Iphone in South Korea

3708 Words Dec 9th, 2012 15 Pages
Table of Contents

Table of Contents 1

Acknowledgement 2

Introduction 3


1. What are some of the competitive forces that have made the business environment for Apple more complex in recent years? 4

2. Which aspects of the South Korean market have significant implications for the success or failure of the iPhone in the market and why? 6

3. Besides market entry strategy and marketing mix, what other aspects of the planning process should Apple consider before entering the South Korean market? 8

4. Discuss the relative pros and cons of each of the marketing mix elements Apple might consider implementing in its strategy. In your
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This will definitely increase the competition. Apple also must bear the fact that the South Korean are catching up fast with the latest technology. So, local companies will be able to compete with iPhone in terms of technological aspect.

The threat of substitute products is linked with the threat of new entrants because their ability to catch up the latest technology might lead to cheaper substitutes, and the costs of switching to substitutes seem to be low in South Korea.

Considering the large number of population of the Koreans which is 48 millions, the bargaining power of buyers seems to be low. However, the low costs of switching suppliers ignore that matter. Moreover, Apple might consider selling iPhone through a local phone carrier. As the South Korean phone network is driven by an oligopoly of three telecom organizations, the concentration of iPhone’s direct buyers is quite high. Thus, the bargaining power of buyers is also a threat Apple has to analyse.

As the iPhone’s production settings are mainly based in China, the bargaining power of suppliers is a less important threat for the company when launching the iPhone in South Korea.

The intensity of rivalry is also a great threat for iPhone. Protection of the Korean mobile phone manufacturers helped the local companies like Samsung and LG to sell together about 90% of mobile phones in the country. With the opening up of the industry, competition will

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