MKT701 Case Analysis (J19000116) .docx - CASE STUDY...

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CASE STUDY TEMPLATE:Apple Pay Case AnalysisJ Antoinette MooreLouisiana State University Shreveport
Apple Pay Case Analysis 1BackgroundApple Inc was founded April 1 of 1976 by the infamous Steve Jobs and Steve Wozniak. Apple is known worldwide for being on the cutting edge of cultural technology, producing superior products, colorful marketing, and impressive financial performances year over year. Since it’s release of the revolutionary Macintosh personal computer, in 1984, Apple has transformed what it means to be the world’s most innovative company and continues to create groundbreaking products. As a global presence, Apple has been the market-leading personal computer and smartphone brand for years. The success of the company, as a tech brand was initially attributed to visionary Steve Jobs. Under the leadership of Jobs, the brand always showcased the limitations of rival products and focused on dictating technological innovation, while growing a diverse portfolio. Apple’s premium product portfolio alone have rivaled brands like HP, Dell, LG and Samsung. The brand and its products have gained a broad base of loyal customers worldwide; and the company, underthe leadership of CEO Tim Cook, began to land and expand its services portfolio.To expand its ecosystem of already popular premium products, Apple offers digital content services like the App Store, Subscription based services like iTunes (now Apple Music) and AppleTV, and device insurance services in AppleCare and AppleCare+. Lead by Eddy Cue, Apple’s Senior Vice President of Internet Software and Services, Apple sought to offer the marketplace a more diverse services portfolio that would transition the way consumers used theirsmartphones. In 2019, Cue lead Apple’s Service division into the second fastest growth category in the company, out-performing Mac and iPad sales accounting for roughly 18% of the company’s growing revenue—boasting a 16% year over year increase. (Apple, Inc, 2019, p.19)
Apple Pay Case Analysis 2With the devices and services sectors producing more than 72% of their total sales, Cue and Cook sought to diversify Apple’s services portfolio. By introducing a new financial offering, Apple would enhance the way consumers interreacted with the current financial infrastructure while using of their smartphones—a mobile wallet, Apple Pay.
Apple Pay Case Analysis 3Situation AnalysisStrengthsGlobal Iconic Brand ImageCustomer LoyaltyResearch & Development ExcellenceFinancial PerformanceCustomer IntimacyWeaknessesPremium PricesRapid market growthSecurity ConcernsPatent InfringementsOpportunitiesGrowing Services PortfolioLimited Product PortfolioComarketing & Cobranding AgreementsOrganizational ExperienceNew TechnologyThreatsLow/Limited adoption ratesGrowing CompetitionLack of Software CompatibilityMarket DisruptionExternal EnvironmentIn 2014, the financial infrastructure facilitated $12 billion in debit and credit card

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