iPad • What is it? • The iPad is a tablet computer designed and marketed by Apple Company for internet browsing, media consumption, gaming and light content creation. Released in April2010. • The iPad uses wireless and 3G connection. A USB cable is required to sync the iPad with iTunes on a personal computer. • The iPad is assembled y Foxconn, which also manufactures Apple’s iPod, iPhone and Mac Mini, in its largest plant in Shenzen, China.
History • The iPad released had been rumored for several years. Mostly referred to as “Apples Tablet”, iTablet, and iSlate were among speculated names. The iPad was announced on January 27, 2010 by Steve Jobs at an Apple press conference at the Yerba Buena Center for the Arts in San Francisco. • Three days later, at the 52nd Grammy awards, Stephen Colbert used an iPad in announcing the nominees • Apple began taking pre-orders for the iPad from U.S. customers on March 12, 2010. The wi-fi version went on sale in U.S. on April 3,2010. The wi-fi + 3G version was released on April 30.
Apple’s iPad Operation Strategy • The manufacturing plant of Apple is located in Silicon Valley, San Francisco Bay Area in Northern California, United States, where most of the companies located. It is home to many of the world’s largest technology corporations. Silicon Valley continues to be a leading hub for high-tech innovation and development. Silicon Valley has been most famous in recent years for innovations in software and internet services. Apple to build manufacturing plant in Arizona with solar power. • Apple was the first company to integrate multiple products as one.
Apple’s New iPad Strategy Might Be paying Off • Apple Partnership with IBM • In July Apple announced a partnership with IBM to sell iPads to business. IBM has been working with Apple on new apps for businesses, even customizing those apps for each organization. Business and enterprise customers are clearly Apple’s main target with the iPad. If can get companies to replace their PCs with tablets, it will make a killing. • Apple is in fantastic position to sell to business. It has the hardware. IBM is adding value with its software. All Apple needs to do now is convince potential customers why a tablet is better than a notebook or a phablet.
Apple-iPad Operation Strategy • Apple is the best in the world at innovativeproduct development because the company develops hardware, software and associated digital services rather than focusing as just one dimension. • Excellent hardware design • Continuous product development • Diversification • Competitive Advantage
Apple-iPad Operation Strategy • Product Differentiation • Apples iPad stand out from the competitors highlighted their products superior technology, features, styling, heritage, pedigree or price. Apple is able to command such premium prices because it has successfully differentiated its product from competitors. The following features are: • Lightness – iPad is lighter and thinner than competitors • Display Quality – retina display is visually superior • Engineering – high quality of materials • Ease of Use – Apple makes both the hardware and software
In terms of distribution, Apple has a tight control on the availability of iPad and its applications; thus it could not be purchase anywhere but only on Apple’s authorized dealers/distributors. However, they have manage to gain a distribution advantage considering that “about a third of Apple’s iPads are sold through its own retail stores and online, where it pays no commission to channel partners. (Savitz 2011) • Gaining a Technological Advantage • Gain a technological advantage over competitors. • Prevent competitors from gaining the same advantage. Apple-iPad Operation Strategy • Product Distribution
Apple Company’s Operation Strategy • The Marketing plan of Apple iPad is based upon extensive research and planning so that it can expand its operations worldwide where the marketing strategy aimed to promote the following key elements to strengthen its brand image: • Product design – provide ultimate user friendliness and access to all technological advancements together in one mini device. (Halls and Jones,200) • Brand positioning – target market can be professionals, businessmen, youngsters with the innovative and trendy designs to satisfy a larger market segment by positioning iPad as a need for every individual. • Promotion – media and word of mouth advertising. • Price – charged at a premium price with value. • Place – building long-term relationship with suppliers, wholesalers and retailers worldwide.
Apple-iPad Service – Quick Service Guide This guide should be followed to determine warranty validation and to identify conditions that may affect warranty coverage on the iPad. It’s a four-step process that can be performed in approximately 20 minutes. 2 minutes 10 minutes 5 minutes 2 minutes
Step 1 - Validate warranty To determine if an iPad or Apple branded accessory is eligible for warranty service, follow the on-screen instructions to enter the iPad serial number at: http://www.apple.com/support/oss or enter the serial number in GSX/GCRM. Note: Warranty exceptions may apply for customer with AppleCare+ for iPad. Step 2 – Perform Visual Inspection • Visually inspect the iPad using the service classification tables. • Visual damage may affect warranty coverage and related charges.
Step 3 – Validate Functional Use If none of the issues described in the Visual Damages – Service Classification tables exist, validate that the issue that prevents the device from operating according to specifications that is present. Try to replicate the issue describe the user. To restore the iPad make sure there is sufficient charge and the customer has backed up iPad. If the restore is successful, attempt to repeat the functional issue again. Step 4 – Replace iPad Replace the iPad ONLY if a functional issue still exists or if the software restore fails.
Important Information ! The iPad warranty covers failures caused solely by manufacturing defects, regardless of accidental or liquid damage ! Cosmetic blemishes caused by using the product are NOT covered by the iPad warranty. ! Damage caused by material or foreign objects in the parts is NOT covered under iPad warranty, but maybe eligible for Out-of-warranty (OOW) paid service. ! An iPad that has failed due to liquid damage maybe eligible for OOW paid service. ! Certain other damage is INELIGIBLE for OOW paid service, including catastrophic damage caused by abuse, such as the device separating into multiple pieces and inoperability caused by unauthorized modifications. ! Warranty exceptions may apply for customers with AppleCare+ for iPad
Visual Damage – Service Classification Tables The tables below provide guidance on whether an iPad with certain physical visual damage qualifies for Covered warranty or Paid Service.
Warranty Coverage Issues Covered Under Hardware Warranty Apples covers defects in materials and workmanship on the iPad under normal use for a period of ONE (1) year from the date of retail purchase by the original end-user purchaser.
Challenges in the near future • Apple Inc. is upgrading its iPad line up to fund off a growing list of competitors, which are introducing their own tablets at lower prices with snazzier features. • Apple is facing a similar challenge feature with the iPad as it has with the iPhone, betting lower cost rivals and proving the incremental changes to existing products are enough to draw customers. • The iPad is the second best selling gadget after the iPhone and the new models will be critical as the company seeks to reignite growth. • Android is getting similar apps and any of the phone company which is getting into exactly the same situations of the launch of iPad. • Apple also faces its share of threats. Faces of lawsuits from various competitors claiming the company stole intellectual property.
SWOT Analysis • Strength • Strong brand awareness – helps the iPad to sell quickly. • Quality – good battery life, easy to handle, light and portable. • Marketing and advertising capabilities • Strong leading team • Constant Innovation and frequent upgrades • Weakness • iPad 1st gen. has no camera and no multitasking • Weak distribution channels • High price
SWOT Analysis • Opportunities • Introduction of new products • Expansion • Acquisition • Loyal customer base • Strongest player in mobile apps market • Threats • Rapid technological change • Strong competition • Low cost products • Economic slowdown • Intense Competition ( e.g. Android) • Financial and Political instability • Good ideas are easily copied
References: Hall. D and Jones. R., Business Studies (2nd Ed.), “Marketing Mix”, 2000. Kotler, P., Marketing Management, Prentice Hall Production. http://www.applematters.com/article/4-reasons-why-the- ipad-will-be-a-huge-success-and-one-reason-why-it-may-not/ www.apple.com/ipad www.cnet.com/apple-ipad https://blog.udemy.com/business-strategy-examples/ Notes in Operation Management.