Tuesday, April 8, 2014

Porter's Competitive Forces Push Apple to Make Larger iPhone

Internal slides that leaked as a result of the Apple v. Samsung trial have reportedly surfaced on the web, detailing forces that are driving Apple's product strategy. In one slide (copied below), "Apple" identifies three major forces that it needs to consider in its product development: customers, carriers, and competitors. These forces mimic the forces discussed in class last week.

Source: http://9to5mac.com/2014/04/06/why-apple-has-to-make-bigger-screen-iphones-in-its-own-confidential-internal-slides/

In identifying customer, supplier, and substitute offerings the slides identify that Apple may need to include a larger iPhone in its product line. According to the slides, the "strongest demand [is] coming from less expensive and larger screen smart phones." Carriers (which can be considered suppliers, as they supply the service with which phones are used) are marked as a competitive force. Lastly, android alternatives are also cited.

The slide copied below identifies that "customers want what we don't have," with numbers indicating that a large percentage of growth comes from phones that cost over $300 with a larger screen.

Source: http://9to5mac.com/2014/04/06/why-apple-has-to-make-bigger-screen-iphones-in-its-own-confidential-internal-slides/

It may be the case that these slides are fake. However, its reference to Porter's Five Competitive Forces indicates Apple's potential thought process in designing products and establishing its market share. Therefore, I thought it would be an important piece of news to share with the class indicating the relevance of last week's topics to leading strategy and product design.



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