Executive Summary
Apple incorporation was established in the year 1971, since its establishment the company has been gradually making improvements, establishing itself as one of the world’s leading brands. The company has constantly proved to be innovative, complex, and fashionable. At the same time maintain some form of simplicity in the creation of its products. iPod as one of its products is a testimony to his, it is simple, stylish and a pacesetter. It is today said to be one of the world’s most expensive music toys selling to the tone of a hundred and forty million units. It is said to be the coolest and most wanted devise. This report is an audit carried out on iPod, it contains within it sections like a brief introduction of Apple, the evaluation, or the analysis of the situation.
Introduction of the organization
The Company Apple Inc. is a company that was created and its productions are focused on Electronics and the development of software’s. The company resides in the United State of America. The company was created as a joint venture by Steve Job, Steve Wozniak, And finally Wayne in the state of California in the United State in the year 1976. The company is into the production and the selling of a wide variety of products, amongst which are music players, computer sets, Handsets or mobile phones, etc(Fried, 2001,p.25) The company has over the years established itself strategically above its competitors, due to the unique design of its accessories and the distinguishing marketing campaigns it embarks on.
It is worth noting that the brand is a force to reckon with in virtually all the products they are involved in. One of its recent areas of interest is the introduction of its latest item which is the mobile phone. Industry watchers have tagged the iPhone as the product to beat.
Situational Analysis
The company is renowned for its management and leadership qualities, and it is identified as a company that spends huge sums of money on the training of its workers. The chief Executive Officer of the company Steve Jobs is directly involved in the running of the affairs of the company. Notice is taken of the fact that the organization’s audit and annual reports are on a steady basis produced on time (D’Souza , 2005,p.34).
Product Life Cycle
iPod will at the present time be said to be in its developmental stage. The request by customers for the product is increasing steadily as the company on its part is not relenting in spending on advertisements. A direct effect of this is observed in the quantity of the product that is marketed and resultant profits made (Forbes, 2004, p.17). Notwithstanding the fit achieved by the company, there are a number of other factors that are against the spread of the product effectively.
Market Summary
A research carried out by a Non Governmental organization to determine the degree to which the company sells its products was carried out in the US. It was discovered that young people, who had good bargaining power or resources available at their disposal were likely to purchase the product. From the study, it was realized that adults numbering to the tone of 20 million owned an iPod (Macworld, 2005, p.13).
This is to say that in us alone about 12 percent of the men have an iPod in their collection of luxury toys as or when compared to 8 percent of women. Another interesting discovery worth mentioning was the realization of the fact that about 15 percent of black Americans had music players as against 7 percent of Whites that are not of Latino descent. Considering age as a fact, Das (200, p.23) revealed that
“14 percent of people between 29-40 have iPods; as do 11 per cent of those between 41-50. Just 9 per cent of 18-28-year olds and 6 per cent of those aged between 51-59 have an Apple music player. Finally, 6 per cent of those 60-69 have them, while 1 per cent of those 70 and older have them”.
The marketing strategy employed by the company for this product is directed towards people that want to listen to music as they work. This is meant for such people as students and workers in areas where such is not termed distraction from the normal working or function of the personnel on duty. The product is produced such that it comes in different styles and price ranges to satisfy the desire of a different group of people. Basically, the product is for the class of people who always want to be with their toys (Cnet,2005,p.2).
One of the most important features of the product that drives traffic to the shops is the ability of the users to store information on the systems. The product was introduced in the market in the year 2001 and since then the demand for it has been on a steady increase, such that it is discovered it has the broken the record of the highest selling music players. Some industry analysts tagged the product as the fastest market-selling commodity. It is interesting to note again that at inception the product was designed with teenagers as the key target, but subsequently as it turned out the product was for every individual who wants to listen to good music. The market for the product grew as the advertisement was increased by the company, and as the demand for it increased the company gradually shifted its base from the young people as the product now proved to be a must-have for everyone.
SWOT Analysis
Strength
Apple Inc is a well-respected and recognized industry player, people of all demographic age groups desired to own their products. As a result of the awareness created by the company and its reception by the consumers, the companies’ sales have been greatly enhanced. As a result of the attachment of the consumers to the product, it is ranked as one of the worlds’ most recognized firms. This recognition has given it has also boosted sales and built a good image of the brand in the hearts of consumers; the resultant effect of this is always an enhanced sale by the company. The continual preservation of the company’s image has also helped the company maintain its old customers and at the same time building a new set of consumers for them.
Weakness
Irrespective of the giant strides made by the product in the market it also has its default. Take for instance users of the iPod named nano have continuously complained of the bad nature of the screen which is always likely to be damaged at the slightest contact with an external force or impact. As the complaints keep pouring in the company has accepted replacing such screens when brought to its notice. Other complains leveled against the product is the issue of the battery life which most people complain of being too low. These complains among others have almost spoilt the companies built a reputation(Apple,2007,p.24).
The companies fighting to keep its reputation also agreed to give its consumers extra batteries. This case have not gone down well with the management of the company and it is a prove of their weakness. Secondly as a result of the massive sale recorded by apple a lot of pressure has been mounted on it by the music industry. If in subsequent days to come the company succumbs to the pressure from the industry it will be damaging to its operation.
Opportunities
Apple looking at its antecedents can be said to have a lot of prospects develop. Let’s take for example; iTunes can be utilized in the downloading of officially authorized songs. Capitalizing on this the company can produce phone to be well-matched with iTunes. This if capitalized on will increase sales for the company. New inventions in technology have actually opened the door for the company to expand both in production and in sales. One of the inventions that have actually generated revenue for the company is the podcast. To get this what the consumer needs to do is get on the internet and download.
Threats
In a technologically advanced world where getting to the top is one thing and staying there is another Apple is not an exception to this challenge. It is common knowledge that every company that operates within a competition is threatened by the competition; irrespective of how gallant the firm might feel it stands above the competition(Guglielmo, 2004,p.16)
Competition
Just as every other product in the market today has competition, Apple has its own competitors. Though at present, the competitors are not at an inch close to the achievements recorded by the company.
Product Offering
The distinguishing factor of iPod from other related products in the market is in the storage capacity of iPod.
Marketing Strategy
The main marketing objective of this product is to capture the highest share of the industry market for related goods. The company’s desire is to always be at the top as the most innovative and as a revolutionary force within the industry this can be deduced from the remarks made by Apple(2008,p,4 )
“Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and in Life and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.”
Conclusion
It is an established fact that Apple inc. is a world class firm, and a pace setter in virtually every venture the firm embarks on. It is thus worthy to recommending that in subsequent expansion or introduction of new products the firm should ensure that the products are durable. Offering products into the market with a poor life span will make customers feel the company is capitalizing on their royalty to exploit them.
Reference List
Apple, 2008. Invester Relations. Web.
Apple Defects, 2007. Hot iPod reaches 170 Degrees. Web.
Chartier, D, 2006. On iPod pricing, competition and the value of a full package. Web.
Cnet News, 2005. Who’s buying iPods? Web.
Das, A, 2008. MySpace to battle Apple’s hot-selling iPod. Web.
D’Souza S, 2005.An Old Lesson on Target Audience… the iPod Way. Web.
Forbes, 2004. AAPL – Apple, Inc. At A Glance. Web.
Fried, I, 2001. Apple confirms iPod Problem. Web.
Guglielmo, C. 2004. Apple’s Jobs Taps Teen IPod Demand to Fuel Sales, Stock Surge. Web.
Macworld. 2005. iPod owner demographic data. Web.