1

Team 6
MKTG 3100
Marketing Principles
Spring 2017
Professor Forrester

Keynnect Renegade 1
Marketing Principles

Mission Statement:
At Keynnect, we desire to provide the highest quality technological products that
accentuate our customers’ satisfaction, productivity, and efficiency in their computing
needs. We strive to not only help our customers grow and develop through their devices,
but we also hope to create a more enjoyable and interactive experience. Get connected
with Keynnect.

Team Members:
Calie Appling
Jordan Hawthorne
Abigail Fitler
Ashley Levine
Austin Pair
Holli Surgill
John Johnson
Madeline Meinert
Mariya Khlysta
Sydney Ergle
Alyson Pittman

Product:
The company of Keynnect would like to introduce to you its newly innovative
pilot model, “The Renegade 1.” This efficient snap on keyboard can be paired with any
Microsoft Tablet. It simply clicks onto the touch screen device and has the ability to
automatically save all of the data you do on that device into the keyboard’s computer
 2

hard drive. Therefore, no matter what tablet you attach the device to, you can use past
data that you recorded or obtained from other screens. This device allows personal and
professional tablet use to become more productive, effective, and efficient.
The Renegade 1 is made of shatterproof glass and is a touch screen keyboard
similar to that of an iPhone keyboard. However, to resemble a traditional keyboard feel,
the keys are three dimensional, appearing as if they are actual keys rather than just
touchscreen buttons. The Renegade is made with Corning Gorilla Glass 4, which is a
shatter and scratch resistant glass. The back of the keyboard is made of the same material
that Microsoft uses in its products, VaporMg. This durable metal can comfortably be
taken anywhere without the uncertainty of it being ruined. So if dropped on its back, the
magnesium metal will guarantee protection of this touchscreen keyboard. This allows
consumers to avoid extra costs in protective cases and screen covers. When typing on
this revolutionary keyboard, it vibrates with every keystroke so you subconsciously know
that the key has been pressed and when you hit it. Also, consumers can pick and change
the color of their keyboard to what ever fits their personality. In an office space or a
public place, the Renegade 1 reduces noise pollution from the irritating and obnoxious
tapping of traditional keyboards pounding while individuals type, but still allows
individuals to feel the keys as they type. Individuals can also completely customize the
images portrayed on their Renegade 1, allowing users to change the look of the keys or
even install a personalized background.
When you are not using the device for a keyboard, its screen can be transformed
into a scanner to fax any important documents or create virtual copies of any hardcopy.
In order to scan a document, you simply place the document on top of the keyboard and
close the tablet over it. This depletes any chances of shadows or unreadable blemishes on
the scan. The built in scanner then scans the image, and the detailed, high-resolution
image at 300 pixels appears within seconds. With a built in faxing application, any
document can be scanned and faxed in the matter of minutes. Since telecommuting has
become so common in today’s business world, working in the office has become a thing
of the past. Keynnect innovated the wireless Renegade 1 to allow individuals to take all
of the necessary office equipment with them everywhere they go.
This groundbreaking product also has a camera built into it on the same side of
the keyboard to allow consumers to take high-resolution pictures. The camera lens offers
many options for taking images such as a zoom lens, medium lens, large lens, and fisheye
lens. The camera also offers photo options like panorama, square, or photo. The camera’s
video setting includes slow motion, sped-up, or normal. However, the most
distinguishable aspect of the camera roll is the ability to become a projector of videos and
images into holograms. The keyboard camera is on the front, so by simply clicking the
hologram application, it can take any image or video and project it above the keyboard
into a hologram. This quality can be used in video conferencing, business meetings,
personal facetime calls, or simply to watch a movie in 3D. This takes personal and
business meetings and connections to an entirely more interactive level, allowing people
to feel more as if they are having face to face connections even if they are thousands of
miles away.
Packaging:
Packaging is a major aspect of our product where we would like to portray our
beliefs in world conservation and reduction of pollution. The plastic used will be
 3

compostable which is biodegradable and helps reduce toxins being released into the
environment. Also, the cardboard boxes used as the outside of our product packaging will
be made from recycled products and printed with soy-basked ink. Keeping the earth clean
and avoiding further pollution and industrial footprints on our wonderful planet has been
an intrinsic value of Keynnect since its creation.
The packaging will include the company Keynnect’s logo in a metallic silver
color paired with the brand name Microsoft and its logo in the top right corner. Renegade
1 will be in the center of the box in a hologram font. The entire box will be printed navy
with a matte finish.
The Renegade 1 will be close to the same size of most tablets adding on
keyboards with sleek dimensions (11.5in x 8.4in x 0.5in) and a weight of 1.5 pounds.
This way, our keyboard is lightweight, easy to store, and easy to transport from place to
place for any consumer. It will come in three sleek and matte finished colors including
white, metallic, and black, allowing consumers to match their tablet and keyboard colors
with ease.

Company:
Keynnect is a new publically held division of the well-known company,
Microsoft, which focuses directly on innovations in tablet and smart phone accessories
that bring an entire new level of interaction and effectiveness to hand-held devices. Our
division will be housed in Redmond, Washington at the Microsoft headquarters while our
product will be manufactured at the same plant in China that already manufactures tablets
and other devices for Microsoft. Since the Renegade 1 is a touch screen keyboard, the
current computer systems and manufacturing equipment can be synchronized to produce
the Renegade 1. Therefore, the only cost associated with integrating this new product
would be the analytic programming necessary for the machines to program and create the
new product.
Though many believe that the keyboard is a dying product due to smart phones
and touch screen laptops, statistics show that it is still an acclaimed and widely desired
product. Logitech, a company known for it computer accessories including wireless
keyboards, saw a 9 percent growth in sales of keyboards in 2015 alone.1 This rise in sales
contributed to a 2.02 billion dollar revenue from sales for the company that grew one
percent from the previous year. Thus, the market for keyboards, especially one as savvy
as the Renegade 1, is still very much thriving.

1"Logitech
Delivers Best Annual Retail Sales Growth in Five Years." Business Wire. 27 Apr. 2016.
Web. 04 Feb. 2017. <http://www.businesswire.com/news/home/20160427006861/en/Logitech-
Delivers-Annual-Retail-Sales-Growth-Years>.
 4

In 2015, Microsoft had 41,501 million dollars in sales of total devices and
consumer hardware, and 10,183 million dollars of the revenue came from computing and
gaming hardware.2 Due to the marketing mix and the fact that our product is so new and
different, in our first year, we hope to have sales that equal .01-.02% ($1,018,300-
$2,036,600) of the annual revenue brought in by the computing hardware at Microsoft
since it is such a large and profitable sector of the company. In year 3, we hope to grow
to .03-.05% ($3,054,900-$5,091,500), and in year 5 we hope to be up to .07-.08%
($7,128,100-$8,146,400) of those sales. Since we are our own company under Microsoft,
15% of our revenue will go to Microsoft. Also, in order to continue growing and
developing, at 8-10% of the annual revenue earned will be dedicated to new product
research, distribution, promotion, administration, and other areas like charity.

Parent Company:

Microsoft, which was founded in 1975, is a technology-based company

headquartered in Redmond, Washington. Over the years, they have crafted a multibillion-
dollar company that focuses empowering every person and organization in the world by
building the best in class platforms and productivity services for a mobile first cloud first
world so that they can achieve more. They function worldwide and have offices in over
100 countries across the globe. 3
First started as two men working together to develop personal computer operating
systems, Microsoft soon took flight, becoming the source for numerous technology needs
including computer software, computer hardware, personal computers, consumer
electronics, and other services including gaming products. As technology has transcended
over the years, Microsoft has been there to invent the next big innovation from home
computers to laptops, to smart phones to tablets. The company has even acquired other
services and companies including Skype and Linkedin, two electronic means to
communicate electronically.
Since their beginning, Microsoft has specifically targeted both businesses and
everyday consumers for their products and services. For example, they are the creators of
Microsoft Office, which transformed the business world, allowing for a completely new
way to easily communicate data, presentations, as well as emailing and documentation.
According to their 2015 Annual Report, in order to continue their reputable drive, they
have researchers focus on three major ambitions, which include reinventing productivity
and business processes, building the intelligent cloud platform, and creating more
personal computing.4 Therefore, due to these standards and the numerous product
characteristics of the Renegade 1, there is no question as to whether or not it is a feasible
product to add to their collection.
2
"Microsoft." Microsoft 2015 Annual Report. Web. 03 Feb. 2017.
<https://www.microsoft.com/investor/reports/ar15/index.html>.
3
"Microsoft." Microsoft 2015 Annual Report. Web. 03 Feb. 2017.
<https://www.microsoft.com/investor/reports/ar15/index.html>.
4"Microsoft." Microsoft 2015 Annual Report. Web. 03 Feb. 2017.
<https://www.microsoft.com/investor/reports/ar15/index.html>.
 5

SWOT 1- Our Company

Strengths
Microsoft is a well-developed company that has over 90% of PC’s worldwide
running different versions of Microsoft. The company’s revenue has hit a record high of
$86.8 billion dollars last year. Not only does the company monopolize the market for
their Microsoft office versions, but they also have customers that are brand loyal to their
products. The brand loyal customers have proven their loyalty and have set Microsoft to
have a reputation like no other company. The company has been listed as Forbes top 7
most reputable companies in the world. Keynnect will benefit immensely from Microsoft
because the well-established company will be able to reach record high sales with the
Renegade 1. The Renegade 1 keyboard product will be a revolutionary asset to both
Keynnect and Microsoft to benefit mutually. The product is compatible with any of
Microsoft devices and will give a competitive advantage for both companies.

Weaknesses:
Keynnect’s Renegade 1 has high extremely complex technology that can be
expensive to manufacture. Microsoft does not manufacture their own products; as a
result, they rely on computer manufacturers in China to manufacture their products. This
could present an issue with Keynnect because the company Microsoft uses could gouge
the prices to manufacture the Renegade 1. Even though they already have the necessary
equipment, they may charge extra due to the complexity of the hologram and the need for
new engineering programs for the machines to produce the new and different product.
Another weakness of our product is its incompatibility with Apple OS. There are
approximately one billion Apple product users worldwide, which will hurt the Renegade
1 sales because the keyboard is not compatible. Apple is also the ring leader in sales of
tablet devices, holding the number one spot and three of the other top 10 most popular
tablets in the United States with there different tablet products including the IPad, IPad
Pro, and IPad Mini. According to “USA Today,” half of the U.S households own an
Apple product. Overall, this poses a weakness in sales for Keynnect due to its sole
partnership with Microsoft.5

Opportunities:
Keynnect and the Renegade 1 have many opportunities for growth in the ever-
developing technological world. The computer hardware and accessories market is
incredibly competitive, and there are a few major competitors including Apple and
Google. Having Microsoft, one of the most well known and well respected technology
companies, as an affiliation really allows Keynnect to soar above and beyond what any
other pioneer company would be able to do on their own.

5
Gralnick, Jodi. "Half of U.S. Homes Own Apple Products." USA Today. Gannett Satellite
Information Network, 28 Mar. 2012. Web. 03 Feb. 2017.
<http://usatoday30.usatoday.com/tech/news/story/2012-03-28/cnbc-survey-apple-products-us-
homes/53827254/1>.
 6

The keyboard has also never seen such a remarkable rendition before the
Renegade 1. Usually keyboards are only used for typing, but with the Renegade 1, many
every day office tasks such as faxing, scanning, and even hologram meetings are at the
palm of your hands. Thus, there are virtually no competitors in such a transformed
keyboard. Since the beginning of typing history with the typewriter, not much has
changed about the keyboard besides it going wireless and the occasional shape change.
Yet, the demand for a traditional keyboard separate from the actual screen is extremely
high. Therefore, the Renegade 1, with all of its world class upgrades to the keyboard will
lead the way to a revolutionized keyboard like no one has ever seen. It not only brings the
latest technology to the outdated keyboard, but it also keeps the key characteristics that
people enjoy about having a physical keyboard like vibration when typing as well as
having a complete different screen for typing. For example, many companies have tried
to change the outlook of the keyboard and the positioning of the keys, and it has always
been rejected. The traditional QWERTY keyboard has been around for years, and
everyone knows it by heart. Therefore, changing the keys would be like teaching people a
new language.6 Thus, the opportunity is more in changing the different capabilities of the
keyboard rather than the setup of it.
People love the idea of a tablet, but they are often times turned away from a tablet
for productivity and business due to decreased productivity of the keyboard built in.
Many believe that a good add-on keyboard for any tablet is necessary to be able to have
optimum productivity. Also, they like to be able to have their tablet as their full screen
without the keyboard taking up a lot of space.
Tablet sales are also on the rise and continue to rise as the major competitors
continue to create new assets and dimensions. As of 2017, Microsoft has many different
tablets that are listed on the Best Tablets of 2017 list created by TechRadar.7 With
increased tablet sales, tablet accessory sales are expected to increase as well. When
people learn about the different aspects of the Renegade 1 and all that it can do to
increase productivity and ease at work, it will be the top accessory desired for these hot
on the market tablets.
Businesses will also find the Renegade 1 as a game-changing product due to its
assets including the scanner, fax, and hologram abilities. Many businesses have
employees who work from home as well as individuals who travel constantly. Thus, the
typical office job is becoming less and less common. However, having the capabilities to
transfer documents and to have meetings is still very much needed. With the Renegade 1,
each employee will have their own personal scan and fax machine that they can take with
them or keep at home. Also, to get a more face-to-face experience, the hologram

6
Feinberg, Ashley. "Why We Still Use QWERTY Keyboards (Even Though They're
Awful)." Gizmodo. Gizmodo.com, 08 Oct. 2014. Web. 07 Feb. 2017. <http://gizmodo.com/why-we-
still-use-qwerty-keyboards-even-though-theyre-a-1643855077>.
7
"The 10 Best Tablets You Can Buy in 2017." TechRadar. N.p., 03 Feb. 2017. Web. 09 Feb. 2017.
<http://www.techradar.com/news/mobile-computing/tablets/10-best-tablet-pcs-in-the-world-today-
1113985>.
 7

capability can be used to host meetings with other professional personnel. Thus, the
opportunities in the business world are unlimited.

Threats:
There are a few major threats that Keynnect faces as well as the Renegade 1. One
major threat is the continued competition from the two major competitors including
Apple and Google. Both companies are emerging with some of the best tablets on the
market as well as many accessories that are being paired with them. In many instances,
consumers outvote Apple and Google’s tablets compared to Microsoft’s products. Also,
there are many other smaller competitors in the computer accessories market that have
been around for a long time and have loyal customers. For example, Logitech saw a 6%
increase in sales in last year alone and is expecting to continue this positive trend in years
to come.8 Emerging technology is a hot market at the moment, so Keynnect is going to
have to be aggressive in getting their name and product out there in order to not be
overlooked by the other better-known competitors.
The Renegade 1 is also a completely different product that no one has ever seen
before in the market. It has numerous qualities that differentiate it from the average
keyboard, making it a completely new concept that people will have to understand. We
are sure that the market will react well to the product, paired with the tablet, because it
will take the tablet abilities to a much higher level for both personal and business use.
Handheld devices are the new trend, and people are getting away from the traditional set
up of being stuck at the office, in a cubical, on a computer monitor. Thus, the Renegade 1
allows people to take their office anywhere they need to. The threat of this is that some
people may believe that the item is unnecessary. They may not mind the keyboard on the
tablet, or they may not need some of the qualities that are included in the Renegade 1.
Therefore, Keynnect must strive to prove to its consumers the positive effects that the
Renegade 1 will have on their everyday computing.

Consumers:
The Renegade 1 by Keynnect is a new, innovative product that will be desired by
consumers everywhere. It’s an extremely versatile product that will catch the eye of
anyone who comes across it. After extensive research, our target market will be the
consumers that fall into the Generation Y category and make $75,000 or more a year.
Generation Y, or Millennials, consist of those born between 1979 and 1994 and make up
the largest cohort with their population being 77 million people. They have a purchasing
power of over $200 billion each year, and over their lifetimes, they are projected to spend
a total of $10 trillion. With this purchasing power, Millennials influence as much as half
of all spending in the economy.9

8
"Logitech Delivers Best Annual Retail Sales Growth in Five Years." Business Wire. 27 Apr. 2016.
Web. 04 Feb. 2017. <http://www.businesswire.com/news/home/20160427006861/en/Logitech-
Delivers-Annual-Retail-Sales-Growth-Years>.

9Waters, Jennifer. "Young, With Tons of Purchasing Power." MarketWatch. 11 Oct. 2006. Web. 08
Feb. 2017. <http://www.marketwatch.com/story/young-americans-a-giant-influence-on-buying-
decisions-study>.
 8

SWOT 2- Consumers

Strengths:
One of the biggest strengths The Renegade 1 has is the fact that the product is
being produced and made by the same age group as our target consumers. The employees
of Keynnect are young and understand and use the latest technology. As a result, they are
attuned to the wants and desires of the Millennial target market. Generation Y has grown
up in a period of rapidly changing technology and the employees have grown up right
among them and have learned to adapt with these day-to-day changes. This being said,
this group is ranked one of the most tech-savvy generations thus far. They spend more
time searching on the Web and participating in social media than they do listening to the
radio or even watching television, resulting in the perfect target market for a new,
revolutionary keyboard. Also, many of these consumers are finding themselves in jobs
that require technology, travel, and telecommuting. Therefore, having the Renegade 1
gives them an advantage in being able to take their office equipment and work with them
everywhere they go. Our target market doesn’t just consist of Millennials, but those who
are earning a decent annual salary. Education level plays a huge role in this, considering
that it can be a major determinant in the potential income a person will make annually.
As jobs are getting more and more competitive, many Millennial are furthering their
education by going to college and earning a degree, resulting in a higher income than if
they were to only graduate from high school.

Weaknesses:
Weaknesses associated with this target market include issues regarding lifestyle
changes and the difficulty with which many older Millennials had when finding jobs after
graduating college due to the Great Recession. The oldest members of Generation Y were
born in 1979, making them 37-years-old. 10The struggle to find a job following the Great
Recession was unrelenting and almost a third of Millennials still live with their parents
because of how much effort was put into starting their careers. Although, recent studies
have shown that older members of Gen Y have started families on their own which lead
to extreme lifestyle changes. Diapers, clothes, and other baby products slipped into the
spotlight while new toys, laptops, and material things fell by the wayside. Gen Y also
holds the majority of America’s $1 trillion in student debt, making products like
Renegade 1 less attractive to this group because of monetary struggles.
The younger members of the Millennial generation, a population of 20-year-olds
reaching over 44.5 million, are just beginning their adult lives. These people who were
born in 1994 are in completely different stages of the life cycle when compared to Gen
Y’s born around the 1980s.11 Younger Millennials are commonly still in school and
working part time, low-paying jobs which creates a deficit of income flow and stops them
from purchasing many “luxury” products as the Renegade 1 could be considered. Often
times the only way for younger Gen Y’s to obtain new technology is from their families

10
Lamb, Hair, and McDaniel. Marketing. 10th Edition. Mason, Ohio. Cengage Learning. 2016. Page
54.
11 Lamb, Hair, and McDaniel. Marketing. 10th Edition. Mason, Ohio. Cengage Learning. 2016. Page

54.
 9

or student loans, which also contributes to their growing amount that already burdens this
generation. The 20-year-old group has been predicted to produce a massive amount of
economic growth in the future which will mean better, higher-paying jobs, but until
steady careers are locked down this group will be unable to contribute much to the
economy.

Opportunities:
The Renegade 1’s features have many opportunities to attract all different types of
consumers within the market we have selected. One feature of The Renegade 1 is the
color changing keys based on preference or mood. Within the target market, women will
more than likely use this feature most and be attracted to it. More and more women are
joining the workforce and are earning larger incomes. Women born between 1980 and
1995 are expected to make up one quarter of the workforce by 2020.12 Apart from
females, the Renegade 1 is a great opportunity to reach out to Asian Americans. Although
this group only represents six percent of the U.S population, they have the highest
average family income at $67,000 a year, which is $15,000 more than the average U.S
family income. Along with this, over half of Asian Americans above the age of 25 have
at least a bachelor’s degree. It has also been proven that they are in tune with technology,
and are likely to be some of the first to try out the newest innovations. Compared to the
total U.S population, they visit computer and electronic websites 36 percent more and
spend 72 percent more time looking on them. With their average age group being 34,
Asian Americans are younger, more intelligent, heavier users of technology, and make a
higher income than average. This results in this group being a perfect target market for
Keynnect.
Due to their reputation of being some of the most wealthy and technological
cities, we were able to choose ten cities that we thought would be our best selling cities.
Tokyo, Japan was listed as not only the largest city, but also the richest city in the world
based on Gross Domestic Product. We see this as being one of our top cities that our
product would sell in. Not only is Tokyo the richest city in the world, but it also is known
for their highly advanced technology. Marketing here will be crucial and necessary to
fight off competition and try to really push our product. Tokyo is considered to be the
world’s economic and industrial center. Other cities that we predict our product thriving
in are New York City, Los Angeles, Shanghai, Seoul, Moscow, Osaka, Paris, London,
and Chicago. Each of these cities was recently in the top ten richest cities in the world
and all have very large populations filled with Millennials.

Threats:
Threats associated with marketing to this generation include insufficient income
from Millennials. The younger members of the Millennial generation, a population of
20-year-olds reaching over 44.5 million, are just beginning their adult lives. These people
who were born in 1994 are in completely different stages of the life cycle when compared
to Gen Y’s born around the 1980s. Younger Millennials are commonly still in school and
working part time and low-paying jobs which creates a deficit of income flow and stops

12"Millennial Women in the Workforce." DESTINY Magazine. 05 Aug. 2014. Web. 05 Feb. 2017.
<http://www.destinyconnect.com/2014/08/05/millennial-women-in-the-workforce/>.
 10

them from purchasing many “luxury” products as the Renegade 1 could be considered.
Often times the only way for younger Gen Y’s to obtain new technology is from their
families or student loans, which also contributes to their growing amount that already
burdens this generation. The 20-year-old group has been predicted to produce a massive
amount of economic growth in the future, which will mean better, higher-paying jobs.
However, until steady careers are locked down, this group will be unable to contribute
much to the economy. Along with that, many of the people just graduating out of college
are left with student debt, leading to them spending money on necessities rather than
products that they desire to have. Many of the older members of Generation Y are also
struggling with student debt that resulted from the Great Recession. Threats associated
with marketing the Renegade 1 are the skepticisms of our consumers. Although the
Windows Surface is already a popular device that many Millennials use, the Renegade 1
is more expensive and unfamiliar. Millennials are more likely to experiment with new
products, although, they do not usually have the means to afford them. Many Millennials
are reliant on their parents for technological products, which makes it less likely that they
will be able purchase the product.

Competition:
We have recognized two competitors in the market of consumer electronics and
hardware. These two companies operate in several different markets and industries, but
we will focus on the production of their highly innovative, top-of-the-line keyboards.
They produce these keyboards for a variety of tablets and computers. We have selected
Google and Apple because they are the industry leaders and each company’s product
portfolio is very diverse. Their portfolio includes both related hardware and software that
we will be using to enter the market and sell our product Renegade 1.

SWOT 3- Competition

Strengths:
Online advertising is one of Google’s most important strengths. The company’s
main source of revenue is its advertising business. In 2016, advertising generated $79.3
billion, or 88.8% of the company’s total revenue.13 Google earns more than 30% of the
world’s total digital advertising revenue, which is almost 4 times as much as the next
largest recipient, Facebook.14 The company controls the digital advertising market
through many different channels, including its own AdWords advertising program,
Adsense, YouTube and the Android OS. This gives Google a very strong advantage
because they gain a better understanding of current advertising trends, collect massive

13
"Google: Advertising Revenue 2016." Statista.2016. Web. 07 Feb. 2017.
<https://www.statista.com/statistics/266249/advertising-revenue-of-google/>.
14
"Google Still Dominates the World Search Ad Market." EMarketer. 26 July 2016. Web. 07 Feb.
2017. <https://www.emarketer.com/Article/Google-Still-Dominates-World-Search-Ad-
Market/1014258>.
 11

amounts of information about online users’ shopping habits, and enhance their related
services by improving targeted advertisements.
Google is a company with a diverse line of products where their strengths
outweigh their weaknesses. The company’s name itself demands respect and is
continually setting the bar for innovation in product development and building
sustainable competitive advantages. They serve a vast geographical area including more
than 60 countries worldwide. This displays their ability to produce in foreign markets and
the powerful brand they possess. In 2016 Google’s revenue was 89.5 billion compared to
over 74.5 billion in 2015 giving it a 19.6% increase.15 According to financial analysts this
trend is going to keep increasing.
Brand recognition and reputation, as a company is another strength of Google.
Google is one of the most recognizable brands in the world. The company has been
identified as one of the most innovative in the world due to the numerous cutting-edge
products it has made known to the market. Forbes16 and Interbrand17 have ranked Google
as the second most valuable brand in the world, valuing the company at 82.5 and 120.3
billion. Google has attained such strong brand awareness through their digital advertising,
dominance of the web search and through the excellent products they have created.
Strong brand name recognition combined with a positive reputation increases the
company’s sales and gives them the ability to introduce new products to the market
without the need for massive marketing and advertising efforts.
Apple is a company that has several strengths. The size of the company is huge
and it is also available worldwide. The brand name Apple and logo is a trend. Apple’s
main products include the iPhone, iPad, MacBook, and iMac. According to, “The
Statistics Portal,” the company sold more than 500 million iPhones between 2007 and
2014. The company gained more than 60 percent of its revenue from iPhone sales
alone.18 There’s no doubt that Apple is already out there and circling the market. Most
people have a variety of Apple products. The fact that they have so many products
available is an advantage in itself.
If we focus on the accessories aspect of the company we can directly look at the
numbers related to accessories sold. According to “Macworld”, Apple made 4.024 billion
dollars from its accessories department alone.19 This category includes all of the

15
"Google: Global Annual Revenue 2016." Statista. 2017. Web. 08 Feb. 2017.
<https://www.statista.com/statistics/266206/googles-annual-global-revenue/>.
16
"Google on the Forbes Canada's Best Employers List." Forbes. Forbes Magazine, Web. 08 Feb.
2017. <http://www.forbes.com/companies/google/>.

17
"Best Brands." Interbrand. Web. 09 Feb. 2017. <http://interbrand.com/best-brands/best-global-
brands/2015/ranking/>.

18
President, BCG Senior Vice. "Apple: Revenue Breakdown by Product." Statista.Web. 05 Feb. 2017.
19Heater, Brian. "Apple R&D Spending Is up as the Company Looks to New products."TechCrunch.
TechCrunch.Web. 09 Feb. 2017.
 12

accessories that Apple has to offer, which includes: Apple Watch, Beats brand products,
keyboards, and much more. Since Apple sales many products they also have the
opportunity to sale a lot of matching accessories. This strength allows them to increase
overall revenue. Since people have already used Apple in the past and are used to the
products they might just want to stick with what they have become comfortable with. Not
to mention, the Apple logo has become sort of a phenomenon over the past few years.
Their advantage is that people already have their products it might be hard to convince
them to switch over when it could just be easier for them to purchase new accessories for
their already existing products.

Weaknesses:
Overdependence on revenue from advertising is a critical weakness Google has as
a company. Google heavily relies on its earnings from advertising. In 2016, Google
earned 79.3 billion or 88.8% of its total revenue purely from advertising. This makes the
company extremely vulnerable to possible changes in the digital advertising market.
Some of these changes include advertising trends, changes in advertising offerings,
increasing competition, user preferences, questionable growth rates, and the evolution of
the online advertising market. At the moment, aggregate cost-per-click rates (the amount
advertisers pay for their advertisements) are dropping. Aggregate CPC rates have
declined over the last 4 years. Although the overall number of clicks on Google's website
is growing, they struggle to maintain the same advertising growth each year. This trend of
declining CPC rates will likely continue and Google could possibly be at risk of losing
revenue from its core business.
Although Google is currently spending over 13 billion20 on research and
development yearly they are producing a limited amount of tablets and specific
keyboards for devices. Google not taking advantage of this possible revenue stream and
is leaving areas of the market open for other companies to take advantage of. With
Google overlooking certain areas of the market, they are putting themselves at a
disadvantage, which could hurt their share of the market in the future.
Apple has been around for forty years. They are constantly creating new
technology each and every year. However, many people already have what they are
selling. Their accessories sales are down eight percent from last year. They have not
created any new aspects to their keyboards in order to increase their sales. This weakness
allows customers to continue to use their products because there is no reason to purchase
new ones.
Apple’s products are known for their high prices. In fact, the product prices are
always on the rise. The lowest keyboard available is priced at forty-nine dollars. It is a
standard generic keyboard that doesn’t have any virtual features. They also have another
keyboard available that is priced at one hundred dollars. With these kinds of prices it
doesn’t allow them to reach certain types of markets. Their keyboards are also not
universal. Meaning they are only able to connect with other Apple products, so if
someone is unable to purchase an apple computer or iPad there is no use in them to buy
any of their accessories.

20"Financial Statements for Google Finance." Google. Web. 05 Feb. 2017.

<https://www.google.com/finance?q=NASDAQ%3AGOOGL&fstype=ii>.
 13

Opportunities:
Google has a huge opportunity in the growing market for subscription-based video on
demand services. Right now, YouTube’s services are free and it only generates its
revenue by displaying advertisements before or during its videos. YouTube is the most
popular video on demand streaming platform in the world, with more than one billion
users who collectively spend hundreds of millions of hours watching user-generated
content.21 YouTube’s current strategy is to reach the widest audience possible by
providing its service for free. This is not a profitable business plan and they could start to
introduce a subscription based service plan, charging members to view certain content.
The market for subscription based service plans are growing and with the number of
users YouTube has, Google is in a very good position to take advantage of this
opportunity.
Technology is constantly changing, and companies like Apple are able to adapt
and continue to make new products. Apple has years of experience and also an abundant
number of resources to conduct research. According to “Tech Crunch”, Apple spent
$7.475 billion dollars on research and development in just nine months.22 With them
being able to spend large amounts of money on research it helps them to get ahead of
other competing companies.

Threats:
As mentioned before almost 90% of Google’s revenue comes from advertising.
Advertising is the main source of revenue for the company and could now be threatened
with the increasing usage of ad-blocking software. Increasing ad-blocking software usage
is threatening Google’s revenue and will likely decrease it in the near future. This is such
a big threat that the company identifies the blocking technology in their financial report
saying how it could affect their operating results.
The demographic group that is purchasing Apple products is leaning towards the
upper class due to the high prices of their products. It has been proven that men age 65
and older spent more on Apple devices than any other demographic group in the United
States. A big portion of these sales included accessories for Apple products. The threat
that this demographic group imposes is that they will not be returning customers. If they
were able to focus on more of a younger demographic group of people, like college
students, it would help them develop more loyal returning customers.

Environment:
The environment plays a crucial role for a new upcoming product such as our
Keynnect Renegade 1. The composition of the product as well as the packaging
represents sustainability, safety, and maximum comfort of usage. Our company focuses
on providing maximum features available that any business individual as well as a

21
"Statistics." YouTube. YouTube. Web. 07 Feb. 2017.
<https://www.youtube.com/yt/press/statistics.html>.
22
Heater, Brian. "Apple R&D Spending Is up as the Company Looks to New products."TechCrunch.
TechCrunch. Web. 06 Feb. 2017.
 14

college student will get plenty of use from. We strive to reduce paper as well as plastic
usage into the creation of our product. However, the availability and cost of the
technological factors should be taken into consideration as well. The amount of
innovative elements that are built into our product, might take more than desired amount
of money and time to reproduce.
According to the CNN Money website, the electronic technology sector of the
stock market is +14.16 points as of February 8, 2017, which could be a sure sign that the
big tech companies like Microsoft and Intel are showing strong surges in revenue and that
this could be a perfect time to introduce a new product. This also shows that more interest
is being put into promoting and developing new technologies related to the technology
we will be introducing to the market. Due to the fact that our product will be equipped
with the latest technological features, it will be able to keep up with future technological
advances that will inevitably occur. Along with changes in the economy and cost of
production, government regulations could be another obstacle in our path, should we
choose to move try and sell our product to the government. Unfortunately, the
government has put a ban on all mobile computing and memory storage devices due to
the fact that there have been multiple information leaks that were carried out through the
use of CDs, thumb drives, and other small storage devices that can be removed from a
desktop computer. However, this regulation would not be detrimental to the success of
our product.

SWOT 4- Environment
Strengths:
One of the main focuses of our company is reducing pollution. We truly believe
in sustainability of the product itself as well as packaging. Our company strives to reduce
paper and plastic usage. Our plastic is biodegradable; therefore, it helps to reduce toxins.
Packaging is made from 100% recycled products.
Extremely busy lives of Americans have been taken into consideration in the
making of this product. We included in our Renegade 1 everything that is needed for
office use in one keyboard. We provide scanner, faxing option, as well as holograms
where a business meeting might take place. For a college student, this would be a perfect
tool that is lightweight and extremely durable. It is made from shatterproof glass, which
is a perfect option for a busy college student unwilling to pay high costs for protective
cases.

Weaknesses:
Since our goal is to provide a durable, comfortable, all-purpose product that will
benefit many individuals, the cost and production of it might require extra attention and
financial factors. The production of this product with all of the components, such as
holograms, might become complex to manufacture. It can also become expensive to buy
the materials that are required to produce it.
Another important weakness is that our product is not compatible with Apple
products. This factor might become an issue with our future Apple customers.
Similarly, this product is considered not a necessity, but rather a luxury. Many people
could prefer a more “basic” approach to a keyboard and stick to their touch screen
options.
 15

Opportunities:
The opportunities in the current economic environment are endless with our
product. With the growing interest in the field of technology and universal use of laptop
and tablet computers, our product has the opportunity to raise the standard of attachable
keyboards. Our high-quality materials used to make our product will put us above any
other product and allow us to capture the attention of the top tech companies. It will also
allow our product to last longer than any other product due to the durability of the
materials.
Another opportunity that we have is that since we are targeting companies like
Microsoft that have multiple laptops in production, we would be able to change the
specifications that would allow our product to be able to be used with a variety of tablets
and laptops. It would allow someone with a cheaper tablet to use the same features that a
desktop computer would be able to do.

Threats:
The threats to our product are much like the threat of any electronic product that’s
in circulation today and that is competition and the speed of technological advancement.
There is a very good possibility that some type of new technology could be introduced to
the world that makes laptops an out of date technology. While it is hard to prepare for
this, we can equip our product with features that can ensure that even if a technology was
created like the one previously mentioned, our product will still be a viable competitor.
Another threat would be the competition. Basically, every tech company that
makes tablets also produces attachable keyboards. We must make sure to publicize the
fact that our keyboard will have more features than any other keyboard. The difference
between our product and the competition’s would lessen the threat.