Analysis and Evaluation of the Attractiveness of the Uk Market

The apple TV Analysis and evaluation of the attractiveness of the current UK market executive Summary This report provides an summary and evaluation of the three directs of the marketing surround for orchard apple tree TV and studies the attractiveness of the current UK market. It will consider the afterlife success or not of the apple TV in the UK and from this compendium recomm blockade the modifications and improvement apple should do.Most of the information in the report is base on market reports such(prenominal) as Keynote, netsites, stark nakedspapers and finally the Marketing an submission (8th Edition) text edition (Gary Arm loaded, Philip Kotler, Michael Harker, Ross Brenan 2007) and the lecture slides provided by Michael Harker. The principal theories which were signifi derrieret in the editing of this report were the SWOT analysis and the PEST analysis. Results of data analyzed turn out that orchard apple tree has a warm brand im come on and international pop ularity and makes Brobdingnagian investment in research and development. The television exertion is radically changing with the appearance of a unexampled type of television service, the internet television. apple TV has numerous and strong competitors. Beca engross of the strong position of its suppliers orchard apple tree suffers from the set push. The orchard apple tree TVs price is alike expensive. The shape of formats back up by the apple TV is too limited. In conclusion we female genitalia recommend orchard apple tree to lower the price and change magnitude the number of formats back up by the orchard apple tree TV. apple should fabricate itself some of the orchard apple tree TVs comp anents to be out of the pressure provided by its suppliers. apple should in addition differentiate itself by increasing the number of masking downloadable for the apple TV and creating a special invoke screen working with the orchard apple tree TV. The reliability of this rep ort is partially limited because it is concentrated on the study of the micro and macro environment. It is essentially based on standby resources and some information provided by non official and official website can be not impartial or not up to date. Further much apple refuses to give too much information roughly the orchard apple tree TV and its finance. CONTENTS Presentation page (p1) I)Executive Summary (p2) II)Contents (p3) II) Introduction (p4)III) Analysis and Interpretations (p4) 1) Micro-Environment (p4) A- The ships conjunction (p4) B-The suppliers (p5) C-Marketing intermediaries (p5) D- adversarys (p5/6) D-Consumers (p6) 2) Internal Environment (p6) A-Employees (p6/7) B-Finance (p7) 3) Macro-Environment (p7) A-Political and economic (p7) B-Social (p7/8) C-Technologic (p8) D-Environmental (p8) E-Legal (p9) IV) purpose (p9) V) Recommendations (p10) VI) Bibliography (p10/11/12/13) VII) extension (p13) Introduction Created in 1976 by Steve Jobs, apple Company is an American informatics multinational corporation which is headquartered in Cupertino, Silicon Valley.Best k at a timen for its skills in computers, apple has diversified in novel eld by venturing into the music industry and the mobile phone. Always attracted by clean opportunities, Apple touches today with its Apple TV a market that it has never explored the television. But is this new engineering science a good business idea and does this output live a chance to succeed in a country such as the UK? To answer this question and to give some advice and recommendation about the Apple TV this report will study its three environment level in the UK market.E actually section provides an abstract rate which gives an approximate idea of the attraction of the current UK market. Analysis & Interpretation I)The microenvironment First, this report will analyze the microenvironment which consists of the actors destination to the company that contact its ability to serve the customer. ( Gary Armstrong, Philip Kotler, Michael Harker and Ross Brenan 2007, p) The company These recent years Apple has managed to establish itself well in the world market. The company did not stop emergence during the last 10 years and became more and more effective and competitive. Moreover, because of its exponential growth, opportunities are opening up to the government activity such as the massive reinvestment in research and development. (Wikinvest, 2010) Apple uses an hard-hitting advertising strategy and has a website easy to use, attractive, and informative. Apple has an international popularity and a strong brand name which continue to increase the company in the world market. military rating 8. 5/10 Suppliers Apple requires each of its suppliers to take the highest standards for all goods and services. Apple business environment is competitive and fast-paced.That is why their suppliers essential understand this dynamic and be agile and flexible in responding to changing bu siness conditions. (Apple,2010) The most expensive components of the Apple TV are the central processing unit A4 Apple designed and manufactured by Samsung (16. 55 dollar), the 8 GB flash memory products by Toshiba (14 dollar) and the chip supports from Broadcom Communications Wi-Fi and Bluetooth (about 7. 65 dollars). This doesnt take into account the costs of research and development, product transport, logistics costs and still the marketing budget. cnet new, 2010) With a net production cost of 64 dollars and a sale price of $ 99 U. S. , Apples margin is not very consequential. We can also underline that Apple suppliers have a very strong position which can make Apple suffer of the pricing pressure. (macnn, 2010) Rating 5/10 Marketing Intermediaries Apple Retail Stores At the end of June of this year Apple had 293 retail stores open for business and during folk Apple opened 24 new stores all around the world. In the UK there are 29 Apples stores. Besides during the month of J une, store revenue change magnitude 73% to $2. 78 billion and produced average store sales of $9 million. (postsateventide, 2010) Others Apple has also a large number of some other retailers such as FNAC. Apple has a large number of retailer which are efficient and provides the company an important revenue. Rating 6/10 Competitor For this product, the search engine Google also launches into battle with its Google TV, designed by Japans Sony and the U. S. Logitech. (BBC,2010) Furthermore, in the United Kingdom the party whitethorn not be easy because of the success of TV offerings on the Internet, included in subscriptions providing trinity play (broadband, TV, phone connection).ISPs Internet multiply the number of available convey and services catch-up TV, VaD All at a competitive price til now (between 30 and 40 euros per month for the triple play). (oezratty, 2010) Companies such as hawk are well implanted in the market and dont stop growing and developing. (market report) In addition Apple will have to deal with other products that already make the same type of services, such as coarse-grained consoles lounge (Sonys PlayStation 3 and Xbox 360 from Microsoft). (macgeneration, 2010) In the U. S. there are also cases very similar to the Apple TV, that start-up Vudu and Roku California, where boxing Box, D-Link. If they are a success they may extend to the rest of the world including the UK. (popsci, 2008) Rating 3/10 Consumer Apple is marketing to race who have a few characteristics. Most of the measure Middle/Upper income folks ages 12-35 who are willing to pay a bit more for a better user experience. Its consumers are people who enjoy technology and in this case especially people who the likes of to conserve a lot of digital photos or video. The prime pit seems to be an iTunes user who is already used to the Apple concept. But because of the Hi-Def constitution of the Apple TV, only a small percentage of this manoeuvre earshot will really buy one. Rating 3/10 II)The interne environment Employees Apple employees are trained to have very strong technical knowledge and to be very efficient in pasture to deliver a high standard of consumer service. Despite this, these recent years have seen the appearance of numerous scandals especially about its china factories employees.Indeed stories about employees suicide (BBC, 2010), employees poisoning (Macobservers, 2010) and the presence of children of fifteen years old as employees (telegraph, 2010) has greatly tarnished the companys control. That is why Apple has seriously reviewed the maintenance of its factories in China to avoid further scandals (note a contract signed by the employees in whom they undertake not to commit suicide). Finance As Steve Jobs says, the analysis of their every quarter revenue makes us understand why Apple is now a $50 billion company The Company posted revenue of $15. 68 billion and a net quarterly profit of $3. 8 billion. (Apple, 2010) Apple has moved more than 250,000 units since the device went on sale. (MacWorld,2010) Rating 5/10 III) The macro environment This analyze will finally end with a study of he macro environment which consists of the larger societal forces that affect the micro environment. (Gary Armstrong, Philip Kotler, Michael Harker and Ross Brenan 2007, p) Political and economic Analyzing the political aspect of its company we can see that Apple is a stable organization which is located in 31 countries. When it comes to the economy the company tries to adjust to the economic situation of their market. nowadays they have to face the crisis of 2009 which created unemployment and inflation, and has impoverished most of the population. Unemployment in the UK now stands at 2. 45 million, deciphering a fall of 9,000 in the three months to October however the inflation rate rose to 3. 2%. The UK is still very touch by the crisis. (BBC, 2010) Rating 3/10 Social To study the sociocultural aspect of the macro environment Apple, many factors have to be taken into account The population of the UK is ageing. Over the past 25 years, the median age increased from 35 years in 1984 to 39 years in 2009.It is projected to continue to increase over the next 25 years rising to 42 by 2034. (statistics. gov,2010) The culture aspect of the Apple TV environment is favorable to the success of this product because the todays ball club wants always to have new technology that is more and more efficient and developed and most people will not be triskaidekaphobic to purchase a new technology. Easy to use, their product seems perfectly qualified to this segment of the population which, while appreciating the new technology, is especially looking for product easy to use providing a simple and fun interface.Rating 5/10 Technological To improve the technology aspect of the macro environment, the company makes use of various technological innovations that help in increasing productivity and change the qual ity of their products. Indeed, the television industry is radically changing with the development of a new type of television service, the internet television. Users are now be delivered directly to TV sets in broadband-enabled households around the globe and are now offered with free-to-view television via their online ideo players, giving them more choice about how and when they watch (researchandmarkets, 2010). later the failure of the products first edition presented in phratry 2006, Steve Jobs announced a second-generation version of the Apple TV in September 2010 which seemed to have many advantages compared to its predecessor. About a quarter of the size and trine of the price of the original Apple TV, the new Apple TV dispenses with the PC/Mac link altogether, to provide a direct connection to the Web and a video download service is included. With its new product, Apple makes new improvements in online video. It puts at the disposal of users thousands and thousands of on line video programs vexible via the iTunes store. The Apple TV is easy to use and prevents users from buffering, downloading, stuttering, or subscribing. (LOUDERBACK, 2008) Moreover, unequal access to broadband meat that viewing TV via Internet with a good level of image quality is only accessible part of the population. (Oezratty, 2010) Rating 3/10 Environmental Because Apple knows that the ecological aspect of its production is very important to improve its image to its clients, the company uses Greenpeace as a way to reuse its polluting components (Greenpeace, 2007). Rating 5/10 Legal And finally to switch with the uprightness component of the macro environment Apple makes sure they comply with what the legal philosophy states in the country and they respect the regulated standards of the country. In the UK Apple has to follow the EU anti-competitive laws Both UK and EU competition law prohibit agreements, arrangements and concert business practices which prevent, restrict o r distort competition. They prohibit businesses with significant market shares unfairly exploiting their strong market positions. (out-law, 2010) Rating 6/10 Conclusion Apple has an international popularity, a strong brand name and has advantageously increased its fund in research and development. Thanks to this, most of their products have been a real success (IPod, IPhone ) But as Steve Jobs says the apple TV is still a hobby for the company which would like to succeed one day in the television industry, and today this product is still too weak to succeed in this market. First, the price (119? is too expensive at a time when the market has switched to the online rental. Then, most of the users will prefer to access directly to their music, films and photo with their computer using the Shortcuts to which they are used. Furthermore the Apple TV does nothing more than the box of an operator even if it is simpler with an interface that is clear and entertaining. Its possibilities are even less at some levels, since the formats supported are those dubbed by Apple H. 624, MPEG-4, M-JPEG, AIFF, MP3, AAC, JPEG, GIF and TIFF (to mention only the main).This new market is highly competitive and Apple is not sufficiently place to its competitors. netly, the Apples suppliers have a too important influence on the company. Final rate 4/10 Recommendations Following the Marketing environment analysis and the conclusion some advices can be recommended to Apple. Lower the price. For broadband, Apple may just wait or target its bid on these target audiences that may already be well connected. Apple may also overshadow all other competitors on the market by creating an finishing Store TV as the Iphone. Increase the number of format supported by the Apple TV including the divX. Apple should fabricate for itself some of the Apple TVs component such as the GB flash memory. Increase the number of Application downloadable for the apple TV including the Iphones application Create d a special Touch screen working with the Apple TV which could provide the user a manual photo or video retouching system. Avoiding scandals such as the Chinas ones and macrocosm stricter about its foreign supplier conventions. References Book Marketing an Introduction (8th Edition) textbook (Gary Armstrong, Philip Kotler, Michael Harker, Ross Brenan 2007) Websites -(wikinvest, 2010) Research and Development excerpt taken from the AAPL 10-K filed Jan 25, 2010. http//www. wikinvest. com/stock/Apple_(AAPL)/Research_Development -(Apple,2010) Apple and procurance, 2010 http//www. apple. com/procurement/ -(postsateventide, 2010) Apple and law of large numbers, Robert Paul Leitao, July 31, 2010 http//www. postsateventide. com/2010/07/apple-and-law-of-large-numbers. tml (oezratty, 2010) Apple peut-il reussir dans la TV? 25 august 2010 http//www. oezratty. net/wordpress/2010/apple-peut-il-reussir-dans-la-tv/ (macgeneration, 2010) LApple TV, console masque, Jean-Baptiste Giraud, October 2010 http//friendfeed. com/uberapple/47cd4a0d/lapple-tv-console-masquee-macgeneration -(Apple, 2010) Apple Reports First Quarter Results http//www. apple. com/pr/library/2010/01/25results. hypertext mark-up language -(statistics. gov,2010) Fastest increase in the oldest old, contribution for National Statistics General Register Office for Scotland http//www. statistics. ov. uk/cci/nugget. asp? id=949 -(researchandmarkets, 2010) Internet television receiver 2010 to 2014 Analyzing How the Internet will Change Television http//researchandmarkets. net/reportinfo. asp? report_id=1343728&t=d&cat_id= (Greenpeace, 2007) Tasty intelligence activity from Apple http//www. greenpeace. org/international/en/news/features/tasty-apple-news-020507/ -(Out-law, 2010) Competition law the basics, based on UK law, updated in April 2010. http//www. out-law. com/page-5811 Newspaper -(BBC,2010) Google and Apple heat up battle for TV screens By Maggie Shiels http//www. bc. co. uk/news/technology-11521 742 -(BBC, 2010) Apple boss defends conditions at iPhone factory http//www. bbc. co. uk/news/10212604 -(BBC, 2010) UK inflation rate in surprise October increase http//www. bbc. co. uk/news/business-11764588 -(cnet new, 2010) New Apple TV may cost less than $64 to build, October 5, 2010 http//www. macnn. com/articles/10/10/05/could. prove. more. profitable/. -(Telegraph, 2010) Apple admits using child labour, Malcolm Moore, 27 Feb 2010 http//www. telegraph. co. k/technology/apple/7330986/Apple-admits-using-child-labour. html -(MacWorld,2010) Apple sales top $20 billion in fiscal fourth quarter, Oct 18, 2010, Philip Michaels http//www. macworld. com/article/154967/2010/10/4q_earnings. html -(Macobservers, 2010) China Factory Workers Claim Poisoning from Apple Products October, 2010, Jeff Gamet http//www. macobserver. com/tmo/article/china_factory_workers_claim_poisoning_from_apple_products/ -(popsci, 2008) difference OF THE INTERNET VIDEO BOXES NETFLIX VS. APPLE TV VS. VUDU, Sean Ca ptain, 2008 http//www. popsci. om/gear-gadgets/article/2008-06/battle-internet-video-boxes-netflix-vs-apple-tv-vs-vudu -(macnn, 2010) New Apple TV may cost less than $64 to build, October 5, 2010 http//www. macnn. com/articles/10/10/05/could. prove. more. profitable/. Reports -(LOUDERBACK, 2008) JIM LOUDERBACK, Apple TVs Extreme Makeover, PC Magazine 27 no7 58 Je 2008 http//www. keynote. co. uk/market-intelligence/view/product/1276/digital-tv/chapter/1/executive_summary -(market report) Digital TV Market Report, 2003 http//www. keynote. co. uk/market-intelligence/reports/ kinsfolk/new-media Graphs -Appendix1 The microenvironment