Ipad SWOT Lester M.

Legette Trident University International

MKT501 Strategic Marketing Dr. Thomas Klein - P 19 March 2012

Financials: 1. Sales: 15.43 million over first Quarter 111 percent increase over the year-ago quarter 2. Cost: 16-gig iPad $259.00. Total Materials $250.00/ Manufacturing 9.00 3. Contribution to Overhead and Profit $240.00 4. Investment needed to generate Sales $21,472 (millions) 5. Margin earned on Sales $20,703 (millions) 6. Return on Investment Cost per audience $0.25/ # of Responder 6000.00/ # of buyers/ Revenue generated $20,700.00/ Profit $15,700.00/ Cost per buyer $3.62/ ROI 314% 7. Market Share 46,333 million (Dec 31, 2011) Summary: 1. Strengths: Globally recognized brand name, loyal customers, 2. Weakness: Lower market share and higher price compared to Microsoft and other competitors 3. Opportunities: More international expansion in Asian countries, increase demand of online music, and other application like cloud based services 4. Threats: Competition in technology with other PC industry giants, expensive products as compared to other competitors. Strategies 1. Marketing: Both male and female, market the Ipad in US, market to other countries after 3-4 months 2. Marketing Segmentation: Loyal customer, Individuals that can afford product, geeks, customer that own at least Apple product 3. Target Marketing: Loyal customers, individuals that own at least one Apple product 4. Mass Customization: Available engraving from Apple online store 5. Product: Apple Ipad 6. Promotion: Word of mouth, advertising, public relations, social media, 7. Distribution: Product can be easily obtained from most retail stores, online, gives apple the ability to reach millions of people

8. Pricing: $ 499-$829 Marketing Environments 1. Competition: Amazon Kindle Fire, Samsung Galaxy, B&N Net book Threat (Competition can sell their product for less) 2. Competition (Future) Amazon Kindle Fire, Microsoft, Dell, and HP. Threat (Competition keeps looking for ways to compete with Ipad. Loss of Steve Jobs will affect Apple. 3. Buyer Decision-Making and Behavior: Consumer interviewed purchase Ipad because of brand loyalty and the fact that they have other Apple products. Strength (brand loyalty) 4. Economy: Stable and improving (Unemployment 8.3%) Threat (Individuals that are not working cannot afford the high price item) 5. Financing: There is currently no option for financing the Ipad but as new versions are introduced we could see a fall in the price just to deplete current inventory. Threat (leaves opportunity for consumers to buy a cheaper product i.e. Amazons Kindle fire) 6. Personnel: Apple is opening up more stores so that consumers will be able to interact with Apple representatives. 7. Politics-Government- Legislative- Legal- Barriers to Market Entry: Politicians and government like the iPad. A lot of government agencies are using iPad for their day to day work. Strength (Government is finding ways to employ Ipad even in Military functions) 8. Socio-Cultural: Ipad is a social hit, no cultural aspect involved 9. Suppliers: All retail stores that sell electronics, All Online stores that sell Retail 10. Technology: with every new version Apple adds new innovation to the Ipad. Ipad 2 is equipped with a Camera that the 1st version did not have. The Ipad 2 is also equipped with screen resolution performance, battery life, storage capacity, and Wi-Fi and 3G models. The Ipad 3 has breakthrough Retina display, 5MP iSight camera, and instant on. Touch and go, and Battery life spared just to name a few of the new technology added.

References Investor Relations Retrieved 10 MAR 2012 from http://www.apple.com/pr/library/2012/01/24Apple-Reports-First-Quarter-Results.html