Attained Information Concerning The Apple And Nokia Marketing Essay
The purpose of this report is to describe and compare the factors between the Apple and Nokia companies that lead to success of the Apple and Nokia Smart-phones. The group is also to find out whether the two companies obtain success by chance or hard work and to determine whether the companies' success products will remain successful in the decade to come.
The group attained information concerning the Apple and Nokia companies from various sources ranging from primary to secondary sources, of which the primary sources consisted of; questionnaires and face to face interviews. For the secondary sources the group used online; journals, articles and sample reports. The group then assessed the information in order to describe and compare the Apple's and Nokia's success regarding the Smartphones business over next ten years.
Nokia's history starts by Fredrik Idestam in the year 1865, in the southwestern Finland. Eduard Polon developed Nokia's rubber business in 1898. Mechelin added electricity generation to Nokia's business in 1902. Forward to 1990s, Nokia Company decided to focus on telecommunications. After developed Nokia DX 200 in the 1970s, Nokia became more related to telecommunications. Nokia delivered its first GSM (Global System for Mobile Communications) in 1989. In the date 10 November, Nokia 1011, the first GSM phone was develop. GSM dominate the world of mobile telephony in 1990s. In the May of 2007, the best-selling mobile phone – Nokia 1100 was sold with the amount over 200million units. In 2008, Nokia E71 released and competes with BlackBerry. On 22 September 2003, Nokia acquired the branch of Sega to develop Nokia N-Gage device as gaming phone device. Three business groups in Nokia – Mobile Solutions, Mobile Phones and Markets received operational support from the Corporate Development Office for future growth opportunities since 1st of July in 2010. Nokia also is the oldest public limited liability company which had been listed under same name on the Helsinki Stock Exchange since 1915. In October 2009, Nokia filed a lawsuit against Apple Inc. about Apple Company infringed on 10 its patents. Apple countersued by filing a complaint with the ITC in January 2010, the details of which are yet to be confirmed.
Apple is a computer company that began and has produced its first computer in 1976. Since then, Apple computers are one of the top leaders due to the ease of the operating system. In 2007, the first iPhone was introduced. It became an instant hit because of it already loyal Mac users and also well received reviews done by third parties. It was dubbed as the next generation of phones as it amazed anyone that got their hands on it. Lead by Steve Jobs, Apple managed to sell over 6 million units over five quarters. In 2008, Apple releases an update to the line, a new iPhone capable of 3G speeds and an even faster version, the iPhone 3GS which has been sold as much as 33.75 million units. Doing very well in the market, Apple continues to release the iPhone 4 in June 2010 and has sold 14.1 million units in just 6 months. A key feature on how Apple gains loyalty from its users is that Apple pushes out updates after updates working to correct its flaws as much as possible. Although, some complaints are not entertained as Apple tries to keep its operating system secure and unique.
2.1.1 Respondent background
The respondents of the survey consisting of students aged from 17-25.
2.1.2 Respondent attitude towards survey
Figure 1: Respondents prefer using Smartphone or Simple mobile phone.
From the survey, we can conclude that there are 80% respondents prefer Smartphone as a mobile phone.
Figure 2: Which Brand of Smartphone respondents prefer.
Majority 63% users would choose Apple's iPhone Smartphone than 27% prefer Nokia's and 10% others.
Figure 3: How many percent of respondents are currently using Smartphone or Simple mobile phone.
From the study there are 23% participants using Smartphone and the rest 77% are simple mobile users.
Figure 4: Are the respondents comfortable using Smartphone.
A large amount of 89% users are comfortable using Smartphone compare to 11% users is uncomfortable using it.
Figure 5: Are the respondents Satisfied with Smartphone's capability or not.
The survey shows that most of the Smartphone's users are satisfied with its capability.
Figure 6: How did the respondents know the product.
Most of the people find out the product through Internet and Word of mouth.
Figure 7: How is the service provided by Nokia.
The percentage of respondents rates the services given by Nokia's Company.
Figure 8: How is the service provided by Apple.
The percentage of respondents rates the services given by Apple's Company.
Figure 9: Which company Apple or Nokia will be more successful in the next 10 years.
Bigger percentages of respondents believe that Apple is going to be more successful than Nokia in the next 10 years.
An interview was conducted on the 10th of November 2010 with Mr. Alli, Nokia Care Centre Manager and Mohd. Arif, a Switch (Apple reseller) salesman.
2.2.1 Why smartphones are gaining popularity
Smartphones are a crowd pleaser because of its ability to have “multi-function and multimedia capabilities” (Alli,2010). Some can be “unique to each of its users”(Arif, 2010). According to both of them, they are capable of doing a lot of things from the traditional text and calls all the way to web browsing and recording HD movies. Furthermore, Alli also mentioned that Malaysian governments are now recommending the use of smartphones as an organizer and to bring Malaysia into the next generation of connectivity. Arif speculated that local service providers are also in support of this progress by making affordable packages for their users to give them the opportunity to own one and also mentioned the iPhone are actually immune to viruses that would normally cripple any other systems. With loads of manufacturers today, one can choose a smartphone that fits your every need. Whether your priority is camera, web browsing, gaming, or just about anything else, you can choose the model that fits you. Moving trends are also influence the popularity of smartphones. People always want the best and the best for now are phones with computer-like capability.
2.2.2 Roles of smartphones in today's lifestyle
Today, people are always on the go. Thus, people are looking for portability and what better way than to bring a small device that can do anything a laptop can? Besides all that, phones are more and more used as organizers whether to take down notes, for alarms, reminders and to keep contact details. Asides from replacing computers and organizers, smartphones are also replacing cameras by being able to capture and play HD media contents. This also means it can also replace media players being able to play movies as mentioned earlier or play music, browse through photos or even play games.
Being Malaysians, you cannot deny that you prefer something cheaper than spending a bomb on anything. With this mindset stuck in our culture, people deflect from official material to unofficial vendors. Alli said that, although these vendors may also sell the same product they do not provide the same service. This is hand somehow gives a bad image for all distributors of the product. Other than that, Arif argued that the iPhone has limited features. Some smartphones like Apple's are so secure that it actually limits out a lot of functions. Websites use a lot of flash content and due to the fact that flash content can easily be scripted for virus, some manufacturers refuse to enable flash content. This in turn gives a very basic web interface thus limiting web experience. Shipping fees and all other fees paid to get the product to Malaysia can also be overwhelming causing the price to be too expensive for some.
2.3 Secondary sources
2.3.1 Company websites
Nokia Corporation is Finnish multinational communications corporation development on mobile devices and internet communications industries. Nokia Company gains €41 billion annual and €1.2 billion for operating profit in the year 2009. It is the world's largest mobiles manufacturer which hold 30% market share in the third quarter 2010. Nokia had R&D over 16 countries, 37020 peoples employed in research and development. Nokia is a public limited liability company which plays a huge role in the economy of Finland. So far, it is the largest Finnish company, about a third of the market capitalization of the Helsinki Stock Exchange in 2007. Nokia raise the GDP of Finland more than 1.5% in 1999; hold the 3.5% share of Finnish GDP. By the year, Nokia had been ranked as one of the best Finnish brands. Nokia brand listed as the eight most valuable global brands in the Interbrand Business Week which valued $29.5 billion. However, their profits dropped 40% in July of 2010. Nokia dominates the worldwide mobile market but not in the United States.
Apple has always been a crowd pleaser and never fails to be on top but it has not always been bright for the company. In 1985, Founder and current CEO resigned due to a disagreement between Steve Jobs and John Sculley, a CEO of Apple at the time (because Steve Jobs only owned 11% of the shares). Later however, when proven Sculley could not handle the company, Steve Jobs was repositioned to take over the company and it began to rake in profit. In 1996, before Jobs took over, Apple suffered a huge loss totaling up to $740 million under the leadership of Gil Amelio. Not wanting to lose more, in 1997 Apple announced the resignation of Amelio and that's when Steve Jobs was given an “expanded role” for the interim.
With Jobs back on top, the company made $44 million in profit in the First Quarter of 1998. In the Second Quarter, Jobs announced has made another $57 million in profit.
According to Steve Jobs, they come up with ideas differently from how most companies do it. The ideas hatch by having conversations. They would discuss what do they want and what they are capable of doing and it goes on from there. With this simple method, Apple managed to compete against other competitions. Lead by a genius, Steve jobs, Apple has been made a symbol of innovation. It is also stated that Apple hires people that are never satisfied for its workforce so that all product are near perfect and get new improving ideas. Apple's different approach on diversification is bold but proven successful. Instead of making multiple models, it makes less but puts in as much technology as they can in it.
2.3.2 Market Analysis
Nokia`s Symbian still commands a large, though continually eroding, market share among Smartphone platforms, shedding another 4.5 points of share. Symbian remained in the top operating position, followed by BlackBerry, Android, Apple's iOS, Windows and others.
Apple has moved up to seventh place overall, more than doubling first quarter shipments from 2009 to grab 2.7 percent of the mobile phone market. "Growth came partly from new communication service providers in established markets, such as the UK, and stronger sales in new markets such as China and South Korea," said Carolina Milanesi, research vice president at Gartner, in a statement.
3.1 Factors that made Nokia successful
3.1.1 Good Leader & Staffs
From the Nokia user's mouth, the staffs took good care on customers is the point why most of the peoples choose on Nokia. Besides that, Nokia attained success because of the good guidance from a good leader. Like Björn Westerlund, the one of the leader sowing the seeds of telecommunication in Nokia.
3.1.2 Hard Effort and New Development
One of the key of Nokia success factors is Nokia continues high investment in R&D. The phone with wide multimedia capability and array of functions make Nokia became the leader in the smartphone market.
3.1.3 Long Term History
Nokia can be said as number 1 in Asia because it had a long term history compare to others companies. Each Nokia phones have their own special function & simple functions which allow users quickly adapt to the phone without much hassle.
3.2 Factors that made Apple successful
3.2.1 A great leader
Apple got where it is today because of its great leader, the iconic Steve Jobs. Only under his leadership has Apple made profit in contrast where the company failed when Jobs was away.
3.2.2 Talented workforce
Credit must also be given to the workforce that was chosen specifically those that was driven for perfection. With a great designing team, the products are sleek and elegance, an image a lot of users today want.
3.2.3 Technological backgrounds
Having experience in the computer technologies, Apple is able to push all of it into its products. This made Apple merchandises cutting-edge. A lot of users today also want security and this is what Apple can provide. The iPhone is capable of deleting everything in its memory and lock itself (rendering the iPhone useless) if wrong attempts at password are made.
3.3 Perseverance or Luck
For Nokia and Apple Company, both make their success by hard work. However, Nokia as the earlier company has greater chance. Nokia owns its loyal users before i-phone being invents. By Nokia's hard work, they create Symbian system which still market share among Smartphone platforms. Apple has made their success depend on hard work. The company's leaders have their creativity ideas different from others companies do. In addition, Apple hires people make their improvement with the heart unsatisfied for its work. This hard work is the key open the door to success. Another than that, Apple makes less but put much technology as they can to create a good smartphone.
3.4 Which will prevail in the next 10 years
According to the survey, most of the people believe Apple going to be more success. However Nokia wouldn't lost at all because Nokia has worldwide market and they always come out with innovative ideas. Apple Smartphone has more advance technology which better performance than Nokia Smartphone. We believe that Nokia will upgrade the system running for their smartphone. They may make their smartphone have advanced level as Apple smartphone. There is people believe that Nokia will closed at the time coming, but some of them trust that Nokia will keep standing since there is still lots of people accept it.
The survey conducted reveals how the locals (particularly students) attitude smartphones by Nokia and Apple. It can be concluded that these users are affected by the good customer service and features provided.
Based on the interview, a good location as well as a good service is the key to success. Also, third party vendors can give a bad name to the official distributors. A good leader is vital for success as they can make wise choices. Trained staff and workforce should also be given credit as these are the face of the company that communicates to the consumers.
Timing is also important. Release of major products around the holiday seasons is a good strategy as a lot of people would do shopping by then.
We recommend that:
You should go through courses to be a good leader or hire someone with good leadership and marketing management skills.
Staff members are trained to provide proper assistance to consumers.
You invest in opening up branches in places that are well-known and have a high count of visitors.
Some staff to be sent regularly to check that no third-party vendors are making trouble such as, price jacking/ lowering or providing bad service.
Major releases of products such as flagship products should be released during holiday seasons.