Marketing Strategy Assignment: Business Case Analysis Of Apple
This marketing strategy assignment should answer the following questions:
1. Place Apple within a GE Multifactor analysis. Support the chosen position of the brand/company.
2. Using an Ansoff product market matrix, summarize how Apple is using some or all four growth strategies. Include two to three bullets for each component in the matrix.
GE Multifactor analysis presented in the marketing strategy assignment
GE Multifactor analysis is a marketing technique through which a company can analyze the opportunities in the market. This analysis gives a clear understanding to business about the products that a business should launch or necessary changes in a product that leads to increased sales, thereby leading to growth and success of the business. The company's attractiveness and strength are considered to analyse the opportunities. It aims at developing the business strategies to launch new products and identifies areas of investment.
The GE Multifactor analysis is a nine grid table. In the Y-axis lies the company attractiveness, and company strength lies in the X-axis. It is evaluated in high, medium and low levels to determine its position. GE Multifactor analysis is important for businesses to analyse market attractiveness (Bondarenkoet al., 2020). It is useful to understand the competitor's activities, price trends, and demand and product life cycle. The investment strategies are based on the strategic business units mentioned in the matrix. Thus plays an important role in the growth, success and profit of the business.
Apple GE Multifactor analysis represents the brand position. This analysis helps Apple analyse the area of investment in the case of products. Apple currently sells television, iPod, smartphone, music system and software to support these products.
Apple iPhone sales have increased over the years. It is because of its diversified features. Apple provides widescreen cinema presentation and huge memory space and qwerty keyboard features at one touch of users.
Innovative technology - Apple products are known for their innovative technology. The brand designs software and products with innovative technology distinctive from its competitors. This increases the brand value.
Apple products provide huge security to people. If Apple products are misplaced, they can easily be traced due to its strict security features. Apart from the user, nobody has access to the information stored on the phone due to its security system. This feature attracts customers and plays an important role in increasing sales Customer Loyalty - Apple has been successful over the years to gain its customer loyalty. The products of Apple are costly, but it attracts the customer through its innovative security features, memory, camera, and design and software systems. Its application focuses on customer needs. Business people are attracted because of the stock application as it helps in investment. These applications attract customers as they safeguard customer interest and focus on security (scribd.com, 2021). The brand focuses on customer convenience, safety therefore it is successful in gaining customer loyalty.
Apple provides various applications to its users such as podcasts, facetime and stock. The Stock app gives all information to the user regarding investment. This feature attracts business people as it helps businesses invest wisely and prevent loss. Therefore this application attracts users and enhances Apple market position. Research and Development - Apple invests a huge amount in research and development. A thorough study of the market helps the brand design the product based on customer needs and changing preferences. Research helps the brand to analyse the market situation. It gathers information and analyses suitable times to launch the product leading the ss and growth of the business.
According to GE Multifactor analysis, Apple's position is between high to low as it is successful and strong in its strategic business units as it leads to a fast-growing segment of the business(Sukmaet al., 2019). It is analysed that Apple has the greatest opportunity in launching smartphones and computers as these are in huge demand, thereby increasing the customer base and market size of the brand. Hence Apple should manage the product portfolio to earn profit.
Ansoff Matrix is a marketing tool that helps the business in strategy formulation. It focuses on product position and market situation. The strategies formed through analysis are based on the market situation. It guides necessary actions leading to the success and growth of the business. Ansoff matrix significant advantages are: It makes aware of market risk, guides growth strategies, helps to understand the cost of business and guides ways to manage the cost-effectively. The four stages of the Ansoff Matrix are market penetration, market development, product development and diversification. The Apple Ansoff matrix tool helps the business to develop growth strategies (ansoffs.com, 2021). The brand uses all four stages to understand the market trend and form the best strategies leading to the success and growth of the business. Market penetration - Market penetration is when the business tries to grow within the existing products and market. It helps the business to increase the share of the business market size. The shared business needs to increase its customer base and thereby improve sales.
Apple uses the market penetration strategy to increase its sales. The existing market of the brand is on a global level.
Apple makes its products available to customers through different mediums to ensure easy availability. These products are available online on the website, telecommunications stores and apple stores near the customer. It makes sure that products are available to customers quickly and conveniently.
Apple increases its sales by increasing the market size globally. This helps to increase the customer base, thereby increasing sales.
Apple attracts customers through its design, system, software, varieties, innovative technology, application and features. These help to attract and retain customers, thereby increasing sales for Apple products.
Market development: Market development refers to the stage where the business needs to develop its markets. The business enlarges the market size to sell the existing products. Apple has been continuously working to increase the market size and enlarge the business not only in the home country but on a global level.
Apple expands its market globally through mergers and acquisitions (Imhanzenobe, 2021). These mergers help the brand to reduce the competitiveness of target companies. These mergers help the brand to understand the local market and establish itself. It expands its market to attract talents in the business.
Apple focuses on the geographic expansion of the brand. This is done by the business by expanding the business in all countries. It invests a huge amount in research and development to understand the market conditions of different countries to expand successfully. Apple opens its retail stores in a different geographic location to connect the customer directly with the company.
The company works on developing new distribution channels for all its new markets to fulfil the needs of local customers. Product Development: Product development is a strategy implemented by businesses to attract and retain customers. As the customer's needs and preferences change with time, the business must implement necessary changes in the product. Apple product development strategy focuses on changing the design, software, and product features according to the changing preferences of customers. Product development helps Apple offer new products to attract new customers and provide variations to existing customers.
Apple is known for its innovative technology. It uses innovative technology in its product to attract customers. In today's digitised world, the business must develop the product using updated, innovative technology (Tien, 2019).
Apple invests in research to understand customer needs and preferences. It designs and develops the product features by innovative technology and customer needs. iPhone 13, Apple watches, Apple TV, are the products launched by the brand recently with developments.
Apple develops the variants of one product to create diversification and attract customers of different technology needs. Diversification: Diversification refers to the stage where a new product is launched in a new market. This is a risky stage as both product and market are new, so it is uncertain for the business. The strategy formed in this stage is based completely on research. Diversification helps the brand to increase sales and revenues (Loredana, 2017). This approach is costly for the business as the companies need to invest in advertising and promotion to make the customer aware of the product and the brand. Apple uses this strategy for launching its newly developed product. Apple faces less risk in the case of diversification because of its effective management strategy to neutralise threats.
1. Apple diversification strategy has been successful for the business. Its diversification in the product and varieties help the business to increase the customer base. A wide variety and innovative features are offered to customers by the brand.
2. The diversification in Netflix, Apple TV and Amazon Prime during the pandemic has led to a boost in the business. During a pandemic, the demand for the ott platform has increased, so diversification in this platform led to the success and growth of the brand.
3. Apple is known for its product differentiation. It has launched a product different from its previous product. Apple Watch, Apple card and Apple Pay are the new diversification of the brand in new markets.
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