ACCG301 Research Report Managing Customers and Time

Presented by: Simon Wong Chris Fang JunSeung Lee SooHyun Park

Company Background
Apple Inc., which was founded by Steve Wozniak and Steve Jobs in 1976, is known as the most influential corporation as a designer and manufacturer of consumer

electronics in the world. Apple Inc. develops, sells, and supports a series of personal computers, portable media players, mobile phones, computer software, and computer hardware and hardware accessories.

Target Customer
Education: Apple has put much weight on the use of technology in education and has been committed to delivering way out to help educators teach and students learn. The company deems effectual integration of technology into education can bring about higher levels of student attainment and has designed a range of products, services and programs to address the needs of education customers. The company also offers mobile learning and real-time distribution and accessibility of education related materials through iTunes U, a platform that enables students and teachers to share and distribute educational media online. Creative Professionals: This category is the companys most significant market for both hardware and software products. It is also crucial for the various third-party developers who supply hardware and software solutions that are compatible with the companys products. Creative customers make use of the companys products for a variety of activities including digital video and film production and editing; digital video and film special effects, compositing and titling; digital still photography and workflow management; graphic design, publishing, and print production; music creation and production; audio production and sound design; and web design, development and administration. The most of film production and advertising is initiated on Mac computers using software like Adobe Photoshop, Aperture and iMovie.

Information Technology: For IT professionals, Apple uses hardware and software that utilises the UNIX platform and let IT folks enjoy open source technologies. These open standards permit IT managers to assimilate Apple products into their existing systems. An example of the utilisation is the faculty to exploit a Microsoft Exchange email server to push email to an iPhone or to the Mail program in OS X. However, a Microsoft software and hardware from companies like Research in Motion (RIM) do not allow it to utilise Apples open source CalDAV or email server to push information. Business: The company has a ground plan in place to enhance its footprint in the business market. As mentioned above, the open source technologies let companies to employ Apple products inside of their IT infrastructure without interrupting any existing software and hardware. The representative product, namely, iPad which has tons of functionality that allows businesses to gain competitive advantage in todays harsh business environment. Mobile BI is an immensely powerful tool for an organisation to have at its disposal. Instantly accessible, real-time data that a user can interact with and take action on is empowering and is revolutionising how and when business decisions are made. Simply, people buy apple products because its products are consistently the most attractive technology products out on the market. Apple is great and better at designing their products than anyone else. People care about how they look while they are using their stuff, and using Apple stuff makes people that much cooler. The companys management style relentlessly focuses organisational energy on customer centred innovation and customer experience. Apple actually communicates to customers differently from any other companies, saying that everything we do, we

believe in challenging the status quo, we believe in thinking differently. The message implies that its goal is to do business with people who believe what you believe, and not to do business with everybody who needs what you have.

Porters Five Forces - Bargaining Power of Customers

Using one of the Porters five forces, namely Bargaining Power of Customers, this section analyses the extent to which the companys customers have the ability to influence the company. Apple runs its business in markets for PCs, mobile telecommunication devices, consumer electronics and related software and hardware that are highly competitive and saturated. Since numerous competing firms operate in the industry, there are a lot of substitutes being existed in the market. Such a condition brings about an increase in the bargaining power of customers. Nonetheless, the uniqueness of Apples products and a loyalty of customers lower the price sensitivity of customers. A brilliant research and innovation foundation allows Apple to offer revolutionary products such as the iPad and MacBook Air. Together with distinctive brand marketing and successful implementation of its pricing strategy throughout its product range, most of the customers are willing to pay for the companys products. On condition that Apple keeps ahead of the curve by introducing innovative products and stands on its brand marketing, it is probable that its customers will be staying less price sensitive. Consequently, the bargaining power of customers of Apple Inc. is medium.

Customer relation management

Apple Inc. has managed to create substantial value in the highly competitive personal computer industry, by innovating and forging a path considerably different from the competitors in the industry, successfully differentiating its products from those of the competition by focusing on quality, exceptional design, and personalised service. Their strategy is targeting a broad customer range from unsophisticated beginner users to high end users. Create value for customers They focus in the areas of industrial design and user interface to deliver a product that is both highly stylish and at once ergonomically natural and useable. Apple also try to provide quality customer services and to build a lifestyle brand image as product differentiation. 1. Focus on differentiation - Developed differentiation regarding to lifestyle branding with design innovation and unique specifications of hardware & software systems for many different proposes of use. 2. Research user interface possibilities - As a mode of setting Mac computers apart from other PCs Apple continues to innovate in user interface focusing on easy-of-use and intuitive menu functions. 3. High Quality customer services - which is called Apple Genius Bar, where customers can talk with an Apple specialist staff known as a genius about problems with their device. This human interaction with a first party service provider builds a rapport with customers and offers a stark contrast to endless phone service calls. 4. Environmentally Greener manufacturing

- The production and shipment of Apples devices are considered to reduce carbon emissions and pollution, which many come under scrutiny as consumer concern for the environment. Apple has already made commitments to greener manufacturing practices as well as implementing the use of eco-friendly components, and packaging. This proactive process can be a effective marketing tool as grader respect from concerned customers. Recommendations for increasing the value created for their customers Apple has successfully innovated its way to a comfortable market position commanding premium prices. This position is not permanent because of the threat of alternative substitutes. Apple must continually find new ways to maintain profits and create value for customers and shareholders. The maturing personal computer market is becoming saturated, leaving fewer new buyers and more replacement buyers. To continue to grow, Apple must also look to new and expanding markets as sources of revenue. Thus, Apple should produce more powerful and feature packed devices for customers to achieve higher customers value. There are some additional recommendations for increasing the value created for their customers in terms of effective marketing and premium customer services. 1. Marketing - Apple need to use a series of television and Internet advertisements comparing the firms products to competitors to build a lifestyle brand image continuously. It can represent an important source of revenue for Apple to understand their customer that emphasise of their products more efficiently to others. 2. Expand Apple store locations & Higher quality of customer service - Providing more points of direct contact with buyers will enable Apple to provide better service to customer and bring the Apple experience to more people. The

Apple stores has provided the company with an important physical presence to act as both a sales location and an advertisement. The stores allow Apple to tightly control the image of the brand and provide excellent customer service.

Conclusion
Apple has done an excellent in managing customers and time. They classified four different target segments Education, Creative Professionals, Information Technology and Business which is very clever as it covers most of the market and satisfied most of the customers. Moreover, Apple knows that having a higher customer satisfaction can increase number of new customer and increase the market share. Therefore, they provide a good after sale service for individual customer, such as one year warranty, genius bar inside the apple store. Companies increasingly view time as a driver of strategy. So does Apple. They know that in order to attract more new customers and sustainable market share. They are currently introducing new innovative products every year and upgrade their product consistently. On the cost issue, although the price for the apples product is slightly higher than their competitors, their outstanding design, user friendly-product and excellent after sale services help them keep its loyal customers and to build their positive branding image to its customers and shareholders. In regards to maintaining current position in the market, they are requried to implement more effective marketing strategies, to expand their retail store and offer higher quality of customer service. Therefore, the success of Apple is resulting from its magnificent management on customers and time, and meet the customers needs & wants.

Bibliography

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