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Final Grade: 100%Apple Pay Case Study: Marketing as a FocusLouisiana State University ShreveportMKT 701Minseong Kim, Ph.D.Summer 2020 AP 1
Running head: Apple Pay Case Study: Marketing as a Focus1BackgroundFounded in 1976, Apple is a pioneer in providing innovated solutions in the computerindustry and its mission is to always focus on customer centric experiences.Apple’s ability toobserve current trends, evaluate available resources and produce innovative technology hasconsistently put them top of mind with customers.As a producer of hardware and software thecompany made key strategic choices to approach product creation and design based ondelivering products that solved customer’s problem as well created unique customer experiences.This concept and strategy paved the way of Apple’s competitive advantage.The e-commerce business and online payment options were on the rise but still hadopportunity for growth and improvement.Apple was able to analyze what was working andmost importantly was not working.Their goal was to identify any cracks in the process wherethey could create a product that would improve the customer experience. “Apple already storescredit card information for 800 million customers to allow them to easily buy digital music,books, TV shows, movies and apps via its iTunes store. Expanding this payment process into adigital wallet, which virtually stores these credentials and can be accessed to buy physical goods,can be viewed as an extension of this capability.” (Reardon, 2014) Apple Pay was born based onthis concept.Apple’s objectives in the design and implementation of Apple Pay was to addresscustomer pain points which were convenience, security, protection, and general accessibility.Their mission was to deliver a customer experience that did not recreate the wheel but workedwithin the existing ecosystem of mobile commerce. Apple developed targeted partnerships for ane-commerce experience that was well managed and became an increasing threat to existingcompetitors.
Running head: Apple Pay Case Study: Marketing as a Focus2Situation AnalysisStrengthsCulture of innovationResearch and DevelopmentSecurity features open doorsWeaknessesDifferent operating systemHigher price pointOpportunitiesMobile commerce growthBrand partnershipsThreatsCompetitor platformsMerchant buy-in“Over $1 billion a day is spent on online purchasing, that’s five million daily transactionsjust in the U.S. alone, and the process is really cumbersome.” (Gupta, S., Santana, S., &Rodriguez, M. 2015).Growth rates on mobile payments were expected to increase with theadvancement smartphone technology and retailers joining the “app game” to beef up onlinepurchasing opportunities for their customers.Unfortunately for the consumer, online and mobilepayment systems were complicated, lengthy, and not created equal.Competitors like GoogleWallet had attempted digitizing the wallet in 2011 but did not gain much traction and eventually