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Group #10: 2.Binh Thieu 3.Lan Phan 4.Minh Thu Luu 5.Tung Duong (Communication Equipment Industry) ------------------ BUS 890: Strategic Management What is the one item you never leave home without?

4727162 Smart Phone Industry and Apples iPhone Analysis

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Page 1: 4727162 Smart Phone Industry and Apples iPhone Analysis

Group #10:

2.Binh Thieu

3.Lan Phan

4.Minh Thu Luu

5.Tung Duong

(Communication Equipment Industry)------------------

BUS 890:Strategic

Management

What is the one item you never leave home without?

Page 2: 4727162 Smart Phone Industry and Apples iPhone Analysis

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 3: 4727162 Smart Phone Industry and Apples iPhone Analysis

Smart-phones

allow users to: e-mail, internet

store information,

entertainment

install programs,

along with using a mobile

phone in one device

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 4: 4727162 Smart Phone Industry and Apples iPhone Analysis

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 5: 4727162 Smart Phone Industry and Apples iPhone Analysis

Market size and growth rateNumber of rivalsProduct InnovationsLearning/experience curve effects

Total Mobile Sales: - Mobile phone sales to exceed 1billion in 2009

- More than 200 million smart-phones will be sold in 2008.

Source: http://www.palminfocenter.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 6: 4727162 Smart Phone Industry and Apples iPhone Analysis

1. Consumers market

2. Corporate market

1. CarriersAT&T …

2. OS providersLinux, WM…

3. Hardware makersIntel …

1. Establish mobile manufacture: LG, Samsung

2. Software giants: Google, MSFT

1. VoIPSkype…

2. PDA phonePalm…

3. Features phoneNokia, LG …

1. More companies enters…

2. Strong brands and finance

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 7: 4727162 Smart Phone Industry and Apples iPhone Analysis

Source: www.wikinvest.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 8: 4727162 Smart Phone Industry and Apples iPhone Analysis

Source: http://blog.bryanstarbuck.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 9: 4727162 Smart Phone Industry and Apples iPhone Analysis

“This is a difficult industry, part of it is technology; part of it is fashion…”

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 10: 4727162 Smart Phone Industry and Apples iPhone Analysis

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 11: 4727162 Smart Phone Industry and Apples iPhone Analysis

Mission:"Apple is committed to bringing the best personal computing

experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings."

Vision:"Man is the creator of change in this world. As such he should

be above systems and structures, and not subordinate to them"

Industry: 8. Computer software & hardware9. Consumer electronics

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 12: 4727162 Smart Phone Industry and Apples iPhone Analysis

Taiwan –

Facilities of camera, circuitry,

connectors, stainless casings

Singapore –

Facilities of CPU,

processing chips

US –Facilities of

touch screen, specific

parts

China – ShenzhenAssembly

Facility

Source: http://www.shmula.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 13: 4727162 Smart Phone Industry and Apples iPhone Analysis

Sharp rise in consumer demand 56% of smart-phone buyers prefer iphone

New target market –price reduction attract

more customers

High Potential Software –upgradable; can add new features

3G Apple iPhones to captivate business demand worldwide

Source: http://www.linuxdevices.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 14: 4727162 Smart Phone Industry and Apples iPhone Analysis

New powerful entrant - Google

Many similar or substitute

products

Intense competition with major

rivals

Increasing bargaining power of

buyers

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 15: 4727162 Smart Phone Industry and Apples iPhone Analysis

First mover advantage

Ownership of

technological patents

Apple is one of the most

established brand

Customers loyalty

Cultural, fashion identity

Source: http://www.appleinsider.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 16: 4727162 Smart Phone Industry and Apples iPhone Analysis

Dependence on third party provider:

AT&T, Content Provider, Application

provider

Less appeal to corporate customers

Technological complication

Gorilla arm

Limitation of particular features

Application slow down and freeze

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 17: 4727162 Smart Phone Industry and Apples iPhone Analysis

iTunes : Synchronization

between the iTunes - App

store and Apple devices.

User interface of consumer

gadgets and computing

devices

Intuitive design, easy-to-use

and self-discoverable

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 18: 4727162 Smart Phone Industry and Apples iPhone Analysis

Users’ experience

Source: http://blog.wired.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 19: 4727162 Smart Phone Industry and Apples iPhone Analysis

Source: http://www.businessweek.com Data: Standard & Poor’s

Apple may well pass Microsoft, which has $23.7 billion in cash, and could have $40 billion in 2 years

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 20: 4727162 Smart Phone Industry and Apples iPhone Analysis

Source: http://www.artechnica.com

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 21: 4727162 Smart Phone Industry and Apples iPhone Analysis

Source: Textbook

Focus-Differentiation

Strategy

A narrow market niche

with unique needs

Premium Price to target

high-end consumers ,

business market

Broad-Differentiation

Strategy

Offer more products to

a broad of buyers

Deliver value to

customers by

differentiating

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Page 22: 4727162 Smart Phone Industry and Apples iPhone Analysis

Outline

Industry Analysis

Why?

Driving Forces

Dominant Features

Five Forces

Strategy Group Map

Key Success Factors

Company Analysis

Overview

Value Chain Analysis

SWOT Analysis

Competencies

Business Analysis

Competitive Strategy

Recommendations

Diversi

ficat

ion:

iphon

e Nan

o,

iphon

e Biz…

Expansion:M&A, alliances, partnership…

Innovation:

smart-card,

Apple cloud …

__APPL-IZATION__

Page 23: 4727162 Smart Phone Industry and Apples iPhone Analysis

Peter Burrows (2008,7,30). How to spend Apple’s cash. Business Week. Retrieved August 11, 2008, from http://www.businessweek.com/magazine/content/08_32/b4095000656875.htm?chan=magazine+channel_news

Olga Kharif (2008, 8,4). That iPhone Nano rumor. Business Week. Retrieved August 11, 2008, from http://www.businessweek.com/the_thread/techbeat/archives/2008/08/that_iphone_nan.html?chan=top+news_top+news+index_news+%2B+analysis

Peter Abilla (2007,1,18). The Apple iPhone Supply Chain. Shmula. Retrieved August 11, 2008, from http://www.shmula.com/304/the-apple-iphone-supply-chain

Charles Jade (2008,4,23). Apple Q2 2008: Mac sales surge, iPhone not so much. Ars Technica. Retrieved August 11, 2008, from http://arstechnica.com/journals/apple.ars/2008/04/23/apple-earnings-mac-sales-surge-iphones-not-so-much

Bryan Gardiner (2008,4,1). The smartphone smackdown: who satisfies customers best? Wired. Retrieved August 11, 2008, from http://blog.wired.com/business/2008/04/the-smartphone.html

Santhosh Paramesh (2007,10,16). 3 more ways Apple will take over the world. Vibgior Technomix. Retrieved August 11, 2008, from http://technomix.vibgior.com/?p=17

Page 24: 4727162 Smart Phone Industry and Apples iPhone Analysis