Case Analysis-Apple Watch
a) Outline the strengths and weaknesses of firm. Specifically, what do you see as the major advantages that firm has over its competitors in its market space.
b) Making reference to the Treacy and Weirsema “value disciplines” framework, identify the basic value discipline strategy that each firm employs.
c) What are some of the major opportunities and threats faced by firms? Be as specific as you can.
d) Outline some marketing recommendations for both Apple watches, given the situation presented in each case.
A-Strengths and Weaknesses of Apple
The major advantage that Apple has over its competitors is the innovation. Innovation has become the biggest strength of Apple. Also, customers in the competitive technology market are willing to pay high or premium prices for its products. It is due to the high brand image that has been established by the management. The high brand image is also a big strength of this firm, and other firms are still struggling to sustain the brand image. The financial capability of this company is quite high compared to other competitors, and it is the main source of drive the innovation as well.
This big weakness of the firm, as far as the apple watch is concerned, is the limited acceptance in the market. It has been revealed the sales of the Apple watch decreased recently, as the customer does not want to pay for the value that doesn’t understand. There is a perception that Apple Phones can do everything. Despite indicating the purpose in the health industry, still, the firm does not contain the purpose of Apple Watch. Like I Phone, Apple Inc does not design the effective marketing plan or strategy to enhance the visibility of the positioning process. It seems the biggest weakness in the technology market.
B-Basic Value Discipline Strategy that each Firm Employs
The value discipline strategy is triggered by the three major pillars. These are customer intimacy, product leadership, and operational excellence. Apple Inc has depicted the customer intimacy, as it integrated with the health needs of customers. The value has been created by enabling the watch act as a fitness tracker. Through aligning with deep customer insights, the company has created value. Product leadership is enhanced through accelerating creativity and innovation. Apple is managing the innovation effectively to come up with something new and unique Apple watch. The value is to be created by operational excellence. Quality and efficient measures helped the firm produce high – quality products along with some remarkable new features. Through operational excellence, differentiating the product is possible.
C-Major Opportunities and Threats for Apple
It is a great opportunity to increase the utility of the current Apple Watch in the technology market. It will help to depict the purpose for people making buying decisions. On the other hand, the firm can make a strategy or create the value for customers to change traditions or norms. The post persuasion stage of the resistance is to be eliminated by featuring something new that can attract customers, and Apple Inc is quite capable of it. Potential customer resistance is the major threat to this company. Customers do not intend to pay a higher price for the fitness tracker because it can be done by phone as well. Apple watch may face failure if it lacks differentiated features. Another threat is the existence of substitutes in the market, which are available at low prices. Customers can be converted, and it seems a huge threat.
D-Marketing Recommendations
The marketing mix strategy is highly recommended. For Instance, in the pricing section, the firm may depict the penetration pricing strategy to attract customers and get their attention. Regarding promotions, social media marketing is the best option for the company to interact with customers effectively. On different digital media channels, customer intimacy can be justified. It will increase the sales of the company and help to improve the features of the product.
Apple Watch is an innovative product. However, the most important thing is to make it relevant. Some opportunities and market recommendations must be utilized to make the difference.
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