UNIVERSIDADE CATLICA PORTUGUESA Faculdade de Cincias Econmicas e Empresariais

Product Management

COMPETITIVE ANALYSIS

COMPETITIVE ANALYSIS
The process of identifying the performance and marketing strategy of competitive brands or products in the marketplace. In order to plan an effective marketing strategy, marketers need to know about the competitive environment and to find out all they can about competitors' products, prices, communication channels, quality, and service so as to determine areas of competitive advantage and disadvantage. There are several important elements of competitive analysis, each of which need to be carefully studied if one hopes to transform competitive analysis activities into business profitability. Is very important:

* Defining Competitors - The first step in competitive analysis is to define your universe of competitors. Some businesses may offer products or services that largely mirror those offered by your own company, while others may only dispense one or two products/services that compete with your company's offerings. The business conducting the competitive analysis has to decide whether latter examples of competition are incidental or whether they present a potential threat (either now or in the future) to the business's financial well-being.

* Analysis of internal strengths and weaknesses - Another important element of competitive analysis is determining what your own company's strengths and weaknesses are. What aspects of the company's operation convey an advantage in the marketplace? Is your sales force composed of bright, ambitious individuals? Does your company have an advanced inventory management system in place? Once a company has determined its strengths, it can go about the process of utilizing those strengths to improve its position in the marketplace.

* Analysis of customer needs and wants - Learning about customer needs and wants is an important part of competitive analysis as well. Customer priorities should become your business's priorities.

* Building strategic plans to improve marketplace position - Strategic plans should touch on all areas of a business's operations, including production of goods and services, distribution of those goods and services, pricing of goods or services, and marketing of goods or services.

MAIN ASPECTS OF COMPETITOR ANALYSIS

Michael Porter has defined a competitor analysis framework that focused on four key aspects: competitor's objectives, competitor's assumptions, competitor's strategy, and competitor's resources and capabilities These four aspects of competitor analysis are the areas critical for a firm to understand and they should pursue this knowledge not only for current competitors but also for other potential competitors in the business. Information from an analysis of the competitor's objectives, assumptions, strategy, and capabilities can be compiled into a response profile of possible moves that might be made by the competitor (competitor response profile). This profile includes both potential offensive and defensive moves. The specific moves and their expected strength can be estimated using information gleaned from the analysis. The result of the competitor analysis should be an improved ability to predict the competitor's behavior and even to influence that behavior to the firm's advantage

What drives de competitor

What the competitor is doing or is capable of doing

Objectives

Strategy

Competitor Response Profile

Assumptions

Resources and capabilities

* Competitor's Objectives: In competitor analysis there are two key factors to note in building knowledge of a competitor's objectives. The first factor is to know the actual objectives of a competitor. This could range from building market share in a specific market or overall business, entering a new market or even just maintaining profitability. This should also look at not only current competitors but also potential competitors. The second factor is to know if the competitor is actually achieving their stated (or sometimes unstated but implied) objectives. Looking at these two factors will provide a firm with an opinion on a competitor's potential actions to changes in the sector. As part of a comprehensive competitor analysis piece, firms should identify their key competitors and be able to define the objectives of each competitor and their likelihood of achieving their objectives. An example we can look at is Apple which recently launched its iPhone product. Knowing the innovation in Apple, one could sense that the eventual goal of Apple would be to have a product that combines the iPhone capabilities and the iPod features, or have an iPhone with other capabilities such as a global positioning system. The limitations of competitor analysis are linked to the information gathered from various sources and the interpretation of the information. Also, with the exception of a few information sources (patent applications, forecast financial statements), most of the other printed information shows historical information and may not necessarily give a good indication of a competitor going forward. This is particularly the case if there are a lot of structural changes happening in a sector and all players are expected to have dynamic strategies to capture their market.

* Competitor's Assumptions Another key aspect in competitor analysis is an understanding of competitors' assumptions about the overall market (trends in the market, products, and consumers). For example, competitors could define their actions based on what their assumptions are on the growth of the market. In a cyclical industry (say pulp and paper or shipping sectors), investments decided by players in the industry should be driven by when competitors expect the industry to be at their peak, as timing is critical for players in the industry to meet demand. However, this is not what usually happens.

* Competitor's Strategy A third aspect in competitor analysis is the understanding of a competitor's strategy. In most cases, this strategy will be defined and stated, particularly for public firms. In other cases, it may not be openly stated what competitors' strategies are but these can be understood by utilising a number of sources available to firms from analysing a competitor's behaviour in certain situations to discussing with industry experts to get their viewpoints.

* Competitor's Resources and Capabilities Finally, a competitor analysis should also include an understanding of a competitor's resources and capabilities as these would give a firm an idea of how a competitor can achieve its strategy and objectives, and also give a firm a timeline for when it would expect competitors to pursue certain activities. For this aspect, a large part of information can be gleaned from press articles and news.

3 Cs MODEL

The 3C's Model is a strategical look at the factors needed for success. It was developed by Kenichi Ohmae, a business and corporate strategist. It points out that a strategist should focus on three key factors for success. In the construction of a business strategy, three main players must be taken into account:

*The Corporation: The Corporation needs strategies aiming to maximize the corporations strengths relative to the competition in the functional areas that are critical to achieve success in the industry.

*The Customer: Clients are the base of any strategy according to Ohmae. Therefore, the primary goal supposed to be the interest of the customer and not those of the shareholders for example. In the long run, a company that is genuinely interested in its customers will be interesting for its investors and take care of their interests automatically. Segmentation is helping to understand the customer.

*The Competitors: Competitor based strategies can be constructed by looking at possible sources of differentiation in functions such as: purchasing, design, engineering, sales and servicing.

APPLE COMPANY
Apple is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. Apple was founded in Cupertino (California) on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, to sell the Apple I personal computer kit. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad.

1. iPOD: Is a portable media player designed and marketed by Apple and launched on October 23, 2001. It has evolved to include various models targeting the wants of different users. The iPod is the market leader in portable music players by a significant margin, with more than 220 million units shipped as of September 9, 2009. Apple has partnered with Nike to offer the Nike+iPod Sports Kit enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website. Apple currently sells four variants of the iPod. The iPod branding is also used for the media player applications included with the iPhone and iPad, the iPhone version is essentially a combination of the Music and Videos apps on the iPod Touch. Both devices can therefore function as iPods, but they are generally treated as separate products. The iTunes software, also created by Apple, is used to organize and transfer songs and playlists to the iPod.

2. iPHONE: Is smartphone from Apple that integrates cellphone, iPod, camera, text messaging, e-mail and Web browsing. Data and applications can be sent to the phone wirelessly or via Apple's iTunes software, which is used to organize music, videos, photos and applications (see iTunes).

The iPhone is operated almost entirely via an innovative 3.5" touch screen. A major breakthrough in usability (see multitouch), the user interface was also carried forward in the next-generation iPod

3. iPAD: On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad running a modified version of iOS. It offers multitouch interaction with multimedia formats including newspapers, magazines, ebooks, textbooks, photos, movies, TV shows videos, music, word processing documents, spreadsheets, video games, and most existing iPhone apps. With iPad, navigating the web has never been easier or more intuitive, because you use the most natural pointing device there is: your finger. Scroll through a page just by flicking up or down on the screen. Double-tap a section on a page to enlarge or shrink it. Or pinch to zoom in or out. When you touch and hold a link, Safari shows you the URL so you know before you go. Theres also a handy thumbnail view that shows all your open pages in a grid, so you can quickly move from one page to the next.

STEVE JOBS 12 RULES OF SUCCESS

1.

Do what you love to do. Find your true passion. Do what you love to do a make a difference! The only way to do great work is to love what you do.

2.

Be different. Do you want to spend the rest of your life selling sugared water or do you want a chance to change the world? Think different. "Better be a pirate than to join the navy."

3.

Do your best. Do your best at every job. You dont get a chance to do that many things, and every one should be really excellent. Because this is your life. Success generates more success. So be hungry for it. Hire good people with passion for excellence.

4.

Make SWOT analysis. As soon as you join/start a company, make a list of strengths and weaknesses of yourself and your company on a piece of paper. Don't hesitate in throwing bad apples out of the company.

5.

Be entrepreneurial. Look for the next big thing. Find a set of ideas that need to be quickly and decisively acted upon and jump through that window. Sometimes the first step is the hardest one. Just take it! Have the courage to follow your heart and intuition.

6.

Start small, think big. Don't worry about too many things at once. Take a handful of simple things to begin with, and then progress to more complex ones. Think about not just tomorrow, but the future. "I want to put a ding in the universe, reveal Steve Jobs his dream.

7.

Strive to become a market leader. Own and control the primary technology in everything you do. If there's a better technology available, use it no matter if anyone else is not using it. Be the first, and make it an industry standard.

8.

Focus on the outcome. People judge you by your performance, so focus on the outcome. Be a yardstick of quality. Some people aren't used to an environment where excellence is expected. Advertise. If they don't know it, they won't buy your product. Pay attention to design. "We made the buttons on the screen look so good you'll want to lick them." "Design is not just what it looks like and feels like. Design is how it works."

9.

Ask for feedback. Ask for feedback from people with diverse backgrounds. Each one will tell you one useful thing. If you're at the top of the chain, sometimes people won't give you honest feedback because they're afraid. In this case, disguise yourself, or get

feedback from other sources. Focus on those who will use your product listen to your customers first. 10. Innovate. Innovation distinguishes a leader from a follower. Delegate, let other top executives do 50% of your routine work to be able to spend 50% your time on the new stuff. Say no to 1,000 things to make sure you don't get on the wrong track or try to do too much. Concentrate on really important creations and radical innovation. Hire people who want to make the best things in the world. You need a very productoriented culture, even in a technology company. Lots of companies have tons of great engineers and smart people. But ultimately, there needs to be some gravitational force that pulls it all together. 11. Learn from failures. Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations. 12. Learn continually. There's always "one more thing" to learn! Cross-pollinate ideas with others both within and outside your company. Learn from customers, competitors and partners. If you partner with someone whom you don't like, learn to like them praise them and benefit from them. Learn to criticize your enemies openly, but honestly.

SWOT ANALYSIS
SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.

SWOT Analysis Framework:

APPLE SWOT ANALYSIS

Strength
One of the oldest hardware manufactures; Control over the product; High quality product; Easy to carry products; Product diversification; Huge consumer base loyal to apple.

Weakness
Focusing on internal engg. more than marketing; High price; Consumer faced problems with faulty batteries; Had difficulties on some of its products quality control; Not issued dividends

Opportunities
Flexibility to its users; Product line is functional and attractive; Less expensive new product lines with quality Ipods are able to communicate

Threats
Pressure form competitors; Substitution effect; Technology changes at a rapid rate; Forced to developed new products

COMPETITOR ANALYSIS

Components Users Experience (satisfaction) Carrier Association / Choice

Apple

Nokia

Samsung

Sony

HTC

Significance Increased customer confidence in product Decrese in number of potencial customers Increased customer loyalty

Very High

Moderate

Low

Low

Low

Only one

Few carriers

Numerous carriers

Fewer carriers

Fewer carriers

Name brand Recognition

High

High

High

High

Low

Content Strategy

Applications in itunes store

Third parties mobile carries

Third parties mobile carries

Third parties mobile carries, Amazon music player

Mobile carries, youtube, slide loading via PC, Amazon music player

Limited content download

Pricing

High

High

Low

Low

Moderate

Affects consumers phone choice since price is the same as other competitors More attractive to prospective users

Key Features

Touch screen, better mobile internet, WIFI, GPS,camera

WIFI, GPS, camera

Touch screen, WIFI, GPS, camera

Touch screen, mobile internet, WIFI, GPS, camera

Touch screen, WIFI, GPS, camera

Acess to distribution channels Customer Service / Support quality

Moderate

Moderate

High

Moderate

Low

Reduction in global market share Increase in customer loyalty

High

Moderate

Low

Moderate

Low

APPLES COMPETITIVE ADVANTAGE

One of the primary things about being an effective technology indus try analysis firm is that we have to clearly communicate our perspectives about the technology industry as a whole to our clients. This requires more than just the regurgitation of information as we gather it in the field. It requires explaining more fundamental elements of what is happening and why. It is because of this that we seem to get one question common to many of the companies that we speak with and provide services to. That question is: "Why is Apple doing so well and what can we do to compete?" Apple plays the strategic game extremely well, particularly when it comes to developing strategies to defend their competitive advantage.

Apple hardware design

Apple's designs are, well, elegant. There is no better word for it. Sony and Toshiba can come close at times, but, on average, Apple has the best-designed hardware from an aesthetics point of view of any vendor. It is amazing that, after several years, no one has been able to design a better hard-drive-based MP3 player than Apple did with the iPod. Even Toshiba's design, which used many of the same components, sucked.

Apple Marketing

Where Apple really stands out is in marketing. The company simply seems to understand what will get people excited about its products, and then it executes on that vision. You don't see the company mainly talking about features or technology, but about how the computer will make your life better.

Apple's Steve Jobs

The guy just flat-out gets marketing. He can show up on stage at a Macworld event, give his talk, and it can be days before anyone realizes he had nothing new to sell. With Jobs' backing, Apple outspends almost every other hardware vendor in the space on marketing personal technology. It seems to be more focused as well. This natural competency goes a long way toward overcoming the serious disadvantage of being the existing minority player when a new minority player, Linux, seems to have an even broader - and more rapidly growing - following. Clearly, and I doubt many would disagree, if it weren't for Steve Jobs, Apple would have vanished several years ago.

EXTERNAL ENVIRONMENT

Technological Change

- Competitive Mobile Industry - Competitive factors affecting the mobile industry: *Price, Product quality, Reliability and Innovation *Service, Support and Corporate Reputation *Rapidly changing technologies and standards

Demographic Trends

-High rate of adoption among households with lower rates of disposable income: *50% price reduction *Convergent device hence eliminates need for multiple gadgets

Cultural Trends

-Consumers prefer a single device to combine business and pleasure to avoid lugging additional gadgets

Economic Climate

-Global economic crisis has resulted in: *Tight credit markets *Volatile fixed income

Legal and Political Conditions:

-Company relies on third-party patents *Company results could be affected if found to have infringed intellectual property rights *Ability to offer wide variety of content at reasonable rates can be affected -Subject to certification and regulation by government and standardizing bodies

International Events:

-Supply and manufacture of critical components performed by third-party vendors outside US. -Approximately 43% of the sale comes from outside of US.

APPLE - PORTERS FIVE FORCES

Porters five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developing Industrial Organization economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An unattractive industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching pure competition.

1. Competitive (existing) Rivalry: o Windows OS and media player for playing music and video (Microsoft) o o Competition to Mac OS X(Linux) Alternate sources of computer hardware (Dell, HP, Lenovo) o o Small stylish MP3 players (Creative, Samsung) Online music stores similar to itunes stores (Napster)

2. Threat of New Entrants:

o o o

Streaming audio and video with v-cast (Verizon) On demand online services (similar to itunes) New entrants with disruptive technology (The next google)

3. Bargaining Power of Suppliers:

Suppliers of processors and computer memory (Motorola, IMB, Intel)

o o o

Strategic alliance / supplier of Mac (Microsoft) Supplier of tv and movies (Disney, ABC, Fox, Sony) Sources of music (BMG, Sony, Warner, Universal)

4. Bargaining Power of Customers:

Customers share music using peer-to-peer networks without paying for music (Ares, Limeware)

Retailers may pressure for lower prices or better terms (Distributors)

Consumers/ Businesses may reduce spending on computers if they fear economic downturns

(Consumer Attitudes and Behaviors)

5. Threat from Substitutes:

o o

Satellite radio for music (XM, Sirius) Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs , DVDs)

Alternative sources for videos (Cable Broadcast, theatres)

APPLE CULTURE
Apple offers the chance to invest in a business that creates highly desirable, emotive products which it is able to sell at premium prices. Seems simple, but to be confident that this attraction is sustainable, we need to delve into the softer factors that influence the firms culture to determine whether it is essentially, as has been suggested, its founder Steve Jobs, or whether its culture is indicative of something deeper, which embodies those who work there and which directs Apples course, with or without Jobs at the helm. When it comes to discussing Apples culture, various phrases are synonymous with Apple and how it operates, including innovation, (obsessive) secrecy, (ruthless) attention to detail, (overly) intensive work ethic and casual dress code. Not perhaps the most glowing of character reviews, but it somehow seems to work for the company. So whats Apples secret? What drives the innovation? IT is certainly not by being like other companies. Apple doesnt conform to the most recent popular management approach where the CEOs spend much of their time keeping their workers happy you only have to look at the cultural profile above to confirm that. While that style of management works for many technology companies (Google for one), Apple is more in the mould of the traditional autocratic engineering firm, the top tier of management keeping tight control and micromanaging every facet of its products and services from design all the way through to getting customers to pay up for a better experience. An environment exists which fosters new ideas, strengthening the sense that the culture allows for mistakes as well as rewarding successes. Apples headquarters at the Cupertino campus is deliberately designed around chaos theory, whereby autonomous teams, who may work on their project for several years, get to design their part of the campus. The result is that Apple is a cause that matters to its employees; it is a (sometimes difficult) way of life, but it is one that brings them together into one very supportive, extended Apple family.

APPLE VALUE CHAIN

The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. Apple has been able to perfect the chain of activities in innovation. Apple starts its new ideas of product design. Designs it through its own resources and funding, then manufactures it and finally markets wholeheartedly.

New Product Idea Generation

Designing

Product Creation

Distribution

Sales and Marketing

Custumer Service

Technology and Product Design: This component is the true core of Apples Capability. Apple contributes around 5-9 % of its sales in R&D. Apples history is rich with cutting-edge technology development. The Apple operating system is universally regarded as more stable and reliable than Windows. The learning and innovation in technology in its products has led Apple to leverage its expertise in iPod, iTunes and iLife suite of products.

Suppliers It is really the strongest advantage for a company to be independently manufacturing from scratch to finished product with application and peripherals. Apple produces its own disk drives, monitors, computers chassis and unique chips.

Production: The bundled packages of Apple-developed hardware and software became the cornerstone for its own production process though there were situations when the company outsourced the production of iMacs to Foxconn electronics. Apple achieved unparalleled performance architecture, integrated distinctive styling with the multi-colored translucent iMac cases, and redefined intuitive operation with the iPod. The research and development oriented products give an extraordinary performance and products like Mac which soon became an identity of Apple Inc.

Distribution: Earlier Apple used small outlets to deal with customers. Later in 1997, Steve Job revamped the distribution system by eliminating relationship with thousands of small outlets and expanding in Nationals presence. For the first time it also a website to directly deal with it customers. By 2001, the online store accounted for 40% of the companys sales. In 2001, company opened its own retail store in Virginia. The company now owns 135 and above stores all over the world.

Marketing and Advertising: Distinctive marketing campaigns have been a strategy of Apple to attract customers and to spread the information among them. Television commercials, print advertisements, posters in public areas and wrap advertisement campaigns have been successful ways of outshining the new product. Apple continues to command a market premium for producing a better mousetrap throughout its history. Apple hired TBWA Chiat/day, an advertising agency that designed the campaign of Think Different featuring 2Albert Einstein.

Customer Service: Apple believes in keeping a place in costumers heart, the customer loyalty is a great strength to the company. The credit for such a strong relationship between the company and its customers goes to companys customer service and the nature of products which fulfills the need of todays stylish people. Apple created a virtual love affair with their customer base by delivering technically superior products (iPods vs. other MP3 players, Macs vs. PCs, etc.) and aggressively pursuing hardware and software updates. Apple integrated their primary activities so well that it is transparent to the consumer where one activity beings and the other ends. A perfect example of this is Apples willingness to develop software to run Windows XP on its new Intel-based iMac and then post it online free to iMac users. In such an environment, customer service merely becomes the realization of receiving a little more than expected.

APPLE iPHONE
The Apple iPhone
Not since the introduction of the original Apple Macintosh has a product introduction been met with so much anticipation. The Apple iPhone is an elegantly designed information communicator forged from steel and silicon that runs pioneering software under Apples OS X in a Unix Kernel. The iPhone combines smart phone capabilities with a simple to use graphical interface projected on a large multi-touch display.

Design
The iPhones functionality is accessed through its 3.5-inch touch screen display and one home button. Using only finger commands, a user can navigate seamlessly through iPhones features, conjuring up a keyboard when needed. At a resolution of over 25,000 pixels per inch, its picture quality for videos and photos is astounding. An ambient light sensor automatically adjusts the iPhones display brightness enhancing visibility and saving power. Audio is provided by a standard headphone jack, a built-in speaker or through Bluetooth (stereo) transmission.

Features
- Smart Phone - Wireless Internet Communication Device - iPod - PDA, Computer and Camera

Software Capabilities:
- Multi Tasking - Networking - Syncing - Low Power - Security - Video - Core Animation - Graphics - Audio

 Value proposition
Intended for style-conscious cell phone consumers who would like to browse the Internet and enjoy entertainment to-go, the iPhone is a smart phone that combines a web browser, email, iPod and personal computer into a single, fashionable, easy-to-use device. The following strategy canvas illustrates how the iPhone is differentiated from the BlackBerry (a smart phone) and Motorola (a popular, stylish consumer phone)

iPhone differentiation
10

Score (10 = highest)

8 6 4 2 0
ffo rd ab le of us e Fa sh io na bl e ai l y C ar rie ra W eb E M fu nc t io na lit y br ow va ila bi lit E P as y ed ia A S cr ee n si ng la ye r m

iPhone Blackberry Pearl Motorola RAZR

Factors of Competition

Porters Five Force Analysis

Threat of Rivalry - High

Big players with deep pockets Google, Nokia, Samsung, Motorola, HTC Many brand to choose from; Demand for

Product differentiation; Marketing and branding; Higher price sensitivity ; Should reduce price

Threat of buyers - Moderate

new and updated features; Increasing markets in developing countries

Threat of Suppliers - Low

Hardware and third party suppliers for apps; Build its own OS, some application software

Threat of entry - Low

Huge capital requirements; Strong R&D and market strategy required.

Diverse products at lower cost to sustain Convergence of mobility, internet, apps, compact size, multi touch screen user interface.

Threat of substitutes - Low

Wired telephony, Satellite based systems, PCs, Networks

 The iPhone Value Chain

The value chain below illustrates the context in which Apple delivers value to the customer with the iPhone:
Network Billing Components Design Build OS / UI Apps Branding Marketing Sales User

Primarily Outsourced Primarily Apple

iPhone Swot:

Strengths Style/ Brand User base Hype First mover

Weaknesses Threat Highly developed market Similar devices High price / high end Limited distribution channels Missing features

Opportunities Distribute iTunes content New social device Port existing apps Migrate people to Apple

Strengths The iPhone has several features that add to the strength of the product. These include its unique look and feel accompanied by a mobile operating system. It has phone sensors that work with the multi-touch screen, which is a new patented technology. These new features are presented to a large and loyal user base that Apple has accrued over the years.

Weaknesses Like every new product, there are is a set of weaknesses. The iPhone is not a 3G device and will not work in technologically advanced countries such as Japan and Korea. All of their phones are 3G compliant. Several of the iPhone features are also not particularly impressive. These include the fact that it has a subpar camera, standing at about 2 megapixels as well as its memory not being removable. Apples choice of distribution channel has also been construed

as a weakness as theyre limiting it to only Cingular and Apple retailers. Finally, its purpose is to be questioned does the phone fulfill corporate duties or is it just an entertainment system.

Opportunities There is quite a demand for a better mobile computing experience. The iPhone tries to combine both powerful computing as well as entertainment into one system. People have also noted that the Mac OS applications for desktop can be seamlessly adapted for the iPhone. Also, this is the first step towards an Internet Protocol-based network. The emergence of WiFi networks is pushing for there to be visitor fees instead of having a provider lock in users. It is very likely for the device fees and pay-per-view system to take flight, eliminating the month to month subscription fee.

Threats The majority of threats come from other companies including Nokia, Sony, and Google with their respective products. Smart phones are one popular example that stands to compete against the iPhone. The fact that these phones run on the 3G network also puts iPhone behind in the speed race. Although the economy is no longer in its volatile stages, the release of the iPhone is still in a time where people are cautious of spending money. The last threat is the Cisco vs. Apple trademark-infringement lawsuit that may or may not have taken away from the product launch steam.

Consumer Behavior
Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables

in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Goal Structure for buying an iPod:

Feedback Reactions

Im happy and extremely cool now that I have an iPhone!

Goal Setting

Formation of a goal intention

Action Planning

Action initiation and control

Goal attainment/ failure

My goal is to be cool

To be cool, I must buy an iPhone

I must save up enough to buy the iPhone

Saving to buy na iPhone is worth it!

I have saved enough to buy an iPhone

iPHONE COMPETITORS

According to IDC's market report, Apple shipped 25.1 million iPhones in 2009 capturing 14.4% of smartphone market share. This represents a 81.9% year-over-year growth for iPhones. Apple's fourth quarter iPhone shipments stood at 8.7 million representing a market share of 16%. Nokia still holds the top spot with 67.7 million shipments, representing a 38.9% market share followed by RIM with 34.5 million shipments and 19.8% market share for 2009.

HTC and Samsung captured 4.6% and 3.3% smartphone market share respectively, while rest of the vendors represented 19% of the 174.2 million smartphones shipped in 2009.

Manufacturer

2009 Shipments(mil)

2009 Market 2008 Market Y-o-Y 2008 Shipments(mil) Share Share Growth 38.9% 19.8% 14.4% 4.6% 3.3% 19.0% 60.5 23.6 13.8 7.5 5.4 40.6 40% 15.6% 9.1% 5.0% 3.6% 26.8% 11.9% 46.2% 81.9% 8.0% 5.6% -18.5%

Nokia RIM Apple HTC Samsung Others

67.7 34.5 25.1 8.1 5.7 33.1

 Nokia

Nokia is a Finnish multinational communications organization that is headquartered in a city near Finland's capital Helsinki. Nokia, as the worlds largest manufacturer of mobile phones, has more than 123,000 employees in 120 countries and sells their products in more than150 countries, what allowed them to reach global annual revenue of EUR 41 billion and operating profits of 1.2 billion as of 2009. Nokia offers Internet services such

as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications equipment, solutions and services. Nokia is also engaged in providing free digital map information

and navigation services through its wholly-owned subsidiary Navteq.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest Finnish company and has a brand that is valued at $29.5 billion. Nokia announced that their profits had dropped 40%. In the globalsmartphone rivalry, Nokia dominates the worldwide mobile markets, but remains fragile in the United States.

In the 1980s, during the era of its CEO Kari Kairamo, Nokia faced a huge expansion, mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into serious financial problems, a major reason being its heavy losses by the television manufacturing division and businesses that were just too diverse.

Probably the most important strategic change in Nokia's history was made in 1992, however, when the new CEO Jorma Ollila made a crucial strategic decision to concentrate solely on telecommunications.

As late as 1991, more than a quarter of Nokia's turnover still came from sales in Finland. However, after the strategic change of 1992, Nokia saw a huge increase in sales to North America, South America and Asia. By 1998, Nokias focus on telecommunications and its early investment in GSM technologies had made the company the world's largest mobile phone manufacturer. Between 1996 and 2001, Nokias turnover increased almost fivefold from 6.5 billion euros to 31 billion

euros. Logistics continues to be one of Nokia's major advantages over its rivals, along with greater economies of scal Nokia released its first touch screen phone in 2004. The Nokia 7710 was introduced as Nokia's first touch screen phone and was a huge success. In 2008, Nokia released the Nokia E71 which was marketed to directly compete with the other BlackBerry devices offering a full keyboard and cheaper prices. Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G.

In May 2008, Nokia announced on their annual stockholder meeting that they want to shift to the Internet business as a whole. Nokia no longer wants to be seen as

the telephone company. Google, Apple and Microsoft are not seen as natural competition for their new image but they are considered as major important players to deal with. Since July 1, 2010, Nokia comprises three business groups: Mobile Solutions, Mobile Phones and Markets. The three units receive operational support from the Corporate Development Office, led by Kai istm, which is also responsible for exploring corporate strategic and future growth opportunities.

Mobile Solutions is responsible for Nokia's portfolio of smartphones and mobile computers, including the more expensive multimedia and enterprise-class devices. The team is also responsible for a suite of internet services under the Ovi brand, with a strong focus on maps and navigation, music, messaging and media. This unit is led by Anssi Vanjoki, along with Tero Ojanper (for Services) and Alberto Torres (for MeeGo Computers).

Nokia's official corporate culture manifesto, The Nokia Way, emphasises the speed and flexibility of decision-making in a flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy. The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company spoken communication and e-mail.

Until May 2007, the Nokia Values were Customer Satisfaction, Respect, Achievement, and Renewal. In May 2007, Nokia redefined its values after initiating a series of discussions worldwide as to what the new values of the company should be. Based on the employee suggestions, the new values were defined as: Engaging You, Achieving Together, Passion for Innovation and Very Human.

 RIM

Research In Motion Limited (RIM) is a Canadian telecommunication and wireless device company best known as the developer of the BlackBerry smartphone. RIM is headquartered in Waterloo, Ontario, Canada and was founded by Mike Lazaridis, who currently serves as its co-CEO along with Jim Balsillie.

Prior to the manufacture of the BlackBerry, RIM worked with RAM Mobile Data and Ericsson to turn the Ericsson-developed Mobitex wireless data network into a two-way paging and wireless e-mail network. A basilar stone in this development was the release of the Inter@ctive pager 950, which started shipping in August 1998. About the size of a bar of soap, this device competed against the SkyTel two-way paging network developed by Motorola.

RIM's early development was financed by Canadian institutional and venture capital investors in 1995 through a private placement in the privately-held company. Working Ventures Canadian Fund Inc. led the first venture round with a C$5,000,000 investment with the proceeds being used to complete the development of RIM's two-way paging system hardware and software. A total of C$30,000,000 in pre-IPO financing was raised by the company prior to its initial public offering on the Toronto Stock Exchange in January, 1998 under the symbol RIM. Since then, RIM has released a variety of devices running on GSM, CDMA, and iDEN networks. The ubiquity of these BlackBerry devices in the corporate environment and the compulsive use of its ability to quickly send and receive e-mail has earned it the nickname "Crackberry" in a reference to crack cocaine as users feel they cannot live without it.

In 2006 Research In Motion and Information Appliance Associates have reached a licensing agreement whereby RIM will offer the complete version of PocketMac for BlackBerry to Macintosh users free of charge. In October 2008, RIM was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in Maclean's newsmagazine.

RIM announced in February 2009 that they were expanding their global operations by opening an office and training facility in North Sydney, New South Wales, Australia. Just across the Harbour Bridge, ten minutes from the Sydney CBD, the new RIM offices were formally unveiled

by Mr Thomas A.MacDonald, Consul General of Canada, at a ceremony attended by dignitaries from the New South Wales Government and North Sydney Council, as well as RIMs partners and customers. The new office features training facilities, a research and development centre, a strategic partner marketing centre and technical support services. Total workforce provides 12,000 jobs worldwide. In June 2009 RIM has announced they were acquiring Dash Navigation, makers of the Dash Express. In August 2009, RIM acquired Torch Mobile, enabling the inclusion of a Web kit-based browser on their Blackberry devices. On 18 August 2009, Fortune Magazine named RIM as the fastest growing company in the world with a growth of 84% in profits over three years despite the recession.

The BlackBerry product line has just celebrated its 10th anniversary, while RIM has just passed 25 years as a company. In 10 years they have sold 50 million wireless handset units worldwide (as of Q4 2008), making it the second best-selling smartphone in the world.

On March 26, 2010, Company announced acquisition of BlackBerry applications developer Viigo, a Toronto-based company. Terms of the deal were not disclosed.

RIM reached an agreement with Harman International on April 12, 2010, for RIM to acquire QNX Software Systems. "RIM is excited about the planned acquisition of QNX Software Systems and we look forward to ongoing collaboration between Harman, QNX and RIM to further integrate and enhance the user experience between smartphones and in-vehicle audio and infotainment systems," said Mike Lazaridis, President and Co-CEO at RIM. "In addition to our interests in expanding the opportunities for QNX in the automotive sector and other markets, we believe the planned acquisition of QNX will also bring other value to RIM in terms of supporting certain unannounced product plans for intelligent peripherals, adding valuable intellectual property to RIM's portfolio and providing long-term synergies for the companies based on the significant and complementary OS expertise that exists within the RIM and QNX teams today."

On September 27th 2010, RIM announced the long rumoured BlackBerry PlayBook tablet computer. It will ship to consumers in early 2011. As of May 2010, RIM OS held 10.4% of the smartphone operating system market.

 HTC
HTC Corp, produces powerful handsets that continually push the boundaries of innovation to provide true mobile freedom.

Founded in 1997 by Cher Wang, Chairwoman, HT Cho, Director of the Board & Chairman of HTC Foundation, and Peter Chou, President and CEO, HTC made its name as the company behind many of the most popular operator-branded devices on the market. It has established unique partnerships with key mobile brands, including the leading five operators in Europe, the top four in the US, and many fast-growing Asian operators. It has also brought products to market with industry leading OEM partners and, since June 2006, under its own HTC brand.

HTC is one of the fastest-growing companies in the mobile sector and has achieved remarkable recognition over the past couple of years. Business Week ranked HTC as the second best performing technology company in Asia in 2007 as well as giving the company the number 3 spot in its Global listing in 2006.

Since launching its own brand 18 months ago the company has introduced dozens of HTCbranded products around the world. HTC is known for its innovation. It is constantly broadening the range of devices it offers introducing devices to support specific applications and new form factors that meet the increasingly diverse needs of its customers and partners.

HTC's product portfolio offers easy-to-use solutions that embrace the full range of mobile multimedia resources, wireless anytime and Internet on the go.

It has a rich heritage of device 'firsts': First color palm-size PC (1999) First Microsoft Pocket PC (2000) First Microsoft wireless Pocket PC (2002) First Microsoft powered Smartphone (2002) First Microsoft Smart Music Phone (2004) Large 2.8" TFT touch-screen LCD display Microsoft 3G Phone (2005)

First Microsoft Windows Mobile 5.0 Platform Phone (2005) First tri-band UMTS 3G device on the Microsoft Windows Mobile platform (2006) First Microsoft Windows 5.0 Smartphone (2006) First Tri-band UMTS PDA First intuitive touch screen to allow finger tip navigation (June 2007) In early 2006, HTC launched a powerful new device with a groundbreaking form factor: the HTC Advantage. The HTC Advantage is the worlds most powerful office, boasting a 5" screen and full detachable QWERTY keyboard. This was followed in early 2007 with the introduction of the HTC Shift. Equipped with Windows Vista this device includes a brilliant 7-inch widescreen touch display and a 40 gigabyte hard drive.

HTC launched the HTC Touch in June 2007 as the result of extensive R&D and the conviction that fingertip control would enable more intuitive navigation. The groundbreaking HTC Touch is equipped with TouchFLO so that consumers just sweep their finger across the screen to get access to the most commonly used content, contacts and features in a simple finger flick.

HTC aims to continually develop smart new devices that empower users on the go, providing more freedom in the way they live their lives. Since its inception, HTC has pioneered the smart phone market through partnerships with Microsoft and key mobile operators. Additional strategic partnerships include: Intel, Texas Instruments and Qualcomm; some of the largest mobile operators including Orange, 02, TMobile, Vodafone, Cingular, Verizon, Sprint and NTT DoCoMo.

HTC's mission is to become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistic and service capabilities. HTC is committed to driving the growth and capabilities of smartphone technology. Since its establishment, the company has developed strong R&D capabilities, pioneered many new designs and product innovations and launched state of the art PDA phones and smartphones for operators and distributors in the global telecoms industry. It has invested in a strong R&D team accounting for 25% of the total headcount and a world-class high-volume manufacturing facility, both based in Taiwan.

Samsung

Samsung Electronics is the world's largest electronics company with a 2009 revenue of $117.4 billion. headquartered in Samsung Town, Seoul, South Korea, it is the flagship subsidiary of the Samsung Group. With assembly plants and sales networks in 65 countries across the world, Samsung has as many as 157,000 employees.

Samsung Electronics was founded in 1969 in Daegu as Samsung Electric Industries, originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers. By 1981, the company had manufactured over 10 million black and white TVs. In 1988, it merged with Samsung Semiconductor & Communications Mobile Phones

In 2009, the company took the position of the worlds biggest IT maker by surpassing the leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays and computer chips is the worlds No. 1.

Some of the most popular items produced by Samsung include LED TVs and Galaxy S mobile phones. Even though consumers may not realize, so many non-Samsung-brand devices such as TVs and phones have Samsung-manufactured memory components inside. The Galaxy S model, Samsungs smartphone lineup that has retained the second-best slot in the world market for some time. In competition to Apple's iPad tablet, Samsung released the Android powered Samsung Galaxy Tablet.

Only ten years ago, Samsungs only goal was to catch up with Japanese rivals. But now it is outperforming major Japanese electronics makers in every category: in terms of global market share, Samsung is No. 1 in flat-panel TVs and memory chips; it is No. 2 in mobile handsets; it is one of the top suppliers in other home appliances.

In 2007, Samsung Electronics' handset division overtook American rival Motorola, making it the world's second-largest mobile phone maker. In 2009, Samsung overtook Siemens of Germany and Hewlett-Packard of the USA with a revenue of $117.4 billion to take the No.1 spot as the world's largest technology company.

To become the top brand in the electronics business, Samsung has spent enormous sums on marketing and branding. As part of fulfilling this strategy, the company devised in 1996 a plan to sponsor major sporting events. It succeeded in becoming an official sponsor for the 1998 Nagano Winter Olympics. Samsung today is the name that almost always appears in many big games.

Despite being a giant in the global technology business with enviable growth, Samsungand its chairman Lee Kun-heeis famous for fretting over its future and coming crisis. Since returning from a mini retirement in March 2010, Mr. Lee said, Samsung Electronics future is not guaranteed because most of our flagship products will be obsolete in 10 years from now. We have to start all over

Samsung Electronics has sold as many as 235 million mobile handsets in the year 2009, the second biggest seller in the world after Nokia. After hitting the jackpot with the Anycall brand mobile phones in Korea, the company has introduced numerous mobile handset models including high-end premium phones, full-touch screen phones, and even environmentally friendly phones. Samsungs latest mobile handset model is the Galaxy S, which is one of the smartphones that is expected to compete head-on with the iPhone. The Galaxy S has been in the market since last July but amazed market observers by selling more than 1 million units only within 45 days after the launch

Samsungs I9000 Galaxy S and S8500 Wave smartphones were the winners of the 2010 European EISA Awards in the smartphone and social media phone categories. The I9000 Galaxy S was recognized for its superior-quality screen and excellent connectivity while the S8500 Wave for its Bada operating system with unparalleled social networking and location-based services.

Samsungs 2010 smartphone shares worldwide are rising rapidly. The share in the United States has doubled in the second quarter of the year from the previous quarter. In the second quarter the company shipped as many as 3 million smartphones, a 173-percent increase from the same period last year. In order to stay at the top of the business, Samsung employs quite a unique strategy: while many other handset makers tend to focus on supporting one (or at most two) operating system, Samsung has kept supporting a wide range of operating systems in the market. Although the Galaxy S adopts Google Android as the primary operating system, it also works

on other competing operating systems such as Symbian, Microsoft Windows Phone, Linuxbased LiMo, and Samsungs proprietary Bada.

Samsungs mobile handsets have received reviews that they are superior to Apple handset lines while winning prestigious design awards in Europe and the United States. With all these, the company set the sales goal of the 2010 yearend at 20 million units. But the company is not resting on its laurels: in fact, it is faced with challenges on all fronts. An alliance of Chinese low wage and Taiwanese technology is catching up closely. Smartphone makers such as Apple, RIM, and HTC are busy coming up with new models, all of which makes Samsung hard at work maintaining its top position.

RECOMMENDATIONS FOR THE COMPANY

Lowering the costs of products and maintaining the same quality standards;

Can form joint-ventures;

Knowledge Management;

More number of retails stores for easy access;

Continuous innovation to expand;

Do not compromise on price for quality;

Choose products based on individual needs;

Gaining access to additional distribution channels and sales outlets in the international market;

Adopt some new strategies, for exemple:

- Customization Strategy (consumer specific customization and hardware packaging increase product diversification and eliminate threat of competitive alternatives; removing of unnecessary or less popular apps; increased sales and a large customer base; customized bundling of similar apps and selling it at a lower price- clever implementation and marketing).

BE UNIQUE AND

CONCLUSION
Competitor analysis is an important part of a firm's development of its strategy. Its importance lies in the understanding of competitors, their strategy, and resources and capabilities. More specifically, competitor analysis also allows a firm to assess its own firm versus competitors and plan for what competitors' actions may be as a reaction to actions the firm may take. A competitor analysis provides a firm with the knowledge to leverage its strengths and address its weaknesses and, conversely, take advantage of weaknesses of competitors and counter their strengths. Competitor analysis also gives a firm a better understanding not only of the competitors but also their overall sector and where the emerging opportunities may be. Finally we conclude that Apple: Dominates the digital music market; Consumer focus, superb design and continuous innovation are the keys to Apples success; A healthy ecosystem has helped expand iPods use and spurred its rapid growth and adoption; Content providers and competitive offerings pose a serious threat to iTunes but Apple has leverage to deal with it; Apple is well positioned to become the Entertainment Hub.