apple presentaion
DESCRIPTION
MKTG 390 Marketing Strategy Environmental Scan, SWOT Analysis and Market Potential I was the principle author of this Apple presentation for Marketing Strategy (MKTG 390). A key point is how Apple has disrupted the industry with its Apple Pay. The assignment objectives: Conduct an environmental scan of that industry, develop a market potential forecast 2014 and 2019, and choose a company in that industry and do a SWOT analysis on it. You will need to define and describe the industry precisely (NAISC code) and the geographic scope (U.S., Europe, world), e.g. personal computers in the U.S. Then do an environmental scan (PEST) and develop a market potential forecast for the industry. Then you need to choose a company in the chosen industry and do a SWOT analysis on it, e.g. Dell. You need to present, analyze and document your environmental scan, market potential forecast and SWOT analysis as you would any research paper or report. .TRANSCRIPT
REPORT
By Averi, Matt, Razz, Reggie & Sean
AGENDA
I. iOVERVIEWII. ENVIRONMENTAL SCAN III. iSWOT IV. COMPETITIVE ANAYSIS V. MARKET OUTLOOK VI. Q&A
iOVERVIEW
I. Apple earns industry-specific revenue from two operating segments:
1) Operating System Software 2) Application Software
II. Apple exists in multiple industries
Market Leader
iOVERVIEW
I. Announces iTunes Radio in 2013 Operating at a loss to capture market share from Pandora & Clear Channel (iHeart Radio)
iOVERVIEW
Disruptive innovation in music business model
iOVERVIEW
I. Announces COMING EARLY 2015
WATCH II. Announces PAY
iOVERVIEWIII. Industry Impact
Shift from leveraging economies of scale to focused operations to differentiate from Apple
“A pivotal first step would be to invent a new POV that it can own independently of Apple (or any other brands), and make sure it was a unique approach to form and function, not just communications content.” Source: FORBES Will HP Inc. Be A Dinosaur Or A Disruptor?, October 8, 2014
ENVIRONMENTAL SCAN
Political Factors
Social Factors
Economic Factors
Technological Factors
iPEST Analysis
Import penetration in manufacturing sector
Price of computers and peripheral equipment Consumer Confidence Index (CPI)
Corporate profit
Per capita disposable income (note: wages have not increased) Number of broadband connections (infrastructure )
Source: IBISWorld & Gartner Research (2014)
The level of regulation is light and the trend is steady
Firms must follow state and federal laws (IP laws)
Streamlined Sales and Use Tax Agreement (SSUTA)24 states & District of Columbia
E-commerce:
Federal Trade Commission Department of Justice
Consumer Protection Agency
We are in the midst of a radical shift in living patterns
Urban living
Increase in immigrants Aging (world) population
Average life expectancy in U.S. is 79 years of age
Source: Pew Research & CDC (2014)
Source: IBISWorld (2014) Source: IBISWorld (2014)
Increasing adoption of the digital life (integration)
Level of technology change is highNew products every 6 months Industry operators depend on the internet as a selling platform New developments with social media and apps Internet of Things (IoT) Innovations in human-computer interaction
iSWOT
Strengths
Opportunities
Weaknesses
Threats
Dependence on cellular networks
Product delays typically due to issues with supply chain
High dependence of iPhone & iPad sales
Source: MarketWatch & Global Data (2014)
Market leader in the markets it serves
Increase in demand for wearable technology iOS expansion to in vehicle devices (smart cars)
Source: MarketWatch & Global Data (2014)
Source: MarketWatch & Global Data (2014) Source: MarketWatch & Global Data (2014)
Increasing adoption of the digital life (integration)
Stagnate global economy
Theft of digital content (iCloud images distributed by hackers) Intense global competitors Declining sales of iPads Premium pricing can hinder growth in emerging markets Lower priced Android devices
Consistent high revenue streams & operational efficiencies Leader in R&D (3% of sales) Masters of design to create aesthetically appealing products
Strong brand image & equity Owns the largest library of music (5 million) & movies (500)
Increase in demand for tables Enterprise sector allowing personal devices
Mobile payments (iBeacon)
Iphone 6 issues with bending
U2 download backfire (Bono apologizes 10.15.14)
COMPETITIVE ANALYSIS
MARKET OUTLOOK
Computer Manufacturing in the U.S.
Revenue is projected to continue declining at an average annual rate of 5.2% to total
$11.0 billion in the five years to 2019
The share of consumers that own at least one computer is anticipated to increase
from 81.7% in 2014 to 87.4% in 2019
The growth of cloud computing (i.e. software and media delivered over the
internet) means demand for servers will increase
Industry is declining
Computer Manufacturing in the U.S.
Revenue will increase at an average annual rate of 7.8% to $30.8 to 2018 billion
Threat of regulation could hamper growth outlook
During the five next years, the number of (e-commerce)operators is expected to rise
2.6% per year on average to 5,310 companies
Industry is growing
MARKET OUTLOOK
Computer Manufacturing in the U.S.
Industry is declining
Internet Radio Broadcasting
Industry is growing
Retail Market for Personal Computers
Other industries
Cell Phone Repair
Design, Editing, Rendering Software Publishing in the U.S.
Speech & Voice Recognition Software Developers
Online computer & Tablet Sales in the U.S.
Source: IBISWORLD (2014)
THANK YOU
Q&A