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Studocu is not sponsored or endorsed by any college or university BUS 400 7-2 Project JS Driving Business Opportunities (Southern New Hampshire University) Studocu is not sponsored or endorsed by any college or university BUS 400 7-2 Project JS Driving Business Opportunities (Southern New Hampshire University) Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

1 BUS-400 Module 7: Pitch for Funding BUS- 400 Module 7: Pitch for Funding Jennifer Sayre Southern New Hampshire University Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

2 BUS-400 Module 7: Pitch for Funding Value Proposition Hello everyone and thank you for coming. I will now share with you all the product that I have been working so extensively on; the iPhone 3-D. At Apple, “the experience is the product” (Shewan, 2021). The iPhone 3-D is the smartphone of the future. Imagine a handheld product that is top of the line, easy to use, aesthetically pleasing, and highly reliable. Now imagine those same qualities, but rather than being handheld, the device is holographic. The iPhone 3-D is a watch worn device that uses highly secure facial and fingerprint technology. The device is wearable by users of all ages and can be enormously beneficial to anyone looking to make life a little easier. At Apple Inc., “ generic strategy focuses on key features that differentiate the company and its information technology products from competitors. Through the broad differentiation generic strategy, Apple stands out in the market. For example, elegant design and user- friendliness of products, combined with high-end branding, effectively differentiate the technology business. This generic strategy means that Apple always aims to set itself apart from competitors not by price but by competitive advantages based on product design that attracts customers. Such design includes seamless connectivity among devices and cutting-edge aesthetics. Even though this generic strategy makes Apple different, the company still broadly reaches various segments of the market. The firm’s products are designed for everyone, thereby supporting a broad market reach” (Meyer, 2019). Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

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3 BUS-400 Module 7: Pitch for Funding Competitive Advantage “ Apple’s generic strategy of broad differentiation adds competitive advantage by making the business stand out. Differentiation in product function and design supports the firm’s goal of leading the market through technological innovation. Innovation is at the heart of Apple Inc.’s business. However, to improve its application of this generic strategy for competitive advantage, the company must aggressively penetrate markets” (Meyer, 2019). iPhone 3-D is the first of its kind projector iPhone in which all features of the iPhone would be utilized and viewed holographically. The most secure device of its kind, all functions of the iPhone 3-D are controlled via facial and fingerprint recognition. The goal of the iPhone 3-D is to continue the tradition of innovation and create a larger target audience, increasing profits within Apple Inc. Through innovation and diversification, this new product will ensure the loyal customer to return as well as attract and entice new customers. Using aggressive marketing strategies, Apple Inc. is sure to increase sales. Risks and Opportunities As with all new ventures, there are risks associated. With the iPhone 3-D, the risk of it not being as sought after is probably the biggest factor. There are those who will not venture into the world of new technology and prefer to stay with what they are familiar with. “ A slowdown in the growth and penetration of the smartphone market could be exponentially more painful for Apple, as over half its current revenues come from its iPhone products. A slowdown in any of the following could materially reduce Apple’s multiple and stock price: overall smartphone market growth, iPhone market share growth, or penetration into China” (Zucchi, 2019). Future growth in the company is dependent on new product categories such as the iPhone 3-D. Rather Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

4 BUS-400 Module 7: Pitch for Funding than focus its sights into repurchases and dividends, I am focusing on investing in research and development. Growth Opportunities “ As one of the most valuable companies in the world, Apple shows that its generic strategy is a major determinant of competitive advantage against other firms like Samsung , Google , Amazon , Microsoft , Dell, HP, Lenovo, Sony , IBM , BlackBerry, Huawei, LG, and even Walmart with its content distribution service, Vudu. Apple’s intensive growth strategies support the ability to maintain a strong position in the global market. With a high rate of innovation and emphasis on excellence in product design, the enterprise succeeds even with its relatively high selling prices. This successful positioning indicates Apple’s effectiveness in using its generic strategy for competitive advantage, and intensive strategies for business growth.” (Meyer, 2019). The iPhone 3-D is an innovation that is currently exclusive to Apple Inc. At this time, no other company can offer any device that is similar. This puts Apple Inc. at the forefront of its competitors yet again. New Product or Improvement? So, I ask you, is the iPhone 3-D a new product, or is it an improvement on the original iPhone? I answer with this: can it be both? The iPhone 3-D is certainly a new product and innovation, but it also contains the same variation of the ever easy to use iPhone. The new device will have many of the same features that the previous handheld devices had, but users will experience the software in a whole new way. Innovation is what drives Apple Inc. Through innovation, Apple has maintained a loyal customer base for over a decade. Easy to use interfaces Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

5 BUS-400 Module 7: Pitch for Funding and software enable users to grow accustomed to Apple devices along with sleek, appealing design. While conducting a SWOT analysis, the following can be interpreted: “Strengths: 1. One of the world’s strongest brands 2. High profit margins based on premium pricing 3. Effective rapid innovation processes based on long history of technological innovation Weaknesses: 1. Limited distribution network for its goods 2. High selling prices 3. Dependence of sales in high-end market segments Opportunities: 1. Expansion of the distribution network for wider consumer electronics market reach 2. More widespread and aggressive marketing for higher sales volumes based on rising demand 3. Development of new product lines in consumer electronics and online services Threats: 1. Aggressive competition involving large multinationals like Samsung, Amazon, and Microsoft 2. Imitation involving firms that compete based on low prices Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

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6 BUS-400 Module 7: Pitch for Funding 3. Rising labor costs in various countries where the company maintains production facilities” (Smithson 2020). Target Audience The target audience is anyone looking to enhance their use of communication by dropping the traditional methods and experiencing a new form of virtual telecommunication. The iPhone 3-D is worn around the wrist and is simulated holographically, making it durable and more convenient. By selling a first of its kind device, Apple is checking off the first step by creating an uncontested market space. As I stated earlier, Apple is the only creator thus far of a wrist worn holographic smartphone. “Apple is a market leader, and they use blue ocean strategy for their new products. The company use internal resources to build new products which mean company has closed innovation rather than open innovation.” (IPL, 2021). Sales Apple has a very high rate of loyal, returning customers. “According to a new report from SellCell, brand loyalty for Apple has hit an all-time high of 92%. The company previously had enjoyed the loyalty of 90.5% of customers in 2019, which was still an industry high” (Wituschek, 2021). Apple’s current ROI is an all-time high of 63.57% as of the end of FY 21. By the time the new iPhone 3-D reaches the market, I estimate the ROI to be somewhere around 68% if we continue to experience increasing brand loyalty. In comparison, “brands like Samsung have experienced a drop in brand loyalty from 85.7% in 2019 to 74% in 2021 (Wituschek, 2021). Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

7 BUS-400 Module 7: Pitch for Funding Customers will have the option to pay monthly interest free payments $50.00 or the up-front cost of $1200.00 for the device. Plans are also available through cellular companies. Apple Inc. released its top ten risks market risks: 1. “Global markets for the Company's products and services are highly competitive and subject to rapid technological change, and the Company may be unable to compete effectively in these markets. 2. To remain competitive and stimulate customer demand, the Company must successfully manage frequent product introductions and transitions. 3. The Company depends on the performance of distributors, carriers, and other resellers. 4. The Company faces substantial inventory and other asset risk in addition to purchase commitment cancellation risk. 5. Future operating results depend upon the Company's ability to obtain components in sufficient quantities. 6. The Company depends on component and product manufacturing and logistical services provided by outsourcing partners, many of whom are located outside of the U.S. 7. The Company's products and services may experience quality problems from time to time that can result in decreased sales and operating margin and harm to the Company's reputation. 8. The Company relies on access to third-party digital content, which may not be available to the Company on commercially reasonable terms or at all. 9. The Company's future performance depends in part on support from third-party software developers.” (Golson, 2014). Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

8 BUS-400 Module 7: Pitch for Funding 10. The Company relies on access to third-party intellectual property, which may not be available to the Company on commercially reasonable terms or at all. Profitability Speculation “ Apple today announced financial results for its fiscal 2021 fourth quarter ended September 25, 2021. The Company posted a September quarter revenue record of $83.4 billion, up 29 percent year over year, and quarterly earnings per diluted share of $1.24.” (Press Release, 2021). Previous Fiscal Year 24-Month Projections Sales $274,515 $428,928 Cost of goods sold $169,559 $264,935 Gross profit $104,956 $163,993 Selling expenses $19,916 $31,118 Total operating expense $38,688 $60,418 Income from operations $66,288 $103,575 Other income $803 $1,253 Income before tax and interest $67,091 $104,648 Income tax expense $9,680 $3,025 Net income $57,411 $89,703 After extensive market research, the new iPhone 3-D could potentially increase Apple Inc.’s profit by up to 25%. “A n y company looking to boost revenue growth needs to launch new products or services. More than 25 percent of total revenue and profits across industries comes from the launch of new products, according to a McKinsey survey. Recent research has also shown that companies that focus on creating new products and services while maintaining core competencies across functions grow faster than their peers. And as companies look to future Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

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9 BUS-400 Module 7: Pitch for Funding growth, the overwhelming majority expect it to come from creating new products, services, or business models .” (Buffoni, Angelis, Gruntges, and Krieg, 2017). CSR and DEI Plans “ Apple today announced a set of major new projects as part of its $100 million Racial Equity and Justice Initiative (REJI) to help dismantle systemic barriers to opportunity and combat injustices faced by communities of color. These forward-looking and comprehensive efforts include the Propel Center, a first-of-its-kind global innovation and learning hub for Historically Black Colleges and Universities (HBCUs); an Apple Developer Academy to support coding and tech education for students in Detroit; and venture capital funding for Black and Brown entrepreneurs. Together, Apple’s REJI commitments aim to expand opportunities for communities of color across the country and to help build the next generation of diverse leaders.” (Press Release, 2021). Along with these efforts announced by Apple, the new iPhone 3-D will continue offering over 30 languages to enable communication all over the world. Apple has a desire to become a reflection of the world we all live in. We also strongly believe that it takes a diverse group of people to create the personal products that we have developed. With creative minds from all over the globe, we are able to effectively create a software system that is thought to be the easiest to use of all other brands available. When it comes to CSR, “Apple is committed to the highest standards of social responsibility across our worldwide supply chain. We insist that all of our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes. Our actions — from thorough site audits to industry-leading training programs — demonstrate this commitment.” (Glueck, 2021). Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

10 BUS-400 Module 7: Pitch for Funding References: Shewan, D. (2021 Dec, 9). 7 of the Best Value Proposition Examples We’ve Ever Seen. WordStream. https://www.wordstream.com/blog/ws/2016/04/27/value-proposition-examples Meyer, P. (2019 Jun, 5). Apple Inc.’s Generic Strategy and Intensive Growth Strategies . Panmore Institute. http://panmore.com/apple-inc-generic-strategy-intensive-growth-strategies Zucchi, K. (2019 Jun, 25). Investing in Apple: The Risks and Rewards. Investopedia. https://www.investopedia.com/stock-analysis/021815/investing-apple-risks-rewards-aapl.aspx Smithson, N. (2020, December 13). Apple Inc. SWOT Analysis & Recommendations . Panmore Institute. Retrieved from: http://panmore.com/apple-inc-swot-analysis- recommendations IPL. (2021). Blue Ocean Strategy: Apple’s Blue Ocean Strategy. IPL. https://www.ipl.org/essay/Blue-Ocean-Strategy-Apples-Blue-Ocean-Strategy- P3TXCZK6JED6#:~:text=show%20more%20content%E2%80%A6,of%20Apple%20blue %20ocean%20strategy . Wituschek, J. (2021, March 16). Brand Loyalty for Apple has Hit an All-Time High. iMore. https://www.imore.com/brand-loyalty-apple-has-hit-all-time-high Golson, J. (2014 Oct, 30). Revealing Apple’s Top 10 Market Risks . Tech Republic. https://www.techrepublic.com/article/revealing-apples-top-10-market-risks/ Press Release. (2021 Oct, 24). Apple Releases Fourth Quarter Results. Newsroom. https://www.apple.com/newsroom/2021/10/apple-reports-fourth-quarter-results/ Buffoni, A., Angelis, A., Gruntges, V., and Krieg, A. (2017 Oct, 13). How to Make Sure Your Next Product or Service Launch Drives Growth. McKinsey and Company. Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

11 BUS-400 Module 7: Pitch for Funding https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-to-make- sure-your-next-product-or-service-launch-drives-growth Press Release. (2021 Jan, 13). Apple Launches Major New Racial Equity and Justice Initiative Projects to Challenge Systemic Racism, Advance Racial Equity Nationwide. Newsroom. https://www.apple.com/newsroom/2021/01/apple-launches-major-new-racial-equity- and-justice-initiative-projects-to-challenge-systemic-racism-advance-racial-equity-nationwide/ Glueck, M. (2021 Oct, 24). How Serious is Apple About CSR? EOI. https://www.eoi.es/blogs/marieglueck/2012/05/07/how-serious-is-apple-about-csr/ Downloaded by Victoria Stone (vdivita04@gmail.com) lOMoARcPSD|15451662

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