Apple Ipod Value Analysis Value is perceived in different ways, by customers and organisations in relation to the product or service that is provided. The definition of value is what something is worth and the desirability. Also what is gained from the money aspect, and to whether the product or service actually fulfils its purpose. Value has different aspects which include company values; which relates to new innovations, job growth, reducing costs, as well as long term production and so forth. Value must meet customers’ needs which they benefit from the product or service. In relation to the iPod, the product has been innovated many times and has targeted different markets. The product has been improved and changed to provide better features for the customer Value in VIPI can be linked to the Apple iPod in three different aspects one from the point of the customer, the other being the competitive advantage and the third in relation to the design element. The customer point of view in relation to Value would be that a variety of choices of products are available in the iPod range in the sense of capacity, size of the iPod and the colour availability. The Apple Nano comes in different colours not as much of a colour variety as it only is available in black or white. It also has different memory capacities. Then there is the Apple shuffle this is designed slightly differently as it more like a USB stick so that consumers are able to just place it in the computer. Quality and design play a part in the value aspect of the product and it all integrates to the standard finish. In relation to the VIPI framework, Value is usually at the top of the hierarchy. (show the pyramid and highlight value at the top) With Apple continuously innovating they have improved the battery life, increased the memory capacity, or a better colour options. With each change they have considered the value and to what it will mean to the customer and how will that meet their needs. Apple is considering new features to add into the iPod, due to new technology that is being introduced such as voice activated systems which will allow customers to control the iPod without pressing keypad. They could also have a personal digital assistant which will have computer software to help customers with other activities.
"A value determines what a person thinks he ought to do, which may or may not be the same as he wants to do, or what is in his interest to, or what in fact he actually does. Values in this sense give rise to general standards and ideal by which we judge our own and others conduct; they also give rise to specific obligations” (CCETSW,
Customer value is defined as "the perceived benefit of a product, used by customers to determine whether or not to buy the product" (Lussier, 2006). I do believe that most customer's focus on creating customer value. It is an aspect needed in order to sell anything. A customer would not buy something if she or he did not see the benefit in buying it, therefore, organizations strive to create customer value because they need the customer to see a benefit and to buy the product.
Firstly, Apple provides sound customer services. Even though Apple is making its products simple and easy to use in order to favour various types of users, it is still a challenge to get use to most of the function in a high-tech product. For instance, many of us own an
The product constitutes of two major aspects which are tangible and intangible in nature. The tangible part is the product and the packaging and the intangible part constitutes of factors like installation services, warranties, credit etc. In case of Apple Products the tangible part or the product and the packaging are best in class. Apple is into deep market research and considers the varying taste of the consumer and designs and innovates the products accordingly. The IPhones or the IPODS are ...
Apple has always been keen on producing innovative products, which marks their brand and reputation. Their ability to develop innovative products that share OS, software & applications to minimize the timescale, costs, risks. Apple’s innovation strategy of developing products that complement each other strengthens customer loyalty and helps build a barrier to competition.
Value engineering (VE) has been defined by various researchers, for example Connaughton and Green (1996) defined it as “a systematic approach to delivering the required functions at lowest cost without detriment to quality, performance and reliability” and Kelly and Male (1993) defined VE as ''The process of identifying and eliminating unnecessary cost during design and construction stages''
Functional benefits - based on a product attribute that provides the customer with functional utility. The goal is to select functional benefits that have the greatest impact with customers and support a strong position relative to competitors. The phone capability of an iPhone, the cross platform data transfer of iCloud, iPad lightness and powerful abilities : games, movies, office work etc.
Apple in the recent years had developed a competitive advantage in their market. A competitive advantage implies the creation of a unique advantage over competitors (Heizer & Render, 2011). One way Apple competes is on differentiation, or distinguishing the offerings of an organization in a way that the customer perceives as adding value (Heizer & Render, 2011). Another way Apple has created a competitive advantage is through experience differentiation, or engaging a customer with a product through imaginative use of the five senses so the customer experiences the product (Heizer & Render, 2011). Through differentiation, Apple has created a true competitive advantage over many of their competitors.
Innovation in apple sets high standards that make it difficult for other companies to compete with them. Throughout the recent years Apple has been showing a non-stop development in its innovation strategies, those innovation strategies involve remarkable new products and innovative business models. Apple has been continuously succeeding in providing consumers with what the senior engineering manager in apple Michael Lopp describes as “really good ideas wrapped in really good ideas” and by Looking at apple’s sales since it started releasing its unique products we see that it strongly agrees with this description. Apple’s innovation-friendly ecosystem focuses on manufacturing its own hardware rather than just buying it, and that is one of the most important features that made them who they are today in the market.
In summary, I believe that the iPod is still in the growth stage of its life cycle. According to Roger Kay, IDC analyst, Apple is very good at releasing its iPod generations with incremental features which lure in new users and tempt other users to upgrade. Because of this, some iPod users have several generations of the player, and it is probable that mini owners also could follow that course. Apple now has a full product family that capitalizes on the original iPod’s success. Looking at the entire iPod line, the iPod is becoming a platform in of itself within Apple, as essentially a subsidiary within Apple. Based on the information I have read, Apple has many avenues that it could take with future development of the iPod and similar capabilities. The indicators show that the iPod will continue to have substantial success for a significant period of time.
In addition, the target market can be segmented in terms of the behavioral, psychographic, geographic market, products related feature, as well as socioeconomic target market. This is because the market focuses on a certain age group and people a higher income level. As such, the common features for the market can be said to the level of income which in this case constitutes the high income level people. The other feature of the target market is that it constitutes of the young people who are sensitive to innovative products and are ready to pay premium prices for the new Apple products. In addition, the target market constitutes of the wealthy individuals who can afford the products as they are sold at higher prices compared to other similar products in the
They will continue to lead their industry. There is also an opportunity to expand on better products and more innovative products. As mentioned in the introduction, Apple has a lot of room for improvement. “To be number one and remain number one you have to create originality”. Apple must keep up with the changing times so that they remain a leader in portable electronics.
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
To regain its market share after the year 2011, Apple had to use the one of the Porter’s four competitiveness strategies – the differentiation strategy. The differentiation strategy used by Apple involved making Apple products that are superior or more attractive as compared to those of competitors (Porter, 2008). This strategy was highly dependent on the nature of the industry and the products and services that were available in the market. To execute this differentiation strategy, Apple invested in research & development (R&D) and innovation. This was to ensure that the company could deliver products that are more superior to those of competitors – Apple products are high-quality and superior to others.
Firstly, consumers buy the products of which they believe that will offer them the highest value (Kotler & Keller, 2012). However, these consumers cannot know before purchase what a product is exactly going to offer them. Therefore, consumers have to rely on promises of the selling company. These promises are invariably more than the tangible products themselves, focusing on the intangible benefits attached to the product rather than its distinctive features. In other words, the company concentrates its marketing activities on the intangible value of the product. In that way the company is able to get customer appeal for its products, and differentiate from its competitors (Levitt, 1981). Logically, because the intangible value is the main focus point of companies and of consumers in their purchase decisions, value has to be pre...