April 10, 2013
Current Market Conditions Competitive Analysis
Apple is probably one of the most recognized companies in the world when it comes the designing, development, and marketing of cutting edge technology with products that everyone wishes to own. Apple Inc. (Apple) was founded and incorporated in 1977 by Steve Jobs and Steve Wozniack, making headlines with the release of the apple I computer. According to “Reuters Edition U.S.” (2013), “ The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings” (para. 1). With two decades of predominantly manufacturing personal computers, including the Apple II, Macintosh, and Power Mac Lines, the company began facing rocky sales and low market share. With a combination of low sales, high pressure demands on the staff, and continued struggles regarding the company’s direction between Jobs and Sculley his CEO, Jobs surprisingly was ousted from the company in 1985. Siegel ( 2011), “A power struggle erupted between Sculley and Jobs. In the spring of 1985 Apple's board sided with the CEO, removing Jobs from his command of the Macintosh group” (para. 1). He however returned with the greatest comeback in 1996 after the procurement of NeXT by Apple. Steve Jobs shortly was appointed interim CEO where he inspired a new corporate philosophy of recognizable products and simple designs. Today Apple has established itself as a leader in the consumer electronic and media sales industries and has surpassed Google and Microsoft combined in sales with $156 billion in 2012 (Edstrom & Holt, 2012) . In an extremely competitive trade, companies are trying to invent continually ways to retain their current customers and continue to have an edge to appeal to the new growing market of customers, especially in these very tough times economically, where people face even tougher decision making choices about the phone they purchase and the type of service they select. With the transition from 3G’s to 4G’s, companies are staging a bid to their existing customers as well as the new customers promising excellent service and plenty of extras bonuses to lure them into their clutches. They recognize customer loyalty is a thing of the past with the longevity of merely two years for an average customers contract before making a switch to another provider. This accelerating trend has become a main factor in companies raising the bar in quality while dropping their prices especially for smartphones. With the rise in blogging, a potential customer can obtain reviews of cell phones and the differences of the product features. They can determine the advantage or disadvantage of a particular phone offered as a bonus with a contract commitment. Even You Tube has search sites that allow you to watch various video reviews ("Effects Of The Emerging Competition Of Cellular Phone Companies," 2012).
As mobile phones become a vital, and integral part of most individuals everyday living, cellular phone companies have had to continue to target the demands of this implausible market. Many telecommunication companies give cell phones as a bonus to their packages, but the unrelenting predicament they face is, which phone do they offer that will beat out the competitors, take a larger share of the market, and still manage to be profitable. With this fierce competition among the cell phone providers, some companies have turned to consolidation with other providers. Merging together has offered their talents to pool and offer top-notch phones and services. For example, Google purchased Motorolla in 2011 enabling them to compete significantly with Apple in both the software and hardware division. The same goes for Microsoft, who partnered with...