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Chapter 02 - Developing Successful Organizational and Marketing Strategies

3. iPad/iPad mini (tablets). –

Launched in 2010, unit sales reached 40 percent market share by 2013 – leading Samsung’s Galaxy (18 percent) and Amazon’s Kindle (4 percent).

Tablet sales are declining as consumers substitute big-screen smartphones and ultra-thin computers for tablets.

Apple’s iPad SBU is a cash cow (high market share, low-growth market).

4. iPod (music players). –

Apple entered the market with iPod in 2001. The product became a cultural icon, selling more than 50 million units annually until 2010.

In 2010, iPhone integrated a music player.

– 

*

Since then, sales have declined dramatically.

*

In 2014, Apple announced it was discontinuing the iPod Classic, and in 2017 it announced that it was discontinuing the iPod Shuffle and nano.

Declining sales and discontinued products suggest that this SBU is entering the dog category.

How did you – as Tim Cook – rank the growth opportunity for each of the four SBUs? –

Apple Watch represents the highest unit growth rate at 36 percent.

iPhone SBU is likely to continue growing at 7 percent, while the iPad SBU is experiencing a decline in sales.

iPhone and iPad product lines together accounted for 76 percent of Apple’s revenues in early 2017.

These revenues are used to pursue growth opportunities such as the Apple Watch, a next generation phone, and possibly an Apple car.

Finally, long-term decline and the discontinuation of the iPod classic, shuffle, and nano may signal the beginning of the end for Apple’s iPod.

The primary strength of business portfolio analysis: –

Lies in forcing a firm to place each of its SBUs in the growth-share matrix, which…

Suggests which SBUs will be cash producers and cash users in the future.

Weaknesses of this analysis arise from the difficulty in: –

Getting the needed information. 2-22

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Solutions for Marketing 14th Kerin  

Solutions Marketing 14th Edition Kerin 2019 (Solutions Manual Download) (9781259924040) (1259924041). Instant access. All chapter are includ...

Solutions for Marketing 14th Kerin  

Solutions Marketing 14th Edition Kerin 2019 (Solutions Manual Download) (9781259924040) (1259924041). Instant access. All chapter are includ...