Samsung
Samsung
Samsung
bureaucrats to learn efficient government from Singapore. To some, Samsung is the harbinger of a new Asian model of capitalism. It ignores the Western conventional wisdom. It sprawls into dozens of unrelated industries, from microchips to insurance. It is family-controlled and hierarchical, prizes market share over profits and has an opaque and confusing ownership structure. Yet it is still prodigiously creative, at least in terms of making incremental improvements to other people's ideas: only IBM earns more patents in America. Having outstripped the Japanese firms it once mimicked, such as Sony, it is rapidly becoming emerging Asia's version of General Electric, the American conglomerate so beloved of management gurus. Electronics total employment stood at 101,973 working in Korea and 119,753 outside of Korea, with the overseas workforce surpassing the domestic workforce for the first time in the history of Samsung Electronics. EUROPE As a responsible corporate citizen Samsung Electronics takes responsibility for the impacts of its business on the environment, in the community, on suppliers and employees. Our principles are embodied in the Samsung Code of Conduct and we publish a global Sustainability Report to inform stakeholders of our numerous activities across the globe. Think of 'Environment' and you may think of woodland, rare species or open countryside, not mobile phones or laptop computers. But all our activities have an impact on the environment, and here at Samsung Electronics we are committed to improving the environmental performance of our products and minimising the impact of our operations. Samsung Electronics' first Environmental Guidelines were adopted in 1992. Over 15 years later, our environmental activities have grown to focus on minimising environmental impacts not just in our factories but across the whole lifecycle of a Samsung product, from the design phase through to manufacturing, use and end of life. At Samsung Electronics, we are fully committed to minimizing our environmental impact on the communities in which we operate by implementing integrated prevention strategies across all production and service activities. All of Samsung Electronics'
business activities observe our Green Management Policy. This policy outlines our commitment to environmental protection and embodies key principals such as the need to consider the whole life-cycle of our products from initial concept through to end-oflife. Specific environmental impacts, such as hazardous substances, are then addressed by more detailed policies and initiatives under this broad remit. AMERICA Samsung Electronics America (SEA) sells everything Samsung, from sea to shining sea. A subsidiary of electronics giant Samsung Electronics, the company's Consumer Business division markets consumer electronics and household appliances, including TVs, Blu-ray disc players, portable audio players, home theater systems, hard drives, cameras and camcorders, refrigerators, and washers and dryers. It also sells printers, monitors, laptops, digital signage, and projectors through its Enterprise Business division. Formed in 1977, SEA also manages the North American operations of Samsung Semiconductor Inc. (a leading global chip maker) and Samsung Telecommunications America (mobile phones and telephony equipment). Samsung Electronics organizes its businesses according to its different characteristics in technology, markets and consumers as either Digital Media & Communications (DMC) or Device Solutions (DS) division, strengthening their independent operating structure. DMC is grouped into Consumer Electronics (CE) and IT & Mobile Communications (IM) divisions. The CE division took charge of the visual display business department and home appliances department. The IM division is in charge of managing wireless businesses, IT Solutions, Network business, digital imaging displays and the Media Solution Center.
Global Network
Samsung Electronics has a total of 196 subsidiaries around the world. As of the end of 2011, Samsung Electronics total employment stood at 101,973 working in Korea and 119,753 outside of Korea, with the overseas workforce surpassing the domestic workforce for the first time in the history of Samsung Electronics.
2.Main distributors
Ingram Micro Australia Leader Computers Multimedia Technology Synnex Australia Topstar Computer
International
XiT Distribution
3.Main suppliers
4.Product portfolio
Samsung Electronics business portfolio consists of the manufacture and sales of digital media devices (digital TVs, monitors, printers, mobile phones, communication systems, air conditioners and refrigerators) and components (memory chips, system LSIs etc). Samsung Electronics has a worldwide business network which consists of headquarters in Korea and nine subsidiaries in various parts of the world which manage production and sales in their respective regions. The global IT industry is facing a tide of change as the economic recession continues. In addition to its excellence in hardware manufacturing, Samsung Electronics is strengthening its soft power capacity, merging with promising new businesses and proactively nurturing new businesses to become the new leader of the IT industry.
Key Products
LED TV Premium Design Monitor
NotePC
Full HD Camcorder
SPH-M800 Instinct
MP3 Player
SGH-A867 Eternity
SGH-A877 Impression
Microwave
HZ15W
Refrigerator
TL320
Accuvix A30
1Gb OneDRAM
800MHz Mobile AP
8Gb Flex-OneNAND
Mobile DDI
32Gb NAND
Smart Card IC
32Gb moviNAND
70" DID panel for Digital signage 55" LCD panel for TVs
The revenue departments of handset were 17,890 million, representing a 75% increase over the previous year. Benefits, $ 5,900 million, as estimated last week. The arrival of Samsung Galaxy S3 and its ten million units sold in less than two months have enough to do in these achievements. The operation of the rest of the range Android / Galaxy also provides, among all represent 90% of the mobile division.
Semiconductor
visula display
mobile
IT Solution
digital Imaging
on its flagship product "Dataplex", which is now in the process of being introduced to the market through Computer OEM's, HDD and SSD vendors. NVELO is located in Santa Clara, California.
7. Advertising strategies
Samsung's strategy is based on personal media, domestic and mobile. Samsung has unveiled its strategy to changing information technologies. The main premise of the company is to bring to market innovative products that did not exist, focusing on quickly finding accompanying solutions and technology.
The three pillars of Samsung's offer, and in the strategy of the company, are the personal media, domestic and mobile. In all cases, Samsung seeks to promote the product analogue to digital. To do this, has expanded its business structure with Digital Technology division. This division combines the above divisions strategically multimedia appliances and media services.
Samsung aims to make it easier for application developers to deliver advertisements to users of Samsung devices. For this, the company has partnered with OpenX Technologies, a provider of digital advertising technologies. Under the agreement, Samsung and OpenX will create an exchange that will allow advertisers to buy ads directly from developers and Samsung mobile.
The agreement with OpenX is an expansion of Samsung's strategy to allow for advertising their products. Earlier this year the Korean manufacturer created Adhub to sell advertising on their internet connected TVs and Adhub now extends its possibilities thanks to the agreement with OpenX to include mobile phones.
Samsung has been awarded the National Award for Marketing in the category of "Innovation" for its ability to integrate and combine different media in their marketing campaigns, as well as creativity and art of its actions. As finalists were Google and Sony Pictures.
Some of the most innovative initiatives undertaken recently by Samsung have been, for example, advertising and promotion action of Sol Metro Station Galaxy Note; videomapping presentation in the city of Madrid, the presence of cameras in the nigth Fashion Blanhik out with Manolo, the launch of the application for Smart TV MyMadrid and tablets; including a holographic totem for flagship phone, the pink ribbon manifest audiovisual communication element; PhotoEspaa RSC workshops and hospitals or illustration with Galaxy Note in the Thyssen Museum, and many other powerful actions.
1.
A study of the signature Abi Research on the Asian market of smartphones reveals that the brand Nokia has not achieved good results in emergent countries as the India and Indonesia in spite of the company has supported a market share of 37 %. On the other hand, in Indonesia, Nokia reduced his users and it remains with 21%. For this reason, Nokia will associate with China Mobile, the major telephonic operator worldwide, to throw a version of his telephone emblem Lumia for the biggest market in the world.
China Mobile, which has more than 700 million subscribers but no contract to sell Apple's iPhone, will initiate the sale of the Lumia 920T, the first telephone based on the new platform Windows Phone 8 of Microsoft. The models 920 and 820 of the are considered to be a crucial element for NOKIA, which tries to recover participation of Apple and Samsung.
The people in the world are answering positively to the new devices of Lumia. China Mobile will sell 920T that will use the standard of networks developed locally TD-SCDMA, and it sent a message of tranquility to the investors on this new series of telephones.
Also, Nokia revealed the Lumia 620, his cheapest telephone with the platform Windows 8. The device will be commercialized in $249 from January, initially in
Asia. There is an hypothesis that the sales of the Lumia might be stimulated by the fact that China Mobile is the only operator in China without a contract of iPhone sales.
EUROPE
The behavior in Europe is different because Nokia belongs to Finland. So, the impact in market in this region would be more important. But, a cause of the loss of market share, the system that Nokia based its structure was modified. Since 2010, Nokia has had to close facilities and layoff expensive employees in countries like Finland, Germany and the UK. These countries represented the highest wages of Nokia employees, exceeding on average over $60,000 per employee. Nokia has been focused on shifting from Europe and increasing employment to less expensive regions like Vietnam, China and India.
Restructuring its labor and manufacturing models are essential for Nokia's survival and growth into the future. In February 2012, Nokia announced it was lying off 4000 employees to move manufacturing from Europe and Mexico to Asia, exactly to China.
Focusing on smartphones is also essential. Nokia is an essential piece in the aggregate cell phone market. Telecom and software manufacturers need Nokia to survive for the sake of parity and price control in the market.
AMERICA Although Nokia has done a big quantities in market to participle again, there is no doubt that Samsung and iPhone have gained territory so far. At the moment, when a person enters to a cellphone store, it is so rarely to hear that he/she wants a Nokia cellphone.
So far this year, Nokia has shipped less than 3 million smartphone devices in North America (compare this to Apple that has shipped over 10 times as many), so abandoning the market in favor of strengthening a future product line seems to be a reasonable move.
The Windows-based Nokia phones are unlikely to ship in any significant quantities until next year, so expect Nokia shares to trade in a range between $4-$6 for the next 6-8 months, and then watch Nokia news carefully throughout this timeframe. Any rumors of significantly delayed shipments or product integration issues will bring the stock down whereas an earlier-than-planned release or strong reviews of the phones should help propel Nokia higher.
2.Main distributors
Argentina Brasil Chile Colombia Ecuador United States Canada Austria Belgic France Italy Portugal China Hong Kong Japan Russia Movistar Claro Movistar Claro Claro Verizon Aliant Claro Tim Entel Movistar Movistar AT&T Fido AMERICA Personal Oi Movil Claro Tigo Alegro Sprin MTS Mobility EUROPE Molkom Austria Proximus Orannge Telecom TMN ASIA Telecom CSI Limited E-Mobile Megafon O.M.V. Nextel Nextel Une T-Mobile Rogers Orange Mobistar SFR Vodafone Vodafone Unicom KDDI MTC T-Mobile
Wind
3.Main suppliers
STMicroelectronics: A Franco-Italian semiconductor company based in Geneva, saw the sales and earnings of its wireless division plummet in the second quarter after Nokia issued a profit warning in May because of weak smartphone sales.
The company Nokia, through a joint venture with Swedish wirelessinfrastructure giant Telefon AB L.M. Ericsson, counted on supplying Nokia with chips for its handsets. In late July, STMicroelectronics said its wireless division, which is part of the joint venture, posted secondquarter sales of $347 million, down 34% from a year earlier, and a $102 million operating loss.
Texas Instruments Inc.: A semiconductor vendor based in Dallas. It is also struggling because of Nokia. The company shipped 85% of its applications processors to Nokia last year, covering 92.7% of all Symbian handsets, according to market researcher Strategy Analytics. In a mid-quarter conference call, the chip maker cut its second-quarter sales guidance and blamed the shortfall entirely on Nokia. Its secondquarter profit fell 13%.
Microsoft: is an American multinational corporation headquartered in Redmond, Washington that develops, manufactures, licenses and supports a wide range of products and services related to computing. As of 2012, Microsoft is market dominant in both the PC operating system and office suitemarkets (the latter with Microsoft Office). The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search(with Bing), the video game industry (with the Xbox and Xbox 360 consoles), the digital services market (through MSN), and mobile phones (via the Windows Phone OS).
4.
Portfolio products
This picture looks at the four biggest smartphone manufacturers, and their past 3 years and a short-term forecast to the end of 2012. First, note a small mathematical anomaly, they had to create 104% as the size of the scale, so that all four it into the same picture, but now all actual market share are graphically accurate (the reason we go to 104% not 100% is that the peak market shares of these four companies, Apple and Samsung in 2012, and Nokia and RIM in 2009, add up to 104%. Don't worry about it, the individual graphs are accurate.
First, obviously, Nokia collapse is dramatic. It is actually historically unprecedented for a global market share leader, in any industry, ever. No company lost 7 out of every 8 customers it had in a period of 3 years. But now compare to RIM. Yes, Blackberry is in deep trouble, but these two are not in any kind of scale. RIM is in trouble, Nokia is dead. Then look at the two darlings. Apple's iPhone is growing - but notice how modest is its growth rate, when compared to Samsung. No wonder Samsung is increasingly the darling of the tech industry. What Apple needs very soon, is to split its model
range or it will soon be an also-ran. Now lets look at the operating systems, and lets start with the three losers.
One reason is Nokia hasnt cracked the biggest market for smartphones: North America. Is that about to change with the launch of its Lumia 900 on AT&Ts 4G network? Nokia isnt the only OEM trying to make it in the States: Sonys buyout of partner Ericsson in its handset collaboration means it is also going to be pushing its brand strength in that market. Furthermore, there are already a number of 4G handsets available. Certainly one of the things that have been lacking with Nokias previous smartphones has been processing power; this cant be said of the 1.4 GHz Lumia 900. While all but the tech-savvy consumer wont care too much about this, games dominate the app charts, and user experiences in this space are heavily driven by processing power. Bigger screens are also the in-thing now, and the Lumia 900 has this too, with 4.3inches of AMOLED Corning Gorilla Glass.
Nokias new smartphone ticks a lot of the boxes, but will it crack the US? The company really needs this device to do so, because its shipment volumes are flagging and the smartphone market is awash with premium smartphones. Differentiation is key: weve seen the success of Samsungs 5.3-inch Galaxy Note, a super-sized smartphone that
stands-out, literally. Will the first true Windows Phones, as Nokia is calling the Lumia range, raise the profile of its devices and this platform in general?
Samsung, Nokia and Apple are the leading Mobile vendors by shipments in Q1 2012, according to a report by Research Firm IDC (International Data Corporation). The Worldwide mobile phone market declined 1.5% year over year in the Q1 2012 with worldwide shipments of 398.4 million units compared to 404.3 million units in the first quarter of 2011.
The worldwide smartphone market grew 42.5% year over year in Q1 2012 with 144.9 million smartphones shipped compared to 101.7 million units in Q1 2012. Samsung overtook Apple and leads as the top smartphone vendor based on Shipments. They have also created a new record for most number of smartphones shipped in a single quarter with 42.2 million shipments and 29.1%. Apple is in second spot with 24.2% market share, followed by Nokia with 8.2% market share that is down by 50.8% compared to Q1 2011.
The table above indicates the Worldwide Mobile shipments based on the total unit shipments and market share in Q1 2012. Samsung tops the worldwide Mobile phone shipments with 23.5% market share in Q1 2012 that is 35.4% more than Q1 2011. Nokia is right behind with 82.7 shipments but has 23.8% less market share compared to Q1 2011. Apple is in the same 3rd spot. ZTE pushes LG to 5th spot.
6. Main softwares that they use for the monitoring of the sales and rotation of the product on international markets.
The alliance with Check Point is not only institutional, but it is real in terms of product testing. Not only is software maker Nokia, also hardware manufacturers. They have an operating system, the IPSO 4.2., I checked with each of the new releases from Check Point. Therefore, the arguments of its customers to repurchase Nokia are the reliability and support that are critical in the security world. Nokia has the best response center, probably the world, in terms of support. And that's one of the things that customers value, capacity and level of response. If a security manager is responsible ICT installing antivirus company. Nokia apply CRM to Monitor key business KPIs in realtime from any location with Mobile CRM Dashboards and take immediate action.
7.Advertising strategies
Press, magazines and Internet. Fences, Buses, cartels. Television and radio. Nokia realizes announcements in these means. In them it stands out principally the fact that those new telephones are surprising and the quality of attributing it to a personal complement. In other words, what Nokia claims with the advertising of those telephones is to emphasize their current design, to stand out the fact that the user will remain impressed on having acquired it and to give it a young and modern air.
Nokia, at the moment of realizing the distribution of his mobile phones, uses a long channel, since in the distribution the manufacturer, wholesaler, retailer take part and finally the consumer. The type of distribution is selective. There are few wholesale distributors and this wholesale distributor generally can buy and sell products of the competition. Nokia has 9 manufacturing plants throughout the world and they have 130,000 employees. The company owns R&D centers in Japan and China. Nokia mobile company plays a major role in India and have huge market share In comparison to other players. They have started its process in India in 1995 and have their offices in major cities like New Delhi, Mumbai, Chennai, Kolkata, Hyderabad, and Bangalore. And also they have targeting all class of people by releasing different kind of mobiles with different features. China started mobile services in 1988 whereas, India started mobile services in 1995. By 2001 India exceeded Chinas growth rate in mobile services.
This shows how the distribution channels of the mobile companies working in India. Here in this report we are trying to bring out the efficient network of distribution addressed by Nokia in India. In Spain, there is a distributor of Nokia who has the exclusivity of sale in the country. This distributor devotes only to the distribution. Also there is an office of sales, which takes charge managing all the orders realized to this company in Spain.
Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement that with its own distribution efforts, because both companies realized that there was a tremendous growth opportunity and it was best that they utilized the resources of both organizations in an optimum manner for addressing some markets jointly, and that they would individually address some of the other markets.
APPLE
2. Main Distributors
IFC mall (Hong Kong) Opra (Paris) Nanjing East (Shanghai) Rosenstrae (Munich) Jungfernstieg (Hamburg) Sanlitun (Beijing) Covent Garden (London) Sydney (Australia) Fifth Avenue (New York City)
3. Main Suppliers
The following is an alphabetical listing of Apple production suppliers. These suppliers represent 97 percent of Apples procurement expenditures for materials, manufacturing, and assembly of Apples products worldwide. AAC Technologies Holdings Inc. Daishinku Corporation (KDS) Interflex Co., Ltd. AcBel Polytech Inc. Darfon Electronics Corporation International Rectifier Corporation Acument Global Technologies Delta Electronics Inc. Intersil Corporation Advanced Micro Devices, Inc. Diodes Inc. Inventec Appliances Corporation Amperex Technology Ltd. Dynapack International Technology Jabil Circuit, Inc. Amphenol Corporation Elpida Memory, Inc. Japan Aviation Electronics Industry, Ltd. Analog Devices, Inc. Emerson Electric Co. Jin Li Mould Manufacturing Pte Ltd. Anjie Insulating Material Co., Ltd. ES Power Co., Ltd. Kaily Packaging Pte Ltd. Asahi Kasei Corporation Fairchild Semiconductor International Kenseisha Sdn. Bhd. AU Optronics Corporation Fastening Technology Pte Ltd. Knowles Electronics
Austria Technologie & Systemtechnik AG FLEXium Interconnect, Inc. Kunshan Changyun Electronic Industry austriamicrosystems Flextronics International Ltd. Laird Technologies Avago Technologies Ltd. Fortune Grand Enterprise Co., Ltd. Lateral Solutions Pte Ltd. Brady Corporation Foster Electric Co., Ltd. Lens One Technology (Shenzhen) Co., Ltd. Brilliant International Group Ltd. Fuji Crystal Manufactory Ltd. Lg Chem, Ltd. Broadcom Corporation Fujikura Ltd. Lg Display Co., Ltd. Broadway Industrial Group Ltd. Grand Upright Technology Ltd. Lg Innotek Co., Ltd. Byd Company Ltd. Gruppo Dani S.p.A. Linear Technology Corporation Career Technology (MFG.) Co., Ltd. Gruppo Peretti Lite-On Technology Corporation Catcher Technology Co., Ltd. Hama Naka Shoukin Industry Co., Ltd. Longwell Company Cheng Loong Corporation Hanson Metal Factory Ltd. LSI Corporation Cheng Uei Precision Industry Co., Ltd. (Foxlink) Heptagon Advanced Micro-Optics Pte Ltd. Luen Fung Commercial Holdings Ltd. Chimei Innolux Corporation Hi-P International Ltd. Macronix International Co., Ltd. Coilcraft, Inc. Hitachi-LG Data Storage Marian, Inc. Compeq Manufacturing Co., Ltd. Hon Hai Precision Industry Co., Ltd. (Foxconn) Marvell Technology Group Ltd. Cosmosupplylab Ltd. Hynix Semiconductor Inc. Maxim Integrated Products, Inc. CymMetrik (Shenzhen) Printing Co. Ibiden Co., Ltd. Meiko Electronics Co., Ltd. Cyntec Co., Ltd. Infineon Technologies AG Microchip Technology Inc. Cypress Semiconductor Corporation Intel Corporation Micron Technology, Inc. Mitsumi Electric Co., Ltd. Ri-Teng Computer Accessory Co., Ltd. Suzhou Panel Electronic Co., Ltd. Molex Inc. ROHM Co., Ltd. Taiyi Precision Tech Corporation Multek Corporation Rubycon Corporation Taiyo Yuden Co., Ltd. Multi-Fineline Electronix, Inc. Samsung Electro-Mechanics Co., Ltd. TDK Corporation Murata Manufacturing Co., Ltd. Samsung Electronics Co., Ltd. Texas Instruments Inc. Nan Ya Printed Circuit Board Corporation SanDisk Corporation Tianjin Lishen Battery Joint-Stock Co., Ltd. NEC Corporation SANYO Electric Co., Ltd. Toshiba Corporation Nippon Mektron, Ltd. SDI Corporation Toshiba Mobile Display Co., Ltd. Nishoku Technology Inc. Seagate Technologies Toyo Rikagaku Kenkyusho Co., Ltd. NVIDIA Corporation Seiko Epson Corporation TPK Holding Co., Ltd. NXP Semiconductor N.V. Seiko Group Tripod Technology Corporation ON Semiconductor Corporation Sharp Corporation TriQuint Semiconductor
Optrex Corporation Shimano Inc. Triumph Lead Electronic Tech Co. Oriental Printed Circuits Ltd. Shin Zu Shing Co., Ltd. TXC Corporation Panasonic Corporation Silego Technology Inc. Unimicron Corporation PCH International Simplo Technology Co., Ltd. Unisteel Technology Ltd. Pegatron Corporation Skyworks Solutions Inc. Universal Scientific Industrial Co., Ltd. Pioneer Material Precision Tech Sony Corporation Vishay Intertechnology Prent Corporation Standard Microsystems Corporation Volex plc Primax Electronics Ltd. STMicroelectronics Western Digital Corporation Qualcomm Incorporated Sumida Corporation Wintek Corporation Quanta Computer Inc. Sumitomo Electric Industries, Ltd. Yageo Corporation Renesas Electronics Corporation Sunrex Technology Corporation Zeniya Aluminum Engineering, Ltd.
4. Portfolio Products
iPad & iPhone o o o o Mac o o o o o o o o iPad iPad mini iPhone iOS o o o o o o AirPort Express o AirPort Extreme o Apple Keyboard o Displays o iMac o MacBook Air o MacBook Pro o MacBook Pro Retina display with o o o OS X Safari Apple TV Logic Studio iWork iLife Final Cut Pro X FaceTime for Mac Apple Remote Desktop Aperture Mac mini Mac Pro Magic Mouse Time Capsule Magic Trackpad Apple Battery Charger
o o o
iPod touch
o iTunes iCloud
5. Market Share
Pc Market At the end of 2011, Apple's Mac reached 5.2% of worldwide computer sales, a 15-year high for the tech giant, according to a report by Needham & Co. analyst Charlie Wolf cited on GigaOM. Although that's just a small slice of the overall computer space, it's an important benchmark for Apple, which has been trying to grab market share from major computer makers including Dell, Hewlett-Packard and Acer. Wolf said Mac shipment growth in the third quarter outpaced the total PC market for the 22nd straight quarter, 24.6% to 5.3%. In the home segment, Mac's growth was 25.6% versus 4% for the overall market; among businesses, Mac's increase of 43.8% far outpaced the wider market's 4.8% rise. Wolf also said Asia Pacific represented the fastest-growing geographic region for Apple with 57.2% growth for the quarter, according to AppleInsider. "The growth of Apple's sales in China represents a perfect storm between an iconic brand and a rapidly growing middle class that's more brand-conscious than consumers in most other regions of the globe," Wolf said.
Success by design Apples product strategy is simple. It incorporates superior design in all its products so that these stand out from its competitors products. Apples design philosophy is based
on minimalism. It removes clutter both from its products outward appearance as well as from their user interface. It is no coincidence that Apple users rave about the exceptional user interface of their iPads, iPods or iPhones. In addition, Apple tries to exert control over the users experience with its products. So, apart from the hardware, the company also develops the software so that the user has the best possible experience. Pricing Apple is usually referred to as the technology industrys high-price leader. However, of late, the company has been offering its products at lower price points in a clear effort to expand its market. Even so, Apple, at the launch of its products, targets early adopters with higher-than-competition prices. It initially adopts skimming strategy and later launches lower-price versions with fewer features (for instance, for the iPod) or launches a newer version while continuing to sell older versions at lower price points (for example, iPhone). Distribution Apple eschews big-box retailers. Apple spends considerable resources to expand its stores so that it can get its prospects undivided attention. Also, it allows the company to exercise control over the sales process. According to Yukari I. Kane and Ian Sherr in Secrets from Apples Genius Bar: Full Loyalty, No Negativity, the staff at these full service stores are in fact trained not to sell. They are asked to provide solutions to customers pain points. The company has more than 300 Apple retail stores worldwide, with the majority of the stores in the U.S. In California alone, the company has more than 50 stores. The hype Apples promotion strategy is centered around creating hype. The late Steve Jobs, founder of Apple, was known for hyping up. His theatrical style and panache were successful in creating excitement before the launch of Apple products. These efforts have succeeded in making Apple products inspirational. However, Apple no longer actually needs to do ANY advertising when it launches new products, marketing chief Phil Schiller testified Friday in the Apple v. Samsung patent trial in a San Jose, Calif., federal court.
Instead, the company relies on these two strategies: Rely on the media to create buzz for its products through positive reviews. Product placement in TV shows and movies.
8. Distribution Channels
Initially Apple wanted to control it all with an iron fist. In an effort to expand its sales, they have been slowly adding other distribution channels with high sales volume. Such is the case with AT&T, Best Buy and now Wal-Mart. Wal-Mart Stores Inc said on Friday it will start selling Apple Incs iPhone on Sunday. Wal-Mart plans to sell the black 8-gigabyte iPhone 3G model for $197. The 16-gigabyte model, in black or white, will be priced at $297. All of the phones require a new twoyear service agreement from AT&T Inc or a qualified upgrade. The move gives Apple the chance to reach millions of Wal-Mart shoppers who may not be as familiar with the companys products. The phones will be available in nearly 2,500 stores beginning Sunday, December 28. Despite the 2009 recession, Apple made significant alterations to its products and also the company decided to change its strategy in 2010 to compete with Google, Microsoft and other companies. There is a possibility that the company will open the iPhone to various companies, also it will release an iPod Touch that will come with a camera, broadening its retail footprint, launching the tablet PC as well as releasing the Beatles catalog to iTunes. Despite the fact that many tech carriers underwent losses because of the recession, Apple achieved rising profits and revenue during 2009. Some strategies for 2010 of the company are already known such as to augment a number of retail stores. Also it plans to launch a tablet PC. Apple has a lot of plans for 2010 that are possible to achieve. AT&T is the only provider of the iPhone in the US that has brought both advantages and disadvantages as well. The Smartphone achieved big success in sales. It became known that the Smartphone traffic has augmented by 5,000 percent for the last three years. But still AT&T was criticized because the iPhone did not cover in major urban areas like
New York City. Apple also has its network of stores, which gives it a major advantage in distribution.
The company also buys components in bulk, so it is able to keep the price lower than its rivals. Apple also has its network of stores, which gives it a major advantage in distribution. Apple fully understands that all aspects of the customer experience are important and that all brand touch-points must reinforce the Apple brand. Apple is expanding and improving its distribution capabilities by opening its own retail stores in key cities around the world in up-market, quality shopping venues. Apple provides Apple Macexpert retail floor staff staff to selected resellers' stores (such as Australian department store David Jones); it has entered into strategic alliances with other companies to cobrand or distribute Apple's products and services (for example, HP who was selling a co-branded form of iPod and pre-loading iTunes onto consumer PCs and laptops). Apple has also increased the accessibility of iPods through various resellers that do not currently carry Apple Macintosh systems (such as Harvey Norman), and has increased the reach of its online stores. The very successful Apple retail stores give prospective customers direct experience of Apple's brand values. Apple Store visitors experience a stimulating, no-pressure environment where they can discover more about the Apple family, try out the company's products, and get practical help on Apple products at the shops' Guru Bars. Apple retail staffs are helpful, informative, and let their enthusiasm show without being brash or pushy. The overall feeling is one of inclusiveness by a community that really understands what good technology should look and feel like - and how it should fit into people's lives. Apple Brand Architecture