A.)  Discuss the company’s competitors, and its strengths and weaknesses.

Mobile industry is a profitable venture and as a result, it attracts many entrepreneurs. The major trading competitors of the Iphone Company are HTC Vivid, Samsung nexus and Nokia N9.

HTC Vivid

HTC mobile manufacturers released HTC vivid in a bid to compete with Iphone 4S. This is a Smartphone and has features closely related to Iphone features. It has a pixel density of 250 ppi while Iphone has 330 ppi. This has given Iphone an upper hand since 330 ppi is more than what this phone is offering. HTC has a 4.5-inch display; a distinct feature that enables its users to watch videos and movies from a mobile phone just as it could have being on a television set. This is not found with Iphone and as a result this makes HTC powerful and stronger than Iphone. This is therefore a major hindrance to sale of Iphone. HTC also has a Ram of 1GB and a 16 GB inbuilt memory enhances easy portability of files. This together with the screen size makes it a better phone and posing a lot of competition to Iphone. Iphone stronghold lies in the OS application, it makes it faster and convenient to use and therefore since HTC does have this it makes Iphone more competitive (Hughes, 2011).

Samsung nexus

Samsung nexus uses android 4.0, its screen has a 720 x 1280 pixel,  a 316 ppi and a 1 GB RAM which makes it a unique phone. This features increases market competition between the two phones. Its competition is however limited because of battery life. Galaxy nexus has a plastic outlook unlike Iphone, which is more combat and feel solid to hold. This Iphone outlook is more stylish and many people go for it rather than galaxy.

Nokia N9

This has posed the greatest threat to the Iphone mobile. This is because of its operating system and the phone outlook that gives it a stylish outlook. The screen is bigger given that there is no row of buttons. This phone has however failed to compete favorably with Iphone because of the platform preferred which did not allow the development of any other applications and games. This makes Iphone highly demanded unlike Nokia hence increasing its chances of competition in market.

B.) Determine the differentiation strategy in relation to the closest competitor.

Differentiation is the production of a completely different product but a close substitute of the initial product. This increases the value of a product by introducing the products unique aspect. Through differentiation, Iphone has ensure that its operating system is applicable only to its two phones; Iphone 3GS and iphone 4.  This limit the level of competition because unlike blackberry which shares its application with seven different phones Iphone only shares its operating system with two Smartphone, which are close substitute.

Screen resolution. Its screen resolution is approximately 3.5 inches. This is the case for Iphone 3GS but for an Iphone 4G there is a new display technology which makes resolution of up to 960 x 640. This is so unique capturing a clear picture. Iphone does not support flash player. This has offered the greatest challenges since it only allows for HTML5, whereas most websites only works well with adobe. Iphone has tried to adopt adobe but this has being futile because they have never agreed on whether to use flash or not (Saxena 2009).

C.)   Explain whether the company’s intention is to be a leader or follower within the industry.

Iphone intention is to become a leader in the industry. This is because Iphone has being so strong in capturing the customers loyalty. This ensures that however much they raise price, the final consumer will not change his/ her loyalty. Their pricing strategy is independent of what other markets offer. The competitors set their price considering Iphone prices and their only way to maximize profits is by adjusting output.

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D.)Assess the macro-environmental issues (legal, technological, social, and economic) trends with which the company must operate.


Iphone is an international company selling its product at their domestic market as well internationally. This makes it subject to both the national and international laws. Its operation will continuously change given a change in government rules for example this company has to incur an extra expense in equipping safety kit given an introduction of new law concerning safety. Labor laws also affect Iphone Company. This is the case if it employees the younger population because the government sometimes limits the minors working hours. If government limits the number of hours worked by the minor, the company will have to employee other personnel to cover up for the number of hours left.


Technology is ever changing. This therefore requires that a company should always adjust to this. Current technology yields quality product and reduces on the labor force required. Introduction of a new technology may results to retrenchment of employees while on the other hand it may create a vacant position. Iphone Company has to lay off some workers given introduction of a new technology which can work under minimal supervision. A new technology may however require employment of new personnel. This is a case whereby the technology adopted is high tech and requires expertise to operate. Technology therefore is a crucial aspect of any firm.


Distribution of age according to age and sex comprise the population demography. The population surrounding Iphone Company is therefore important in determining its level of performance. An inverse population pyramid has many younger populations. This results to slackness in productivity because most population will not be stable enough to afford the buying price. An elderly population provides a ready market however this may be short lived because in future this may mean lack of both labor and market (Burrow, 2008).


This is important because it determine the ability to buy this phone. Demand has to be back by the ability to buy and therefore the economic business environment in terms of economic resources, income equality, distribution of income per each individual and the country’s gross domestic product. Iphone market will be affected income inequality. The majority of population will comprise the poor families who will not afford to buy its product. Economic environment is therefore an essential determinant affecting the availability of investment capital and the money to purchase this product (Wooldridge & Schneider, 2011). 

E.) Identify the most significant trend to impact the business and discuss how the company intends to minimize or capitalize on this trend.

Iphone has laid it’s emphasize on mobile phone apps. This targets consumers. It aims at integrating the Iphone into a computer. Iphone application is only applicable to its product; Iphone 3GS and Iphone 4 and therefore they should capitalize on this since other mobile sector cannot enumerate this idea. An Iphone application commonly known as square has eased transaction among its users. This is used where someone has an obligation to pay yet he/she is not in a position to raise the amount. A credit card is plugged into the Iphone and thus effecting transaction. Iphone has therefore shifted its attention towards this as a way to enjoyed monopoly on its production.

Iphone has also applications to reduce on paper work. This has increased the demand for Iphone because its application is unique. Iphone can also generate this applications and sale it to other mobile providers. This will be an advertising strategy for Iphone because given that, this application was developed by Iphone and used by other mobile such as Samsung nexus or Motorola razer makes it a superior brand winning the confidence of most consumers thus boosting its demand.

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