Indholdsfortegnelse
1. Identify and analyse the 3 most important external factors (micro and macro) in the Indian phone market – from Apple’s perspective.
2. Short questions and short answers – your answer may have no more than 2.400 keystrokes altogether. Assess the following statements:
3. Discuss one of Apple’s challenges that relates to their marketing mix in India.
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Uddrag
Competitors:
Apple face large competition in India. Many competitors provide similar features, but for a lower price, which makes it more difficult for Apple to generate profit in the Indian market.
Samsung and Xiaomi, some of Apples largest competitors in India, account for 49% together in market share for the smartphone market, where Apple only made up about 1% in the market.
Apple aren’t adapting to the environment, in the same way as their competitor Samsung. Samsung had developed a series of smartphones with a lower retail price than some of their other phones, especially to appeal to the Indian segment. Apple aren’t changing their
Indian strategy since they believe in making the best products that enriches people’s life. It’s difficult, though, to sell products that usually varies in price of $500-$1000 in a market where the GDP per person is $2,000.
That’s where many of Apples competitors, provide smartphones with a retail price of $200. Apple is getting left behind its competitors, due to lack of innovation and adaption, which results in customers switching to other brands.
Customers:
Apple is doing well appealing to its niche segment, with its high technology, quality, and performance products, but only attracting a small segment resulted in Apple only achieving $1.8 billion in India revenues by the end of 2018, which was less than half of what they hoped to generate for the year.
Apple struggle to appeal to a larger segment, due to having difficulties with fulfilling customer needs and preferences.
The buying behaviour of many Indians is rational and smartphones are bought for practical and functional reasons.
Some of the iPhone features that Apple provide, is what distinguish them, but for many Indian customers, the features don’t make up for the high retail price.
Macro environment
Demographic environment:
Apple have a specific disadvantage in the Indian market because of the stiff tariffs that are applied to their products.
Due to local regulations, there’s a high import duty on the phones that are not manufactured in India, and Apple have most of their products manufactured elsewhere in Asia.
The company manufactures its lower-cost iPhone SE and iPhone 6 locally, and expect to move its production of the iPhone X to Southern India.
Apple would like to get rid of some of the duties that are put on their products, which they would be able to do if they moved more of their production to India.
The current changes in demographics in India, could be beneficial for Apple. The Indian population is growing rapidly, and according to IMF it’s estimated that India will be the fastest-growing major economy in the world. By 2050, India is expected to have a working population of more than one billion, resulting in an increase of people in the labour force.
But with a population growing so fast, there’s a higher demand for jobs. Apple could move more of their production to India, and then pay less duties on their products.
Not paying duties on their iPhones produced locally, would decrease their retail price, enabling a few more to buy their products.
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