Managing Customer Relationship

This paper provides a description of the customer relationship management activities of Apple smartphone company. It evaluates the customer segment, background of the company, and CRM strategies leading to recommendations for business growth.

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Managing Customer Relationship 1
Executive Summary
The below mentioned paper provides description about the customer relationship
management activities of Apple smartphone company. CRM refers to the activities that helps
the management of an organization to successfully maintain a long lasting relationship with
the customers in the environment. The paper evaluates the customer segment of Apple
smartphone whom they target along with the background of the company and the
environment of Australia. CRM strategies are also elaborated leading to recommendations for
the business to grow.

Managing Customer Relationship 2
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................2
Analysis......................................................................................................................................2
Situational Analysis...............................................................................................................2
Customer/ Product Profile......................................................................................................4
Customer Strategies...............................................................................................................6
Recommendation........................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
The purpose of this paper is to enlighten the reader about the company Apple Inc.
(Smartphone) and its functions in the environment. The below mentioned paper highlights
information about the customers relationship management practices of the company. The
paper analyse the internal as well as external environmental conditions of the company along
with the customer segment as well. The customer segment explains the people that the
company is going to target along with the value proposition that they are aiming to provide to
the customers in the target market. Further, the paper also discussed about the strategies that
the business is going to use in order to satisfy the customers and initiate an effective
relationship with them as well.
The company chosen for the analysis is Apple (Smartphone) that is an American
multinational organization headquartered in California. The company is based in the
information technology industry where they sell, design and develop consumer electronics
and online services along with software in the environment. This company is considered as
one of the big four organizations of technology present in the worldwide market. The
company was founded by three partners Steve Jobs and Steve Wozniak and Ronald Wayne in
the market with an aim to provide differential IT products to the customers in the target
market (Reuters 2019). Further, more details about the CRM activities of the company are
discussed below:
Analysis
Situational Analysis
 Product and Services: The products offered by the company includes Macintosh,
iPhone, HomePod, Apple Watches, iPad, iPod, macOS, Logic Pro, Apple TV,
watchOS, iWork, GarageBand, Final Cut Pro and iLife. Along with this, the services
of the company includes Apple music, iCloud, Apple news, iMessage, Mac App store,
Apple App store, Apple Pay, Apple Arcade and iTunes. These are the products

Managing Customer Relationship 4
through which the company attains profitability in the environment (Khan, Alam, and
Alam, 2015).
 Size, Competitor and Activities: The Company is known for its size and revenue in
the worldwide market. Apple Inc. earned annual revenue of $ 265 billion in the
environment for the previous year. Apple Inc. is known as world’s largest information
technology company present in the environment along with world’s third largest
phone manufacturing company after Samsung and Huawei. The company was
founded in the 1976 and it has opened more than 500 retail stores in the world to
deliver its products and services to the customers. The brand value of the company
crosses over $ 170 billion in the year 2017 and the company is now also known as
world’s most valuable brand.
The biggest competitor of Apple Smartphone in the external environment is Samsung
however there is great difference in the functioning of both the company. Samsung
works on the goal to sell product with competitive advantage in the target market
(Reuters 2019). While Samsung works with the motive to attain revenue by providing
quality products at low prices. The way of working of both the companies is different
as Samsung focus on revenue and Apple smartphones focus on quality. Samsung
earned $ 210 billion revenue in the environment with net income of $37.1 billion.
Samsung has sixth highest brand value with the total equity of $ 188.9 billion (Statista
2019).
 History: Apple Inc. that was formerly known as Apple Computers is a multination
organization that was incorporated in the year 1977. The company was the most
predominant manufacturer of personal computers for more than three decades. Apple
company also established itself as a leader in consumer electronic and media sales
industry. The company has attained monopoly in the market by provide iOS software
in the products that they offer in the environment. Steve Jobs leaving and coming over
in the company was the biggest turnover point for Apple as the return of Steve Jobs
gave reconstruction to the business functions of the company. This aspect
subsequently increased the profitability of the business and increased its competitive

Managing Customer Relationship 5
advantage as well. Thus, this is the history of the company Apple Inc. with various
ups and downs in the environment (Weinstein 2016).
 Political, Legal and Economic Factors: The political factors of the country Australia
states that the political system of the country is a constitutional monarchy with the
queen Elizabeth II. Canberra is the capital of the country and the government is
having a stable economy as well. Stable political conditions in Australia provide
favourable condition for Apple to grow and survive in this type of environment. The
economic factors of the country states that the country holds 13th largest market.
Further, economy of Australia grew by 2.4 per cent in the year 2017 which is good for
the company Apple as it gains the opportunity to work efficiently in better economic
country. The economic conditions of the country are favourable for the companies
like Apple to work and grow as well (David 2019).
Customer/ Product Profile
In order to analyse the customer/ product profile, Segmentation, targeting and positioning
process is conducted that is mentioned below:
Segmentation: In the geographic division, it serves the clients universally, and chiefly
incorporates the clients from urban territories. In the statistic division, it has for the most part
sectioned the market between the age group of 20 to 45. It incorporates the both sex for its
items. It has fragmented the market dependent on male just as female. Along these lines, high
workers generally favor the cell phones of Apple. As far as conduct division, it incorporates
the clients who are goal-oriented and decided (Ma, Wang, and Szmedra, 2019). The
psychographic division of Apple is differentiated based on social class and way of life. In the
social class, center and high society the two comes. In view of way of life, it incorporates the
aspirer, traveler, prevailing just as surrendered individual (Dewnarain, Ramkissoon, and
Mavondo 2019).
Positioning: Situating of any brand implies the marketing activities. It tends to be just done
through promotion and advertising. Apple is about experience that is felt in the minds just as
heart of clients. Apple consistently focus on the core business activities in regards to plan,

Managing Customer Relationship 6
design just as innovation. All the aspects are emphatically advanced through their promotion,
items, and client experience (Noe, et. al., 2017). Along these lines, Apple is situated as the
extravagance brand that brings the gigantic passionate association just as dependability
among the clients. A few variables contribute in the situating of Apple in market. The one
basic factor is brand personality that has interesting position in the brain of clients. It likewise
think of the creative innovation and has a solid order in the market.
Apple has focused on the different individuals in the market. The main target market of
Apple is adolescents. It is on the grounds that youngster utilizes the iPods for a few reasons,
for example, for tuning in to music, associating with companions, and for utilizing Twitter
and Facebook. Mac likewise targets college and undergrads since it trusts that they require
iPhones, MacBook to record the notes. Other than this, Apple additionally targets business
class individuals (Von Lohmann 2017). Every one of the gadgets of Apple has the business
quality that turns out to be valuable. Every one of the gadgets helps the agents to complete
their work successfully just as speak with the customers effectively. Other than this, it has
focused on the youthful children and youngsters. The purpose for focusing on these is that
gadgets, for example, iPads and iPod are simple being used because of their nature of touch
screen. It additionally turns out to be simple for the guardians to download the learning
diversion applications on the gadget of Apple for showing the children and the youthful kids.
Notwithstanding all these, the Apple likewise targets grown-ups. iPhones additionally ends
up being helpful to the grown-ups for their ordinary needs, for example, mapping heading,
telephone calls (Pine, and Gilmore 2016).
Talking about customer value proposition, the fact should be noted that the value proposition
of Apple is mainly based on the maintaining the brand identity of the company. Apple solely
works in the environment to differentiate its products from the crowd and attain an identified
position in the target market. The value proposition of the company Apple is that they
provide iOS series products to the customers that are not provided by any other famous
organization present in the market which makes the products and services of Apple different
(Arocha 2017). The company charges high prices for the products in the market that increases
the curiosity of the customers to purchase the product and see what differentiation Apple
products than other products in the market.

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Customer Strategies
The fact should be noted that the customers appear highly satisfied with the company in the
target market as they believe that the company is charging optimum amount for its products
and services in the market. In the business context, customers get satisfied only when they
believe that the product is providing them services according to the money paid by them to
attain the product. Also it should be noted that Apple target’s premium customers in the
market so it can be seen that company charges high value for its products in the market.
However, still the customers believe that the company is satisfying the expectation and
demand of the customers in the target market (Ascarza, et. al., 2017).
Further, the fact should be noted that the loyalty of the customers in the market is determined
by the way of returned sales the market. If the customers in coming back to the company to
again purchase the Apple product from them then they have surely attained loyal customers
in the target market. Along with this positive feedback from the clients to the company and
outside world also show its loyalty towards the business in the external environment. The
loyal customers themselves work as a marketing channel to promote the functions of products
and services in the market as they are most reliable word of mouth market channel. So, it can
be said that the loyalty of customers in the market can be defined by repeated purchase and
their opinion about the product stated in the external market (Hassan, et. al., 2015).
Furthermore, the fact should be noted that in order to attain, acquire, retain and develop the
customer segment in the target market, it is important for the business to initiate effective
Customer Relationship management practices in the environment. In order to implement the
customer relationship management practices in the environment, the company should initially
focus on their core business activity and then on this activity as it can help them to increase
its sales in the environment (Greve, and Schlüschen 2018). Further, below mentioned are the
ways the company Apple Inc. should make use of CRM strategy in the environment:
 Standardization of decentralized process that initiates customer relationship in the
environment and replace the old system with the new one. It is important for the
business to change the old customer relationship management process so that they can
target larger market base in the external environment. Further, this new system will

Managing Customer Relationship 8
also help the company to reduce the risk related to loss of customer, cost and their
personal experiences as well (Soltani, and Navimipour 2016).
 The second aspect is enhancing connection with customers in the environment by
making use of new efficient technology in the environment. It is important for the
business to communicate with its people and communicating customer using new
technology will attract them more towards the functions of the company. The
technology will also help the company to prioritize the right type of customers using
the technology in the environment (Tseng 2016).
 The third aspect is using new channels to initiate more effective and personal
communication with the customers in the environment. The company should find out
new ways to deal with the customers in the environment so that they can attain
information about their expectation from the company in a better way (O'donnell, et.
al., 2016).
The fact should also be noted that Apple Smartphone makes use of CRM tactics that no other
organization implements in the external environment. The business knows the important to
keeping the clients happy in the environment in response to which they implement such
tactics in the environment to gain knowledge about consumer interest. These tactics
differentiate them from the competitors present in the industry. Lastly, it should also be noted
that these CRM tactics differentiate the Apple Smartphone prospective clients from the
external advantage which gives an advantage to the management to focus solely on them
(Nyadzayo, and Khajehzadeh 2016).
Recommendation
From the above mentioned analysis of the customer value proposition for the company Apple
smartphone, below mentioned are few recommendations with the help of which the company
can increase the customer relationship in the environment.

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 The overall CRM performance of the company shows that the business is running
smoothly in the external environment but it is recommended to the company that they
should implement better market research. Market research will provide opportunities
to the company to attain information about the existing and new customers present in
the market and attract them as well. Market research will also help Apple iPhone in
knowing the CRM strategies used by other competitors like Samsung and they ways
with which they can attain lead over them (Aswani 2016).
 In order to initiate repeated sales in the environment, it is important for the
management to focus on current sales and make the best out of it. The company
should train the employees to understand the expectation of client and deliver them
products and services according. It is important for employees to understand which
Apple smartphone the customer is willing to purchase and provide them product
accordingly (Heracleous, and Papachroni 2016).
 Lastly, it should be noted that the company should also initiate after sale services and
feedbacks in order to implement a long lasting relationship with the customers in the
environment. This will make a positive impression about the smartphone of Apple to
the customers of the company.
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
represented information about the Apple smartphone company. The paper evaluated the
customer relationship management practices of the company Apple. It evaluated the internal
as well as external environmental analysis of the company. The paper highlighted the
customer and product segment for the brand present in the market. It explained the segment
which the company is targeting or should target in the environment in order to maximize the
level of profits. Lastly, customer relationship management strategies were provided to the
company with the help of which they can initiate repeated sales in the environment and attain
loyalty of the customers as well. The paper successfully highlighted the CRM techniques
implemented by the company along with few recommendations to consider in near future in
order to grow.

Managing Customer Relationship 10
References
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Ascarza, E., Ebbes, P., Netzer, O. and Danielson, M., (2017) Beyond the target customer:
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Greve, G. and Schlüschen, A., (2018) From Customer Relationship Management to
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Management, 3(6), pp.955-961.

Managing Customer Relationship 11
Ma, J., Wang, J. and Szmedra, P. (2019) Sustainable Competitive Position of Mobile
Communication Companies: Comprehensive Perspectives of Insiders and
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