(Motorola, LG, Sanyo, Palm, Blackberry, etc)Ħ 4 Actions Framework Reduce Eliminate Create RaiseĬarrying separate devices: phone, MP3, PDA Requirement to always hook up to PC Difficult user interface-make touch screen Eliminate Difficulty in text messaging-use keyboard instead Create Device to download music directly Hold more songs Simple user interface, no user manual required Sleek design Raise User interface & improve navigation Hold more music Applications-games, money management, news, etc. Immediately, there will be little competition, but there will be competition from all cell phone producers once it is released. iPhone can revolutionize the cell industry. Suppliers will want to get involved with new project, beneficial to their sales. Blackberry does not have all of the same functionality, such as MP3s Bargaining power of suppliers? Minimal.

Palm Treo is only other existing convergence device. Other cell phone companies may re-design their products to compete, later Bargaining power of buyers? Minimal-Other devices, Palm Treo, Blackberry do not integrate all technologies efficiently Threat of substitutes? Minimal. Threat of new entrants? Apple would be the new entrant Google, Microsoft could choose to produce cell phones, eventually. IPod 16% company revenue Favorable perception of brand Ability to capture & retain customers Launch of iTunes for music Weakness Existing “convergence device”-Palm Treo Need to create a new OS for the phone Accused of having a niche market Fault screens & batteries in early iPods Opportunity 3G phones gaining popularity Wi-Fi phones coming soon Price of storage plummeting Fast & efficient cell phone processors Threat Success of rival music stores Data networks sluggish Success of Palm Treo Wireless carriers that dictated hardware devices Highly competitiveness IT industryĥ 5-forces Analysis on Cell Phone Industry No desire from Apple to create a PDA Steve Jobs believes that cell phones will eventually carry the PDA information Americans carried cell phones, Blackberries, & MP3 players 2007 Cell providers marketing to kids & teens Boost in consumers wanting smart-phones3 Motorola losing 2% of market share 1 month after iPhone launch3 Google reveals cell phone software4Ĥ Apple SWOT Analysis Strength Weakness Opportunity Threat Strategy Canvas 6 Paths Risk Assessment Post Launch Successģ History of Industry 2002-20032 2007 Very successful iPod sales

2 Overview Industry Pre-Launch 5 Forces Analysis 4 Actions Framework

For apple download Blue Ocean Strategy