MKT701 Case Analysis 1- 2019.docx - Apple Pay Jeremy...

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Apple PayJeremy BrandonLouisiana State University Shreveport
Running head: APPLE PAY 1BackgroundApple was founded around 1976, supporting the quickly growing computer/personal computing market. Through time, Apple began a new era of innovation with the creation of products such as the iPod, iPhone and the iPad. Apple produced both the hardware and software for all of its products while also servicing them which gave them the competitive advantage. Thisorganization strategy created a seamless user experience for their customers that others in the market have not done.Apple leads from the consumer’s point of view when developing a system or product, or service. Their driver is around solving a consumer’s problem and someone will pay for it which tied into their philosophy of having excessive focus on the consumer’s experience. This became a part of Apple’s culture and long term strategy for success which shows in their business model. Prior to jumping into the payment system business, Apple observed and took notice to thecurrent trends, current platforms in place and the current resources at hand to address those issues. They saw where the industry and trends were heading towards with regards to the payments industry. Apple wanted to be the company that didn’t just go in and change things completely for consumers. They wanted to take the approach of supporting what was already in play and make it more secure, a whole lot easier with better privacy and protections. With this approach, Apple was able to do what its competitors all failed at prior. They were able to enter into a new era of payments systems in a fashion that quickly drew success. It was so well managed and developed that it came with an increasing threat of competitors wanting to get skin in the game. It paved the way for the advance, platform of m-commerce that came about which shaped the current times and future to come. Apple got this ball going by sticking to their core values and mission, of solving consumer’s problems and needs. Situation Analysis
Running head: APPLE PAY 2StrengthsBrand EquitySimplicitySecurePrivacyWeaknessesOnly capable on Apple IOS systemOnly capable on select devicesPrimarily offered only in USAOpportunitiesPartnerships with banks and merchantsGrowth in m-commerceIncreasing concern in FraudThreatsGoogle’s development of Android pay.Banks and merchants Around this time of Apple’s roll out of Apple pay, you have an environment wherepayments were a huge business and on the rise. Within this market, were opportunities to makebusiness for consumers much easier, safer with increased privacy. In the US alone, consumerswere spending around $1 Billion every day through online purchasing, doing about 5 milliontransactions a day (Gupta, S., Santana, S., & Rodriguez, M. 2015). To process these transactions,required tedious amounts of time to process every time. Spending was expected to increase about4% per year and would become an important pillar for customers.

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