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Differentiation Case Study on iPhone

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Aabhash Poddar

Abhishek Ruia

Darshita Trivedi

Dhwani SanghviHarish Nayak

Neha Agarwal

Nikunj Saraf

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Group #7

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Presentation Flow 3

About Apple Inc.

About iPhone

Industry Structure

CompetitiveAdvantage

SWOT Analysis

Firms Value Chain

Operational

Activities

Buyers Value

Chain

Value Chain

Activities

Uniqueness

Drivers

Recommends

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About Apple Inc.

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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

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About iPhone

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Steve Jobs unveiled the

iPhone in January2007.

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iPhone

iPod Phone Internet

Apple reinvents the Phone8

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Revolutionary mobile phoneRevolutionary Mobile Phone

2007

2008

2009

2010

The iPhone re-invents the phone

The iPhone 3G and the App Store

The iPhone 3GS is twice as fast

The biggest leap since the original

iPhone

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Revolutionary mobile phone

Fastest User

Growth inConsumer

Technology

History

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Sold

1,398,000 units

between June 29 2007 and September 29 2007.

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Industry Structure

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Low toMedium

High toVery High

VoIP Skype

PDA phone

Palmtops

Similar featuresin Nokia, LG etc

More

companiesentering intosmartphones

market

Strong brands& finance

Carriers AT&T

OS providers likeLinux

Hardware makers

Intel

Establish mobilemanufacture:

Nokia, LG,Samsung

Software giants:Google,

Microsoft

Consumersmarket

Corporatemarket

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Competitive Advantage

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Smart

Hard

T oUse

Not so Smart

EasyToUse

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E62Treo

Moto

Q

Cell

Phones

iPhone

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Strengths Weakness

Style/Brand

Sensors

High quality

First moverEasy to carry

High price

Limited distribution channels

Migrate people to Apple

New social device

Upgradable Software & Features

Similar devices

Opportunities Threats

Highly developed market

Pressure from competitors

Application slowdown

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Port existing apps

Distribute iTunes content

Missing features

Dependence on third party provider

Less appeal to corporate

New powerful entrant - Google

Rich UI

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Firms Value Chain

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Supply

management

Warehouse

Management

Linkages with

independentsoftware vendors

Design

Innovation

Manufacturing

Parts

Testing

Product

Distribution

channel

Relationship

with retailers

Customer

redressal

Promotion

Advertising

Branding

INBOUND

LOGISTICS

OUTBOUND

LOGISTICSOPERATIONS MARKETING

& SALESSERVICE

FIRM

INFRASTRUCTURE

HRM

TECHNOLOGY

DEVELOPMENT

PROCUREMENTTransport-

ation

Upgraded

technology

Engineers,

TrainingWorkers WorkersSales force,

Training

Quality

material

Product and

Positioning

image

Suppo

rtActivities

Top management support in selling,

Facilities that Enhance firms image.

Transportation

Apps

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Operational Activities

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Buyers (Individual customer) Value Chain

which determines Purchase criteria

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Design

Innovation

Quality

Relationship

with retailers

Abundant apps

Replacement

warranty

Promotion

Advertising

Good sales

network /

distributors

INBOUNDLOGISTICS OUTBOUNDLOGISTICSOPERATIONS MARKETING& SALES SERVICE

FIRM

INFRASTRUCTURE

HRM

TECHNOLOGY

DEVELOPMENT

PROCUREMENT

Next Gen

Experience

Quality

Material

Product and

Positioningimage

Supp

ortActivities

Exclusive showrooms

Apps

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Matrix of Value Chain Activities to

Purchase Criteria

CRITERIA I/B OPERA- O/B MARKET- SERVICE PROCURE- TECHNO- HRM INFRA

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CRITERIA I/B OPERA-

TION

O/B MARKET-

ING

SERVICE PROCURE-

MENT

TECHNO-

LOGY

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

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Uniqueness Drivers

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InterrelationshipAT&T and Verizon

LinkagesApps Providers

TimingsFirst to come up with superior GUI

IntegrationDevelops its own OS

Intermediary becomes redundant as customer buys directly from

the firms exclusive stores

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Recommendations

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Strategies for competing in rapidly growing markets

More appeal to corporate

Reduce the application slowdown

Dedicate more time for testing products

Expanding the companys geographic coverage

Gaining access to additional distribution channels and sales outlets

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Th k Y !!!