Apple is one of the most innovative companies worldwide. It has mobile phones with the most advanced level of technology. The apple Iphone is a product of great quality that has made communication easier because of the inventions like text messaging, internet access and entertainment through radio. Many prospective consumers would wish to have the same but they cannot afford them because the prices are too high. The mobile telephony company is faced with immense competition in this field because of the companies coming up to produce cheaper phones that are tailor-made to suite the customers’ needs. The apple company should therefore come up with strategies to that would enable them survive in the market.
Iphone has various strengths and weaknesses. The strengths the Smartphone has are that it has international call ability, internet access, high quality and long battery life of up to eight hours when calling, seven hours when watching a video and twenty four hours when listening to music this (Boone & Kutz, 2013). The phone also comes with a radio in the form of cellular, Wi-Fi and Bluetooth applications. Moreover, it has emailing, text messaging, visual voicemail, virtual keyboard and a multi-touch screen. The feature of the Iphone makes it stand out as unique in the market. These are the major strengths that apple can bank on to stay in the market (Boone & Kutz, 2013). However, the Iphone has various weaknesses that affect it. The phone is expensive and cannot be afforded by most prospective clients because of the high-end prices. It also faces various barriers and various cellular phone service provider restrictions (Boone & Kutz, 2013).
The Iphone also does not have lower priced models that can be afforded by clients from different categories in the market (Scott, 2013). This is also a loophole that the future competitors would use to their advantage to give them a run for their money in the market. Customers who fall within the first adopter’s principle have been having problems seeking pre-order for the new Iphones in the market. This led to loss of customer loyalty and satisfaction because of the delays experienced (Boone & Kutz, 2013). There is also no differentiation done by the apple company because all the features seem to be in one phone thus limiting its ground to weather-off competition. This also makes it easier for the competitors to challenge the progress of Iphone in the market (Scott, 2013).
Companies offering cellular phone services have come up and offer high level of competition to apple’s Iphone. One such company is Samsung which is currently the number one retailer of mobile phone in the world. It has banked on the principle of differentiation and coming up with mobile phone models that meet the needs of customers in the market. They have come up with simple models to meet the size of the pocket of the various consumers in the market (Scott, 2013). The company also has high level of innovation and has contributed immensely in the field of technology giving other companies in the market a run for their money. Samsung conducts customer surveys online, conducts consistent product advertisement, offers warranty on products and has retail outlets all over the world. This earns them customer loyalty and satisfaction (Boone and Kutz, 2013).
Nokia Mobile Phone Company has also been leading in the marketing until the year 2012. They have banked on the principle of differentiation and made every model for every market segment. The company considers the size of the pocket of its prospective clients and came up with models for the low class and high class in the society (Scott, 2013). Innovation has also been key in the company’s operation and thereby coming with quality models. It has great reputation worldwide and command great customer loyalty worldwide (Boone & Kutz, 2013).
LG that was mainly involved in production of household appliances ventured into manufacturing of mobile phones. It is at the fifth position among the top ten best mobile phone brands worldwide. The company has stayed relevant in the market with high levels of innovation invention strategies. They have manufactured various handsets that are affordable to the various clients in the market thereby taking differentiation into account (Scott, 2013). The company has also come up with various models that are similar to its competitors’ and has put into play price war that has made it survive the wave of competition and this has kept it going (Boone & Kutz, 2013).
Motorola currently holds the tenth position among the top ten best phones in the world and has developed pocket friendly gadgets that are affordable to various clients in the around the world. Although Motorola enjoyed a significant position years back, there was a decline in shares leading to the fall in its position worldwide. Motorola has high level of innovation; this kept the company floating in a good position in the market (Boone & Kutz, 2013).
The decision facing Apple Company is how to come up with various innovation activities to enable them weather-off competition in the market and keep the competitors at bay and increase its sales. The main factors that are important in understanding apple’s decision situation are the availability of competitors who might end up beating and taking Apple Company out of the market all together. The need to control the market share by generating revenue through sales is also a critical factor when a company rolls out a product line; this is what makes it relevant in the market to ensure that the sales do not fall or else they risk being out of the business (Scott, 2013).
The alternatives that Apple Company can come up with include coming up with a decision to enable them increase the market share, come up with differentiation strategies, and conduct a market survey on the demand of the Iphone. It should further consider benchmarking the movement of its competitors, invention and innovativeness in order to know what unique product to come up with that would turn the prospective client’s attention from their competitor’s invention (Scott, 2013).
The decisions that Apple ought to undertake are putting into place differentiation strategies, keeping track of competitors’ innovation and movement in the market and undertaking a market survey on the demand of its products. The company can undertake this by tailor making the Iphone to be more affordable and making it more pocket- friendly to the target market. It can conduct surveys online and conducting a SWOT analysis to know the competitor’s position in the market and capitalize on the opportunities and weaknesses (Scott, 2013).
References
Louis E. Boone, D. L. (2013). Contemporary Marketing Update, 15th ed. New York: Cengage Learning.
Scott, D. T. (2013). The New Rules of Lead Generation: Proven Strategies to Maximize Marketing ROI. New York: AMACOM Div American Mgmt Assn.
