Competitive Analysis of Apple Inc. in China

This project aims at providing the competitive analysis of Apple incorporation when it launched its product in china. The company is lacking its sale figure in the industry as they the competition in the market is increasing. For this a competitive analysis has been done for the company so that they are able to achieve the market share back in China. Read more about the competitive analysis of the company and how it can help in reaching their targeted sales.

FINANCE

Table of Contents
Introduction......................................................................................................................................1
Main body........................................................................................................................................1
Competitive analysis........................................................................................................................1
References........................................................................................................................................7

Introduction
Competitive analysis is a part of the company’s marketing plan. This helps the company
is establishing and evaluating the product and service that they provide in a unique and best
manner. This project aims at providing the competitive analysis of Apple incorporation when it
launched its product in china. As they pulled down their revenue from guidance from $US84Bn
which was cited from weak china iPhone sales (Zhang, Guo and Goes, 2013). This assignment
results in competitive analysis of the company and would help out in reaching their targeted
sales.
Main body
The company was founded in the year 1977 with the objective of designing,
manufacturing and marketing mobile communication and media deceives, personal computers
and portable digital music players. The company basically focuses on selling of different
smartphones and laptops that are powerful and are flagship devices for the industry. They also
develop and sells a range of related software and services, accessories and third party digital
content and applications (Zhang, Guo, & Goes, 2013). The company is lacking its sale figure in
the industry as they the competition in the market is increasing. With the flagship devices that it
launches they are able to revive the market but due to high cost that they have the sales figure is
not being complied. For this a competitive analysis has been done for the company so that they
are able to achieve the market share back in China. As they have slipped to third largest brand in
selling smartphones from second position that they hold in year 2018.
Competitive analysis
Apple incorporation Huawei technologies co. ltd.
Company highlights It is an American multinational
giant that was founded in the
year 1976 by the founder Steve
Jobs. The company works to
provide their customers with
the world’s most powerful
gadgets that would enable
The company was founded in
the year 1987 by Ren
Zhengfei. It is the leading
global brand that provides
information and
communication technologies
to build smart infrastructure
1

them to achieve the a stage
where they are the flagships
for every other market players.
and smart devices. The
company is committed to bring
digital revenue to every person
, home, organisation etc.
Competitive advantage that the
company has
The company has been ranked
as most successful company in
the world with the operating
profit of more than $61billion.
Its competitive advantage
includes the following:
 A valuable brand:
Company is one of the
best brand in the world
having worth more
than $184Bn. As the
company is strongest
brand it can sway the
customers to achieve
the sales from those of
lesser known brands.
 Research and
development: The
company invest its
maximum amount in
research and
development which is
maximum in the
industry. This helps
them introducing the
products that are best
in class from their
The companies after
witnessing the fast
development in the recent year
and the brand has obtained the
position of 2nd largest brand in
the world the competitive
advantage that the company
has over others includes:
 Unwavering pipe
strategy: it is the
leading network
company that provides
network solution to the
world. They are the
largest network vendor
in the world. They have
captured roots in china
because of which other
smartphone brands are
not able to achieve
success.
 Excellent product
quality and local
service team: the
companies main focus
is on achieving
excellent product
2

competitors and
provide a long lasting
updates so that the
product didn't become
outdated.
quality that promotes
brand durability. They
also developed a
service team that
provides the customers
immediate response so
that customer loyalty
can be achieved.
Target market The company targets to
achieve the target market by
introducing and innovating
new products while keeping in
mind the customers’
preference. In just 7 years’
apple has dominated with over
60% of total smartphone
industry. Company wants that
they want to achieve the target
of increasing sales in China
and India as they are the most
emerging market in the world
for smartphone (He, Zha and
Li, (2013). They main focus is
on elite class people who will
enjoy maximum profits
through their products.
Company is one of the largest
company that sells smartphone
and provide networking
solutions. Their main focus is
on achieving 1st position in
world in case of smartphone
sales. They want to capture the
western market as they lack in
this profile. Although the
target customer for companies
are middle income group.
Company focuses in achieving
the maximum sales figure in
the markets of China and India
as they are the most impactful
market in the world (Luo,
Chakraborty and Sycara,
2012).
.
Market share The company’s market share
in case of smartphones sales is
around 24% in June 2018.
It shares a global market share
of around 11.8% in the recent
report.
3

Products and services Company has a diverse
portfolios of products. Which
includes:
 IPhone which are the
flagship and the most
revenue generating
product.
 MacBook’s are the
powerful laptops
designed to perform.
 IPod which are
designed to play music
for the music lovers
and many more.
Huawei has developed
maximum products that help
them in achieving the targeted
revenue and profits. These
includes the following:
 Smartphones: company
develops best in class
smartphone with cheap
pricing model.
 Network cable:
Company manufactures
network cables which
provides maximum
speed to the users.
 Laptops
 Tv's
 Heavy industries
equipments.
Swot analysis of the company Strength:
 Innovative products
line that they have
 Leadership position
with regards to revenue
that they generate
 Brand Equity as they
are numbered at the top
position among the
most reputed brands in
the world.
Strength:
 Emerging leader in the
world of smartphone
industry. It is on the 2nd
position with regards to
its position (Fleisher
and Bensoussan, 2015).
 Focus on Innovation:
the company focuses
on innovation which
gives them strength
over other smartphone
4

Weakness:
 Matching the
customers’expectations
as they accept more
form the company
(Gilbert and et. al.,
2012).
 Incompatibility: the
company has an issue
that they are
incompatible with
many of the third party
products and services.
 Dependent on few
products.
Opportunities:
 Apple cars is the key
opportunity for the
company that can
generate maximum
revenue for them
(Bienkowski and et. al
2014).
 Expanding their share
in growing market
rivals
 Cost leadership: They
provides best in class
cost that cannot be
hampered by any other
rivals
Weakness:
 The perception that
they follow of being
made in China. Is the
biggest weakness for
them.
 They are not able to
enter into the US
market.
Opportunities:
 The opportunity to
attract more cheap
labour that will help in
cutting the cost.
 Growing market
demand in eastern and
southern market opens
the opportunities to
expand in western
countries.
5

 I watch and Apple TV
Threats:
 Market Penetration
 Laptop competition
Threats:
 Strength of local
contributors.
 Competition in the
market to develop and
innovate the things.
 Increasing trends
towards isomatism.
6

References
Books and journals
Bienkowski, M., Feldmann, A., Grassler, J., Schaffrath, G., & Schmid, S. (2014). The wide-area
virtual service migration problem: A competitive analysis approach. IEEE/ACM
Transactions on Networking (ToN). 22(1). 165-178.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective
application of new and classic methods. FT Press.
Gilbert, S., Saia, J., King, V., & Young, M. (2012, July). Resource-competitive analysis: A new
perspective on attack-resistant distributed computing. In Proceedings of the 8th
International Workshop on Foundations of Mobile Computing (p. 1). ACM.
He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case
study in the pizza industry. International Journal of Information Management,33(3).
464-472.
Luo, L., Chakraborty, N., & Sycara, K. (2012, May). Competitive analysis of repeated greedy
auction algorithm for online multi-robot task assignment. In Robotics and Automation
(ICRA), 2012 IEEE International Conference on(pp. 4792-4799). IEEE.
Zhang, Z., Guo, C., & Goes, P. (2013). Product comparison networks for competitive analysis of
online word-of-mouth. ACM Transactions on Management Information Systems (TMIS). 3(4).
20.
7