The article by Jessica analyzes the move by apple Inc to introduce a watch like device in the market. This device is aimed at competing with smartphones and IPods in the market. The company has resulted to this strategy considering that many other companies have developed watch like devices that have not performed well in the market. The changing technology is leading to innovation of products that are able to meet the needs of the customers. Apple has not been left behind in this strategy since it is wishes to ensure that it remains competitive in the market.
According to the journal, apple has invested in the product for a long period. Even though the company has not clearly revealed information about its product, it has been observed that the company has recently hired highly qualified personnel in the area of technology who are responsible for designing the new device. Arguments are that the device will be used together with I phone. The device has many functions and this is likely to attract many customers since it is able to serve different needs of the customers. This is why it is a threat for other companies manufacturing smartphones.
Analysts have argued that the device will not do well in the market since it cannot appeal to the customers. Other analysts argue that the product will compete smartphones in the market. In response, other companies have gone ahead to produce similar devices. Some have developed devices that can be connected to smartphones through Bluetooth device.
The article has similar ideas to those learnt in class. According to our class work, new products can fail in the market once they are introduced. This is in case the new product does not appeal to the customers. In the article, watch like devices produced in 2003 did not perform well in the market and this is why they failed to penetrate the market. Our class work points out that if products appeal to the customers, they flourish and perform very well in the market. The article on the other hand explains that the new device from apple Inc is likely to perform very well in the market hence might overtake the current smartphones.
Our reading materials argue that companies come with various strategies of increasing their market share as well as retaining their current customers. In this regard, they design new products to the current customers. The article presents a practical example where apple Inc is introducing a new product to the existing customers. In addition, it wishes to have a bigger market share if the product appeals to the customers. This strategy is necessary to ensure that the needs of customers are met through an effective means.
The move by apple Inc illustrates the diversification strategy covered in class. It involves producing another new product that aims at capturing new customers. The company will eventually benefit by producing the initial products and the new product. If the new product does not perform well, the company still benefits from the initial products. If the old products do not perform well in the market, the organization benefits from the innovation. In either way, the risks of the business are reduced.
Reference.
Jessicca E.(2013). Apple Is Testing Watch-Like Device. 2013. Retrieved from: http://online.wsj.com/article/SB10001424127887324196204578296171274865646.html
