2. Threat of new entrants – Moderate or relatively low. Requires high investment and capital. In addition, Apple’s ability to continuously differentiate its products from other companies makes it hard to copy their success. Apple also produces at relatively low cost due to economies of scale of wide-spread
With the increasing trend in smart phones and peoples’ inclination towards well-established brands have resulted in a neck to neck competition between the well-known Smartphone companies. Therefore it is essential for the companies to deeply study each and every aspect or attribute of their product and research how consumers respond to the slightest of innovation or change in the product attribute. This will enable them to better understand the need of their target market and develop a product that better serves it. Knowing about consumer behaviour will not only help the companies to better create their product rather it will also help them to wisely position it in the minds of their
This analysis also includes determining whether the competitive advantage will last for the long haul (Jubak, 2014). The strategies that the company implements should also correlate with the competitive advantage that the firm has in the market. Apple had a different concept about personal computers and their future. This is what catapulted the company to the front of the pack leaving behemoth companies such as IBM trailing behind. In addition, the company ensured that it curved a niche for itself in the market.
Marketing plan Is important to the company because it is mainly focused on success, and that lack of a marketing plan will lose the company a lot of money Samsung is characterized by a variety of production areas where it applied its Samsung has pursued multiple ways of selling and marketing its electronic products because it aspires to excellence and development in technology and continues to sell according to customer taste. First, (Understanding the Market) Samsung went to the electronic field when it noticed that the market needed electronic devices. Secondly, I looked at (selling) Samsung realized what the market needs and the quality of its service to consumers. Now it has 25 production centers and 59 sales branches. Thirdly, (understanding the customer's need) which clarifies the meaning of "digital convergence", which is linked to important devices in human life, such as home appliances, smart phones and office equipment.
It´s important to remember that disruption is positive for the mass-market and are innovations that make products and services more accessible and affordable, thereby making them available to a much larger population. When we look at the full extent of Xiaomi´s business model, we can clearly see how different and how disruptive it is. How does Xiaomi keep their prices at least 60% lower than their competitors? While Apple need to come up with a new model to maintain their high profits, Xiaomi have found a clever way to reach these profits without overserve the market with smartphones. For Xiaomi to sell high-end smartphones at such cost, Xiaomi keeps their models
Furthermore, it is Verizon’s strength, to have a unique business model, with expectational Verizon fios data connection allowing for their company 's success. The company’s margins are quality due to their service, Verizon fios. However, the company also has weaknesses. One of the weaknesses include premium prices, because other companies, such as T mobile and AT&T, are very quick to catch up on services. Another weakness is that Verizon is still promoting their wireless usage outside of the United States.
In Figure 2 based on Hayes and Wheelwright’s model (cited in Salemi 2004) the variety of product-process mixes available to Samsung is extensive, a sample of products are represented. As Samsung has 38 manufacturing facilities that are all interlinked with MES and PLT, providing rapid response to changes, they can adopt a variety of positions, throughout the diagonal of the matrix. The positions will depend on where the product or component is in its life cycle. The other consideration is that Samsung’s position as a supplier of essential components, to competitors, allows it some control over market
• • The apple watch has popularised the market of smartwatches which is something companies like Samsung could not do. This is due to the clever marketing strategies of apple, and in turn gives them an upper hand in the smartwatch market as they are the centre of attention. • Apple can use its advantages in the smart watches in order to shift towards a new market of bio-technological gadgets. The development of the bio-sensors in the apple watch could provide a gateway for development into another market. Weaknesses
The forward integration strategy stands to benefit the larger cellular providers more. Verizon is the leader in the market for their cellular services, where their profits are considerably higher than its competitors, yet it falters in comparison to smaller companies, such as boost mobile, in their actual product sales. The gap between two such companies can be minimized, however, as the largest benefit for Verizon to implement vertical integration is to help lower their product costs, due to the ability to mitigate the distribution process, which would increase the volume of products
Differentiation seeks to develop a competitive advantage by supplying and promoting unique products. While telecommunications is not very unique, not every other business can be able to offer the same services. In addition, competition remains limited due to the cost of market entry. Cost of leadership focuses on reduction of operating costs in order to reduce product prices. Verizon wireless does not require reducing its operating costs further because its prices are already competitive enough.