Apple is an American multinational corporation; it sells consumer electronics, computer software, and personal computers. Apple is famous brand company and always related to technology innovation The game console market is currently occupied by three major companies: Microsoft, Sony and Nintendo. The market share for the gaming console industry is: Nintendo 59%, Microsoft 32%, and Sony 9%. Apple is very successful with its iPod, iPhone, and iPad, and was not exactly thinking seriously about the gaming industry before, but in the summer of 2009 there started rumors in the media that Apple may develop a gaming console.
Apple involves to the game console industry will have big impact to this market. Due to customer’s loyalty to the brand, the launch of the game console will have high successful rate. As a worldwide brand company, it would move quickly and avoid any expensive new-product failures. For the product to be launch successfully, It is also very important that company has clearing understanding of customer’s need in the new market. The well-developed market strategies are very important The following new-product development process steps can be followed for Apple to develop a new game console.
Step 1: Idea generation Apple can generate ideas from: * Company’s Staff: They may have some good idea of the game console. They work are familiar with computer technologies. * Customers: Customers can provide their feedback and requirement they need. * Marketing research activities: They can provide useful information and also get some data for the new product development, so the company can stay up to date with competition * Competitors: By analysing competitors’ success strategy, Apple can develop this new product with unique quality.
Step 2: Screening To be successful the companies should evaluate the SWOT analysis. This process will help Apple to see if they are heading in the right direction or not, and congruent with the objectives of the firm. Strengths * Recognized and established premium brand across the world * Known for innovative products * Product differentiation * Customer loyalty and good reputation for high quality Weaknesses * No previous experience with game console * Uncertainly regarding demand of the product * Higher development cost
Opportunities * International expansion * Growing market for the electronic gaming devices * Can introduce new technology compare to competitors * “Apple” brand – customers looking forward to any new Apple products Threats * Well established competitors like Sony, Nintnedo, and Microsoft * New competitors or product entrants * Products developed will be more expensive compared to other competitors * Rapidly changing technology Step 3: Idea evaluation At this Stage Apple will evaluate if the launch of this new product is a good idea.
It can be done through focus group testing of the concept with past, present, and proposed customers because they can give their feedback and if they are not excited about the game console that's mean they don't like the idea. It is also very important to evaluate financial aspects at this stage. If the product is profitable and customers are welcome this idea, the new product worth going with it. This process has to be precise. Step 4: Development This step is to develop the product.
Research and development (R&D) and engineering of Apple team will have to design and develop the physical part of the new product and the actual game console product. The R&D and marketing team will work together to figure out the design, features, functions, and characteristics of the game console, the models can be displayed at Apple stores and testing in the market to get feedback. If customer feedback showing they didn’t like it or the R&D finds something, they can revise the plan according to the feedback to improve and finalize the new product.
Step 5: Commercialization The new product game console can be in the market and putting the product in the market at this stage which can be expensive and also requires cooperation of the whole company. Once Apple has successfully passed the development stage they should move to the final stage to place the product in the market. Product is ready to launch to the targeted market. At this step, product design, profit position and market segmentations are all finalized. New manufacturing and servicing facilities will have to be set-up and provide training.
All departments such as customers’ service, delivery, storage and production departments are all ready for this new product. Product can be rollout / introduced country by country. References: 1. “Microsoft Canada: Marketing Xbox”, Ivey Management Services, 2003 2. http://www. xbitlabs. com/news/multimedia/display/20101206071740_Apple_May_See_Success_on_Game_Console_Market_Game_Publisher. html 3. “Microsoft Canada: Marketing Xbox”, Ivey Management Services, 2003 4. “The Wii: Nintendo’s Video Game Revolution”, Northwestern University, College of Business Administration, 2006 5.
http://www. gamesthirst. com/2010/02/28/apple-set-to-release-new-console-will-rely-solely-on-third-parties-for-software-says-pachter/ 6. http://www. switched. com/2008/02/11/apple-getting-into-gaming-hardware/ 7. http://www. xbitlabs. com/news/multimedia/display/20101206071740_Apple_May_See_Success_on_Game_Console_Market_Game_Publisher. html 8. http://sites. duke. edu/soc142-videogames/global-value-chain/major-players/console-manufacturers/ 9. http://www. roughlydrafted. com/RD/Home/1052F769-AC24-4892-8937-E3E90BCFD5CC. html 10. http://lowendmac. com/coventry/06/apple-pippin. html