apple how to sustain a competitive advantage?

16
Xinyi Wang Wenrui Wang Yana Cherepashenskaya Jason Lin Mike Pia

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Page 1: Apple How to Sustain a Competitive Advantage?

Xinyi WangWenrui WangYana CherepashenskayaJason LinMike Pia

Page 2: Apple How to Sustain a Competitive Advantage?

● Background & History● Issues● Internal Analysis● External Analysis● Alternatives● Recommendations● Implementation● Questions ● Appendix

Page 3: Apple How to Sustain a Competitive Advantage?

Currently #2 behind Samsung in Smartphone market share worldwide

Competitors continue to develop superior hardware

iPhone is Losing Competitive Advantage

Decreasing Smartphone

Market Share

Page 4: Apple How to Sustain a Competitive Advantage?

Strengths Weaknesses

● Brand Image● Know-How● Customer Loyalty

● Premium Pricing● Inflexible OS

Internal Analysis

Page 5: Apple How to Sustain a Competitive Advantage?

Opportunities Threats

● Emerging Markets● Acquisition of Suppliers● Improvements

on Products

● Rapid Technology Change ● Competitors’ Growing

Market Share

External Analysis

Page 6: Apple How to Sustain a Competitive Advantage?

Loss of uniqueness and simplicity

LinX technology is similar to other popular imaging hardware

Acquire LinX

Open-source operating

system

Page 7: Apple How to Sustain a Competitive Advantage?

Issue:#2 smartphone

Recommendation:Focus in marketing the iPhone in India, the world’s fastest growing smartphone market

Issue:Losing tech

advantage

Recommendation:Acquire Lytro, a camera technology company that uses light field technology

Page 8: Apple How to Sustain a Competitive Advantage?

2013 2014

Negotiatewith Lytro

Manufacture iPhone in Indian Foxconn factories

Grow Apple brand Indian Ad campaign

Implement light field technology

Develop larger manufacturing presence in India

Acquire Lytro ($20 million + 20% premium)

2015 2016

Market other Apple products to Indian market

Launch new improved products

Acquire Lytro

Attack Indian Market

Page 9: Apple How to Sustain a Competitive Advantage?
Page 10: Apple How to Sustain a Competitive Advantage?

Apple’s Revenue

Page 11: Apple How to Sustain a Competitive Advantage?

● Edit here

Apple Revenue

Page 12: Apple How to Sustain a Competitive Advantage?

Top 50 Tech R&D Spenders

Page 13: Apple How to Sustain a Competitive Advantage?

Worldwide Smartphone OS Market Share

Page 14: Apple How to Sustain a Competitive Advantage?

Growth of Cloud Computing

Page 15: Apple How to Sustain a Competitive Advantage?

Global Smartphone Market Share

Page 16: Apple How to Sustain a Competitive Advantage?

Chinese Smartphone Market