Apple How to Sustain a Competitive Advantage?

Post on 22-Jan-2018

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Transcript of Apple How to Sustain a Competitive Advantage?

Xinyi WangWenrui WangYana CherepashenskayaJason LinMike Pia

● Background & History● Issues● Internal Analysis● External Analysis● Alternatives● Recommendations● Implementation● Questions ● Appendix

Currently #2 behind Samsung in Smartphone market share worldwide

Competitors continue to develop superior hardware

iPhone is Losing Competitive Advantage

Decreasing Smartphone

Market Share

Strengths Weaknesses

● Brand Image● Know-How● Customer Loyalty

● Premium Pricing● Inflexible OS

Internal Analysis

Opportunities Threats

● Emerging Markets● Acquisition of Suppliers● Improvements

on Products

● Rapid Technology Change ● Competitors’ Growing

Market Share

External Analysis

Loss of uniqueness and simplicity

LinX technology is similar to other popular imaging hardware

Acquire LinX

Open-source operating

system

Issue:#2 smartphone

Recommendation:Focus in marketing the iPhone in India, the world’s fastest growing smartphone market

Issue:Losing tech

advantage

Recommendation:Acquire Lytro, a camera technology company that uses light field technology

2013 2014

Negotiatewith Lytro

Manufacture iPhone in Indian Foxconn factories

Grow Apple brand Indian Ad campaign

Implement light field technology

Develop larger manufacturing presence in India

Acquire Lytro ($20 million + 20% premium)

2015 2016

Market other Apple products to Indian market

Launch new improved products

Acquire Lytro

Attack Indian Market

Apple’s Revenue

● Edit here

Apple Revenue

Top 50 Tech R&D Spenders

Worldwide Smartphone OS Market Share

Growth of Cloud Computing

Global Smartphone Market Share

Chinese Smartphone Market