Final Project Service Marketing
Gap Model on Service Industry Company: Apple Inc.
Prepared By: Jawad Ahmed Qureshi (2895) Abdul Haseeb Khan (2871)
There's a straightforward structure to follow. If you are writing strategy. by market share. by sales and so on. Again.Gap Analysis on Apple
Gap analysis is a very useful tool for helping marketing managers to decide upon marketing strategies and tactics. For example. The diagram below uses Ansoff's matrix to bridge the gap using strategies:
.this is how you are going to get there. you will go on to write tactics . by profit. Firstly decide whether you view from a strategic or an operational/tactical perspective.
What is Gap Analysis?
Your next step is to close the gap.see the lesson on marketing plans. The upper line is where you want to be. Take a look at the diagram below. This will help you to write SMART objectives. The lower line is where you'll be if you do nothing.where are we now? And where do we want to be? The difference between the two is the GAP . the simple tools are the most effective. The first step is to decide upon how you are going to judge the gap over time. Then you simply ask two questions .
you modify the mix so that you get to where you want to be.
Tactical Gap Analysis
This is how you close the gap by deciding upon strategies and tactics .and that's gap analysis.Strategic Gap Analysis
You can close the gap by using tactical approaches. That is to say you change price or promotion to move from where you are today (or in fact any or all of the elements of the marketing mix). Now we have selected Apple company for gap model analysis which is discussed below:
. So effectively. The marketing mix is ideal for this.
Recently Google’s Android market share has grown plus Microsoft’s introduction of Windows Phone 7 was received better than many expected. Keep end user purpose and experience at the forefront 3. Apple expanded the screen. Provide compelling value to platform contributors 2. and in some features they surpass Apple. As noted in our piece Apple’s New Platform Citizenship.Apple’s iPhone: An Attractive Platform Ages
Apple rocked the world with the iPhone introduction in January. Apple later withdrew some of the most onerous terms. it attracts more interest. sustaining platform leadership has four requirements: 1. If there’s any company that knows success invites imitation. Blackberry and Palm were squeezing email and PC content on to tiny screens. Bottom-line: the market share gap is smaller Second. Apple believes that without high control. First and foremost. it’s Apple. Smartphone leaders Nokia. Apple inserted terms in their development agreement that made it difficult for app developers to leverage efforts to other operating systems such as Android. Microsoft and Blackberry have responded with “me-too” iPhone’s. the iPhone was by far the most attractive platform. added navigation gestures followed by thousands of apps that transformed the small device into an expansive experience. app developers need to get their apps on as many devices as they can with the minimal effort. app developers want people to buy and use their apps. At the time. Windows mimicked the Mac interface and now Google. That said. As described in an earlier piece defining the Attractive Platform Strategy of Apple. One can argue they’re not as good but the fact is the gap is shrinking.
. 2007. as market share fragments between competitors. Evolve the platform intelligently This post explores Apple’s platform leadership challenges.
Provide compelling value to platform contributors
The value of the iPhone platform is decreasing as competitors gain market share App developers are currently the most important platform contributor followed by carriers. Therefore when the market share of platform rises. Early on. Nurture the wider platform community 4. it’s very difficult to deliver a superior user experience. From 2007 to 2009.
Apple’s margins were down this quarter.
Keep end user purpose and experience at the forefront The gap between Apple’s user experience and competitors is shrinking
Apple is peerless when it comes to creating elegant. an Android buyer
. highly end user focused and rich ($51B in the bank). Google. Nielsen U. These are supported by an announcement agreement for Verizon to carry the iPad so it’s hard to imagine doing one without the other. I’d argue that to grow market share. and now advertisers. As good as Apple is. Based on their history as a company that’s iconoclastic. Apple only has AT&T whose reputation is less than stellar. In contrast to Android which has phones on every U. Undoubtedly. That said. They may learn how to improve this faster on Verizon’s where network reliability is not the issue. Carrier promotions and pricing arrangements with other handset manufacturers can be close enough to compete. the competitive battle will resume. With nearly half their revenue now coming from the iPhone. apps developers want to turn out products quickly. they could take actions that change the developers’ playing field. screen clarity and gesture-based navigation are easily copied. Taking its cue from Allstate Insurance. Users are responding positively to more choices.S. Just as some people chose utility or softer ride over handling. total customer experience on data hungry smart phones is dependent on the cellular carrier’s speed and call clarity. some dissatisfied customers will defect from AT&T but the only accretive market share will come from pent up demand within Verizon’s customer base. Apple mimics BMW in that they offer “the ultimate driving machine” but with similar premium pricing AND limited models. The problem is that most of their innovations such as icons. Android has grown from 14% to 32% while Apple has shrunk from 32% to 25%. After that initial pulse. Developers. it doesn’t appeal to everyone. easy-to-use computing. Apple’s voice quality and connection technology has lagged relative to other handset manufacturers. Apple’s penchant for high control makes many nervous.S. Steve Jobs argued Android developers at TweetDeck had to test 244 different handsets and over 100 versions of Android versus only two versions of Apple’s IOS and handsets. Rumors are Verizon will carry the iPhone starting in 2011. it’s an argument to put oneself in Apple’s good hands. If the competitive pressures increase and margin erosion becomes a trend. market share statistics for 2010 show that among new purchasers.Third. Additionally. During Apple’s earnings call. As good as the iPhone is. Apple needs access to Verizon’s subscriber base more than Verizon needs Apple. Microsoft and Blackberry phones now have some or all of these features. they will take actions to preserve their own interests. it’s not an unreasonable fear. Apple provides a better development and distribution experience. know that Apple controls how these hands move and change. carrier. He contends that by controlling the hardware and software combined with a single sales site (the app store in iTunes).
While the iPhone attracted subscribers to AT&T. culture and as lesser developed economies exert more influence. Android enables carriers to customize their phones.
Nurture the wider platform community
Changing growth demographics challenge Apple’s control & U. I’d agree. this provides differentiation while Jobs argues it diminishes the user experience. I’m less convinced. Apple’s Macintosh and music history is that they are better at getting their share of the pie than growing it. Jobs would argue the numbers prove it. high tech product life cycles are short and while not as innovative. It
. centrism A platform leader has to incorporate the interests of all stakeholders to foster platform growth while reaping sufficient benefit to justify assuming the leadership role. took a cut of users’ monthly bills. will it exert the same pull? Can the premium price points gain sufficient share in these new economies. developers if other handset/carrier combinations have significantly greater share? There is also the question of Apple’s carrier relationships. Apple has extended the iPhone platform onto the iPad helps expand their presence on devices. Even if Jobs were right and there is a single best user experience. Apple believes that controlling hardware and software is essential to creating a superior user experience. But Google and Microsoft is relentless. most innovation is evolutionary. will carriers throw their promotion effort behind alternatives?
Evolve the platform intelligently
Can Apple’s evolutionary design value sustain its revolutionary design leadership? Apple history with the Mac and iPod suggest that following initial introduction. Looking backward. Apple retained control of the handset and initially. Apple’s genius is deeply embedded in the U. Each has more competent handset options and none want to be a “dumb data pipe” that just passes service revenues through to others.S. success depends on Apple continuing to have superior taste. There’s no question they can continue being BMW-like in these markets but will that translate into significant global market share? Can they attract the best non-U.S. As noted. the new iPhone OS adds multi-tasking which some already had. Even so.can select from multiple manufacturers. The iPod/iTunes combo may have saved the music industry but it destroyed the record labels’ business model. But if I look forward. When you put yourself into Apple’s good hands you have to remember they only have two of them.S. In their mind. Now let’s add in shifting global markets. For example. Apple continually beats Google and Microsoft on taste. Windows 7 and now Android are credible competitors. The engineers at both competitors are brilliant but lousy at the intangibles that differentiate Apple products and marketing. carriers and form factors. Jobs believes this is also better for developers.
Health care is looking at phones as a critical bridge for patient records. This would cripple the app-based primacy of the today’s phones. Critical to their success will be how they evolve their platform leadership. All players have to be looking forward and figure out what to do when mobile speeds and coverage increase such that mobile cloud computing becomes practical. with switching rights twice a year. the first act is over. It’s time to see how Apple leads and competes on a more complex field and against more competent players. Locationbased services that go beyond knowing where your friends are at the moment are coming fast. we have yet to see how emerging uses for the phone will change the landscape. A gold customer could choose from the next class of phones. For example. Developers could have their apps in the cloud and need only a snippet of operating system specific code on the phone to point to them.remains to be seen how effectively tablets based on Android or Microsoft operating systems will be. a platinum customer could choose from a set of high end phones with the right to switch every 90 days. phone technology could be omnipresent on some yet to be discovered device?
In a nutshell. Android has at least 4 versions in use plus there are modifications added by carriers. Could it be that just as GPS is now added to all phones. Apple updates the operating system through iTunes which effectively limits the number of versions in use to the latest and prior version. In contrast. This creates fragmentation that requires multiple development and test cycles. phones are becoming central to local finance and commerce. In less developed countries. On the other hand.
. it gets new features out quickly. Finally. The point is less the validity of this particular model than using it as an illustration of how relationships within the ecosystem could dramatically change the power structure within the platform community. A more daring play would be if the carriers changed their model from subsidizing handset sales to including them as part of a subscription model.