Featured Post

Wing Luke Asian Museum Web Site :: essays research papers

Wing Luke Asian Museum Website      The Wing Luke Asian Museum is a multicultural historical...

Wednesday, May 6, 2020

Comparison of the Apple Ipad and Amazon Kindle Essay Sample free essay sample

During this study we have analysed the industry construction of the tablet Personal computer market. We have examined the current schemes adopted by the current market leaders. Apple and Amazon. and their tablet Personal computers. the iPad and Kindle Fire. Having highlighted issues within the schemes they are runing. through the usage of a SWOT analysis. we have identified cardinal strategic issues that are impacting the gross revenues and growing of each of these companies. By analyzing the value concatenation of each company we are able to warrant the strengths of each company and suggest ways in which they can set their scheme to use these strengths for future growing. Having identified these cardinal issues we were so able to supply recommendations for each company for better public presentation in the hereafter ; the cardinal recommendation to Apple was to concentrate more on the development concern and endeavor market sections. The cardinal recommendation to Amazon was to see a more planetary scheme by spread outing the markets they presently sell the kindle in ; this should in bend provide them with planetary economic systems of graduated table leting them to run a more sustainable long-term scheme. Industry analysis Although tablet hardware has been around for many old ages. the modern tablet Personal computer that we know today has merely late been developed with Apple at the head of this ; the iPad was the first pioneer in this industry to genuinely gain the potency that tablet PC’s could hold. The versatility of tablet PC’s and limited map ability makes them utile for content usage merely. significance that at present they pose no immediate menace to the laptop market. Tablet PC’s are designed to be lightweight. little and convenient to utilize ; qualities which Apple absolutely adopted in the first iPad. At present it is possible to split the tablet market into the undermentioned chief sections. each with different demands and specifications. At present the consumer market is flooded with many ‘copycat’ merchandises of similar quality and engineering. This has been late publicised in the high profile patent conflicts between Apple and assorted other tablet makers. notably their instance with Samsung in which they won their conflict of violation of assorted patents ; Samsung were as a consequence fined 1000000s in amendss. The consumer market is still comparatively new holding merely established and expanded decently at the terminal of 2010 with the success of the iPad. Both the professional and Enterprise markets provide big possible demand as many multinationals purchase tablets as compulsory office engineering. the medical tablet market besides provides great possible. These markets provided great possible for enlargement and growing. Harmonizing to recent estimations. the US tablet Personal computer market is expected to turn at about 11 % yearly from 2012. with at least a 30 % addition in demand driven by the concern sector over the following five old ages ; foregrounding the great possible in increased demand these markets could supply. During July-September period. the overall tablet market grew by 50 per cent to about 28 million. Samsung’s market portion comes 2nd and grew to 18 % ; the figure of tablets shipped about the same as that of Apple ( see graph 1 ) . Amazon was in 3rd with its Kindle Fire. which managed a 9 % worldwide portion even though the Fire was available merely in the U. S. during the 3rd one-fourth. Apple is still the market leader and has sold around 70 million iPads worldwide since its launch in March 2010. The 3rd one-fourth of 2012 showed the company’s portion of the market for the tablet personal computer fell to 50. 4 % compared with 87 % and 60 % market portion in the same period of 2010 and 2011. Graph1: beginning from mailonline lt ; hypertext transfer protocol: //www. dailymail. co. uk/news/article-2228953/Apple-iPad-overtaken -market-share-Samsung-Google-devices. hypertext markup language gt ; Value Chain The above value concatenation for Amazon and Apple states the procedure of each company in the production of their tablet Personal computers. from the primary to third services. Here we can analyze the advantages that each company has at assorted points within the value concatenation. For case. Apple has a strong relationship with their OEM spouses intending that they get higher quality resources at a lower cost ; Amazon have 24-hour online services intending that they can supply greater degrees of client satisfaction. Apple schemes On the current epoch which focuses on the trade name. it is hard to appeal the clients merely by particular functional features. As a consequence. the Apple Company has searched out the right development orientation during the important alterations of Personal computer industry. To be specific. Steve Jobs’s success is inclined to client orientation. being the scheme of humanity selling. which is based on the apprehension of humanity and the appreciation of human desire instead than engineering orientation. * Creating impulse before sellingHarmonizing to Peter F. Drucker. the Father of Modern Management. the mark of selling is to do gross revenues publicity unneeded. Therefore. being swayed loss of psychological science of consumers and the mystique to seek the unknown results are the most valuable selling tools to advance the merchandises and the trade name. The Apple Company achieves the kernel of selling. During the one twelvemonth of expecting Apple’s merchandise visual aspect. the treatment neer stops. However. when the merchandises come out. about cipher guesses the modeling and working right. therefore pulling everyone to Apple’s merchandises. The purpose of making impulse is to guarantee the merchandises to be the subject of consumers. The company advertises the merchandises to be the goods of times significance and boasts its advanced engineering. * Hunger type sellingApple merchandises are so popular because the company ever limits the gross revenues. It sells the merchandises before the merchandises leave the mill. No affair how high voice of the trade good. the Company ever insists the scheme of restricted supply after coming into the market. Such a scheme utilizes the psychological science of trailing manner which leads many people to line up up throughout the dark for the release of new merchandises. Such an chesty and mighty manner makes consumers seek to halt indulgence in the thaumaturgy of Apple merchandises but can non make that. * Experience sellingThere is the Introduction Commend Conference which is full of enigma in order to elicit strong wonder so long as the new merchandise is promoted. The apple merchandises are impressed by superior public presentation. particular visual aspect and perfect design. * Brand selling The cult of famous person contributes to the trade name development of Apple merchandises. Most of the famous persons in films or in world use the Apple merchandises now. Constructing Apple civilization and furthering brainsick Apple fans are the intents of the Apple Company. The Apple merchandises are the manner of cool instead than the ordinary. Every sort of Apple merchandise makes the clients happy and occupies the first topographic point in merchandise invention and constructing the Apple civilization which contributes to puting up the get downing point of marketing unlike the other trade name. * Humanity sellingLet go ofing new merchandises of Apple can convey about the brainsick purchase. widely study and the influence to stock market. The marrow of Humanity selling is to understand consumers’ outlook and utilize the consumer’s positions to happen out the true consumer penchant. The doctrine of Jobs is to make the right thing which is humanity instead than engineering. design and aesthetics. In world. the right thing of Jobs is opposite to the tradition at that clip. However. the immense gross revenues volume proves the rightness of Apple’s scheme. In the SWOT analysis ( Appendix 4 ) we see some cardinal strengths with Apple’s current scheme such as their strong trade name trueness. high degrees ofengineering integrating across the platform of Apple merchandises and the legion patents that Apple presently possess. Amazons Strategy The cardinal ground behind Amazons evident predatory pricing scheme could be that in the tablet personal computer market merely Apple has succeeded at bear downing premium monetary values. For case. take Samsung. who besides sell an indistinguishable merchandise to Apple ( highlighted by the recent patent violations Samsung made ) . that sold their tablet at a well lower monetary value than the iPad. Amazon’s strength as a media concern could hence do up for their low borders on the sale of Kindle Fire. This scheme could turn out good as Amazon compete on a media footing instead than on trade name name and monetary value premiums ; a scheme that the Apple trade name is improbably tailored to. On a cost footing. Amazon produce the Amazon kindle for a sum of $ 150 ( See Appendix 3 ) and sell the merchandise at $ 199 devising merely a $ 49 net income per unit. This pricing scheme at near break-even is utile for market incursion. and to derive a rapid market portion. However. because of this pricing scheme Amazon have incurred a net loss of $ 274 million in the 3rd one-fourth of 2012 ; this loss is attributed to the current low monetary value of the Kindle Fire. The Chief executive officer of Amazon. Jeff Bezos late summarized the current scheme that Amazon is following â€Å"Our attack is to work hard to bear down less. Sell devices near breakeven and you can pack a batch of sophisticated hardware into a really low monetary value point† . With the Kindle Fire priced at merely $ 199 Bezos has besides said â€Å"the devices aren’t meant to be profit devices but instead conduits for the on-line gross revenues of digital books. vocals. games and pictures. † Amazon has made it publically clear that their end is to acquire clients to buy more content from their online shops. The low monetary value of the Kindle Fire facilitates this scheme by increasing the size of their market portion and making a larger ‘rich ecosystemâ₠¬â„¢ of content and users to promote this. Amazon wants their devices to be â€Å"services non gadgets† by making an ecosystem of content. the little borders on the hardware will be supported by the larger complementary net income borders of content gross revenues. In the SWOT analysis ( Appendix 5 ) for Amazon. we can see the strengths of Amazon’s current scheme such as their competitory pricing of the Kindle HD significance that it can easy be replaced ; the enlargement of their on-line library content and the Kindle eco-system provides a USP for Kindle. Amazon’s quickly spread outing market portion will besides assist increasing these benefits. Issues of schemes and merchandises of each company Apple Even though Apple is the elephantine in the tablet market now. it still faces some issues. Apple is switching from the place of market leader with progressively shriveling market portion. It besides faces a large challenge from its rival. Amazon. Further. engineering restrictions slow down the gait of developing merchandises which besides means there is a loss in merchandise inventions. The Apple iPad is the most in-demand tablet personal computer since its introduction in the market two old ages ago. but now it’s switching from the market leader. Apple and the iPad. From Apple’s 2012 one-year fiscal study we can see that net gross revenues of the iPad ( and related merchandises and services ) were $ 32. 4 billion. iPad net gross revenues have increased by 59 % on the old year’s figures. whilst Apple have sold a sum of 58. 3 million iPads in 2012. As competition intensifies in the consumer market. Apple may good see a diminishing market portion. Unfortunately. they have been losing a batch of market portion to Google-based Android devices like Kindle. In the Third one-fourth of 2012. the company’s market portion fell to 50. 4 % compared to 87 % in the same period of 2011. Apple encounters a large challenge from Amazon. Since Apple is more interested in providing to high-end clients. the company builds quality merchandises that are more expensive than their rivals. As the largest on-line retail merchant. Amazon has launched a budget ?159 tablet Kindle Fire HD in UK whilst the iPad mini costs ?269. Amazon isn’t merely a bookshop or a music shop. shoe shop. picture streaming service. or newsstand. Amazon has wrapped all of these things together into a rich. easy manner to suck down about every imaginable signifier of media with one key: Prime. The Kindle name is good known and the most possible proprietors likely already hold some Kindle books or have bought content from Amazon. In the SWOT analysis ( Appendix 4 ) we can see some cardinal issues with Apple’s current scheme such as their high production costs. diminishing market portion. menace of imitation of their merchandise and low replacing rate due to a comparatively high monetary value. The iPad is. basically. a version of Apple’s ultra-successful operating system for the iPhone and iPod Touch. tacked onto a larger. more powerful device. Among the device’s many bells and whistlings are Bluetooth. radio and cellular web connectivity. All the Apple merchandises have similar maps which make them less attractive to those who already own one Apple merchandise. The high velocity of the old years’ development of the engineering may ensue in the loss of engineering invention in the following few old ages. Ultimately. nevertheless. the tablet doesn’t represent a radical measure frontward in Apple’s merchandise line because of the engineering restrictions ; it can non manage multitasking and besides is improbable to replace merchandises such as the laptop. Amazon Although Amazon is the second best in tablet personal computer market. Kindle Fire still faces many jobs when viing with the iPad. The market portion of Kindle is limited ; the marauding monetary value makes it lose even in gross revenues which are non sustainable for the company ; the rivals in low-priced tablet Personal computers market upspring. In the SWOT analysis ( Appendix 5 ) we see the cardinal failings and menaces to Amazon such as their low. unsustainable net income borders. their deficiency of characteristics when compared to the iPad and the strong competition within the Tablet Personal computer market. In the 4th one-fourth of 2011. Apple still was the master on the tablet Personal computer market. market portion up to 59. 1 % while Amazon came in 2nd topographic point with merely 16. 7 % market portion. Amazon has started the low-cost race to spread out its market portion since late September 2011 when its $ 199 Kindle Fire tablet was released. Recently. Amazon besides dropped the entry-level Kindle to $ 159 and added an 8. 9-inch theoretical account at $ 299 ( Tanous. 2012 ) . But its market portion is still far below Apple. Harmonizing to the Pew Research information ( see graph 2 ) . by August 7. 2012. Amazon had accounted for 21 % tablet market portion which is less than half of the Apple market portion ( 52 % ) . Graph2: beginning from lt ; hypertext transfer protocol: //www. macobserver. com/tmo/article/low-cost-android-tablets-level-market-share-with-apple-ipad gt ; Amazon is working hard to bear down less and sell devices near breakeven. However. the low-priced race is unsafe since the gross revenues must run into the cost. If the gross revenues are non big plenty. it will confront losingss. In 2012. the net income of Amazon has declined bit by bit during last three financial quarters ( see table 1 ) . Harmonizing to the Q3 study. the net loss was $ 274 million in the 3rd one-fourth compared with net income of $ 63 million in 3rd one-fourth 2011. Net income decreased 35 % to $ 130 million in the first one-fourth and decreased 96 % to $ 7 million in the 2nd one-fourth. Kindle Fire merely charges $ 159. while the entire costs of its constituents are $ 150 ( Reedy. 2011 ) . The bantam net income border makes Amazon incapable of making break-even and less sustainable as even other subdivisions may be affected by the loss. Table1: 2012 Amazon 3 financial one-fourth net income ( million $ ) | Q1| Q2| Q3|net income| 130| 7| -28|Beginning from: Q1. Q2. Q3 Amazon Financial Results Amazon besides faces challenges from other rivals in the low-priced tablet markets. For illustration. although Barnes A ; Noble was neer seeking to go the Tablet PCs market leader like Apple. it has late taken stairss to vie with Amazon in the low-priced tablet Personal computers in the market. The Samsung Galaxy Tab and the Barnes A ; Baronial Nook tablet took 3rd and 4th places in the market with 8 per centum and 7 per centum portions severally. Low monetary value means the engineering is easy to copy and copy. so there will be a big infinite for challengers to vie. Major Android participants Google. Barnes A ; Noble. and Samsung have all released low-priced tablets at monetary value points less than half of Apple’s iPad. Hence. the cost prima place of Amazon is challenged. Recommendation Apple A cardinal issue with Apple’s current state of affairs is that its portion in the consumer market is decreasing as the market becomes saturated with similar merchandises at competitory monetary values ; Apple is get downing to lose its competitory border as the iPad’s advanced entreaty diminishes. They need to concentrate on other market sections like the concern and endeavor sectors that provide possibility for strong growing with at least a 30 % addition in demand driven by the concern sector over the following five old ages. Our recommendation is that Apple focuses on increasing their market portion within these spread outing sectors to assist countervail an inevitable loss in market portion within the consumer sections. As this market continues to go concentrated with rivals and consumer behavior becomes more monetary value rubber band with addition in supply to the industry ; Apple will be unable to go on gaining its high net income borders since they can no longer vie on monetary value. We besides believe that Apple needs to concentrate on recovering their competitory advantage through distinguishing their merchandise by recovering the advanced border they one time had. which could be achieved by apportioning more resources into research and development ( insert figures about apples low R and vitamin D degrees ) Amazon Since Amazon are viing efficaciously within the consumer sector. we would urge that Amazon continue to concentrate on the consumer section as their merchandise lacks the characteristics necessary to vie in the concern and endeavor section. We would therefore advocator that they continue to concentrate strictly on specializing in the consumer section and developing their kindle ecosystem. A cardinal issue with Amazon’s current scheme is that. it is non sustainable in the long-run. We. hence. experience that Amazon need to happen ways to drive down costs. leting them to increase net income borders and increase their production degrees. This could be achieved by spread outing into planetary markets because. at present. Amazon merely sells the kindle in the US and UK market. Were they to spread out the Kindle into planetary markets. we feel they would profit from economic systems of graduated table. cut downing their overall costs and leting them to run with much needed greater ne t income borders. hence doing the scheme more sustainable. Mention Reedy. S. ( 2011 ) . Amazon’s $ 199 Tablet Is No Loss Leader. [ Online ] Available at: lt ; hypertext transfer protocol: //www. lightreading. com/document. asp? doc_id=212876 A ; gt ; [ Accessed 4 December 2012 ] Tanous. J. ( 2012 ) . Low Cost Android Tablets Level Market Share with Apple’s iPad. [ on-line ] Available at: lt ; hypertext transfer protocol: //www. macobserver. com/tmo/article/low-cost-android-tablets-level-market-share-with-apple-ipad gt ; [ Accessed 4 December 2012 ] Associated Press. ( 2012 ) . Is Apple losing the tablet wars? iPad overtaken in market portion by Samsung and Google devices. [ on-line ] Available at: lt ; hypertext transfer protocol: //www. dailymail. co. uk/news/article-2228953/Apple-iPad-overtaken-market-share-Samsung-Google-devices. hypertext markup language gt ; [ Accessed 4 December 2012 ] David Willden. ( 2012 ) . Example of a Strategic Plan Model – Amazon Internal Analysis. [ on-line ] Available at: lt ; hypertext transfer protocol: //www. strategy-keys. com/example-of-a-strategic-plan-model-amazon-internal-analysis. hypertext markup language. gt ; [ Accessed 11 December 2012 ] . Apple Computer. ( 2006 ) . APPLE INC. -industry analysis_ value concatenation analysis_ BSC_ schemes. [ on-line ] Available at: lt ; hypertext transfer protocol: //bx. businessweek. com/valuechain/view? url=http % 3A % 2F % 2Fwww. docstoc. com % 2Fdocs % 2F23801574 % 2FAPPLE-INC-industryanalysis_-value-chain-analysis_-BSC_-strategies. gt ; [ Accessed 11 December 2012 ] .

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.