Marketing Case Study: Analyzing Apple's Homekit Strategies and IoT

This case study examines Apple's strategic approach to the Internet of Things (IoT) through its Homekit platform. It analyzes Apple's adoption of strategies like build-to-order manufacturing and innovation, exploring the emerging opportunities and competitive advantages in the IoT market. The study delves into the reasons behind integrating Homekit into the iPhone ecosystem, the development of the Home app, and the role of Homepod in popularizing Homekit. It also addresses the reasons behind the challenges Apple faced in the smart home market. The analysis covers Apple's strategic decisions, including outsourcing and targeted customer strategies, along with the evolution of Homekit, the role of the Home app, and the smart speaker Homepod, discussing its features and impact on the market. The case study also covers the success rate of the Homekit of the SH device manufacturer and the future prospect of Apple in the SH space.

Running Head: Marketing
Case study Analyze: Apple Company
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Analyze Apple IoT strategy.........................................................................................................2
Emerging Opportunities in the IoT space and improved competitive advantage........................4
The reason that drove apple to make Homekit a part of the iPhone's ecosystem........................5
The reason behind apple coming up with the Home-App...........................................................7
The role played by its smart speaker, Homepod, to popularize Homekit and the reason behind
the apple failure in the SH market...............................................................................................7
The success rate of the Homekit of the SH device manufacturer................................................8
The Future prospect of Apple in the SH space............................................................................9
Conclusion.......................................................................................................................................9
Reference and Bibliography..........................................................................................................11

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Introduction
The paper discusses the strategy of the Apple Company on the Internet of Things (IoT)
and analyzes the strategy it incorporated in its Company. The Apple Company adopted the
strategy of build to order Manufacturing strategy, Innovative strategy, Target consumer strategy,
and Outsourcing strategy. Paper informs about the emerging opportunity and improvement in the
IoT market and the competitive advantage. Reasons behind the making of the Homekit in the
iPhone ecosystem and the measures it takes to enhance the Homekit competitive advantages in
the SH market. Provide the reason behind apple with the use of home App and the role problem
played by the smart speaker, Homepod, to make Homekit popular in the market. Stating the
reason behind the failure of the impact of Smart Speaker due to another competitive market has
taken the crowd of the customer due to their unique feature and functionality which is not present
in the Apple homepod smart speaker. It faced problems from 2014 to grow in the “Smart home”
technology market. It has launched the Homekit, Home app, Homepod – Smart Speaker and
apple app store during those periods when Apple Company is facing problems in making the
product popular with its newly launched devices (Prasad & Purkayastha, 2018).
Discussion
Analyze Apple IoT strategy
IoT can be termed as “Internet of thing.” It is a system that interlinked computing
devices, digitalization and mechanical use with the unique identifier. It has the ability to transfer
data over a network without the interaction between Human to a Computer or Human to Human.
Its connectivity is extended to object, sensor and items using every-day considering computers
and other devices that allows to exchange and consume data with less intervention of Human.

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Apple IoT strategy
 Apple Company applying a strategy of “Build to Order Manufacturing Strategy,” in the
year 1997 when the apple online store was introduced (Holweg & Pil, 2020). Apple
introduced a new computer called iMac in the year 1998 and over a few years later, apple
acquire companies and gain profits in the market. Again in the year 2001, opened a new
store and introduced Mac OS X computer, audio player iPod which change the perception
of listing music, it got massive popularity in the market. Launched apple online iTunes
music store in 2003. In 2006 Apple introduced a computer like Mac Pro, Mac Book,
MacBook Pro and iPhone in 2007, which became very popular in the product in the
smartphone market. It gained massive profits by selling the iPhone. In 2010 it launched
Ipad, a tablet and 2011 released a virtual assistant named “Siri,” which included in the
Apple device, it supports the user by any preferences they ask. In 2015, Apple launched a
Smart-watch known to be Apple Watch with various features and supports. In 2016,
Apple launched the “home” app in ios10. The later year 2017, it launched Smart Speaker
call Homepod and Homekit in the competitive market. Thus adopting build to order
manufacturing strategy is for the company to make ease in relations between customers
and the company and to understand the needs and requirements for the supplied product it
launched. This scenario attracts the customer to purchase the product.
 Apple uses the “innovation strategy” in their product which makes their product different
from other smart devices. They use Apple iOS software and application, which help the
user to use more comfortably. Implement new ideas and designs to attract people. They
use the unique design and models in products and applications, which are different from
other devices and become more competitive in the market (Kotelnikov, 2020). It introduced

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the new product as per the customer’s demand and crazed in the market. Apple applies
innovation in its most products and changes its versions according to the new updates in
the market. Like iPhone, iPhone5, iphone6 till Iphone11.
 Outsourcing strategy used by the Apple Company due to its vast popularity and core
competency level. Due to its popularity, it can easily get outsourced anywhere in the
world as per the price and place. It has a vast supply chain everywhere in the world,
especially in Asia (Derek, 2019).
 Targeted customers strategy, apple Target the customers who are mainly from a high
financial ground and primarily used by the business person. However, in the current
scenario, it is used in both business and personal purposes (Enterprise and Burkitt, 2020).
Emerging Opportunities in the IoT space and improved competitive advantage
Apple is developing as an opportunity in the “Internet of Thing” due to its innovation,
features, and attractive design. Along with Apple, google plays a substantial role. After the
success of the introduction of Mac II in the year 1987, the company introduced several
computers which increase the demand of the product and while the company is introducing
various other portable product to match in the competitive market and primarily dealing with the
customers’ needs and desire (Prasad & Purkayastha, 2018). Apple introduces various product
which attracts the customers’ preference and choice to buy the product increases. The apple
product is top-rated in the market, which raises the opportunity for the customer to buy. Apple
devices are much unique in usage; it is communicating with the manufacturer, customer, and
with the other connected devices. It now explores vast possibilities related to health care and
retails in the market. It is now more innovative with the usage of the Television of different

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standards. Google is also helping to surround its usage all over the world more quickly and
affordably (Hunckler, 2020).
Improve competitive advantage
Apple has improved its competitive advantage due to its brand and brand equity. The
apple company is placed its identity in the market due to the product it supplies to its customers.
It builds trust in the market due to its high brand name and the quality of the product it provides
to its customers. It is famous for its technology, quality and usage of the product. It is more
fashionable and gets linked with the known device like apple product phone, Television and
sound system. The competitive advantage is the software it uses, which is superior and which
increase the market share of the product and the company. It controls the hardware, software,
product differentiation and retail strategy and decision making strategy on the product it supplies.
The use of a personal computer became dynamic and is used by the people at home. Apple offers
its customers a complete solution on the desktop by working and playing in it. In this way, Apple
Company is meeting up its targeted market need.
The reason that drove apple to make Homekit a part of the iPhone's ecosystem
Apple makes HomeKit because when in 2014, the vital consumer of the IoT sector has
emerged with the Smart-Home market and it increases its growth. Apple entered a space with the
home automation framework that is HomeKit accessory protocol (HAP) or (Homekit). The
HomeKit includes multiple features which enable the smart home devices to work under the
same framework and HomeKit gets easily controlled by the iPhone, iPad and Apple Television,
which consider as a home hub. The introduction of the Homekit has enabled the solution of the
smart home along with other smart devices.

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Measures were taken by apple to make Homekit competitive advantage
Apple has taken measures to make the Homekit usable to its every customer by
providing them easy access inside the home and work smart to furnish easily all the work
related to other devices. It is a Homekit Accessory Protocol, which is a home automation
framework, enables control through apple through its various apple devices like iPhone,
iPad and Apple television. In order to get popular using HomeKit, it opens up some strict
norms to make things easy for the company to bear. Homekit enabled in iPhones and
support both WiFi and Bluetooth. The home hub also controls the various devices and
enables automation to access the smart home. Homekit offers some unique features one is
‘scenes,” which enables control of an event occurrence like after leaving home,
automatically switching off the lights and other un-useful gadgets. Another feature name
is “trigger” is an automation system that controls other linked devices to perform a task
on a particular pre-determined condition like automatic changing the temperature inside
the house from outside by switching on the Air-conditioner. Apple Company then
realized some missing standard protocol along with the security feature to gain
competitive advantages in the Smart Home market (Fogli, Peroni & Stefini, 2017). To
provide this feature, Apple has expanded its MFi “Made For iPhone” or “iPad” or iPad
licensing Program to all. The developer of the Apple Company concerned with the
Homekit toolkit in the iOS SDK, which allows creating a new app that integrates with the
various Smart Home devices. Apple wanted to secure the design of the Homekit like the
iPhone and to develop the app store on the iOS platform. Apple build a robust security

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design for the device, which is based on password authentication methods, and the
authentication chip is provided by the apple manufacture, which is Mfi based certified.
Apple continuously updating its device to bring best for the use to its customer and
introduced an additional platform of Homekit was “Smart Plug,” this enables the
Homekit to control the smart devices (Prasad & Purkayastha, 2018).
The reason behind apple coming up with the Home-App
The Apple home app has introduced after the introduction of the Homekit. The apple
expected the launch of the Home App on the iOS 10 would rectify the control of all the Homekit,
Smart Home devices. The home app integrated with the iPhone control center, “Siri” support and
3D Quick Touch action. The setting of the app is controlled through the iCloud storage service,
which is enabled and control through the smart home device. The advantage of the Home app for
the customer that it allowed to form a home center on the Homekit. Apple has enabled a feature
in the home app that is the “scenes” feature, which gives the ability to the customer to manage
and create a hub center in the compatible Homekit devices.
The role played by its smart speaker, Homepod, to popularize Homekit and the
reason behind the apple failure in the SH market
The smart speaker was introduced in 2017 after the Hop App launching. Smart Speaker is
the home pod that serves the purpose of a home hub as well as the host of the other feature
included in the Apple device. It is a smart wireless speaker that can be used anywhere and
everywhere with a sound volume system and function. The use of the smart speaker has entered
the market, and it started replacing the Smart Phone because most preferred as a Smart Home-
hub use due to its easy usage. The purpose of the smart speaker because popular due to its voice

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control ability (Wang, 2019). It became popular in the field of technology and the electronic
segment. The Home Pod is seven Inch tall and well designed with “Siri,” which can send
messages, provide updates, news updates, sports updates and weather updates. “Siri” has a
capacity to like by most users and will be used in the future and “Siri” will help the apple
company to fit in the technology ecosystem. Homepod has a voice control system that has an
arrangement of 6 microphones, surrounding sound system, which goes into a different direction
and which forms a visual stereo effect. Its audio can be adjusted from any room and it maintains
the quality and becomes a powerful speaker circulated all around the room. A customer can use
the Homepod with the loud music filled the room with good sound. Apple wanted to differentiate
its Homepod from other Smart Speakers with respect to the quality of the sound in the
competitive market where the customer can access the apple music library with the apple music
subscription and more than 40million songs are found in the apple music library (Alexander,
2018).
Apple failed to make an impact with the smart speaker because other competitors have
already formed a crowd and raise the popularity of their manufacture product of the smart
speaker. Those companies are Amazon and Google who managed to control the market from
their production of the Smart feature which included great features and functionality as
compared to the Home-pad which is introduced by the apple company (Yusoff & Husnina,
2018). Amazon launched its Smart Speaker name as the Amazon Echo that is AI assistant
“Alexa” in June 2015 and Google has launched its smart speaker in November 2016 name
Google Home

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The success rate of the Homekit of the SH device manufacturer
The analyst believes that the success rate related to the Homekit is similar to what the
apple company has presented and performed when the iPhone has released in the market. Apple
Company seeks help and advice from its developer and the manufacturer of apple to make some
improvements in the Homekit, which can enhance the use of the Homekit along with the iPhone,
iPad and, Apple Television. It needed enhancement with the security level and design of the
Homekit to secure each pair through the remote access authentication system (Han, & Park,
2017).
The Future prospect of Apple in the SH space
The Future possibility of the apple in the Smart space is not sound in recent years. The
product Apple Company introduced is entirely not accepted by all the customers and is not
wholly successful in the market. It can be due to its multiple device manufacturing and not
thinking about the liking of the customers. The Homekit, Homepod, is a significant example of
the apple company which not given the maximum result out of its production in the market.
In the Given case, Apple was renowned in its unique design of products and quality and
which fulfills the demand and expectations of the customer being an innovative product launched
in the market. However, Apple failed its every customer's hope when it launched HomeKit and
home pod in the market. It is because the product delay launched in the market and does not play
well in the market compared to the other product.
Conclusion
From the above discussion, it can be concluded that the apple company has launched the
product from mac computer to the iOS devices and software, iPhones, iPad and Apple television,

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which became more popular and raise craze in the market and then the world. However, after
introducing the Homekit and later the Homepod, the market does not pay a good response that
was before. These products not impacted enough to the customers where the other largest
technology brand has made this possible with the Amazon Echo that is Alexa and the Google
Home for Google. Apple has to focus on the customer requirement and must focus on the cost
price of the apple, which is increasingly higher from the other company product. Most customers
reduced the use of the apple device due to the rising price of the Apple device year by year. The
company has to check the market demand to meet its goal in the targeted market.

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Reference and Bibliography
Adam G. (2016). Why Apple Is an IoT Pioneer (2020). Available at:
https://www.iotworldtoday.com/2016/12/21/why-apple-iot-pioneer/ (Accessed: 4 April
2020).
Alexander, R. (2018). Apple HomePod: Master your HomePod, User Guide and Manual.
Derek G. (2019). Apple's Steve Jobs opinion of outsourcing | Outsource Accelerator (2020).
Available at: https://www.outsourceaccelerator.com/articles/apple-steve-jobs-opinion-of-
outsourcing/ (Accessed: 4 April 2020).
Does anyone have a greater than 95% success rate with asking HomePod for automotive
requests? : HomeKit (2020). Available at:
https://www.reddit.com/r/HomeKit/comments/ayaz1r/does_anyone_have_a_greater_than
_95_success_rate/ (Accessed: 1 April 2020).
Enterprise, S. and Burkitt, F. (2020) Six Ways To Define Your Internet Of Things Strategy |
Articles | Chief Technology Officer, Channels.theinnovationenterprise.com. Available at:
https://channels.theinnovationenterprise.com/articles/six-ways-to-define-your-internet-of-
things-strategy (Accessed: 4 April 2020)
Fogli, D., Peroni, M., & Stefini, C. (2017). ImAtHome: Making trigger-action programming easy
and fun. Journal of Visual Languages & Computing, 42, 60-75.
Han, J., & Park, T. (2017). Security-Enhanced Push Button Configuration for Home Smart
Control. Sensors, 17(6), 1334.