Through Value Net Analysis and Co-opetition, we study the reasons why Apple iPhone becomes so successful nowadays. Apple Inc. has changed the ecosystem and the rules of the game, Apple iPhone sells like hot cakes when appearing on the market. Furthermore, the App Store becomes the most popular software shop in recent years. Apple Inc.,a closed ecological system, threatens the telecom companies such as AT&T, and Apple Inc. versus AT&T are complementary with each other. In this case, Apple Inc. wants to use AT&T¡¦s market share to expand its territories; On the other hand, AT&T hopes that the iPhone makes profits to AT&T as well. Therefore, AT&T signs a tie with the Apple iPhone with a 2-year contract, and sells an iPhone to pay for each additional subsidies of USD$ 250-$300 to Apple Inc..
Apple Inc. used the integration of iPod + iTunes software, bringing consumers customized services. Apple Inc. launched an iPhone in 2007 with the concept of iPod + cell phone + Internet, to subvert the traditional cellphone using habits. Apple Inc. would like to fill its product lines, such as, using memory segments (8G, 16G, 32G ...) to distinguish iPhone 4S for high-end markets, iPhone 4 for the middle markets, iPhone 3GS for low-end customers and so forth. Apple Inc. also adopts different pricing, marketing strategies, to bring high added value to its loyal customers.
Apple Inc. took a small risk of judo strategy, to turn the incumbent's advantage into obstacles.Apple Inc. was a late mover, only got 10% market share, it still stands on its niche market. Apple Inc. targets on the high-end markets, and differentiates with itself with other players (including NOKIA, MOTOROLA, HTC, SAMSUNG and so on). Apple Inc. changes the scope of game, and redefines the industrial boundaries, so Nintendo and SONY have to face intense competition in few years. Apple Inc. launched App Store, letting different groups of people to join the software application development, in this way Apple Inc. lowers the software price to attract more consumers. Theoritically,that is so-called bilateral market effects (It¡¦s a positive loop between software programmers and consumers).
As long as the bilateral market effects get stronger, Apple Inc. will have stronger bargaining power for its suppliers. In order to control the suppliers, Apple Inc. always signs a contract with them or takes part in their shares. Apple Inc. would not only give its suppliers a great amount of single order, but also give same orders in turn between two manufacturers. Under this situation, its suppliers can easily be replaced and Apple Inc. will benefit from this condition. According to reports, Apple Inc. would limit all raw materials of an iPhone and try so hard to cost down in advance, and even follow-up iPhone logistics and maintenance as well. As a result, Apple Inc.¡¦s suppliers do nothing but the OEM jobs for Apple Inc. after all.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0105112-153145 |
| Date | 05 January 2012 |
| Creators | Fang, Chih-Ting |
| Contributors | Tsuang Kuo, Chi-Cheng Wu, Min-Hsin Huang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0105112-153145 |
| Rights | user_define, Copyright information available at source archive |
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