Strategy Report: Apple Watch - Marketing and Commercial Analysis

This strategy report provides a comprehensive analysis of the Apple Watch, examining its evolution from its initial launch to its current market position. The report is divided into two phases: Phase A focuses on the product's background, vision, product portfolio, milestones, and present scenario analysis, including product description, market description, comparison with competitors, and current competitive strategies. Phase B delves into the technological and commercial viability of the Apple Watch, analyzing firm-related, project-related, and product-related factors. The report also explores future pathways, including opportunities and challenges, and concludes with a team reflection. The analysis highlights the Apple Watch's innovative features, market impact, and competitive advantages within the wearable technology market.

Running head: STRATEGY REPORT.
Strategy report of Apple Watch
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1Strategy report of Apple Watch
Executive Summary
The series of Apple Watches have found to go through yearly upgrades and has improved
both in the product and sales since its launch. Presently, the series of Apple Watch tends to be
the best tech wearable on this planet. The new launch of fourth series of Apple Watch was re-
engineered and redesigned helping the users to be more active, stay connected and manage their
own health in new powerful ways. The recent innovation of Apple Inc. is the series of Apple
watch has brought a revolution in the market of smartphone. . The news of Apple’s invention of
developing smart watches started to spread in 2011and in 2015, apple finally launched the first
Apple watch in market. . Developing the right mix with a marketing strategy to attract the
customers must be done skillfully. In this discussion a strategy report of Apple Watch will be
discussed further. Phase A will discuss the product with its present scenario in the market and
Phase B will discuss the Commercial and Technological viability analysis of the chosen product
including the factors related to positioning, target market, segmentation, marketing strategy and
competitive strategy in the market.

2Strategy report of Apple Watch
Table of Contents
Executive Summary.........................................................................................................................1
Phase A............................................................................................................................................4
1.1Background.................................................................................................................................4
1.2 Vision.....................................................................................................................................4
History.............................................................................................................................................4
1.3 Product Portfolio....................................................................................................................4
 September 2014: The next chapter in Apple’s Story............................................................4
 September 2016: Brighter, faster, more capabilities............................................................5
 September 2017: Leave the phone behind............................................................................5
1.4 Milestones and important events...........................................................................................6
 September 2018: Guardian and Guru...................................................................................6
Present Scenario Analysis................................................................................................................6
2.1 Product Description...............................................................................................................6
2.2 Market description and position............................................................................................7
2.3 Comparison with competitors................................................................................................7
2.4 Current competitive strategies...............................................................................................7
Phase B............................................................................................................................................8
2. Technological Viability Analysis................................................................................................8
2.1 Firm Related Factors.........................................................................................................8

3Strategy report of Apple Watch
2.2 Project related factors........................................................................................................8
2.3 Summary Analysis.................................................................................................................9
3. Commercial Viability Analysis...................................................................................................9
3.1 Product related factors......................................................................................................9
3.2 Market related factors.....................................................................................................10
3.3 Summary Analysis...............................................................................................................11
4. Future Pathways.........................................................................................................................11
4.1 Opportunities and challenges...............................................................................................11
4.2 Team Reflection...................................................................................................................12
References......................................................................................................................................13

4Strategy report of Apple Watch
Phase A
1.1Background
Apple introduced a smart watch known as The Apple Watch that enables to collect the
watch with iPhone. It runs apps, delivers notification, send texts and makes calls from the watch
itself when connected with the phone. In 2014, during the month of September, Tim Cook
announced Apple Watch first. The very initial wearable version of Apple watch was shipped on
April in the next year. During that time period, Apple had sold an excess number of near about
33 million of Apple Watches since 2015 (forbes, 2019.) It was recognized as the bestselling
wearable tech. For technology space, four years happens to be a long time for technology space.
1.2 Vision
Furthermore, since 2015 Apple tends to update itself every year with introducing new
features and improving the design. The heart of Apple watches is the wellbeing and health of the
wearer. The most popular devices are the fitness tracker but the segment of smart watches are the
most valuable with a market value of 60%. The series of Apple watch boost more awareness
about the product than more than half of the competitors (apple, 2019.)
History
1.3 Product Portfolio
 September 2014: The next chapter in Apple’s Story
Tim Cook, the CEO presented Apple Watch in concurrence with iPhone 6. It was
marketed originally as an accessory of fashion that focused on body styles and varying
bands. Officially, it was released with a shifting focus towards features that are fitness

5Strategy report of Apple Watch
oriented on April 2015 (apple, 2019.) The Apple watches are also able to do wireless
payment along with texting functionality and talking. It came to be known amongst the
best 25 inventions of time in 2014. It was also called the start of breakout wearable by the
company of Mashable. The gorgeous extensible, fun and smart features makes it an
object that is truly desirable.
 September 2016: Brighter, faster, more capabilities
The tech line of wrist wearable of next generation of Apple was revealed the same
day when iPhone7 Plus and iPhone launched. The second series of Apple watches had
similar feel and look as the original but it was improved more and upgraded with an
addition of GPS, a strong processor that is dual core and a brighter display. The
marketing continued for this device which centered on the commitment of Apple towards
improving the fitness and health of its users (Friedman and Friedman, 2015.) Notably,
the swimmers can take it inside the pool as well where the Apple watch can count the
number of laps taken, track average pace of lap and detect the type of stroke. It is
apparently extra than expectations from a wearable at a time and the better thing is it
really works well. It was echoed by TechRadar that every upgrade has something new to
offer with tangible benefits (techradar, 2019.)
 September 2017: Leave the phone behind
The next transcendent and logical step taken by Apple was announcing that the
third series of Apple watch will be revealed the same day when Iphone8 Plus, iPhone 8
and iPhone X will launch (Green, 2019.) The iteration of third series allows the freedom
to stream music, take calls, interaction with Siri and being in less need of a smartphone
nearby. The addition of LTE cellular connection with a combination of fast lightning

6Strategy report of Apple Watch
speed of Verizon’s network of 4G LTE, the third series of Apple Watch earned
recognition of best available smart watch in market.
1.4 Milestones and important events
 September 2018: Guardian and Guru
The fourth series of Apple watch was presented by Cook and company that not
only has the wearer’s heart but also the back, improving the desire of maintaining
wellbeing. Pioneer features such as Fall Detection, ECG generation and Emergency SOS
are instilled that provides mental peace even in harsh situations (Lai and Wright, 2016.)
In addition, current Digital Crown is present which proves an experience of seamless
larger display. The Apple Watches have helped people become more motivated, active
and connected.
Present Scenario Analysis
2.1 Product Description
It has been found that the series of Apple Watches go through a yearly upgrade and
improves both in sales and product since it has been launched. At present, the series tends to be
one of the best wearable tech on this planet. The launch of new fourth Apple Watch series was
redesigned and reengineered to help the users be more active, manage their health and stay
connected in more powerful ways. Currently, the new series has an addition of some improvised
features such as Fall detection and ECG app which makes an intelligent oarent for the helath of
user. The new series is more than an evolution for Apple. It comes in dual sized of 40mm and
44mm (Shahzad and Singh, 2017.) Speaker of this series happens to be fifty percent louder than
the previous one. It has been specially optimized for using as a walkie takie, take calls and

7Strategy report of Apple Watch
communicate with Siri. The microphone is relocated that reduces the echo to provide a better
quality of sound. It also has the next generation chip knows as the S4 chip customized to 64 bit
dual core processor that maintains and delivers twice speed and battery life.
2.2 Market description and position
Meanwhile, retaining the iconic original design, fourth generation of Apple watch has
polished with new combination of software and hardware enhancements to a unified and
genuinely singular form. In this new version, the display is more stunning with thirty percent
larger (Baggili et al. 2015.) It integrates seamlessly into the smaller and thinner case while on the
other hand, the new interface tend to give more information in richer details. The fourth series of
Apple watch along with watch OS T has brought activities of higher engagement and new
improvised features of communication.
2.3 Comparison with competitors
The category of smart watch is considerably something new to the electronic companies
that launched devices in the year of 2015. Many devices have catered working with software
available on android (Berkhout and Rietdijik, 2010.) Considering the everlasting map of
contender into the market. According to the analysis of market it can be observed that companies
such as LG and Motorola have strong consumer holds when it comes to smart watches.
2.4 Current competitive strategies
It has also bought features catering to new revolutionary capabilities of health that
includes new gyroscope and accelerometer. It has the capability to detect strong falls and has an
electrical sensor to detect the rate of heart that can conduct an ECG with the use of ECG app.

8Strategy report of Apple Watch
The complete redesign of the fourth series of Apple watches continues being a fitness companion
and a source of indispensable communication for the user (Zhao et al. 2019.)
Phase B
2. Technological Viability Analysis
2.1 Firm Related Factors
The recent innovation of Apple Inc. is the series of Apple watch has brought a
revolution in the market of smartphone. There is a belief that the development wing and
research of Apple Inc. happens to be the most suitable and capable team for developing a
product suiting the needs of customers. It is leading the market in terms of technological
department having a potential share inside the market (O’Brien et al. 2016.)
Additionally, this innovative products fits the changing requirements of customers.
Researches have shown that people always demand for change in the smartphone
industry. The strength of Apple firms also acts as one of a significant supportive aspect
for success of Apple watch in the international market (Choi and Kim, 2016.) The margin
of high profit and strong image of brand gives strength to the company which is invested
in technology as innovation. The process of effective innovation also helps Apple as a
company to grow and expand
2.2 Project related factors
The vice president of Apple Inc., Kevin Lynch for development of technology has
been allocated with having responsibility required for developing Apple Watch, which is
the most innovative product of Apple. The technology that has been used for Apple

9Strategy report of Apple Watch
Watch happens to be latest innovation of Apple that changed the buyer’s taste and iPhone
users at international market. The major and positive feature of this innovative product is
the superb technology and small size that fits the requirement of busy life in best way
along with maintaining the health and wellbeing of its user (Albaghli and Anderson,
2016.) The project of watches started few years back when researchers came together and
invented the best battery system suitable for Apple watches. The news of Apple’s
invention of developing smart watches started to spread in 2011and in 2015, apple finally
launched the first Apple watch in market. The company did many more changes with this
product afterwards according to the requirement of its customers (Alexander, 2016.)
Further, the project was developed for providing various range of products with new
features and upgrades.
2.3 Summary Analysis
The company happens to have good financial support, good infrastructure, and a
good team of researchers who developed the innovative product. The company of Apple
is also known for its strategy of supply chain which provides an advantage of competition
to the market. In regards to viability of technology, Apple has got all the needful
resources for providing development of marketing and support for Apple watches inside
the international market (Kim et al. 2017.) However, it possesses a team with most
experience developers of software supporting the innovation of this product. It can be
overviewed that Apple has got all sort of support in regards to technology to go on with
the project of smart watches and expand in near future (Zhang, 2017.)

10Strategy report of Apple Watch
3. Commercial Viability Analysis
3.1 Product related factors
The Apple watches happens to be a most awaiting hi-tech by product of Apple
Inc. in 21st century. Into the market of wearable, the Apple Smart Watch marks a
significant invention as it reinvented technology for the wearable gadgets (Van der
Panne, van Beers and Kleinknecht, 2003.) However. Tough the technology of wearable
is nothing new to the tech-loving customers all across the globe. The smart watch of
Apple has promoted the fanatics of fitness through this unique and speculative device.
The quality and build in design of this high technology gadget has been designed for a
special purpose that is keeping a track of health and wellbeing of its wearer. The product
was trending in the market right after its launch and an immense number of growth has
been observed within a year. The product became the best wearable tech just after its
launch in a time span of one year. It is also liked by customers as a fashionable wristband
which has an innovation of tracking fitness.
3.2 Market related factors
For selecting the type of customers, the market needs to be divided into small sub
parts based on attributes of customers. The smart watch of Apple is compatible with
current additions of iPhone 5 and iPhone 6. This has led the market share of Apple to
narrow down the Apple smart watch. It can be treated as a treat towards the loyal
customers of Apple. The segmentation of Apple can be categorized broadly into
psychographic, demographic attributes of people (Berkhout, Hartmann and Trott, 2010.)
Diving deep into the variables of demography, it is observed that the income and age of
social groups could be put together as one segment of the variable. The provided features

11Strategy report of Apple Watch
of Apple smart watch is more symphonized towards a healthy lifestyle. It reminds a
routine that is healthy and behaves as a clock for the heart’s monitoring device. Price of
the Apple smart watch has increased triple more than it was priced at the beginning. It
has been seen to take a variant of being more expensive. It can be affordable by people
with an economic income of medium to higher social groups.
3.3 Summary Analysis
The positioning of Apple smart watch into the market is analyzing its competition
into that particular segment of market. Developing the right mix with a marketing
strategy to attract the customers must be done skillfully. The smart watch category is
considerably something new to the electronic companies that launched devices in the year
of 2015. Many devices have catered working with software available on android
(Berkhout and Rietdijik, 2010.) Considering the everlasting map of contender into the
market. According to the analysis of market it can be observed that companies such as
LG and Motorola have strong consumer holds when it comes to smart watches. Also, the
tycoons of Samsung and Sony have addressed these segments of smart watches too
(Esfahani and Malazi, 2017.) However, Apples has its competitive strategy for Apple
watch in regards to placing the product in market in a way which provides an experience
of more personalized way making the product stand out from its competitors.
4. Future Pathways
4.1 Opportunities and challenges
As the smart watch of Apple is preparing to turn three, the preeminent wearable of Apple
tends to hit an infection point interesting in nature. Apple has added low-hanging fruit LTE and