Iphone 6 Essay

SERVICE MANAGEMENT ASSIGNMENT (BU3640) Name: MARK REIHILL

Q.1. What sort of value is created by the production/use of the iPhone 6?

Creating value for the customer has become very important for businesses in recent times. When referring to ‘value’, it’s not about getting a good price for goods purchased (similar to a consumer looking for good value in a supermarket), but rather it is “the worth in monetary terms of the technical, economic, service, and social benefits a customer company receives in exchange for the price it pays for a market offering” (Anderson, 2015). In terms of co-creation, Apple must ensure that the benefits of owning an iPhone 6 outweigh the cost of acquiring it. Apple is well aware that it can not be all things to all

Apple charges a premium price for its iPhones because its market leader status, which creates value for its shareholders through economic rent in that it earning large profits benefits them. Similarly, the success of the iPhone 6 results in the continuation of employment for Apple staff, thus benefitting them as well in the form of wages.

Apple focuses on its core competencies which revolve around modern innovative designs, offering consumers the chance to use its sleek, attractive products. All of these features offer Apple a competitive advantage over its competitors. And, as Apple continues to be the benchmark for its industry in terms of sales volume, profitability and innovation, it – along with its iPhone 6 - will continue to hold a competitive advantage for the foreseeable future, and has been branded the “Prada of the tech industry” (Bil,

Matt Asay describes how Apple’s ability to reach its target market goes against traditional methods because it “does not target markets, but rather it targets people”, letting them decide how and where they’ll use its products (Asay, 2010). This ideology revolves around focusing on individuals and building exceptional products for them. Apple has redefined the market for technological devices by designing attractive, multi-functional, easy-to-use products. As a result, it is clear that its strategy to appeal to its target market revolves around creating an interesting product and define your market as "those who are interested in it" (Ton, 2015). Apple is all about the customer experience, be it in their stores or else creating products that their customers will love, and isn’t too concerned with concentrating on those who don’t. As mentioned previously, Apple has a clear idea of who its target market is and will design marketing plans around ensuring its core competencies adhere to that. However, Apple’s decision to bring out the iPhone 5S and 5C and offer it at a much lower price than its other iPhones in order to tap in to developing markets showed that it wants to increase its market share in developing markets (notably Asia and Africa), as well as looking for a solution to arrest a fall in its gross margin by