2324 Managing Products Assessment-A suggested draft structure
1. Introduction (100-150 words)
The goal of this report is to analyse and examine the management of the Apple iPhone critically. The iPhone is a flagship smartphone from Apple Inc. that has revolutionised the smartphone industry since its introduction and continues to be at the forefront of innovation to this day.
This report will discuss the management of the iPhone in the global market, with a particular emphasis on its management in North America and Europe. The ownership structure, strategic objectives, key product attributes, competitors, and current issues in managing the iPhone, along with some strategic recommendations for its future management, will be discussed in the report. In doing so, the analysis will emphasise the importance of revisiting previous strategies to inform decisions about the future.
2. Ownership and Strategic Objective(s) (200-250 words)
Apple iPhone is the product of Apple Inc., and it is owned and supported by Apple Inc. Apple Inc. holds the responsibility to design, develop and improve Apple iPhone. Cutting-Edge Innovation: Apple’s Chief Design Officer and product management team play a crucial role in ensuring that the iPhone’s innovation remains on the cutting edge. The iPhone was initially conceived as part of Apple’s strategic attempt to disrupt the mobile phone market with an experience that blurred the boundaries between communication, entertainment, and computing (Kotler and Armstrong, 2021).
Typically, Apple has enhanced the capabilities of the iPhone over the years, making the iPhone a higher-end device that is sold to a higher-end market. The iPhone’s strategic intent has evolved as Apple incorporates sustainability, an emphasis on human-centred design, and a focus on growing its ecosystem through integration into Apple’s other products. Moreover, Apple Inc. has made proactive efforts to minimise the carbon footprint of its iPhone manufacturing process and enhance its overall recyclability, making the iPhone 13 an environmentally friendly option. Apple also utilises SMART goals to improve the Apple iPhone continually, ensuring it remains relevant as the industry evolves and technology advances (Brown & Green, 2022).
3. Key Attributes and Competitors (400-500 words)
Apple iPhone has been known for its high-end design, innovative features, and easy-to-use interface. It boasts an incredible Retina display, a high-quality camera system, Face ID, and seamless integration with Apple’s ecosystem, to name a few. Even so, throughout the long term, the iPhone has suffered from reliability; even though you can upgrade your iPhone to the latest iOS versions for several years, you do not have to worry about a significant change in the user experience. From this feedback, analyses, and other sources, we can conclude that iPhone consumers prioritise quality and performance over other features, as they give more importance to aspects such as camera quality and usability (Apple Inc., 2023).
Google (Pixel), Huawei, and Samsung are Apple’s biggest competitors in the mobile phone space. Samsung’s Galaxy line is poised to be a direct rival to the iPhone, competing in terms of performance, camera technology, innovation, screen size, battery life, and Price (Porter, 2020). Porter (2020) was of the view that Huawei, which is in a good position in the Asian market, suffers from trade restrictions and Google services. Software experience: Google’s Pixel phones are on par with the iPhone when it comes to software experience, particularly in terms of AI-driven features and camera performance. The iPhone is a brand with much higher brand loyalty, satisfaction and Price.
The innovation is excellent for the iPhone to continue developing new hardware and software, establishing the brand and creating an ecosystem, which has helped the iPhone become a leader among others (Kotler & Armstrong, 2021). According to the Kano Model, features such as ease of use, hardware quality, and iPhone finder can be categorised under the basic design family. In contrast, features like Face ID and connectivity to Apple services can be classified under the delight design family, which is desired by users (Brown & Green, 2022).
4. Evaluating the Current Issues in Managing the Product (1200-1400 words)
4.1 Macro and Micro Environment Issues:
Environmental Problem and Macro- and Micro-Environment. In addition, the iPhone is not only facing pressure in the current market, but also in the micro-environmental pressures within it. A macro-environment includes political factors such as the trade tensions between the USA and China, for example, which have an impact on Apple’s supply chain (Porter, 2020). Apple’s reliance on Chinese manufacturers for iPhone production – Due to its dependence on Chinese manufacturers for iPhone production, a tariff or regulatory system will significantly impact Apple’s ability to distribute its products to customers worldwide (Apple Inc., 2023). Additionally, geopolitical tensions in other regions of the world, such as Europe or the Middle East, can affect Apple’s plans for market growth.
In addition, in the microenvironment, Apple is being challenged by numerous costly and very low-cost smartphone manufacturing companies. As such, the company must adapt its pricing strategy to compensate for this (Brown & Green, 2022). The global economic crisis also led to a downturn in consumption, creating challenges for Apple to charge high prices for the iPhone (Kotler and Armstrong, 2021).
4.2 Associated Risks:
There are many threats to handling the iPhone. As new risks emerge, such as rapid innovation, the iPhone is put at risk; Apple must also constantly improve the iPhone. Otherwise, without doing this, they would be considered non-competitive (Porter, 2020). Further, risks in supply chains are a particular challenge due to high dependency on suppliers of third-party manufacturers in Asia. Supply chain disruptions: Supply chain disruptions, such as factory closures or natural disasters, can delay the launch of new models or impact production capacity.
4.3 Product Life Cycle:
The iPhone is currently in the maturity stage of its product life cycle. While the iPhone remains a dominant player in the smartphone market, the number of smartphones sold has been decreasing due to market saturation (Kotler & Armstrong, 2021). A Moving Target – Apple has shifted its focus from releasing new products to incrementally enhancing the functionality of existing products, such as the camera system, increasing battery life, and optimising software. However, optimisation generates significant revenue from the iPhone by selling services and accessories that can enhance the device (Apple Inc., 2023).
4.4 Market Position:
The iPhone is the market leader at the high end of smartphones. Despite intense competition, Apple has managed to maintain its position at the top of the market by building brand loyalty and by creating an ecosystem of products and services. In markets such as North America and Europe, consumers continue to prefer the iPhone when seeking high-end smartphones. However, in emerging economies, Apple has faced stiff competition from affordable devices from competitors such as Xiaomi and Oppo, which have an upper hand over Apple and sell at a lower Price (Porter, 2020).
5. Conclusions (150-200 words)
The Apple iPhone remains one of the top-selling products in the global smartphone market, but it faces several challenges from competitors, supply chain risks, and market saturation. Through innovative strategies, strong brand loyalty, and seamless integration into its ecosystem, Apple has ensured that the iPhone remains a market leader. However, as Time passes, Apple must develop ways of adapting to the shifting macro-environment by focusing on sustainability and staying ahead in the luxury realm while offering value for money to the relatively price-sensitive emerging market consumer (Brown & Green, 2022).
6. Recommendations (150-200 words)
Continuous Improvement: Apple needs to continuously improve battery life, use more eco-friendly materials in its production process, and update and innovate its software to remain relevant.
End of Product Lifecycle: Apple may need to consider building a new product line or a lower-end version of the iPhone to appeal to markets that are less financially capable of covering the expenses of purchasing the latest iPhone. The company may assume that it would include more modular and flexible features for users to update specific components on the iPhone (Porter, 2020).
New Product Development: Apple must continue innovating and experimenting with emerging technologies, such as foldable phones, artificial intelligence (AI) experiences, and augmented reality (AR), to ensure the iPhone remains relevant and desirable to consumers in the future (Apple Inc., 2023).
7. References
Apple Inc., 2023. Apple’s Corporate Social Responsibility Report. Apple Inc.
Brown, L. & Green, M., 2022. Strategic Management in Technology. Harvard Business Press.
Kotler, P. & Armstrong, G., 2021. Principles of Marketing (18th ed.). Pearson Education.
Porter, M., 2020. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
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