New Product Management Essays

New Product Management Essays New Product Management Essay New Product Management Essay 1. INTRODUCTION Apple has recently decided to launch a new idea by offering home-automation system based on the new iPhone technology, called â€Å"electronic butler†. The company is hoping that, based on the brand’s reputation, the home-automation system will be very well received by the customers. The air conditioning begins cooling, lights adjust to people liking, curtains open and the stereo plays soft, soothing jazz. Home-automation system is a new life experience. The 60s and 70s were the decades of the mainframe, the 80s made up the decade of client-server computing, and the 90s were the Internet years. Now Apple is entering the decade of the home-automation system. The home-automation system will have a good business prospects. COMPANY’S BACKGROUND Apple, founded in 1976 by Steven P. Jobs and Steve Wozniak, is not just the world’s largest technology company; it is the world’s most highly valued public company. Over the last decade, Apple has redefined the music business through the iPod, the cellphone business through the iPhone and the entertainment and media world through the iPad. Although, Apple already boasted the largest market value of any public company, on Aug. 0, 2012, it became the most highly valued public company ever. According to numbers from the World Bank, there are only 18 countries that have a GDP above $500 billion, while Apple’s market cap stands at approximately $506 billion. COMPANY’S MISSION STATEMENT It was widely reported that a famous quote from Steve Jobs in the 1980s was the Apple company mission statement: Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them. The official mission statement on the Apple corporation website, however, is not really a mission statement at all, but rather a list of products and past accomplishments. â€Å"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. †(3) Technology services to the life. I would say that the Apple’s mission statement is in accordance to the new product they want to bring into the market. New product’s purpose is to offer very good quality services that improve the lives of the world’s consumers. 2. OPPORTUNITY ANALYSIS POTENTIAL SIZE OF THE MARKET Apple Inc. s success selling consumer gadgets has pushed its share price above $500, cementing its place as the U. S. s largest company, with a market capitalization of $475 billion. Home-automation system is based on the company’s new technology and iPhone, such a large sales and market share will bring new product a good potential size of the market. COMPETITION Apple is pursuing a broad differentiation strategy. Apple differentiates by offering high-quality, exceptional design, and personalized service. The scope of their strategy is broad targeting customers ranging from unsophisticated beginner users to specials needs power-users. Home-automation system is a new market and area, Apple intends to differentiate itself from the competitors by offering brand new home-automation system service that most competitors are not currently offering. Apple can use the new technology and the contact between the system and iPhone to increase competitive advantage. Apple had $127. 8 billion in sales during the 2012 calendar year, putting it neck-and-neck with Hewlett-Packard, the nations largest tech company by revenue. This year, Apple is on pace to become the biggest technology company in the world, measured by revenue, outpacing current global No. 1 Samsung. These two companies are the main competitors of Apple. (1) COMPANY’S RESOURCES Apple’s most important resources and capabilities are Steve Jobs, the CEO, and the integrated system of hardware and software that the firm has developed and successfully marketed to derive value. While Apple’s designers, programmers, and engineers each represent key resources the ability of the firm to exploit their abilities to create their entire software/hardware ecosystem is the firm’s key capability. (1) The Apple stores have provided the company with an important physical presence to act as both a sales location and an advertisement. The stores allow Apple to ightly control the image of the brand and provide excellent customer service. Apple tops many retailers in in-store sales, generating $4,032 per retail square foot per year, beating other retailers like Tiffany Co. at $2,666 and Best Buy at only $930. This is a great display platform for the new product. A good product needs professional design and production. Apple’s incredible industrial des ign capability is a function of their innovative design teams, led by Jonathan Ive, senior vice president of industrial design, and the firm’s prioritization of design and outsourced production. CORPORATE POLICY The new service needs a good social environment. Although companies worldwide are facing the possibility of restrictive carbon emissions regulation, Apple is uniquely positioned to lead the electronics industry in promoting ‘green’ production, while taking full advantage of opportunities arising from new technological trends and sociocultural preferences concerning the fully-integrated, mobile digital lifestyle. (3) 3. SWOT ANALSIS AND OBJECTIVES S. W. O. T. ANALYSIS Strengths: Relationship with OEMs Apple has outsourced all of its manufacturing processes to OEM partners in China, like Foxconn and Hon Hai Precision Industry while focusing on design internally. * Apple store – New product needs a nice sale place. The Apple stores have provided the company with an important physical presence to act as both a sales location and an advertisement. * Industrial Design Capability Apple’s incredible industrial design capability is a function of t heir innovative design teams, and the firm’s prioritization of design and outsourced production. 2) Weakness: * Price Having premium products means that those products can be expensive for many consumers. The expensive of products is a major turnoff for consumers who are looking for a product of minimal quality standards. The new product needs to control the price. Opportunities: * International Expansion – Apple’s product sales all over the world, it will bring a large market for new product. Strong international presence and expansion should increase growth and profits. New Home-automation system is a new service for the market and customer, it can also extends to new office automation technology. Threats: * Global Slowdown A global slowdown or recession will hurt all companies, but mostly those whose products sell in economies that experience the worst declines. Especially multinational corporations like Apple. * Currency Volatility As the US dollar chang es in value, this creates uncertainty in contract negotiations. If the dollar were to change after a contract was signed, then one party to the contract would lose out on gains and the other party would win. . MARKETING OBJECTIVES Home-automation system’s main and most important objective is to establish a new, effective, and has not been developed over market, while increasing Apple’s brand awareness. REFERENCE 1. scribd. com/doc/24134877/Strategic-Analysis-of-Apple-Inc-Brian-Masi 2. wikiwealth. com/swot-analysis:aapl 3. Apple Inc. Apple and the Environment Apple Inc. , 2009. Web, 28 Nov. 2009. apple. com/environment/news/. New Product Management