1. To create a product which is compelling for Tech enthusiasts :
OnePlus has designed and developed a Smartphone which they call “Flagship Killer”- which is at par with the expensive high end Smartphone with a matching design. They are targeting tech enthusiasts, who care about the attributes such as performance, design of hardware and user experience. This is the segment through which you can experience an exponential growth in your brand awareness.
2. Selling it directly as a loss leader
They are selling it just above the cost price via e-commerce thus saving on cost and time. This makes the product hard to get noticed. But when one is selling a product which will cost $600 at half a price – this is a great value proposition for the customers. In One Plus’s case, it does not approach the customers- customers are the ones who are beating a path to their doors.
3. Limiting
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Scaling production when there is a drop in component costs
One Plus has used a strategy in which they declared an amazing price in order to get attention, limiting production, creating excess demand and they when production goes up demand is sustained in order to make profits. Price at which One Plus is selling their Smartphone today will not be constant forever; components will go down in the future.
Comparative Analysis
Apple Inc and One Plus are following two strategies which are distinct in order to capture the highly competitive Smartphone market. Different functions are aligned in a similar fashion. Following is the analysis on the dimensions such as marketing, HR, operations etc.
Function Aspect Apple Inc One Plus
Customers Behavior Purchase based on past purchases Early adopters who are ready to try new product Value Proposition Point of difference –Experiential value ( Quality and Innovation) , Differential elements Functional (A great phone ) & Emotional (owing it makes them special) Needs Superior Quality and Innovative Superior Quality , Innovative , Low Price , Unique
HTC’s competitive position is not sustainable. In fact, the disappointing financial performance in Q1 2012 and the increasingly decreasing operating margin all points to a slower growth. Besides the statistics, HTC also face several imminent threats, such as the popularity of Samsung and Apple’s smartphone offering, the increase in competitors in the smartphone market, the shift in market, from operator push to brand pull, and the ongoing patent war with Apple. However there are also opportunities HTC can take advantage of to keep its competitive position. The opportunities are presented in the high growth rate of Smartphone Market, 61% in 2011, and the lack of well made Android Tablet.
THE STRENGTHS OF BEST BUY Good customer satisfaction levels, especially with women, who have the most consumer electronics purchases in the United States. An ability to retain customer loyalty. Marketing expertise in the electronics sector.
Violence causes more than 1.6 million deaths worldwide every year. Violence is one of the leading causes of death in all parts of the world for persons ages 15 to 44. A starting statistic that many actively choose to ignore. Violence is a growing issue one mankind needs to address.
Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.
1. Alaska draws pioneers, pilgrims, and countless adventurers to its frozen wilderness for reasons that many can’t see or understand. Whether they seek out nature’s beauty and knowledge like Chris McCandless, or the glory of achievement like climber John Waterman, most find the conditions cruel and unrelenting. Alaska is beautiful, but for many, it is less a refuge than a peril.
In 2014 both Apple and Samsung sold a combined total of about 108.2 million units of their products! Samsung sold about 71 million units while on the other hand Apple sold 94.75 million units. For the past few years, the competing and comparison between Apple and Samsung was at its maximum. Fights started between people to prove an idea about which company is the best but they did not know that they were only comparing their smartphone. That is not the only thing a person should concentrate at while comparing two of the biggest multinationals in the world. People should look at the sales of all of the company’s products, their profits and losses, the history of the company, and the reviews of the people about their
*Nexus One is Google's original flagship smartphone manufactured by Taiwan's HTC Corporation. It became available on January 5, 2010 and uses the Android open source mobile operating system
This paper comprehensively describes the marketing plan of a charismatic organization Apple Inc. The main focus of the paper is to describe the most important marketing strategies which Apple has espoused from the date of its emergence and different challenges which it has faced from time to time. The paper begins with an introduction to the organization. Apple Inc. is an American MNC; engaged in the business of developing and marketing of IT products. Apple has expanded its business operations all over the world. Every product which Apple introduces has its own target market; it develops marketing plan and strategies for each of its products separately (Apple, 2012). Apple's strengths include strong brand image, financial strength, product and process design, and highly efficient operations management while high prices and inability of up gradation of some products are its main weaknesses. Apple has threats from its competitors, increasing costs, and economic situations but has greater opportunities in entering new markets, making strategic alliances, and bringing innovations through efficient R&D. Before entering new markets, Apple has to analyze the business environment through sensitivity analysis, and then decide a framework for the future strategies.
History is full of reputable individuals. The stories of their lives will forever live in our history books. Whether being remembered for their strength, courage, or honor, or even for their treachery, we remember those who came before us. If one character could stand out in Egyptian history, none other would be so worthy as Cleopatra would.
Diversity in products and their prices helps Apple remain an inelastic company, regarding their demand. If a price rises for one of their products, there is sure to be another product that moves into that previous product’s price range that is still comparable in design and quality. There will always be people to buy the more expensive items not only because of Apple’s positive brand recognition and loyalty, but because Apple consistently produces quality and innovative products; including, if Apple finds a defect or fault, they fix the problem for free or replace the product altogether.
The device commonly regarded as the first to realise widespread success in the smartphone market was the Blackberry. However the handset, referred to as the ‘crackberry’ (Middleton, 2007) after the feeling of addiction many users felt towards it, was quickly joined in the market by companies such as Apple and Samsung. The intriguing market seems to be constantly evolving and is still an emerging market subject to multiple market forces. Many economic theories can be applied to this market including Monopolistic Competition, Platform Competition along with Network Effects and Tipping Points. The market has seen the evolution of smartphones from a keyboard based device with closed operating systems into thin, touch
Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.
EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product
One of the competitive strategies for Apple Inc. lies in its string Sales and Marketing positioning all across the world tough its exclusive Apple stores or in the form of franchise stores. Another competitive advantage of the company lies in its Research & Development capability. This strategy has long been a source of competitive advantage to beat the competitive rivals, both in the domestic market (like Microsoft Windows operating System and Apple’s Macintosh), Google Inc. (Android mobile operating system and Apple’s iOS) s well as in the international competitors like South Korean giant, Samsung and Finnish mobile maker, Nokia Inc. (University of Oregon Investment Group 2012).
According to Digital Trends, “The reason behind the Apple profits off cell phones is that, the manufacturing cost of one IPhone is around $200 and they always sell the phones at $400-$800 profit on a single device” (Kharpal, 2015). This proves that the overall profit is more in case of selling a premium smartphone as compared the selling large number of cheap phones.