits margin. This is, in fact, a problem despite the fact that iPhone has a higher profits its customer base is low. And through proper marketing strategy, the company will attain its objective of increasing the profits margin with an attainment of a larger consumer base.
Product market strategy
The company has an objective to provide premium smartphone at an affordable premium price so that they can have the lion's share of the consumer market since they will have a justified reason to pay more for their products. Through conducting technological research, the company aims at providing the latest technology in the smartphone industry that its loyal customers will gladly pay for the brand. The company also aims at attracting some of the Android users to switch to iPhone and enjoy their brand quality (Mickalowski et al., 2008).
Segmentation, targeting and positioning strategy
Apple has attained segmentation by dividing its consumer base into groups according to their needs and given characteristics, like in China iPhone has incorporated certain features in the primary OS and the case is not so for iPhone sold in the US. The company has also achieved its target market by choosing a specific group of consumers as identified in the process of segmentation. These include aspects such as design appreciation, the performance of the technology used and the prices charges for their products. The company has also attained positioning by attaining the best market mix that they consider most suitable for selling out their iPhones.
Customer value creation mix
iPhone’s company Apple aims at providing the best customer value creation mix through the following ways;
- Identification if target consumer value where the company aims at finding out what the end user needs in his life to make smartphone experience much better.
- Ii) identification of the deemed value and what is vital where the company selects out the most important needs that the user requires of their smartphones
- Forecast on value of the target customer through creation of estimates on financial costs that is required in development of what they have selected out as important in the user smartphone experience
- Customer value creation mix where they engage in the development of the thing they selected out to improve user smartphone experience
Apple did put several factors into consideration while coming up with a resource allocation plan. To achieve a successful resource allocation strategy, the following thumb rule should be used;
- Creation of layout for contents
In this step, iPhone needs to design a platform such that users will have an easier navigation operating system to their smartphone. Taking the software, for example, the company should be guided on the basis of depth, clarity, and deference. Clarity will make it possible for users to interact with the iOS device easily. Deference will be better if you don't incorporate too many gradients and use of shadow in your system. Depth will come into use when the is a display of more content that is detailed enough.
- UI should be 3D enabled
To design the best UI that is attractive and brings out the best customer experience you have to consider the difference in tastes and preference. However, some factors are universally attractive like the customization and incorporation of the tandem that looks appealing to the user or the final consumer. This will make his iPhone experience faster, enjoyable and easier to use.
- Clearing of bugs
In the development stage, total avoidance of errors is almost impossible to anyone. Common errors will lead to regular stoppages or a crush of the entire program. To minimize the occurrence or errors, you need to regularly debug the software that you are developing. It would be such a shame a big company like iPhone to offer its consumers with flagship smartphone that can't be operated due to some software errors that could have been easily avoided in the development stage.
- The Apple ID
To ensure the security of you work against theft and robbery, you must include the sign in option with an Apple ID code. This is resourceful especially when there is a need for your identification as a coder or a developer. The platform allows you to sign in and send files to anyone in the organization regarding any software development process.
- Come up with a directory structure
This is applicable in cases where you work at the enterprise leveling the company, and you have been assigned multiple coders who work alongside you. An intuitive structure of you project will be held with the organization of the codes delivered to you for face keeping.
The implementation plan will start with the development of the best user experience iPhone both the in the software and the hardware. The compare should provide the best software experience with no bugs at all. The software should also comfortably run with the given hardware components like for example image processing to run smoothly and immediately after a photo has been taken. iPhone should also provide value when it comes to hardware, for example, providing the fastest chip processor when it comes to the CPU performance and data processing. iPhone should also foster customer loyalty by enabling frequent communication with their consumers on aspects such as promotions, offers, upgrades and other to improve their users; experience. The marketing department should be structured in a way that it can conduct the required marketing research and provide the best feedback to the company so that it can produce the iPhones according to users' specification, tastes, and preferences. The marketing department should also conduct Segmentation, targeting and positioning strategy to maximize on the sale of the iPhones since the market need would have been fully met.
Evaluation and control process
The evaluation and control process need to be done to identify whether the consumers are satisfied with their iPhone release or not. The factors to consider while carrying out the evaluation is customer satisfaction regarding the quality of the iPhone and the prices charged for the community. Frequent questions and answer should be provided by the company to the willing consumer to determine their satisfaction with every iPhone product released. The measure can also be done by the number of purchases and orders made regarding the product since a quality product will attract more sales and a poor iPhone will result in a drop in sales. The data can be sourced right from their users' experience or the purchased phone when it comes to evaluation through the number of purchases.
Cusumano, M.A., 2013. The apple-samsung lawsuits. Communications of the ACM, 56(1), pp.28-31.
Hoog, A. and Strzempka, K., 2011. iPhone and iOS forensics: Investigation, analysis and mobile security for Apple iPhone, iPad and iOS devices. Elsevier.
Hughes, J., 2010. iPhone and iPad apps marketing: secrets to selling your iPhone and iPad apps. Que Publishing.
Michalowski, K., Mickelson, M., and Keltgen, J., 2008. Apple's iPhone launch: A case study in effective marketing. The Business Review, 9(2), pp.283-288.
Xing, Y. and Detert, N.C., 2010. How the iPhone widens the United States trade deficit with the People's Republic of China.