With the new technology and changing consumer preferences the gaming industry is continuously evolving. With the right product catered to the market, differentiation can bring market share, profits and, growth. Using marketing research Apple needs to identify what is already in the market, the demand for them, how they could be improved and differentiated.
Step 2: Screening
•Already established successful brand name
•Apple perceived as innovative, superior quality and, stylish products •Ability to generate higher profits due to premium price charged Weakness
•Failure in the launch of the first gaming system
•Inexperience in the video game industry
•Short life span on game consoles
•Apple caters to the premium market which has less competition •Continuously expanding market.
•Consumer demand for new innovative products
•Intense competition from already established competitors •Challenges caused by the continuously evolving market to regularly release new innovative products to stay competitive. •Risk of reputation if the new launch fails.
Step 3 – Idea evaluation
At the evaluation stage Apple needs obtain an understanding about the consumer reaction towards the product using concept testing. It is important that the target market, the size of the market and potential opportunities are identified when deciding whether to enter the market. Consumer needs should also be identified and the console should be developed to...