List of resources and capabilities : • Strong technologies (e.g., in computing – hardware (touch screen) and software (operating system)) • Know–how: expertise with other smaller electronics consumer goods (i.e., iPod) • Employees • Performance-oriented organizational culture • Inspirational and visionary leader (at the time) • The (i) umbrella and Apple brand name • Loyal, almost fanatical customers • Product innovation • Marketing and branding capabilities • Partnership-building capabilities Amazon: Its resources and capabilities make it a superb online retailer, capable of providing technology solutions that fit its customers’ needs. However, do its resources and capabilities lend themselves to developing a smartphone that impresses millions of customers? Probably not. List of resources and capabilities : • Global partners and suppliers • Amazon brand name(s) • Employees
• Advanced R&D centres with strong R&D team. • Large warehouses and distribution network in different countries • Efficiency-oriented organizational culture • Quality in customer support • Ability to integrate across functions • Easy and fast payment system • Logistical capabilities • Marketing and branding capabilities • Partnership-building capabilities 4. Marketing strategy and its implementation for Apple/ Amazon Stated differently, what is the marketing strategy they used, and how did it change during implementation? Apple used a top-end, premium strategy that incorporates hi-tech and hi-touch (emotional) positioning, an innovative product in various respects (e.g., the materials, look and feel, touch screen technology), high pricing, exclusive distribution with preferred network providers, and word-of-mouth oriented (teaser) promotions that create hype. There is the sense that they developed their strategy and gap in the market based on their resources. It would have been difficult for them to go for a more traditional mobile phone launch strategy (e.g., as per Nokia) given the nature of their resources at the time. For instance, the brand name would seem to preclude them from going mass market. There is some evidence that aspects of their strategy (e.g., the very high price, the very exclusive distribution) struggled during implementation . Frankly, these aspects of strategy were very different to industry standards. On the one hand, this suggests a touch of arrogance and desire to pioneer a new way of operating for the industry. But on the other, we could say the company lacked experience and were surprised by the reactions of customers, partners, and other stakeholders. It’s unclear whether they planned the aggressive skim; possibly they didn’t even if others (Motorola) skimmed in previous product launches. The price drop after 10 weeks was no doubt due to the possibility of them not selling millions of units by the end of 2008. They needed to have a successful launch and be a success story to get app developers onside.
You've reached the end of your free preview.
Want to read all 6 pages?
- Fall '16
- Sandra Bernie