Problem Statement: At first, from 1984 to 1 997, administrated by three different Coos, Apple shifted its major operating strategies and core markets several times. It turns out none of these changes made efforts. Apple suffered loss of revenue and loss of market share for over thirteen years. Second, Apple is losing its customer loyalty and the specificity of its products by installing more and more Microsoft and Intel software onto its products. Third, in 2008, as more than a quarter of its phones fell into “gray market,” Apple suffered a certain amount of loss of service share revenue.
At last, more and more smartness from Apple competitors are entering the market, which brings phone and pod a lot of pressure. Us Mary of Facts: There are several facts that are associated with the problems addressed. First, former Coos tried to increase Apple’s sale and expend its market share by reducing cost and reinvigorating core markets. However, it turns out these attempts lost more profits and market share. On the other hand, Apple outsourced the manufacturing of its most products to third party. Apple also focused on the interoperability with other software like Microsoft and Intel.
By 2008, pod, Imax and tunes they were all able to intemperate with other operating systems and software. Before that, all Apple products could barely be synchronized with its own products. Besides, by the end of 2007, more than 25% of the phones sold fell into the “gray market” in several countries that phone were not authorized selling there. Consequently, Apple lost as high as one billion service share revenue. Moreover, in 2008, many mobile operators and handset makers collaborated, launching smartness into the market.
Analysis of Facts: Reviewing the progress that Apple made, every success is either accounted or its distinguished features that differentiates it from competitors’ products, or its innovative products like pod and phone. Consequently, Apple’s first priority is to retain its innovative advantages. At the same time, Apple needs to concentrate on distinguishing its products from the ones from competitors. Once upon a time, education and desktop publishing was Apple’s core market. However, as technology processes, more and more home buyers are becoming the consumers of Apple products.
Since Apple products are not as accessible to the operating systems (Microsoft and Intel) hat were most widely used as its competing products are, it is impractical for Apple to improve profit by reducing cost. Therefore, retaining innovative advantages is the most effective strategy that Apple needs to take. From Imax to pod, from phone to tunes, every product is the result of Apple’s innovative ability. Every new product that Apple launched was based on Apple’s exclusive operating system. During the process, Apple built stable customer loyalty and market share.
The more important thing is every launch of new product is a leap for Apple, making it lead to market trend and gain the initiative. However, if Apple makes its products cable of interrogating with the most widely used software, it would fade the specificity of its product and make its products more vulnerable for Others to clone its products. So Apple needs to strengthen its brand image. From the perspective of the international market, Apple needs to authorize the sale of its products in countries with huge potential markets, not just domestic and European markets.
In the “gray market,” more than a quarter of unlocked phones was sold there, and because of that, Apple lost nearly one billion of service revenue. It is obviously that Apple products have a large nonuser foundation. Besides, facing severe domestic competition, it is wise to gain initiative in potential markets. Recommendations: To retain its innovative advantages, Apple needs to collect information on consumers’ and evaluations of its products, both positive and negative evaluations.
Considering the analysis of these evaluations, Apple could have a knowledge of the advantages and disadvantages of the product. Apple also could know what kind of functions and designs that consumers want to put in the future product. Then, it could focus on improving the disadvantages and perfecting the advantages. Apple could form a pointed plan to maintain its innovative advantages instead of blind increasing R fees. Specifically, by perfecting the advanced technology and function, Apple could consolidate its dominating position and clarifying the trend of the market.
By improving the disadvantages, Apple will make up mistakes and have a more precise knowledge of the deficiency of the product. To strength Apple’s brand image, in other words, to keep the specificity of its products, Apple needs differentiating its products from competing ones. First, Apple needs to charge consumers more fees for acquiring soft;are that could intemperate with Microsoft and Intel. Also, if consumers want to buy an Apple product with Windows operating system, it charge more.
Second, Apple could develop their own software particularly for business, education and government. All the software are identical functions with the most widely used software, but only could be synchronized with Apple products. Third, Apple could decrease the number of distributors of their products. In other words, Apple needs to sell more of their products in their own retail stores. It has turned out that Apple stores made big contribution to the increasing sale of Apple products. Consequently, Apple could start more Apple retail stores, even experiencing stores.
Retail stores focus on selling Apple products and upgrading consumers’ software. However, in experiencing stores, consumers could have a better knowledge of Apple software and get latest information about Apple’s new product. Besides, consumers could even choose software, functions and designs they like to customize their own Apple products. To expend its international market and make up the lost service revenue in “gray market,” Apple needs to authorize legal distribution for countries with huge potential market share.