Apple inclusive is a company that basically deals with the designing, developing, and international marketing of quality handsets. The company has been in existence for quite some time with its major operations being in the US. Apple intends to launch a phone in the Indian market. The phone has a brand name, the iPhone. This phone, being a wireless device that is handheld is expected to be a big hit in India. The device is able to support mobile phone, push e-mail, text messaging, web browsing, internet faxing among other information services that are wireless.
The iPhone made its way to the market the first time by offering e-mail services to iPhone devices only. Today, however, this has been extended to use by devices that are not iPhone. It is this new innovation and improvement that will be launched in India. Back in the US, there has been an overwhelming and significant increase in the demand for the iPhone device over the years. Precisely this increase is rated to be 81% from the past year. This is the main source of our strength as we plan to launch the product in India. The demand for iPhone continues to rise over the years with more popularity being among the young generation.
In India, there has been a notable change in lifestyle among people in the recent past. This is what the Apple company will take advantage of when launching the iPhone. In India today, the generation aged between 18-35 years has joined the workforce. In particular, the male generation is the highest proportion. These individuals who are in a busy workplace require to be in a constant update of information. This is in regard to making calls, checking e-mail, or even checking on prices in the stock market. These people with a very busy lifestyle in India are the target market for the iPhone. The presence of very sophisticated features, very powerful applications, perfect navigation and also being stylish will earn the expected demand for the phone in India, (Porter, 1985).
India has been rated as one of the countries with the highest average salary for its workforce. The business industry also has the highest increase in average salary at about 15%. India is also rated highly when it comes to technology, logistics, engineering, and shipping. This will make it possible to have the phone manufactured in India. The salary rates will pose a threat but the phone will be affordable to the target population at a price of $150USD.
Considering the availability of high technology labor in India, the company will make the phone in this country. The workforce here is said to have a very high turnover due to the competitive compensation rates. This company will use the sufficient resources that are available to ensure that once the employees are hired; the retention rate will be relatively stable compared to other businesses. With high pay, the workers will be expected to be very productive and take the company to high-profit levels.
The new product in India will be launched for a period of 6-9 months. A financial forecast of 3-5 years has been considered. The company has valuable human capital that will be used in the manufacture, promotion, and distribution of the iPhone. The workers will be motivated and will be familiar with the phone technology background. The company as well as a solid balance sheet and strong financial position. The most significant source of sustainable competitive advantage is the indescribable assets like corporate brand and organizational culture, (Hunger, & Wheelen, 2003). There will be a well-established research and development department to ensure that the new product will be innovative and creative.
By the year 2003, India had more than 14.17 million subscribers of mobile phones. These users are even expected to increase to more than 120 million by the year 2008,(Cellular Operators Association of India,2007). Apple company will take advantage of mobile usage in India to launch and do business here. To make the launch strong and well known in India, We will have a joint venture with Reliance India Mobile. This will make it easier for the company to penetrate the Indian market. In addition, brilliant adverts will be put on TV to inform the subscribers of a new and exciting phone, the iPhone. To avoid repeating the mistake made earlier by the company, we will have to open up distribution to other carriers, (Grant, 2005).
Strengths and weaknesses
Apple as a company has sufficient resources to launch the Phone in India, it will be able to recruit competent employees at a competitive remuneration. The company has been in existence and will hence make an impression in India. The major weakness is that the company is brand new in India and will need to get through to the people in a big way. It will also be faced by other dealers who have been there for a long and are well known. To take care of this, Apple will have a joint venture with Reliance India Mobile.
Opportunities and Threats
The greatest opportunity for Apple company is a large number of subscribers in India. This number is even expected to grow by the year 2008. This forms a good market where the iPhone will be launched. The one threat that the company will face is the presence of many, existing and well-established mobile manufacturers in India. Being local companies they are more acceptable to the people and have a better chance of doing business. This threat will be well tackled through intensive advertising and demonstrations in retail stores. The company will also open distribution to other carriers to ensure the phone is at the reach of all consumers, (Thompson, and Strickland, 2001).
Grant, R.M. (2005): Contemporary Strategy Analysis, Blackwell Publishing Ltd., Oxford (U.K.)
Hunger, J. and Wheelen, T (2003): Essentials of Strategic Management. New Jersey: Pearson Education Inc.
McGahan, A.: How Industries Evolve – Principles for Achieving and Sustaining Superior Performance. Harvard Business School Press, Boston, 2004.
Porter, M.E. (1985): Competitive Advantage, The Free Press, New York.
Thompson, A. and Strickland, J (2001): Crafting and Implementing Strategy. Irwin McGraw-Hill.
Cellular Operators Association of India: mobile phone manufacturers, 2007. Web.