Strategy and Positioning Analysis
Overview of Organization
Apple Incorporated was established in 1977 and focuses on the design, manufacture, and marketing of mobile and digital communication devices. The company is also in the business of manufacturing and selling digital music players, software, networking solutions, and third party digital applications. Some of the company’s well-known products include iPhone, Apple TV, iPads, and iPod.
Description of Product/Service
The program is offering a Virtual Assistance service to its clients. A virtual assistance service is ideally for companies or individuals who wish to outsource some of their tasks. The program provides administrative, creative, and technical services to the client as per his requirements. The services are provided on a real-time basis to the clients. The program will be hosted on Apple’s online interactive forum. The use of the platform will ensure that the client is in constant communication with the VA program.
- High barriers to entry
- High Gross Margins
- Small start-up capital
- Low start-up risk
- Visible website
- Brand recognition
- Brand loyalty
- Highly experienced owner-operator
- Limited startup costs and risks
- Competitors can come up with similar products quickly
- Lack of flexibility in pricing
- Unlimited growth for online sales
- Development of proprietary products
- Development of affiliate relations with vendors in similar channels of business
- Acquiring new rounds of capital
- Alterations in regulations can hamper the program’s successful expansion and profitability
- Many competitors can risk saturating the market
- Increase in labor prices can cause upward pricing trends.
The section will outline the strengths and weaknesses of the competition compared to the company’s strengths and weaknesses based on a number of criteria. The criteria used will include target market, product, place, promotion, price, competitive barriers, and likely responses to the products on offer.
Current company’s strengths and weaknesses
Potential Competitor’s strengths and weaknesses
Competitive Rival’s strengths and weaknesses
Small start-ups and Mid-size companies
The potential competitor mainly focuses on Large organizations. Rarely offers VA programs to small or mid-size organizations
Rival is willing to offer product to every type of organization regardless of size. Also branching into offering VA for individuals
Virtual Assistance program that includes graphic design, marketing, administrative work
VA program only focuses on providing accounting services to clients
Rival can provide more services through their VA platform
Online therefore global presence
Online but Restricted to the United States
VA program bears Apple’s brand, which is globally recognized. Product will be promoted under Apple’s banner through online advertising alongside the company’s other products
Company is the biggest accounting firm in US. However, lack of global recognition may hinder the promotion of its VA program
It is a new company with little brand recognition. However, the company might engage in raising brand awareness by developing VA apps that are attractive to young entrepreneurs
Average pricing makes it affordable even for start-ups
Pricier than other VA programs in the market
Use price differentiation to target different customers
The VA program offers general and limited services to clients
Focuses on offering accounting services alone
Capital to build and promote its product may be a competitive barrier
Favorable mainly because it is an Apple product
Favorable especially if they decide to expand their services
Favorable because it is newer and more adaptable compared to the rest of the competition.
Target Market Segments
This segment will provide a breakdown of the characteristics of the target market. The analysis is important to adequately capture the needs and requirements of potential clients in the market.
The target market consists of entrepreneurs, small size enterprises, and mid-size corporations.
The target market has a positive attitude towards outsourcing a number of daily, routine tasks including core duties of the company. The clients are interested in expanding their businesses, and profits, while keeping their wage costs low. They view outsourcing as a cost-effective approach in running their businesses.
There are no geographical boundaries as anyone can access the VA program from the company’s online VA platform, wherever they are on the globe.
The behavioral factors influencing the target market include cultural and societal attitudes towards delegating tasks to virtual assistants, perception of the VA program, and the clients’ revenue stream (Perreau, 2006).
The product is essential in the market because it caters to the daily outsourcing needs of small to medium sized companies, including start-ups, who have largely being ignored by most VA programs in the market.
Apple Incorporated is offering a Virtual Assistance Service to cater to the outsourcing needs of small and mid-sized companies. The premise is the companies will be willing to outsource some of their tasks in a bid to reduce their wage expenses and remain profitable. These companies may also lack the resources to hire highly trained individuals, and thus the need to outsource specific tasks to the company’s VA program.
Perreau, F. (2006, Nov 28). The factors influencing consumer behavior. The Consumer Factor. Retrieved on 3/4/2016 from http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/