Analyzing External And Internal Factors Of Apple IPhone 8 For Market Share Growth

Background on Apple Inc

For the ineffective marketing strategies, Apple is facing a huge competition while selling its iPhone 8. This research project aims to develop in order to promote sales growth of iPhone 8. Hence, the main objectives of this assignment are to analyze external and internal factors of Apple Inc. regarding the market share of iPhone 8. Hence, the research project critically discusses and analyses product statement, Apple marketing situation analysis and conclusion.

Apple Incorporated formerly known as Apple Computer is very reputable in the United States and around the world, is a multinational corporation with its headquarters located in Cupertino, California. Besides the Americas segment, which includes both North and South America, It also operates through the following geographical segments: Americas, Europe, Greater China, Japan, and Rest of Asia Pacific. The company was founded by Steve Jobs and Steve Wonzniak on April 1, 1976 and incorporated it on January 3, 1977. The company is one that focusses on the development, designing and the distribution of its on line services, computer software and electronics. The company also have a chain of retail Apple stores, and their core product lines are the iPhone smart phone, iPad tablet computer and iPod portable media players. Both men wanted to change the way people viewed computers, so they decided to make computers small where consumers can use them in their homes and offices.

The iPhone 8 and iPhone 8 Plus users are reporting poor/sensitive mic volume when they are on a call. And sensor, tucked under the screen, isn’t working. This is not a good new as the iPhone 8 duo users have previously had some trouble with the GPS. Apparently, many users are now complaining about the poor quality and sensitive mic volume during phone calls (Jana, Chandrika (2017).  

Apple plans to focus on satisfying personal consumer demands rather than merely fulfilling a demographic requirement as well as, improving performance and stability rather than introducing new features when releasing new versions of any product. The iPhone targets consumers who need to store information and communicate or people who want entertainment on the go. Apples target segments consist of professionals, students, corporate users, entrepreneurs, and health care workers. Currently, the market for high-end phones like the Apple iPhone is small. Few people want Internet, video, and PDA features in one device because of the high price. The smart phone market is still relatively small compared with general phone market. The market will rapidly increase in coming years due to lower prices and greater power (Mali, Divyesh, 2013).

Issues with iPhone 8

Apple is one of the world’s leading information technology industries in terms of its revenue and asset. The company net worth for 2017 is valued over $900 billion, as of September 2017, the company has 123,000 employees from different cultural backgrounds (Celebrity Net worth.com). In the global market Apple has the strongest brand and because of this they have opened many outlets in many global markets. Apple is 0.05% of U.S GDP and 0.15% of the Global GDP.

Currently, on the market is the iPhone 8 one of the latest Apple Inc product. The iPhone 8 is equipped with a modern and upgraded battery, stereo speakers, camera, edge-to-edge curve glass case, and scratch proof liquid metal case. This phone is very popular all over the world; the price of the iPhone 8 is roughly about $700.00 and can vary depending on the economic status of the identified markets.  So far, since the integration of the iPhone 8 into the global market the product reputation and productivity has increased (Carlton, 2015). On the other hand, although the iPhone 8 is said to be the state-of-the-art in the market segment, it has many competitive challenges. For example, some of the Samsung Galaxy Series has taken over the iPhone series reputations. Therefore, to up their growth the iPhone’s productivity and competitive advantages, Apple Inc needs to implement effective and sustainable marketing strategies (Haleblian, Mcnamara, Kolev, & Dykes, 2012).

Apple is ranked number five worldwide because they incorporate globalization technology, innovation, diversity, and ethics with the use of the four functions of management to increase their profits. This function helps management to understand what their customers want and needs. Apple main goal is to distribute its products to consumers’ worldwide, increase innovation and create a workplace and products for diversity.

In this project, the research will be identifying the internal and external factors of the iPhone 8 in the global market, I will also be analyzing its competitors and customers and I will be providing recommendations in the most effective ways to improve the iPhone 8 successes in the market. Last but not least I will be describing the business problem and charge and the marketing plan I have from the iPhone 8. Furthermore, in this research I will examine the customer’s views and effects on the reputation of the company’s product.  As a result, the understanding of competitive analysis will be vital in the iPhone 8 performance in the global competitive market (Kanter, & Scott, 2016).

Apple’s Marketing Strategy

Apple is considered as the most successful electronics company in the world and over the last year the iPhone 8 has been growing rapidly, the company has retail stores worldwide in 18 countries and online stores in 120 countries. Some of Apple competitors are companies such as Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, and Sony Corporation and many other computer hardware, computer software, consumer electronics and Internet companies. The iPhone industry has popularized many countries around the world with the latest and greatest phone technology. As a result, many of the players in the industry are finding better strategy to control the existing market (Jurevicius, 2016). The available information researched, affirms that the market is likely to increase in developing countries such as Africa and Asia markets (Kanter, & Scott, 2016).

The article also mentioned that” Apple’s strength in the U.S. is its extensive distribution channels. It is known for its direct distribution channel such as its online stores, direct sales force and retail stores”. Some of their indirect distribution network includes cellular stores network carriers like AT&T, Verizon, Sprint and T-Mobile, wholesalers, retailers like Best Buy, Amazon Marketplace, Walmart, Target and Staples (Jurevicius, 2016). Apple stock is popular amongst consumers; it has a large effect on many economies all across the world through the creation of various compensated jobs in retailer’s stores such as Walmart, target and best buy. In stores Apple houses about 10-15 employees that work to satisfy all customers’ needs as well as help the store reach is second most important goal of making a profit.

Apple’s market is expanding in the iPhone arena at a rapid rate. Due to this it popularity has been successful and has raised the company’s profitability by a very high margin. However due to high competition level the cost of the Apple iPhone 8 is high, and can be a threat to its competitors. Its brand is known for the way the product is design, how easy it is to use and the different features like iCloud and now operating all over the world with as many as 400 retail stores in 18 countries. Globalization has played a vital role in Apple’s finance. Apple financial income shows that their sales worldwide has taken the lead in technology and will continue to increase. Apple has an exceptional role in the global market as has its products in the different markets in Asia. According to Apple marketing plan, “Apple must uphold labor laws in the creation and distribution of their products. Apple Inc. also has a software privacy to protect it from being copied and replicated illegally. All Apple Inc. customers are protected by consumer protection laws and regulations in regards to warranty’s (1 year guarantee)”.

Market Analysis

Since the integration of the iPhone 8 into the market Apple has been faced with increase competition in the global market. According to Jurevicius (2016):

Apple has always faced strong competition from Microsoft, IBM, HP and Dell in the personal computing sector and since the launch of the iPhone and iPad that competition has increased significantly. Now Apple’s main rivals are Google and Samsung, both well funded and experienced competitors which work together to provide the best possible offerings to compete with Apple’s devices.

Samsung bit off a 21.7 percent slice of the global smartphone market and accounts for over 28% of South Korea’s annual GDP.  Samsung’s main strength in the Global market is it reputation for selling its product at a lower price than Apple (Whitney, 2015). Competitors are now changing their strategies and improving their products frequently to be at the same level as Apple. Due to the fierce competition and rapid changes in technology industry Apple is faced with threats such as labor laws and production of products, decrease in demand for popular products such as the portable devices and desktops. Apple has never worried because they have done a great job providing technical support and customer loyalty of their products. An Apple product hardly goes on sale so the company never worries about their rivals, it maintains its productivity without ever marking down a product by generating superior products from Android phones, rival tablets and eReaders gaining market share with lower prices (Hitt et al., 2012). 

According to Apple SWOT Analysis there are strengths and weaknesses for Apple Inc, some strengths for Apple includes the great customer service that is offered by their staffs, the strong brand Image, their strong focus on research and development to improve on their products and services. SWOT Analysis also mentioned Apple’s Weaknesses, Some weaknesses were the death of the man(Steve Jobs) who inventor the product, another is the limited use of outside software to be uploaded on Apple products, product and software recalls and update failures, law suits from it consumers, and failure of the products not working with different carriers (Applemarketingplanah.weeby.com). As of 2017 Apple Dividends were $0.63 per share and their Revenue was $45.4 billion (Hall, 2017) Apples’ strategy towards its competitors has varied over the years. Yet, the company’s strategic group position amidst other technology giants such as Samsung and HP will not be sustained if Apple does not alter its strategy in the near future.

Competitors of Apple iPhone 8

The world’s economic conditions sometimes dictate consumer’s purchasing power. According to the research by Atif Muhammad (2013), unemployment rate has increased in many countries and has caused the sale of Apple products to decrease. Another reason was increase in oil prices, which caused inflation in the world’s economy. Due to these economic factors, people did not purchase Apple products and that affected their sales. The world’s economic condition is getting better and companies are now purchasing foreign currencies, due to such Apple revenue has increased in 2017 to $45.4billion in the global market. Since the increased of technology and innovation Apple is taking advantage of the market. They have invested greatly in research and development on all their products, thus, putting them to the top for new innovative products. Because the industries in which the company competes are characterized by rapid technological advances the company ability to competes successfully depends heavily upon its ability to ensure a continual and timely flow of competitive product and services technologies to the market place (file.shareholder.com)

The Apple iPhone 8 customers are those in the middle age population, education, and enterprise and Government businesses. The potential targets are High School and university students, they are the regular uses and that population has an influence in determining the purchasing trends. Currently Apple serves over 5 million customers annually, customers purchase sometimes directly from the Apple store and sometimes from other retail stores which has help in the increase of the company profitability, promotions and sales. The products features are very user friendly and customers can quickly understand the different features by using the internet, catalogs or even the Apple website product features.  

The iPhone 8 benefits are unique and their rivals are nowhere close in meeting them in innovation. Customers’ needs rotate around the features and quality of the products, in many cases customers use cash to purchase Apple Inc products especially the iPhone 8.  Hence, the company has been producing quality products and services to increase its growth in the global market (Homburg, C., Sabine K., & Harley K. (2009).  It is necessary to note hereby that, Finger print sensor of Apple iPhone 8 is not able to detect location clearly (Kelly, 2012).

 The market share of Apple Inc. has received a fall of revenue. In the year 2015, Apple could again recover in promoting their market share. However, again their market share has declined in the last two years.

Distribution Channels of Apple

The brand image of Apple stands for innovative and influential computing technology and mobile technology. Hence Apple Inc. follows marketing strategy in order to maintain brand equity. On the other hand, in order to take market advantage Apple strategy is to let people experience latest technology. However, after Steve Jobs leaving the company, Apple lacks to saturate consumer by product innovation. It is necessary to note hereby that there is a gap between marketing plan and marketing practice in Apple marketing strategy.

The premium marketing goal and objectives of Apple Inc. is to sale apple products to those people who do not have single Apple products. The recent objective of Apple iPhone is to increase the demand and sale of Apple iPhone 8. However, it is seen that Apple iPhone does not have a large number of varieties. In addition, Apple features do not consider external storage device, removable battery and Bluetooth. Hence, some of the customers are not pleased by the performance of Apple (Whitney, Lance, 2015).

In order to develop Apple marketing program, Apple Inc. considers various marketing campaigns regarding IOS apps, tvOS apps. On the other hand, in order to develop Apple marketing programs, Apple Inc. considers in fostering their customer care service.

Apple has some production issues regarding air pods. In addition, the production of apple iPhone is not satisfactory to a number of customers for the absence of some of the common features like Bluetooth, expandable memory and removable battery.  

Apple is good in letting the world experience latest mobile and computing technology. IOS system of Apple iPhone is excellent that lead people to enjoy excellent digitization.

Timothy Donald Cook is the recent former CEO of Apple Inc. who does not have the public image like Steve Jobs. Steve Jobs had an exclusive aura of fan following which helps to establish a brand image for apple. Tim Cook lacks somewhere is establishing brand image like Mr. Jobs.

Apple organization structure is tremendous integrated. It helps Apple Inc. to maintain brand equity. The organizational culture of apple Inc. aims to influence people through product innovation and technological advancement. However, recently Apple Company lacks to bring enough innovation in Apple iPhone.

Conclusion

In brief, Apple is one company that takes on innovation on different products compared to other companies. Due to its strong market share, customer loyalty and user-friendly products Apple are well ahead of its competitors. The future for Apple is bright due to its increase profit and sales, but Apple needs to be aware of political and legal areas in the business arena. They have outsourced in many different countries and have to find ways to reduce risk as they buy application processor from Samsung, which can create major problems for the company.

Reference list

Atif, Muhammad (2013). The Complete (External and Internal) Analysis of Apple Inc and its SWOT Analysis. Retrieved from:https://www.academia.edu/7103572/The_Complete_External_and_Internal_Analysis_of_Apple.Inc_and_its_SWOT_Analysis

Carlton, J.  (2015). Apple: The inside story of intrigue, egomania, and business blunders.   New York, NY: Random House.

Haleblian, J., Mcnamara, G., Kolev, K..& Dykes, B. (2012) Exploring Firm Characteristics that Differentiate Leaders From Followers In Industry Merger Waves: A Competitive Dynamics Perspective. Strategic Management Journal. 33, (1), 1037–1052

Hall, Zac, (2017) Apple announces Q3 2017 revenue of $45.4b: 41m iPhones, 11.4m iPads, 4.29m Macs. Retrieved from: https://9to5mac.com/2017/08/01/apple-earnings-fy17-q3/

Heracleous, L. (2013). Quantum strategy at Apple Inc. Organizational Dynamics, 42(2), 92-99.

Heracleous, L. (2013). Quantum strategy at Apple Inc. Organizational Dynamics, 42(2), 92-99.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Homburg, C., Sabine K., & Harley K. (2009).  Marketing Management – A Contemporary Perspective (1st ed.), London: John Wiley & Sons

https://files.shareholder.com/downloads/AAPL/5624667265x0x962680/D18FAEFF-460A-4168-993D-A60CBA8ED209/_10-K_2017_As-Filed_.pdf

The iPhone 8 Is Reportedly Facing A Major Engineering Problem It Has ‘Just Weeks’ To Solve

Jana, Chandrika (2017). iPhone 8, iPhone 8 Plus users reportedly facing ‘poor mic’ issues during phone calls. Retrieved from: https://www.gizbot.com/mobile/news/iphone-8-iphone-8-plus-users-reportedly-facing-poor-mic-issue-during-phone-calls-045960.html

Jurevicius, Ovidijus, (2016) Apple SWOT Analysis. Retrieved from: https://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html

Kanter, J. &  Scott, M. (2016). Apple Must Pay Billions for Tax Breaks in Ireland, E.U.    Orders New York, NY: The New York Times

Kanter, J. &  Scott, M. (2016). Apple Must Pay Billions for Tax Breaks in Ireland, E.U.    Orders New York, NY: The New York Times

Kelly, D. A. (2012). Cops, cameras and accountability: User-generated online video and public space police-civilian interactions. The University of Maine.

Mali, Divyesh(2013) Apple i phone marketing plan. Retrieved from: https://www.slideshare.net/divyeshmali9/apple-i-phone-marketing-plan

Whitney, Lance, (2015) Samsung continues to rule over Apple in smartphone market. Retrieved from: https://www.cnet.com/news/samsung-continues-to-rule-over-apple-in-smartphone-market

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