planning marketing involves the Strategic deciding the corestrategy, on creating competitive positioning both the companyand its

offerings, of that and implementing strategy. The aboveis as true of the one-product firm as it is of the largeconglomerate containing many different businesses. the conglomerate, For however, there is an added dimension to planning. That extradimension that the mix of busiconsistsof porlfolioplanning, ensuring nesses withinthe total corporation suitable achieving is for overall objectives. corporate

iPhone
The throngs of Apple fans who crowded into the Moscone convention centre in San Franciscoto hear Steve Jobs give his annual MacWorldkeynote addresswent into the room with high expectations. Judging by their responsetheir expectations were morethan met. The unveiling the iPhone, of Apple'slong-awaited entry into the mobile handsetmarket,was greeted by rapturous applause, gasps of disbelief, and whoops of joy from the Apple faithful. occasional Six years after Apple transformedthe market for digital music players with the introductionof the iPod, the company had attempted a repeat performancein the market for mobile handsetswith the iPhone a slim, sleek handsetthat relieson an innovative touch-screen interface. 'Thisthing is amazing,'says Van Baker,an analyst at Gartner, who had a chance to try the iPhone himself duringan analystbriefingby Apple. 'lt's the biggest homerunfor them I'veseenyet.' Appleis far from the first companyto try to crack the so-called smarlphonemarket.Microsoft,Apple's has beentalkingabout such devicesfor arch-rival, years, its mobile but windowsefforthas slumped in pad because mobilecarrierswere wary of Microsoft andkeot oui. Just 6m smart phones were sold in the US last year, compared with morethan 1bn mobilehandsets soldworldwide. Twomillion them operatedon Windows softof ware,with the rest of the market split between Research Motion,makersof the Blackberry; ln Palm, maker the Treohandset;and a handful of others. of Shares RIMfell 7.9 per cent yesterdaywhile Palm of stock 5.7 oer cent. fell Charles Golvin, analystat Forrester, cautionsthat, evenwith Apple'simpressivedevice, the market for phones that integratevoice calls, e-mail, web

Source:Alamy lmages:Alex Segre

browsingand music will remaina small part of the overallhandsetmarket. Miro Kazakoff,senior associateat Compete,an industryanalystgroup, says his researchshows that 'it's unlikelythat any phone, no matter how good, is going to get people to pay a high price and up to $200 in early terminationfees on their current contract'. 'Wirelessshoppersare hooked on free phones as carriershave subsidizedbetter and better devices overthe vears.'

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C H A P T E R 2 S T F A T L G I CI V A H K I T N G I ' L A N N N G

A p p l e i s b e t t i n gt h a t t h e i P h o n e ' su n i q u e u s e r interJace the resultof yearsof research will reinjust as the v e n t t h e e n t i r e s m a r t p h o n ec a t e g o r y . Macintosh redefined computers and just as the iPod redefined what customers came to expectfrom their digitalmusicplayers. ' A p p l e i s g o i n g t o r e i n v e n tt h e p h o n e , ' w a s Mr Jobs' bold oronouncement MacWorld. at The earlysignsare encouraging. R a l o hS i m o n .M E F A m e r i c a s h a i r m a n m e r i t u s C E o f t h e M o b i l e E n t e r t a i n m e nF o r u m ,s a y s t h a t t h e t iPhonerepresents 'quantumleap in innovation' for a the entertarnment industry. ' Y o uc a n ' t o v e r l o o k h e s t r i d e sa l r e a d y a d e b y t m competitors like Nokiaand Motorola, but the seaml e s s m a r r i a g eo f t h e i P o d ' s k u d o s t o t h e m o b i l e n h o n e i s a k e r r s t e n e v o l u t i o no f t h e m o b i l e t o b e c o m i n g n a l l - r o u n d n t e r t a i n m e n te v i c e , 's a y s a e d M r S i m o n .W i t h t h e l e a s te x p e n s i v eP h o n em o d e l s i pricedat $499,priceremains concern.'How many a p e o p l ew i l l b e o u t t h e r ew i l l i n gt o p a y t h a t k i n d o f p r e m i u m ?M r G o l v i n s k s . ' a However, e saysthereare some encouraging h recentexperience with the Razr, signs in Motorola's p i t s u l t r a - t h i n r e m i u mm o b i l e p h o n e . ' T h e R a z r i s
s ' \ v t v ! v H

yearsold - they were able to keep their now several p r e m i u m r i c e s o r q u i t ea w h i l e , M r G o l v i n a y s . p f ' s M r J o b s w a s k e e nt o s i g n a lA p p l e ' si n t e n t i o n o t b e c o m e a l e a d i n gp l a y e ri n c o n s u m e re l e c t r o n i c s yesterday. the close of his MacWorld At speech,he t a n n o u n c e d h e c o m p a n yh a d d e c i d e dt o d r o p t h e ' word 'computerfrom its namenow that its brand h a s s p r e a dw e l l b e y o n dt h e M a c i n t o s h o i n c l u d e t otherdevices. F v e n t h e m o s i i a c l c do b s e r v e r s o u l d b e h a r d w p r e s s e dt o d e n y t h a t , w i t h t h e i P h o n e ,t h e n e w l y Apple is off to a greatstart. christened
Sorlce: frorr'Apple faithfLrsrnlttef to tlre core with iPlronc, Frrarrci:r/ l./2007 (Al ison. K.). Irr.rs. 10./O

questions Dlscussion
1 What is drivingApple'sentry into the mobile phonemarket? 2 l s t h e m o v e c o n s i s t e n tw i t h S t e v e J o b s ' visionfor Apple? focus does the move signify? 3 What strategic What alternatives open to Apple and how are t c o u l dA p p l ep u r s u e h e m ?