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iPhone Blue Ocean Strategy. INDE 599 11-3-09. Overview. Industry Pre-Launch 5 Forces Analysis 4 Actions Framework Strategy Canvas 6 Paths Risk Assessment Post Launch Success. History of Industry. 2002-2003 2 Very successful iPod sales No desire from Apple to create a PDA

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Presentation Transcript
overview
Overview
  • Industry Pre-Launch
  • 5 Forces Analysis
  • 4 Actions Framework
  • Strategy Canvas
  • 6 Paths
  • Risk Assessment
  • Post Launch Success
history of industry
History of Industry
  • 2002-20032
    • Very successful iPod sales
    • No desire from Apple to create a PDA
    • Steve Jobs believes that cell phones will eventually carry the PDA information
    • Americans carried cell phones, Blackberries, & MP3 players
  • 2007
    • Cell providers marketing to kids & teens
    • Boost in consumers wanting smart-phones3
    • Motorola losing 2% of market share 1 month after iPhone launch3
    • Google reveals cell phone software4
5 forces analysis on cell phone industry
5-forces Analysis on Cell Phone Industry
  • Threat of new entrants?
    • Apple would be the new entrant
    • Google, Microsoft could choose to produce cell phones, eventually.
    • Other cell phone companies may re-design their products to compete, later
  • Bargaining power of buyers?
    • Minimal—Other devices, Palm Treo, Blackberry do not integrate all technologies efficiently
  • Threat of substitutes?
    • Minimal. Palm Treo is only other existing convergence device.
    • Blackberry does not have all of the same functionality, such as MP3s
  • Bargaining power of suppliers?
    • Minimal. Suppliers will want to get involved with new project, beneficial to their sales.
  • Rivalry?
    • Medium. iPhone can revolutionize the cell industry.
    • Immediately, there will be little competition, but there will be competition from all cell phone producers once it is released. (Motorola, LG, Sanyo, Palm, Blackberry, etc)
strategy canvas
Strategy Canvas

Relative Scale

2-Highest Rating

0-Lowest Rating

areas to change the rules 6 paths framework
Areas to Change the Rules“6 Paths” Framework
  • Alternative Industries
    • Incorporate smart-phone technology
      • iPod-MP3, email, applications
  • Strategic Groups within Industries
    • Trade up from typical cell for smart phone technology
    • Improved user interface from Blackberry
  • Chain of buyers
    • Increase iTunes users
    • Market to AT&T only
  • Complementary Offerings
    • Incorporate iPod and & iPod touch capabilities
  • Differentiation
    • Touch features, compared to Blackberry
    • Integrated applications
    • “Cool factor”
  • Look across Time
    • Revolutionary user interface
      • Touch screen, keyboard, directly connect to App Store, linkage to Mac/PC
risks assessment
Risks Assessment
  • First time Apple makes a cell phone
  • Aligning to a single cell carrier
  • Ability to successfully integrate software
  • Problems with battery life
  • Impacts to iPod sales
  • High price of product
  • Data networks sluggish

4

1

6

3

2

7

5

product impact post launch
Product Impact Post-Launch
  • Product Impacts1
    • Cell phone carriers realize that phones can win customers & bring in revenue
      • Upset the carrier-manufacturer balance of power
    • Opportunities for application developers
  • Sales
    • March 20096
      • 17 million iPhones sold
      • 25,000 applications sold on App Store
      • 800 million total downloads from App Store
    • October 2009-Apple Profit increases 47%5
      • Apple sold 7.1 million iPhones in single quarter
references
References
  • The Untold Story: How the iPhone Blew up the wireless industry: http://www.wired.com/gadgets/wireless/magazine/16-02/ff_iphone?currentPage=2
  • Steve Jobs: No Tablet, No PDA, No Cell Phone, Lots Of iPods: http://www.macobserver.com/article/2003/06/05.9.shtml
  • Mobile Phone Industry Already changing due to iPhone: http://arstechnica.com/apple/news/2007/08/report-mobile-phone-industry-already-changing-due-to-iphone.ars
  • Google Unveils Cell phone software & alliance: http://news.cnet.com/google-unveils-cell-phone-software-and-alliance/
  • Apple Profit Surges on iPhone Sales: http://online.wsj.com/article/SB10001424052748704500604574483631612633824.html
  • iPhone Sales hit 17 Million: http://www.pcworld.com/businesscenter/article/161725/iphone_sales_hit_17_million.html
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