Apple's iPhone in India: Ringing in New Fortunes? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Apple's iPhone in India: Ringing in New Fortunes?
In September 2016, Apple prepared to launch a new version of its flagship product, the iPhone 7. The new product, termed "the best, most advanced iPhone ever," was priced at three times its cost in the U.S. market. However, Apple had witnessed an 18 per cent year-on-year dip in iPhone revenues in the first calendar quarter of 2016, dragging down Apple's revenues for the first time in 13 years. The leader in the smartphone market was ousted from its number one position in fiscal year 2016 by the Samsung Group, which had a 20.5 per cent market share. A multitude of factors had caused a dip in the sales of iPhones in the United States and China-Apple's key markets. Apple was now eyeing India, the third-largest smartphone market in the world, to replicate its China growth story. The India launch of the iPhone 7 was planned for October 7, 2016. The base model was priced at the equivalent of over US$900, about 39 per cent higher than the U.S. phone price. Did Apple have the pricing power to charge more than three times the cost of the iPhone in the Indian market? What would be Apple's best pricing strategy in a market like India? How could Apple grow its revenues and profits in one of the fastest-growing smartphone markets in the world? Tulsi Jayakumar is affiliated with SP Jain Institute of Management & Research.
Swot Analysis of "Apple's iPhone in India: Ringing in New Fortunes?" written by Tulsi Jayakumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iphone Apple facing as an external strategic factors. Some of the topics covered in Apple's iPhone in India: Ringing in New Fortunes? case study are - Strategic Management Strategies, Mobile, Pricing and Global Business.
Some of the macro environment factors that can be used to understand the Apple's iPhone in India: Ringing in New Fortunes? casestudy better are - – increasing transportation and logistics costs, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google,
increasing household debt because of falling income levels, increasing energy prices, etc
Introduction to SWOT Analysis of Apple's iPhone in India: Ringing in New Fortunes?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Apple's iPhone in India: Ringing in New Fortunes? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iphone Apple, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iphone Apple operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Apple's iPhone in India: Ringing in New Fortunes? can be done for the following purposes –
1. Strategic planning using facts provided in Apple's iPhone in India: Ringing in New Fortunes? case study
2. Improving business portfolio management of Iphone Apple
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Iphone Apple
Strengths Apple's iPhone in India: Ringing in New Fortunes? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iphone Apple in Apple's iPhone in India: Ringing in New Fortunes? Harvard Business Review case study are -
High switching costs
– The high switching costs that Iphone Apple has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to lead change in Global Business field
– Iphone Apple is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Iphone Apple in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Iphone Apple is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Iphone Apple is present in almost all the verticals within the industry. This has provided firm in Apple's iPhone in India: Ringing in New Fortunes? case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Organizational Resilience of Iphone Apple
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iphone Apple does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Iphone Apple digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Iphone Apple has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Iphone Apple has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Apple's iPhone in India: Ringing in New Fortunes? Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Iphone Apple is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Iphone Apple is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Apple's iPhone in India: Ringing in New Fortunes? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Global Business industry
– Apple's iPhone in India: Ringing in New Fortunes? firm has clearly differentiated products in the market place. This has enabled Iphone Apple to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Iphone Apple to invest into research and development (R&D) and innovation.
High brand equity
– Iphone Apple has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Iphone Apple to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Iphone Apple has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Apple's iPhone in India: Ringing in New Fortunes? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Iphone Apple in the sector have low bargaining power. Apple's iPhone in India: Ringing in New Fortunes? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Iphone Apple to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Apple's iPhone in India: Ringing in New Fortunes? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Apple's iPhone in India: Ringing in New Fortunes? are -
Aligning sales with marketing
– It come across in the case study Apple's iPhone in India: Ringing in New Fortunes? that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Apple's iPhone in India: Ringing in New Fortunes? can leverage the sales team experience to cultivate customer relationships as Iphone Apple is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Iphone Apple needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Need for greater diversity
– Iphone Apple has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Low market penetration in new markets
– Outside its home market of Iphone Apple, firm in the HBR case study Apple's iPhone in India: Ringing in New Fortunes? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Apple's iPhone in India: Ringing in New Fortunes? has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Iphone Apple 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Apple's iPhone in India: Ringing in New Fortunes?, is just above the industry average. Iphone Apple needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to strategic competitive environment developments
– As Apple's iPhone in India: Ringing in New Fortunes? HBR case study mentions - Iphone Apple takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Interest costs
– Compare to the competition, Iphone Apple has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Lack of clear differentiation of Iphone Apple products
– To increase the profitability and margins on the products, Iphone Apple needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Apple's iPhone in India: Ringing in New Fortunes?, it seems that the employees of Iphone Apple don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Skills based hiring
– The stress on hiring functional specialists at Iphone Apple has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Apple's iPhone in India: Ringing in New Fortunes? | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Apple's iPhone in India: Ringing in New Fortunes? are -
Learning at scale
– Online learning technologies has now opened space for Iphone Apple to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, Iphone Apple can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Iphone Apple can use these opportunities to build new business models that can help the communities that Iphone Apple operates in. Secondly it can use opportunities from government spending in Global Business sector.
Buying journey improvements
– Iphone Apple can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Apple's iPhone in India: Ringing in New Fortunes? suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Iphone Apple in the consumer business. Now Iphone Apple can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Iphone Apple to increase its market reach. Iphone Apple will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Iphone Apple can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Iphone Apple can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Iphone Apple can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Iphone Apple can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Iphone Apple can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Iphone Apple can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Iphone Apple can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Loyalty marketing
– Iphone Apple has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Apple's iPhone in India: Ringing in New Fortunes? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Apple's iPhone in India: Ringing in New Fortunes? are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Environmental challenges
– Iphone Apple needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Iphone Apple can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Iphone Apple demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Iphone Apple needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Iphone Apple can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iphone Apple with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Apple's iPhone in India: Ringing in New Fortunes?, Iphone Apple may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Iphone Apple.
High dependence on third party suppliers
– Iphone Apple high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iphone Apple can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Apple's iPhone in India: Ringing in New Fortunes? .
Technology acceleration in Forth Industrial Revolution
– Iphone Apple has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Iphone Apple needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Iphone Apple business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Apple's iPhone in India: Ringing in New Fortunes? Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Apple's iPhone in India: Ringing in New Fortunes? needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Apple's iPhone in India: Ringing in New Fortunes? is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Apple's iPhone in India: Ringing in New Fortunes? is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Apple's iPhone in India: Ringing in New Fortunes? is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Iphone Apple needs to make to build a sustainable competitive advantage.
