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Smartphone Industry and Apple iPhone Rising
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Group #10: 1.Binh Thieu 2.Lan Phan 3.Minh Thu Luu 4.Tung Duong (Communication Equipment Industry) ------------------ BUS 890: Strategic Management What is the one item you never leave home without?
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Transcript of Smartphone Industry and Apple iPhone Rising
Group #10:
1.Binh Thieu
2.Lan Phan
3.Minh Thu Luu
4.Tung Duong
(Communication Equipment Industry)------------------
BUS 890:Strategic
Management
What is the one item you never leave home without?
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Smart-phones
allow users to: e-mail, internet
store information,
entertainment
install programs,
along with using a
mobile phone in one
device
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Market size and growth rate Number of rivals Product Innovations Learning/experience curve effects
Total Mobile Sales: - Mobile phone sales to exceed 1billion in 2009
- More than 200 million smart-phones will be sold in 2008.
Source: http://www.palminfocenter.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
1. Consumers market
2. Corporate market
1. CarriersAT&T …
2. OS providersLinux, WM…
3. Hardware makersIntel …
1. Establish mobile manufacture: LG, Samsung
2. Software giants: Google, MSFT
1. VoIPSkype…
2. PDA phonePalm…
3. Features phoneNokia, LG …
1. More companies enters…
2. Strong brands and finance
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Source: www.wikinvest.com
Source: www.wikinvest.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Source: http://blog.bryanstarbuck.com Source: http://blog.bryanstarbuck.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
“This is a difficult industry, part of it is technology; part of it is fashion…”
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Vision:"Man is the creator of change in this world. As such he should
be above systems and structures, and not subordinate to them"
Mission:"Apple is committed to bringing the best personal computing
experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings."
Industry: 1. Computer software & hardware2. Consumer electronics
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Taiwan –
Facilities of camera, circuitry,
connectors, stainless casings
Singapore –
Facilities of CPU,
processing chips
US –Facilities of
touch screen, specific
parts
China – ShenzhenAssembly
Facility
Source: http://www.shmula.comSource: http://www.shmula.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Sharp rise in consumer demand 56% of smart-phone buyers prefer iphone
New target market –price reduction attract
more customers
High Potential Software –upgradable; can add new features
3G Apple iPhones to captivate business demand worldwide
Source: http://www.linuxdevices.com
Source: http://www.linuxdevices.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
New powerful entrant - Google
Many similar or substitute
products
Intense competition with major
rivals
Increasing bargaining power of
buyers
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
First mover advantage
Ownership of
technological patents
Apple is one of the most
established brand
Customers loyalty
Cultural, fashion identity
Source: http://www.appleinsider.com
Source: http://www.appleinsider.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Dependence on third party provider:
AT&T, Content Provider, Application
provider
Less appeal to corporate customers
Technological complication
Gorilla arm
Limitation of particular features
Application slow down and freeze
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
iTunes : Synchronization
between the iTunes - App
store and Apple devices.
User interface of consumer
gadgets and computing
devices
Intuitive design, easy-to-use
and self-discoverable
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Users’ experience
Source: http://blog.wired.comSource: http://blog.wired.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Source: http://www.businessweek.comSource: http://www.businessweek.com Data: Standard & Poor’sData: Standard & Poor’s
Apple may well pass Microsoft, which has $23.7 billion in cash, and could have $40 billion in 2 years
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Source: http://www.artechnica.comSource: http://www.artechnica.com
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Source: TextbookSource: Textbook
Focus-Differentiation
Strategy
Innovative products to
target early adopters
Premium Price to target
high-end consumers ,
business market
Broad-Differentiation
Strategy
Offer more products to
a broad of buyers
Deliver value to
customers by
differentiating
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Outline
Industry Analysis
Why?
Driving Forces
Dominant Features
Five Forces
Strategy Group Map
Key Success Factors
Company Analysis
Overview
Value Chain
Analysis
SWOT Analysis
Competencies
Business Analysis
Competitive Strategy
Recommendations
Divers
ifica
tio
n: iphon
e
Nano,
iphon
e
Biz…
Expansion:M&A, alliances, partnership…
Innovation
: smart-
card, Apple cloud
…
__APPL-IZATION__
Peter Burrows (2008,7,30). How to spend Apple’s cash. Business Week. Retrieved August 11, 2008, from http://www.businessweek.com/magazine/content/08_32/b4095000656875.htm?chan=magazine+channel_news
Olga Kharif (2008, 8,4). That iPhone Nano rumor. Business Week. Retrieved August 11, 2008, from http://www.businessweek.com/the_thread/techbeat/archives/2008/08/that_iphone_nan.html?chan=top+news_top+news+index_news+%2B+analysis
Peter Abilla (2007,1,18). The Apple iPhone Supply Chain. Shmula. Retrieved August 11, 2008, from http://www.shmula.com/304/the-apple-iphone-supply-chain
Charles Jade (2008,4,23). Apple Q2 2008: Mac sales surge, iPhone not so much. Ars Technica. Retrieved August 11, 2008, from http://arstechnica.com/journals/apple.ars/2008/04/23/apple-earnings-mac-sales-surge-iphones-not-so-much
Bryan Gardiner (2008,4,1). The smartphone smackdown: who satisfies customers best? Wired. Retrieved August 11, 2008, from http://blog.wired.com/business/2008/04/the-smartphone.html
