BUS 890:
Strategic
Management
Group #10:
1. Binh Thieu
2. Lan Phan
3. Minh Thu Luu
4. Tung Duong
(Communication Equipment Industry)
------------------
What is the one item you never leave home without?
Outline
Industry
Analysis
Why?
Driving
Forces
Industry Analysis –
Smartphone
1. Why does it matter?
2. Driving forces
3. Dominant features
4. Five-Forces model
5. Strategic group map
6. Key Success Factors
Company Analysis –
Apple's iPhone
1. Company Overview
2. Value Chain Analysis
3. SWOT Analysis
4. Competencies
5. Business Analysis
6. Competitive Strategy
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Strategic Recommendations
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Smart-phones
allow users to:

e-mail, internet

store information,

entertainment

install programs,

along with using a mobile
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
phone in one device
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Products
Technology
• Provides new capabilities & applications
at anywhere and anytime
• Business tools to cool items for
entertainment
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Competition
• Google – the next powerful entrant
• No sign of major firms exiting
Value Chain
Analysis
SWOT
Analysis
Competencies
Innovation
• Although 3G still fresh, talks of 4G
already on the way
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
 Market
size and growth rate
 Number of rivals
 Product Innovations
 Learning/experience curve effects
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Total Mobile Sales:
- Mobile phone
sales to exceed
1billion in 2009
- More than 200
million smartphones will be
sold in 2008.
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Source:
http://www.palminfocenter.com
Recommen
dations
Outline
Industry
Analysis
Why?
1. Consumers market
Driving
Forces
2. Corporate market
Dominant
Features
Five
Forces
Buyers
Weak
Strategy
Group Map
1. VoIP
Skype…
2. PDA phone
Palm…
3. Features
phone
Nokia, LG …
1. Establish
mobile
manufacture:
LG, Samsung
2. Software
giants: Google,
MSFT
1. Carriers
AT&T …
Substitute
Products
Emerged
Suppliers
Strong
Industry
Rapidly Emerging
New
Entrants
Threat
Rivals
Strong
2. OS
providers
Linux, WM…
3. Hardware
makers
Intel …
1. More
companies
enters…
2. Strong
brands and
finance
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Dominant
Features
Five
Forces
Source: www.wikinvest.com
Strategy
Group Map
Key Success
Factors
Apple
Company
Analysis
RIM
HTC
Overview
Value Chain
Analysis
PALM
Samsung
SWOT
Analysis
Nokia
Motorola
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Source: http://blog.bryanstarbuck.com
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Consumer-oriented Factors
Dominant
Features
Five
Forces
Strategy
Group Map
Technology
Marketing
Skill and
Capability
Distribution
-------------------
-------------------
-------------------
--------------------
- Internet driven
force
- Replacing
communication
tools
- Next generation
experience
- Well-know and
well-respected
brand name
- Market
segmentation
- Targeting and
Pricing
effectiveness
- Value added
(cheaper, faster,
more convenient
than the
alternatives)
- Design and
innovation
expertise
- A strong network
of wholesale
distributors/
dealers
- Fast introduction
and application of
services
“This is a difficult industry, part of it is technology; part of it is fashion…”
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Apple Timeline
Dominant
Features
Jobs back as
"interim CEO" in
1997
Jobs became
chairman
Founded
(4/1/1976)
Five
Forces
IBM released its first
PC
Introduced Macintosh
iPhone launched
6/29/2007
Strategy
Group Map
iPhone 3G hit market
7/11/2008
Key Success
Factors
Company
Analysis
1975
1980
1985
1990
1995
2000
2005
2010
1/1/1977 incoporated
by Steven Jobs &
Steven Wozniak
iApple ?
Jobs left Apple
Apple was in trouble
1990s
iTunes unveiled
iMac released
iPod went to life
2001
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Mission:
"Apple is committed to bringing the best personal computing
experience to students, educators, creative professionals
and consumers around the world through its innovative
hardware, software and Internet offerings."
Vision:
"Man is the creator of change in this world. As such he should
be above systems and structures, and not subordinate to
them"
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
1.
2.
Industry:
Computer software & hardware
Consumer electronics
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Supply
chain
Operation
Sales and
Marketing
Distribution
Service
Dominant
Features
Five
Forces
China –
Shenzhen
Assembly
Facility
Strategy
Group Map
Key Success
Factors
Taiwan
–
Facilities of
camera,
circuitry,
connectors,
stainless
casings
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
US –
Facilities of
touch
screen,
specific
parts
Singapore
–
Source: http://www.shmula.com
Facilities of
CPU,
processing
chips
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces

Sharp rise in consumer demand


Dominant
Features
56% of smart-phone buyers prefer iphone
Five
Forces
Strategy
Group Map
New target market –
price reduction attract
more customers

Key Success
Factors
Company
Analysis
High Potential Software –
Overview
upgradable; can add new
features

Value Chain
Analysis
SWOT
Analysis
3G Apple iPhones to
captivate business
demand worldwide
Competencies
Business
Analysis
Competitive
Strategy
Source: http://www.linuxdevices.com
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces


New powerful entrant - Google
Many similar or substitute
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
products

Intense competition with major
rivals

Increasing bargaining power of
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
buyers
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces

First mover advantage
Dominant
Features
Five
Forces

Ownership of
technological patents

Apple is one of the most
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
established brand

Customers loyalty

Cultural, fashion identity
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Source: http://www.appleinsider.com
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
 Dependence on third party provider:

AT&T, Content Provider, Application
provider
 Less
appeal to corporate customers
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview

Technological complication

Gorilla arm
Value Chain
Analysis
SWOT
Analysis
Competencies

Limitation of particular features
Business
Analysis

Application slow down and freeze
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
 iTunes
: Synchronization
between the iTunes - App
store and Apple devices.
 User
interface of consumer
gadgets and computing
devices

Intuitive design, easy-to-use
and self-discoverable
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Users’ experience
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Source: http://blog.wired.com
Recommen
dations
Outline
Industry
Analysis
iPhone
5%
Why?
Mac
59%
iPod
36%
Apple may well pass Microsoft,
which has $23.7 billion in cash, and
could have $40 billion in 2 years
Driving
Forces
Dominant
Features
Five
Forces
Revenue Contribution
Q2/2008
Strategy
Group Map
PROFIT MARGIN
Apple has recently doubled its net income
8000%
Key Success
Factors
Company
Analysis
Overview
7000%
6000%
Value Chain
Analysis
5000%
4000%
SWOT
Analysis
3000%
2000%
Competencies
1000%
Business
Analysis
0%
2008
2007
Profit margin
Source: http://www.businessweek.com
2006
2005
Net income
2004
2003
Net sales
Data: Standard & Poor’s
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Source: http://www.artechnica.com
Recommen
dations
Outline
Industry
Analysis
Why?

Broad-Differentiation
Strategy

Offer more products to
a broad of buyers

Deliver value to
customers by
differentiating
Driving
Forces
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Company
Analysis
Overview

Focus-Differentiation
Value Chain
Analysis
Strategy

A narrow market niche
with unique needs

Premium Price to target
high-end consumers ,
business market
Source: Textbook
SWOT
Analysis
Competencies
Business
Analysis
Competitive
Strategy
Recommen
dations
Outline
Industry
Analysis
Why?
Driving
Forces
Dominant
Features
Five
Forces
Strategy
Group Map
Key Success
Factors
Expansion:
M&A, alliances,
partnership…
Company
Analysis
Overview
Value Chain
Analysis
SWOT
Analysis
Competencies
Business
Analysis
__APPL-IZATION__
Competitive
Strategy
Recommen
dations

Peter Burrows (2008,7,30). How to spend Apple’s cash. Business Week. Retrieved
August 11, 2008, from
http://www.businessweek.com/magazine/content/08_32/b4095000656875.htm?chan=
magazine+channel_news

Olga Kharif (2008, 8,4). That iPhone Nano rumor. Business Week. Retrieved August
11, 2008, from
http://www.businessweek.com/the_thread/techbeat/archives/2008/08/that_iphon
e_nan.html?chan=top+news_top+news+index_news+%2B+analysis

Peter Abilla (2007,1,18). The Apple iPhone Supply Chain. Shmula. Retrieved August
11, 2008, from http://www.shmula.com/304/the-apple-iphone-supply-chain

Charles Jade (2008,4,23). Apple Q2 2008: Mac sales surge, iPhone not so much. Ars
Technica. Retrieved August 11, 2008, from
http://arstechnica.com/journals/apple.ars/2008/04/23/apple-earnings-mac-sales-surgeiphones-not-so-much

Bryan Gardiner (2008,4,1). The smartphone smackdown: who satisfies customers
best? Wired. Retrieved August 11, 2008, from
http://blog.wired.com/business/2008/04/the-smartphone.html

Santhosh Paramesh (2007,10,16). 3 more ways Apple will take over the world. Vibgior
Technomix. Retrieved August 11, 2008, from http://technomix.vibgior.com/?p=17