Case Study : A New Fitness Center

When we analyze the technological environment, we look at what could create a new market or develop new products. In order to turn new advances in technology into competitive advantages and opportunities, companies such as Apple need to be aware of the changes happening in the market. Technology affects consumers’ life style, consumption and spending patterns, as well as the economy. Also, advances in the technological sector can sometimes create new industries or destroy existing ones. Additionally, technological changes affect the 4P’s of an organization. Due to the previously mentioned reasons, we think the constant development in technology is a key driving force in the Smartphone industry.

The short product life cycle in this industry requires competitors to continuously evolve. This continual innovation is difficult for new entrants to achieve. Also, existing products, such as Apple’s iPhone, have built brand loyalty and associated switching costs for consumers, which pose as barriers to entry for new competitors.

Apple Inc strategy was to market each product in phases, making each product the status quo at its release. The release of the iPhone 4, customers would wait in lines the day before to be one of the first to have the iPhone 4. Theses same customers would also be on their previous released iPhone3/3g. Apples innovative strategy markets a product to its success, then adds a few features and releases it again as new.

Apple wants to expand sales to clients who do not own products. Produce hassles free products for the enjoyment for customers. Become the leader in the mobile market. Strategy: Expanding the company’s distribution network to hit more consumers. Continue to invest prudently in Research and Development. Become the mobile leader.

For budding entrepreneurs who want to kick start their career on a high, I would like to say patience and setting realistic goals is crucial. One also needs to develop strategies that will ensure success in the first two years of operation. The strategy should target product improvement, growth and profitability to ensure successful exit.

The market is never static and the preferences of the customers keep changing. In this case the executives at Apple must always ensure that the needs of the clients are effectively addressed at all times. In the same way, the industry has become very competitive in the recent past and the organization has to find ways and means of staying ahead of its competitors. In this case, innovation plays a major role in ensuring that new products are constantly produced by the organization.

Issue 02: Apple is a wildly successful company that generates billions of dollars in profits every year. This is one of the strongest examples of how a company with the right strategy, great products, a strong leader and the willingness to take some risks can become vastly successful. The market in which Apple is strong has intense rivalry for market share. Apple is challenged with staying ahead of its competitors and maintaining long-term relationships with its customers. In order to stay ahead of the competition Apple is forced to keep product innovation a top priority. I would maintain a Blue Ocean Strategy to market our product and maintain our competitive advantage (McGraw-Hill Irwin, Page 152). The company has a strong and loyal customer base which will allow Apple to concentrate the focus to highlighting the features of our products. I will not focus on what our competitors can and cannot do; I will focus the attention to the benefits of having Apple products. Strategic marketing campaigns highlighting the different uses and features of the popular iPhone and iPad will headline the campaign.

An on-site corporate gym “is implemented by an employer. The goal of corporate fitness is to increase the amount of physical activity that an employee gets” (Bates). Giving employees easy access to gym equipment and classes helps them release stress and can keep them happier. In fact, physically active people are less likely to be overweight, have fewer chronic health conditions, and lower stress levels. On-site gyms can also benefit the corporation itself by increasing productivity, lowering health care costs, and decreasing the amount of sick days an employee takes (Pozen). Some may say, having a corporate gym distracts from the work environment and is too expensive; however, employers should provide on-site fitness to help improve

With the iPhone, unlike the iPod, Apple is not creating a new market it is “muscling the mobile market” (BBC). In fact in the UK, more than 80% of the households have already a mobile phone; however the mobile market is changing so the customers are not only buying a mobile phone for its functionality but also for the other features that it can provide such as the design for example. Since, there is an established market; there will be two main types of competition: one against the distributor and another one against the product.

            In order to face success, it is of crucial importance to think of the ways by which the business model will thrive in the marketplace.  Another is to assess the strengths and opportunities of the business.  Lastly, it is always important to innovate, as this has always described entrepreneurs (Baghai, Coley, and White, 2000).

One of the main reasons behind Apple’s success is making sure that they value their customer’s and their opinions. Apple is all about creating the next big product that can do something that the last one couldn’t, for example the difference between iPhone 4 and 4’s, by simply adding a new feature called Siri. Customers always appreciate Apple’s ability to create and continued strive to create the most innovative products on the market. They are obsessed with creating the wow product for the market that will stun customers and make them say, “I have to have it”. Apple engages in the Focused differentiation strategy. They are focused on computing devices like iPhone, iPod, and their computers. This was considered to be Apple’s most unique characteristics. Devices such as

Ronak is a 25-year-old Indian American male with a bachelor’s degree in Finance and Operations Management. The current issue he is facing is whether to quit or stay in his current job as a National Sales Associate at a startup company in the Health & Fitness Industry.

On the other had Apple uses three of the four strategies. It uses market penetration, market development and product development. Apple try to increase the market share of current products of iPhone 5’s and 4’s by lowering their prices and doing sales promotions which will attract new customers. Apple could also increase their market share by doing special promotions for families such as selling a Mac and 2 iPhones at a discounted price which will attract a wider range of target market.

The customers bargaining power is another force that presents a competitive pressure on companies in this industry. Customers are more interested on the brand identity with much preference on the emergent ones. They tend to be loyal to price elasticity and hence companies are left to compete in cutting costs. Obviously, consumers will go for products with low prices and therefore companies such as Apple would not risk being expensive. The more expensive a company’s products are the less the number of buyers received. Immediately a substitute enters the market, everything to do with the existing products becomes competitive. Consumers are left to make considerate choices between the product and its substitutes. The Smartphone & Tablet industry is characterized by emergent of various brands within short ranges of time. These brands become substitutes and affect the pricing strategy adversely. This is a force that Apple and the other companies have to deal with as far as their survival in the market is concerned.

In 2003, smartphones were introduced into the market by competitors such as Nokia, Ericsson, and Samsung. Within just 3 years after its introduction, 13+ million smartphones had been sold by primarily these large companies. Being late to the smart phone market was clearly an advantage for Apple. It allowed Apple to perfect its product and develop a unique product with features and a design unlike any other smart phone device on the market. This strategic advantage has certainly enabled Apple to grow leaps and bounds above its competitors.