iPhone SFI
Content
Differentiation Case Study on iPhone
1
Group #7
Aabhash Poddar Abhishek Ruia Darshita Trivedi Dhwani Sanghvi Harish Nayak Neha Agarwal Nikunj Saraf
2
About Apple Inc. About iPhone
Operational Activities Buyers Value Chain Value Chain Activities Uniqueness Drivers Recommends
Industry Structure
Competitive Advantage SWOT Analysis
Firms Value Chain
Presentation Flow
3
About Apple Inc.
4
An American Multinational Company Established in Apr 1,1976 in, California & Incorporated Jan 3, 1977 Worldwide annual sales of $65.23 billion in its fiscal year ending September 25th, 2010 Designs and markets consumer electronics, computer software, personal computers and smart phones Apple the most admired company in the United States in 2008, and in the world in 2008, 2009, and 2010 - Fortune Magazine
5
About iPhone
6
Steve Jobs unveiled the iPhone in January 2007….
7
iPhone
iPod
Phone
Internet
Apple reinvents the Phone
8
2007
The iPhone re-invents the phone
2008
2009 2010
The iPhone 3G and the App Store
The iPhone 3GS is twice as fast The biggest leap since the original iPhone
Revolutionary Mobile Phone Revolutionary mobile phone
9
Fastest User Growth in Consumer Technology History
Revolutionary mobile phone
10
Sold
1,398,000 units
between June 29’ 2007 and September 29’ 2007.
11
Industry Structure
12
Low to Medium
Establish mobile manufacture: Nokia, LG, Samsung Software giants: Google, Microsoft
High to Very High
VoIP Skype PDA phone Palmtops Similar features in Nokia, LG etc
More companies entering into smartphones market Strong brands & finance
Consumers market Corporate market
Carriers AT&T OS providers like Linux Hardware makers Intel 13
Competitive Advantage
14
Smart iPhone
Hard To Use
E62 Moto Q
Treo
Easy To Use
Cell Phones Not so Smart
15
SWOT ANALYSIS
16
Strengths
Port existing apps High quality Style/Brand Easy to carry Rich UI First mover Sensors
Weakness
Limited distribution channels Less appeal to corporate
High price
Missing features
Application slowdown Dependence on third party provider
Migrate people to Apple New social device
Pressure from competitors Similar devices
Distribute iTunes content
Upgradable Software & Features
New powerful entrant - Google
Highly developed market
Opportunities
Threats
17
Firm’s Value Chain
18
FIRM INFRASTRUCTURE HRM
Top management support in selling, Facilities that Enhance firm’s image.
Workers Engineers, Training Upgraded technology Transportation Quality material • Design • Innovation • Manufacturing Parts • Testing Product Transportation Product and Positioning image •Customer redressal
Support Activities
Workers
Sales force, Training Apps
TECHNOLOGY DEVELOPMENT PROCUREMENT
•Supply management •Warehouse Management • Linkages with
•Distribution • Promotion channel • Advertising •Relationship • Branding with retailers
independent software vendors
INBOUND LOGISTICS
OPERATIONS
OUTBOUND LOGISTICS
MARKETING & SALES
SERVICE
Primary Activities
Operational Activities
20
21
Buyer’s (Individual customer) Value Chain which determines Purchase criteria
22
Support Activities
FIRM INFRASTRUCTURE HRM
Exclusive showrooms
TECHNOLOGY DEVELOPMENT PROCUREMENT
Next Gen Experience Quality Material Product and Positioning image
Apps
• Design • Innovation •Quality
•Relationship • Promotion with retailers • Advertising •Good sales network / distributors
•Abundant apps • Replacement warranty
INBOUND LOGISTICS
OPERATIONS
Primary Activities
OUTBOUND LOGISTICS
MARKETING & SALES
SERVICE
Matrix of Value Chain Activities to Purchase Criteria
24
CRITERIA
I/B
OPERATION
O/B
MARKETING
SERVICE
PROCUREMENT
TECHNOLOGY
HRM
INFRA
A. USE 1.Specification 2. Spare parts availability
3.Quality
4. Design 5. Price B. SIGNALING 1.Product positioning 2. Sales force 3.Advertising
25
Uniqueness Drivers
26
Interrelationship
AT&T and Verizon
Linkages
Apps Providers
Timings
First to come up with superior GUI
Integration
Develops its own OS Intermediary becomes redundant as customer buys directly from the firms exclusive stores
27
Recommendations
28
Strategies for competing in rapidly growing markets
More appeal to corporate
Reduce the application slowdown
Dedicate more time for testing products
Expanding the company’s geographic coverage
Gaining access to additional distribution channels and sales outlets
29
Thank You!!!
30
1
Group #7
Aabhash Poddar Abhishek Ruia Darshita Trivedi Dhwani Sanghvi Harish Nayak Neha Agarwal Nikunj Saraf
2
About Apple Inc. About iPhone
Operational Activities Buyers Value Chain Value Chain Activities Uniqueness Drivers Recommends
Industry Structure
Competitive Advantage SWOT Analysis
Firms Value Chain
Presentation Flow
3
About Apple Inc.
4
An American Multinational Company Established in Apr 1,1976 in, California & Incorporated Jan 3, 1977 Worldwide annual sales of $65.23 billion in its fiscal year ending September 25th, 2010 Designs and markets consumer electronics, computer software, personal computers and smart phones Apple the most admired company in the United States in 2008, and in the world in 2008, 2009, and 2010 - Fortune Magazine
5
About iPhone
6
Steve Jobs unveiled the iPhone in January 2007….
7
iPhone
iPod
Phone
Internet
Apple reinvents the Phone
8
2007
The iPhone re-invents the phone
2008
2009 2010
The iPhone 3G and the App Store
The iPhone 3GS is twice as fast The biggest leap since the original iPhone
Revolutionary Mobile Phone Revolutionary mobile phone
9
Fastest User Growth in Consumer Technology History
Revolutionary mobile phone
10
Sold
1,398,000 units
between June 29’ 2007 and September 29’ 2007.
11
Industry Structure
12
Low to Medium
Establish mobile manufacture: Nokia, LG, Samsung Software giants: Google, Microsoft
High to Very High
VoIP Skype PDA phone Palmtops Similar features in Nokia, LG etc
More companies entering into smartphones market Strong brands & finance
Consumers market Corporate market
Carriers AT&T OS providers like Linux Hardware makers Intel 13
Competitive Advantage
14
Smart iPhone
Hard To Use
E62 Moto Q
Treo
Easy To Use
Cell Phones Not so Smart
15
SWOT ANALYSIS
16
Strengths
Port existing apps High quality Style/Brand Easy to carry Rich UI First mover Sensors
Weakness
Limited distribution channels Less appeal to corporate
High price
Missing features
Application slowdown Dependence on third party provider
Migrate people to Apple New social device
Pressure from competitors Similar devices
Distribute iTunes content
Upgradable Software & Features
New powerful entrant - Google
Highly developed market
Opportunities
Threats
17
Firm’s Value Chain
18
FIRM INFRASTRUCTURE HRM
Top management support in selling, Facilities that Enhance firm’s image.
Workers Engineers, Training Upgraded technology Transportation Quality material • Design • Innovation • Manufacturing Parts • Testing Product Transportation Product and Positioning image •Customer redressal
Support Activities
Workers
Sales force, Training Apps
TECHNOLOGY DEVELOPMENT PROCUREMENT
•Supply management •Warehouse Management • Linkages with
•Distribution • Promotion channel • Advertising •Relationship • Branding with retailers
independent software vendors
INBOUND LOGISTICS
OPERATIONS
OUTBOUND LOGISTICS
MARKETING & SALES
SERVICE
Primary Activities
Operational Activities
20
21
Buyer’s (Individual customer) Value Chain which determines Purchase criteria
22
Support Activities
FIRM INFRASTRUCTURE HRM
Exclusive showrooms
TECHNOLOGY DEVELOPMENT PROCUREMENT
Next Gen Experience Quality Material Product and Positioning image
Apps
• Design • Innovation •Quality
•Relationship • Promotion with retailers • Advertising •Good sales network / distributors
•Abundant apps • Replacement warranty
INBOUND LOGISTICS
OPERATIONS
Primary Activities
OUTBOUND LOGISTICS
MARKETING & SALES
SERVICE
Matrix of Value Chain Activities to Purchase Criteria
24
CRITERIA
I/B
OPERATION
O/B
MARKETING
SERVICE
PROCUREMENT
TECHNOLOGY
HRM
INFRA
A. USE 1.Specification 2. Spare parts availability
3.Quality
4. Design 5. Price B. SIGNALING 1.Product positioning 2. Sales force 3.Advertising
25
Uniqueness Drivers
26
Interrelationship
AT&T and Verizon
Linkages
Apps Providers
Timings
First to come up with superior GUI
Integration
Develops its own OS Intermediary becomes redundant as customer buys directly from the firms exclusive stores
27
Recommendations
28
Strategies for competing in rapidly growing markets
More appeal to corporate
Reduce the application slowdown
Dedicate more time for testing products
Expanding the company’s geographic coverage
Gaining access to additional distribution channels and sales outlets
29
Thank You!!!
30
