Apple, Inc. is a company which has a broad range of products and offers a huge amount of services. The industries that Apple competes in is vast and expansive, ranging from personal computers and fitness equipment to mobile payment systems. If you had to apply Apple to one broad industry then it would be the Technology industry, with computer manufacturing being a subsector (Nasdaq, 2017).
So, what is Apple’s value offering? What does it provide that has allowed the tech giant to remain at the forefront of an industry which is saturated by literally hundreds of rival products? Well, according to Apple, a smart phone to them “is not just a collection of features, rather it is an experience”. Apple understands that their customers and the customers of their competitors, who could become their customers are all looking for certain experiences that not only create a “magical” feel to an everyday device, but also play into current wants, needs and issues. Take mobile and data security for example: After the news breaking FBI case which saw an incident where an iPhone needed to be unlocked and was by the government, this caused worry amongst the public. So, Apple invented the “Touch I.D.” an innovative and ground-breaking piece of technology which means you use your fingerprint to unlock your phone. They store this coding and analysing technology in something called “the Secure Enclave”. According to Apple “it is completely walled off from the rest of your phone, and it keeps your fingerprint encrypted and protected. We can’t see it, “They” can’t see it. Not even you can see it”. This clever solving of a real and current issue is what allows Apple to offer continues new and innovative methods, experiences and technology and this is what keeps them ahead of their world-wide list of competitors.
Apple communicate these messages of having the best experience using the phone and ensuring it isn’t just a combination of apps and features in the simplest of ways. Using very simple language allows all possible stakeholders to understand what Apple are doing. It also allows customers to fully immerse themselves into the product and the full “Apple experience”. This simple communication skill is readily available on their website and on ads which can be found via the television or on demand websites such as YouTube
Due to Apple operating in so many subsectors of the technology department, it would be odd if their competitors only stuck to one area of business too. Apple as you can imagine, have a whole host of fierce rivals for every area of business they’re in. In terms of computing software, they have to go up against Microsoft, Dell, Asus, Hewlett-Packard and Acer. Whereas in their mobile sector, the list of rivals fighting for the top spot changes entirely. It features tech giants such as; Google, Samsung, Nokia. Moreover, they have to also fight for operating systems to run the mobiles, the leader of this being the Google Android, fighting their iOS system. Apple then has its most up to date investment to worry about; mobile payment services. Being the newest big player in the market, it has to go up against giants PayPal, whilst Google once again have a hold on the market shares. “An impressive rate of the growth of the industry attracts new market players especially from emerging economies with access to cost-effective resources and this tendency is expected to persist in long-term perspective. Despite the fierce competition in consumer electronics and e-commerce industry, Apple is one of the acknowledged leaders in the global marketplace. iPhone market share of new smartphone sales in the global market place is almost consistently above 15 per cent since the launch of the product.” (Dudovskiy, J. 2017). This emergence of consumer electronics and mobile devices from developing nations is rapidly becoming more prominent. One of the main examples of this is from China. Huawei was founded 30 years ago but only has it recently become a global player, seeing sales in Europe and the Americas.
Apple have an upbeat, innovative marketing strategy. Their ads, first of all feature many influential celebrities from many different fields of work and are then streamed on all viewing platforms. Taylor Swift from the music industry to help their advertisement of iTunes. Neymar Jr. from Paris Saint German football club was used to help the advertisement of their health feature. Their key strategy on the other hand is to create products which all have a complimentary function. This way, when you buy into Apple, you are met with a sense of product and brand loyalty, this in turn means that when you go to purchase a new product, you realise you would have to replace all of your connected products. This is a very clever marketing strategy which translates across devices.
References:
Dudovskiy, J. (2017). Apple Porter’s Five Forces Analysis – Research Methodology. [online] Research Methodology. Available at: https://research-methodology.net/apple-porters-five-forces-analysis-3/ [Accessed 14 Dec. 2017].
NASDAQ.com. (2017). Technology Companies. [online] Available at: http://www.nasdaq.com/screening/companies-by-industry.aspx?industry=Technology [Accessed 14 Dec. 2017].
Shewan, D. (2017). 7 of the Best Value Proposition Examples We’ve Ever Seen | WordStream. [online] Wordstream.com. Available at: https://www.wordstream.com/blog/ws/2016/04/27/value-proposition-examples [Accessed 14 Dec. 2017].
Yeung, N. (2017). The marketing strategy of Apple: A concise analysis | Version Daily. [online] Version Daily. Available at: http://www.versiondaily.com/the-marketing-strategy-of-apple-a-concise-analysis/ [Accessed 14 Dec. 2017].