External
Macro
Political
Social and cultural
The surveying results show that the leisure participation rates of Chinese residents are 94% in weekdays and 95% in weekends. Considered about the classes of leisure, entertainment with media builds the highest rate that is 90% which means the main way residents take. The second is social interaction that builds the 29%. Physical training and fitness builds the 27% and playing games gets the 13% while watching movies only gets the 2%. The last 16% is about the transportation activities that drivers always take part in.
Here we mainly talk about the media and playing games. We know that TV, radio, CD-player belong to the media, and these are just functions what our new products have. On the other hand, the main function of our new products is playing games, which builds 13% in the leisure rate. We think our products have a promising marketing in China.
Demographic
As the increasing in life expectancy and the reduction in the number of young people, our company has our strategy in employment of the new product development team. We want more young graduates to join our team because the portable game machine is a kind of product that face to the young generation. So the young employees know what they need and will help us develop a product that popular with the young people. But considering the reduction in the number of the young people we will employ older people to develop the hard device and young people to design the figure of the product and develop the software such as the OS of the product.
Technological
With the fast development of the corporation itself and the support from more and more Applers, Apple Corporation has been on a larger and larger scale. So we have registered a new website for this special new product which is first promoted in China. The web is www.appleiplay which named after the new product- Iplay. On this new web you can buy the Iplay in the first time through many ways before it had been sold in the Apple Shoppe. Without doubt, the products will soon been sold in the Shoppe that Apple is setting a new showcase for it. What’s more, the first batch of these w
ill sell containing a pair of free earphone which doesn’t appear in the online selling. As we have our own Shoppe, AppleIplay doesn’t need any commission sale or retailer store.
We have done great progress thorough the Internet. In the battles with other competitors, we have caught the marketing opportunities by amounts of publicity and promote this new product which fits the need of Chinese market. The only problem is
the number of Apple Shoppe isn’t large enough and they have only appear in some big cities in China.
Ecological/environmental
Considering the environmental protection, the company which sells portable device prefers to use rechargeable battery to provide energy to their products. Apple has a tradition that all our portable device use rechargeable battery and can charge the device when you attach it to the computer, like Ipod,Itouch and Iphone.
Economic
At first, let us seethe GDP in China last year. In 2008 Chinese GDP growth rate is 9% while the total
residents consumption has increased 5.9%. According to preliminary accounts, the GDP in China is 300670 billion RMB in 2008, 9.0% growth compared with last year. View in sub-quarter, there is a 10.6% growth in first quarter, 10.1% in the second quarter, third quarter growth of 9.0% and 6.8% growth in the forth quarter. It shows that China has a fast increased GDP and total consumption which means Chinese consumers have the ability and consume desire. These are beneficial for our product’s promotion in China.
View in sub-industries, the added value in primary industry is 3.4 trillion RMB and 14.6183 trillion RMB in the secondary industry, each get an increase of 5.5% and 9.3%. The fastest increase of 9.8% has been in the tertiary industry which gets an added 12.0487 trillion RMB value. It shows that the tertiary industry has fast developed in Chinese market which means there will be a promising market for our tertiary industry product.
As our new product-Iplay is a kind of handheld game console, we also need to talk about the development of Chinese game marketing.
The graph above is about the amount of Chinese handheld game console owners from 2004 to 2009 which in a unit of 10 thousands. We can clearly see from the graph that Chinese handheld game console owners have increased really fast causing 36 million owner growth just in 5 years. It shows there is a huge fast developing market for our Ipaly in China.
The second graph is about the different percentage of different kinds of handheld game console. We can infer from the graph above that handheld game consoles like PSP and GBA are popular now. It means consumers like the technical and exquisite consoles. Our product is based on these kinds of consoles and more advanced in technology so that it can bring a new shake in consoles. We think it can also bring a shake to the Chinese consumers. On the other hand, it also means amounts of strong competitors.
Micro
Customer
The customers of Apple company customers all people of all ages, Apple provide different product for different people and for different demand. The person who need a PC or laptop, the person who want to listen to music when they are travelling, doing exercise, even sleeping. Apple is a company found by selling computers, but in the 1990s. They meet a big challenge, with the success of Microsoft, their sales of computer greatly reduce. Then Jobs changed the strategy of Apple into portable music player market, and they successfully beat their powerful competitor ---the Walkman. In the 21st century they enter the mobile phone market with the amazing success of Iphone. Now the
major customers of Apple are music lover and mobile phone user. Apple has an advantage that other company cannot compare with, which is that Apple has their own products fans. They buy everything that Apple sells, to use even for collection.
Supplier
showcaseAs the leading brand of electronic device in the world, Apple has many stable suppliers, such as AMD, NVIDIA and Intel. And its supplier for portable device are Samsung, iSuppli, Micron, Dialog Semiconductor GmbH, Intersil Corp. and Synaptics Inc. iSuppli is a global leader in the field of electronics manufacturing for the market research company, has many experienced experts in the electronics
industry supply chain, helping customers to understand and develop the fast-growing global electronics market. Dialog Semiconductor GmbH, Intersil Corp. and Synaptics Inc supply Apple with the semiconductor and flash disk. Samsung provide CPU for Ipod series.
In a word Apple has a good relationship with its suppliers, they have helped Apple success in the portable device market.
Competitors
As a successful brand, Apple has a lot of powerful competitors all around the world.
In PC market, their competitors are HP(17.8% of the global market share),
Dell(14.4% of the global market share), Lenovo(7.1% of the global market share ). In laptop market, their competitors are HP, Lenovo, Sony. In portable music player market, Walkman from Sony is a powerful competitor. Portable game machine market, Apple has never entered. But as we all know, GB GBA from Nintendo and PSP from Sony dominate the market, and it’s hard to shake their status.
Financial community
Apple ‘s success is owing to the support from a lot of financial community. It is the Bank of America who always provide loans, bank services to Apple.
In 1978, Apple ready to stock market, Xerox Corporation subscript one million U.S. dollars stock of Apple. Throughout the 1990s, Microsoft began to get more new computer users than Apple . Apple's market share slipped from 20% to 5% within a decade. August 6, 1997, Microsoft uses 150 million U.S. dollars to buy Apple's
non-voting stock in exchange for Apple's giving up copyright infringement lawsuit against Microsoft a
nd every Macintosh, built-in Internet Explorer since then. (Microsoft sold all the shares of Apple held by them later.)
Summary
As our new product will first promote in China. The Chinese handheld game consoles market is fast developing which offer a big chance for our new product. The problem we face is to solve the lack of Apple Shoppe and to make sure our product will defeat other competitors in the consoles field.
Although the portable game machine market is a new area for Apple and now the portable game machine market is dominate by Japanese company. But like the success of Xbox from Microsoft, Apple’s product in Portable game machine will also surprise the people and make a big change in the market. Because Apple has steady suppliers provide electronic element for them, has loyal customers even fans of their products, and has powerful financial community support them. However, the strong threats of competitors still exist. By the analysis of external environment and the characteristics of itself, we decide to let Apple set foot in the field of portable game machine market.
Strategy
-political:
PSP market is a mature one in the world market. But our main target is in China. China’s game industry lacks completed supervision. On one hand, the copyright issue is a serious one, which will harm the profit of the company. On the other hand, the tariff in this area is a blind point, which stimulates the local customers’ desire to purchase. So it is a challenging and attracting field.
China protects its local game industry in on-line game market, but it doesn’t have its own PSP industry. So we will not face problem such as monopolies, the government will not limit our marketing expansion. All our competitors will come from the world market.
-economic:
Although under the economic crisis , China provides a stable economic environment; its GDP grows about 8 ％every year。And people nowadays spend almost one third of their income in entertainment. Statistics shows that the world game industry developed about 5％, 35billion dollars in total last year. The market in China is a potential one. The average increasing rate between 2005 to 2010 is 24％. The total profit this year is 2.0 billion dollars. The future China’s game market will keep expanding rapidly. So it is our chance to explore our market in the next two years. -social:
PSP occurred in 2004; it changed people’s way of living. For it is portable and little space-taken, peo
ple can enjoy playing at any place at any time. It releases people from PC games. Young people ranging from 18 to 25 are its main consuming group, PSP meets their life style, it is a symbol of cool. This group occupy 20％of the whole population, and most of then have a job. There is still a large room to develop. APPLE has its great impact among young people. Its design is fashion and elegant which represent the young’s taste. Students will became the main consumers, as well as the post-80s generation.
-technology:
Many new technologies have been used on PSP to improve the quality of the pictures, to enlarge the storage, to optimize its CPU. A network system for PSP is undergoing. APPLE can use its advantage over devices to prompt this progress to occupy the future market. Right now APPLE’s touching function is very complete. PSP adopting APPLE’s way of control will bring a fantastic and magic user experience. IPOD actually has shown some achievements, the platform it provides and convenient controlling manner are praised by many customers. APPLE can walk along this way to change the market.
-environment:
“Green” issue is a globe concerning problem. APPLE is always the pioneer. We have a mature recycling system. And we use new technology to reduce the CO2 during the production and the use of the product. We are the supporter of many Green organizations but we don’t get the mark we deserve from them. So we need to build a good relationship with those organization and local government departments.
-legal:
as a foreign company in China, we will obey the Competition law, the Employment and safety law, the Product safety issues and so on. Recently Ministry of Culture put a series of limitation on WOW, this may be a new signal for the foreign company like APPLE to clarity their duties. The regulation in the game industry is developing. It will provide a regulated marketing environment. This will be a good news for us. But meanwhile we need to watch out government’s limitation in this area.
SWOT
Strengths
Present days more and more people chose APPLE’s products, for its artistic surface, dependable qu
ality, convenient and pragmatic functions. That is to say APPLE’s products have a large number of customers who think APPLE’s products are better than other companies’ and would like to pay attention to our new products. Iplay as a new sort of handheld game console, its mainly customers are the increasing pocket gamers.
Iplay use a touchscreen which is used by few products. Players can touch the screen with their fingers to control. And the design with Ergonomics make the screen has a comfortable feeling. Iplay is compatible with iphone, ipod, itouch and other APPLE’s products even PC softwares. It is not only a handheld game console, but also a media player. Our company has a perfect system in product output and service. Laser projection keyboard is able to use on iplay, it makes player can input message or play games everywhere.
Weaknesses
We have already succeeded in Electronics area, however this is our first time to begin our handheld game console marketing. And it is true that we have little experience in this area. We also can not grasp the ideas of customers immediately. It is likely that we will loss the control of the marketing if iplay has low sale or other competitors take some measures against iplay.
Because we are a newcomer, we have not found a steady team to develop iplay’s games. If the games are not able to attract players, iplay will lose its

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