Iphone: Surviving the Shakeout

Topics: Apple Inc., IPhone, IPhone OS Pages: 9 (5061 words) Published: January 6, 2013
 

Surviving The Shakeout 
Robin Abraham, Daniel Alvarez, Brent Goldman, and Craig Vieregg    BEM 106 – Competitive Strategy, Spring Term    June 4, 2008 

  iPhone: 
 

 

iPhone: Surviving the Shakeout 



Table of Contents 

  1 Executive Summary............................................................................................................. 3    2 History ..................................................................................................................................... 3    3 Six Forces Analysis .............................................................................................................. 4    3.1 Competition ..................................................................................................................................... 4    3.2 New Entrants................................................................................................................................... 5    3.3 Buyer Bargaining Power ............................................................................................................ 5    3.4 Supplier Bargaining Power ....................................................................................................... 5    3.5 Substitute Products ...................................................................................................................... 6    3.6 Complements/Synergies............................................................................................................ 6    4 SWOT Analysis ...................................................................................................................... 6    4.1 Strengths ........................................................................................................................................... 6    4.2 Weaknesses...................................................................................................................................... 7    4.3 Opportunities .................................................................................................................................. 7    4.4 Threats ............................................................................................................................................... 7    5 Strategy ................................................................................................................................... 8    5.1 Focus on the Consumer Market .............................................................................................. 8    5.2 Embrace Third‐party Software Development .................................................................. 9    5.3 Product Differentiation............................................................................................................ 11    5.4 International Market................................................................................................................. 12    6 Conclusion ............................................................................................................................12    7 Appendix  13    8 References  19 

 

iPhone: Surviving the Shakeout 



1 Executive Summary 
The  Apple  iPhone  was  released  on  June  29,  2007(Apple  Inc),  after  over  six  months  of  anticipation  since  Apple's  first  public  hint  of  the  product(Inc).    Across  the  country,  tens of thousands of people waited in line hours in advance—in some cases, over 24  hours—despite the steep $500+ price tag, in hope of being one of the first to buy one  of  the  smartphones  before  they  sold  out.    Apple  has  mastered  leveraging  its  consumer‐oriented brand to generate hype for their new convergence device.    However,  the  cell  phone  market  is  established  with  multiple  players  on  both  the  software  and  hardware  fronts.      In  addition  to  the  iPhone,  powerful  new  players  such  as  Google’s ...
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