Res 351 Week 1 Research Paper
How to Bring Apple Back to the Top
RES/351
September 26, 2013 How to Bring Apple Back to the Top
On June 27, 2007 Apple released the first generation iPhone. Apple had revolutionized a number of their products prior to the iPhone. The iPod was the most popular electronic for personal entertainment for years. At the release of the original iPhone, Apple saw a similar effect on the cell phone industry. There was not another phone on the market that had a virtual keyboard, the ability to receive HTML e-mail and a full web browser. However, the honeymoon for Apple did not last long. The iPhone is no longer leading the industry. This paper will examine possible options of what Apple can do to again become the leader in the smart phone industry.
Hypotheses and Question The major dilemma for Apple is losing business to the Android market. The first research question is what is making customers switch to Android? The iPhone has lost its edge in the market over the last couple years. One example of this is the Samsung that runs on the Android platform. According to Spoonauer (2013), “The iPhone 5 catches up to the S4 in most ways with iOS 7, …show more content…
but Samsung’s device still has an edge in terms of personalization” (Interface and Software). With the limited evidence provided, one hypothesis is that consumers are switching to Androids because of the enhanced software designed for personalization. There are more than two variables that make up this hypothesis. For example, defining what features are superior between the two phones. The researcher may be biased based on what features and options he or she may prefer. Another variable is the financial impact the different devices have on the consumer. After reviewing the possible variables the research question is defined as what parts of Android software is superior, and are customers switching products because of it?
Research Design The next important step is planning out the project. According to Cooper & Schindler, (2011, p. 87) “The research design is the blueprint for fulfilling objectives and answering questions. Selecting a design may be complicated by the availability of a large variety of methods, techniques, procedures, protocols, and sampling plans.” Considering the importance of maintaining a competitive product it is important to increase the research budget for new projects as needed. The first part of the defined plan is to hire an outside company that has expertise in surveying. It is easy to make mistakes when surveying consumers. Because Apples expertise is innovating new technology, having this research outsourced will ensure the integrity of the data. Apple can focus on finding what features Android has that the iPhone does not. Apple can also evaluate the current valuable features of the iPhone prior to making changes. These two steps should take no longer than two months. After the results of the survey are analyzed and the internal research is complete the redesigned product should be completed within four months. The next step is to test the product on employees and customer focus groups. This process should take no longer than two months leaving four additional months to fine tune the product and have it in stores.
The research design used is a formal study because the hypotheses and question are clearly defined. A brief exploratory study was done prior to see how apple compared to android using the web, and according to business insider, android is less than one percent away from controlling 80% of the smart phone market (Yarow, 2013). The IPhone went from having 100% of the smart phone market to 20% and as stated earlier in the side by side software comparisons the Samsung S4 is winning because of the enhanced software designed for personalization. Based upon the information found in the exploratory study the hypotheses and question where developed and clearly defined.
Variables
Apple has many variables to consider in the quest to once again become the leader in the smartphone industry. Dependent variables include considering the cost and profitability of the new design. This will depend primarily on the state of the current economy, expenses incurred, and revenue generated. The new design must be both cost-effective and, from a features perspective, supersede anything on the market as well as satisfy customer. The company will need to come up with technology updates and accessories. They will also need to consider providing add-ons for the future. Possible issues to consider are how rapidly can The Apple Corporation make necessary changes and how quickly can production of new phones begin. They also need to consider the cost of production to ensure a good profit margin for the corporation.
One of the independent variables to consider includes the average income of customers and what they are typically willing to spend on the new phone. For example, during a recession Apples’ potential customers may be earning less income, and as a result may be less willing and able to spend money on luxuries. However, if economic growth is doing well, the potential customers typically may have more money to spend, which in turn will increase profits.
Ethical considerations “Recent media reports and ongoing protests over the reportedly abhorrent working conditions at factories where Apple 's iPhones are produced” ("Is It Ethical To Own An iPhone?” 2012), whether it is a complaint about underpaid and underage workers or poor working conditions, Apple has been accused of it all. The organization wants to clean up their reputation and build trust among customers, competitors, and employees. To counteract this bad publicity Apple has opened up “its supply chain for inspections by the Fair Labor Association (FLA), a nonprofit group that works to improve labor conditions by setting up systems for reporting abuses, improving transparency and creating remediation plans. On January 16, Apple became the first technology company to join the FLA, taking a leadership role, but only after facing broad public criticism” ("Is Apple Going Far Enough", 2012). The Apple Company strives to maintain high ethical standards to maintain customer trust and respect. Some companies resort to tactics, such as infiltrating their competition or planting a spy to gain access to the business plan. To avoid the use of such tactics, Apple will keep an eye on public forecasting reports for 2014 so the company can maintain a competitive edge. One way to do this is to make sure to hire the best technical writers and most talented and creative people management can find. Apple can lure the best people to the company by offering competitive wages and benefit package.
Objectives of the Research The objective of this research is determining perceptions and attitudes of the differences between Android and Apple. “Consumer Intelligence Research Partners (CIRP) conducts a quarterly survey of 500 consumers who have bought a mobile phone in the past three months. It analyzed the results over the past four quarters from July 2012 to June 2013 to determine where Apple AAPL -0.03% and Samsung got their customers” (Jones, 2013. Par. 1). The research conducted provided information important to Apple and to Android. For example, 42% of iPhone owners had previously owned an Android phone versus 43% of Samsung owners previously owned an Android phone (Jones, 2013). The primary purpose of this market research is to determine the following questions from the perspective of consumers.
1. To fully understand the Apple and Android smartphones.
2. What are the primary differences between these two products?
3. The consumers’ personal preferences about what they want on mobile devices and why.
4. Finally, what important issues need to be addressed and what features they would want in the future.
Methodology
We believe using the non-probability sampling method would be the best way to get out with customers face to face to hear exactly what they think about Apple and Android. The method we will use is to visit various public places such as malls, business centers, and state and federal buildings to survey users with a set of four questions. The primary reason business centers have been chosen as destinations to conduct this research is to ensure we reach professionals to see which device they prefer. We will survey 40 smartphone users per location between our team of four. We will be targeting mobile phone users over the age of 18. After conducting the surveys we will compile the results and input them into an excel spreadsheet to further analyze the findings.
Statistical Testing
In the testing of the iPhone versus the Android, Apple will begin by asking the following three questions to help determine which type of statistical testing to use for the study.
1. Does the test involve one sample, two samples, or k (more than two) samples?
2. If two samples or k samples are involved, are the individual cases independent or related?
3. Is the measurement scale nominal, ordinal, interval, or ratio?
“After analyzing the data, Apple has chosen the statistical method for testing the null hypothesis that the means of several populations are equal is analysis of variance (ANOVA). It uses a single-factor, fixed-effects model” (Cooper & Schindler, p. 477) to compare the effects of the brand (iPhone versus Android) against the variables outlined above.
Conclusion Apple had been on top within the smartphone industry for many years, seeing the Android market surpass Apple with new innovative software should illustrate the importance of responding to the new threat.
The senior management of Apple needs to understand what it is consumers want and how to deliver it to them in a manner which will allow Apple to regain its leadership position. They need to consider the variables that will bring customers back to the iPhone; one of the largest variables is the current economy. Apple has begun to make changes with production by inviting the FLA to inspect its supply chains; this change is to build customers trust and respect. Competition is healthy for organizations; Apple will need to make continual changes in order to become and to stay the industry leader within the smartphone
industry. References
Agomuho, F. (2013). Samsung Galaxy S4 Release: Is The Smartphone Already Samsung 's Best Seller With 6-Million Units Bought? . Retrieved from http://www.ibtimes.com/samsung-galaxy-s4-release-smartphone-already-samsungs-best-seller-6-million-units-bought-1257997
Cooper, D.R., & Schindler, P.S. (). Business Research Methods (11th ed.). New York, NY: McGraw-Hill Companies, Inc.
Is Apple going far enough? (2012). Retrieved from http://www.technewsdaily.com/3724-embargoed-apple.html
Is It Ethical to own an iPhone? (2012). Retrieved from http://www.businessnewsdaily.com/1979-owning-iphone-ethical.html
Jones, C. (2013, September 8). Apple Vs. Samsung: Who Could Win The Smartphone War? Retrieved from http://www.forbes.com/sites/chuckjones/2013/08/20/apple-and-samsung-who-could-win-the-smartphone-war/
Sharma, C. (2013, September 10). WHAT (REALLY) DRIVES MOBILE DEVICE MARKET PERFORMANCE? Retrieved from http://www.mobilefutureforward.com/What_Really_Drives_Mobile_Devices_Market_Performance_CSC.pdf
Yarow, J. (2013). Android Now Controls A Breathtaking 80% Of The Smartphone Market. Retrieved from http://www.businessinsider.com/android-now-controls-a-breath-taking-80-of-the-smartphone-market-2013-8
Spoonauer, M. (2013). Apple iPhone 5s vs Samsung Galaxy S4: What Should You Buy?. Retrieved from http://blog.laptopmag.com/iphone-5s-vs-galaxy-s4
RES/351
September 26, 2013 How to Bring Apple Back to the Top
On June 27, 2007 Apple released the first generation iPhone. Apple had revolutionized a number of their products prior to the iPhone. The iPod was the most popular electronic for personal entertainment for years. At the release of the original iPhone, Apple saw a similar effect on the cell phone industry. There was not another phone on the market that had a virtual keyboard, the ability to receive HTML e-mail and a full web browser. However, the honeymoon for Apple did not last long. The iPhone is no longer leading the industry. This paper will examine possible options of what Apple can do to again become the leader in the smart phone industry.
Hypotheses and Question The major dilemma for Apple is losing business to the Android market. The first research question is what is making customers switch to Android? The iPhone has lost its edge in the market over the last couple years. One example of this is the Samsung that runs on the Android platform. According to Spoonauer (2013), “The iPhone 5 catches up to the S4 in most ways with iOS 7, …show more content…
but Samsung’s device still has an edge in terms of personalization” (Interface and Software). With the limited evidence provided, one hypothesis is that consumers are switching to Androids because of the enhanced software designed for personalization. There are more than two variables that make up this hypothesis. For example, defining what features are superior between the two phones. The researcher may be biased based on what features and options he or she may prefer. Another variable is the financial impact the different devices have on the consumer. After reviewing the possible variables the research question is defined as what parts of Android software is superior, and are customers switching products because of it?
Research Design The next important step is planning out the project. According to Cooper & Schindler, (2011, p. 87) “The research design is the blueprint for fulfilling objectives and answering questions. Selecting a design may be complicated by the availability of a large variety of methods, techniques, procedures, protocols, and sampling plans.” Considering the importance of maintaining a competitive product it is important to increase the research budget for new projects as needed. The first part of the defined plan is to hire an outside company that has expertise in surveying. It is easy to make mistakes when surveying consumers. Because Apples expertise is innovating new technology, having this research outsourced will ensure the integrity of the data. Apple can focus on finding what features Android has that the iPhone does not. Apple can also evaluate the current valuable features of the iPhone prior to making changes. These two steps should take no longer than two months. After the results of the survey are analyzed and the internal research is complete the redesigned product should be completed within four months. The next step is to test the product on employees and customer focus groups. This process should take no longer than two months leaving four additional months to fine tune the product and have it in stores.
The research design used is a formal study because the hypotheses and question are clearly defined. A brief exploratory study was done prior to see how apple compared to android using the web, and according to business insider, android is less than one percent away from controlling 80% of the smart phone market (Yarow, 2013). The IPhone went from having 100% of the smart phone market to 20% and as stated earlier in the side by side software comparisons the Samsung S4 is winning because of the enhanced software designed for personalization. Based upon the information found in the exploratory study the hypotheses and question where developed and clearly defined.
Variables
Apple has many variables to consider in the quest to once again become the leader in the smartphone industry. Dependent variables include considering the cost and profitability of the new design. This will depend primarily on the state of the current economy, expenses incurred, and revenue generated. The new design must be both cost-effective and, from a features perspective, supersede anything on the market as well as satisfy customer. The company will need to come up with technology updates and accessories. They will also need to consider providing add-ons for the future. Possible issues to consider are how rapidly can The Apple Corporation make necessary changes and how quickly can production of new phones begin. They also need to consider the cost of production to ensure a good profit margin for the corporation.
One of the independent variables to consider includes the average income of customers and what they are typically willing to spend on the new phone. For example, during a recession Apples’ potential customers may be earning less income, and as a result may be less willing and able to spend money on luxuries. However, if economic growth is doing well, the potential customers typically may have more money to spend, which in turn will increase profits.
Ethical considerations “Recent media reports and ongoing protests over the reportedly abhorrent working conditions at factories where Apple 's iPhones are produced” ("Is It Ethical To Own An iPhone?” 2012), whether it is a complaint about underpaid and underage workers or poor working conditions, Apple has been accused of it all. The organization wants to clean up their reputation and build trust among customers, competitors, and employees. To counteract this bad publicity Apple has opened up “its supply chain for inspections by the Fair Labor Association (FLA), a nonprofit group that works to improve labor conditions by setting up systems for reporting abuses, improving transparency and creating remediation plans. On January 16, Apple became the first technology company to join the FLA, taking a leadership role, but only after facing broad public criticism” ("Is Apple Going Far Enough", 2012). The Apple Company strives to maintain high ethical standards to maintain customer trust and respect. Some companies resort to tactics, such as infiltrating their competition or planting a spy to gain access to the business plan. To avoid the use of such tactics, Apple will keep an eye on public forecasting reports for 2014 so the company can maintain a competitive edge. One way to do this is to make sure to hire the best technical writers and most talented and creative people management can find. Apple can lure the best people to the company by offering competitive wages and benefit package.
Objectives of the Research The objective of this research is determining perceptions and attitudes of the differences between Android and Apple. “Consumer Intelligence Research Partners (CIRP) conducts a quarterly survey of 500 consumers who have bought a mobile phone in the past three months. It analyzed the results over the past four quarters from July 2012 to June 2013 to determine where Apple AAPL -0.03% and Samsung got their customers” (Jones, 2013. Par. 1). The research conducted provided information important to Apple and to Android. For example, 42% of iPhone owners had previously owned an Android phone versus 43% of Samsung owners previously owned an Android phone (Jones, 2013). The primary purpose of this market research is to determine the following questions from the perspective of consumers.
1. To fully understand the Apple and Android smartphones.
2. What are the primary differences between these two products?
3. The consumers’ personal preferences about what they want on mobile devices and why.
4. Finally, what important issues need to be addressed and what features they would want in the future.
Methodology
We believe using the non-probability sampling method would be the best way to get out with customers face to face to hear exactly what they think about Apple and Android. The method we will use is to visit various public places such as malls, business centers, and state and federal buildings to survey users with a set of four questions. The primary reason business centers have been chosen as destinations to conduct this research is to ensure we reach professionals to see which device they prefer. We will survey 40 smartphone users per location between our team of four. We will be targeting mobile phone users over the age of 18. After conducting the surveys we will compile the results and input them into an excel spreadsheet to further analyze the findings.
Statistical Testing
In the testing of the iPhone versus the Android, Apple will begin by asking the following three questions to help determine which type of statistical testing to use for the study.
1. Does the test involve one sample, two samples, or k (more than two) samples?
2. If two samples or k samples are involved, are the individual cases independent or related?
3. Is the measurement scale nominal, ordinal, interval, or ratio?
“After analyzing the data, Apple has chosen the statistical method for testing the null hypothesis that the means of several populations are equal is analysis of variance (ANOVA). It uses a single-factor, fixed-effects model” (Cooper & Schindler, p. 477) to compare the effects of the brand (iPhone versus Android) against the variables outlined above.
Conclusion Apple had been on top within the smartphone industry for many years, seeing the Android market surpass Apple with new innovative software should illustrate the importance of responding to the new threat.
The senior management of Apple needs to understand what it is consumers want and how to deliver it to them in a manner which will allow Apple to regain its leadership position. They need to consider the variables that will bring customers back to the iPhone; one of the largest variables is the current economy. Apple has begun to make changes with production by inviting the FLA to inspect its supply chains; this change is to build customers trust and respect. Competition is healthy for organizations; Apple will need to make continual changes in order to become and to stay the industry leader within the smartphone
industry. References
Agomuho, F. (2013). Samsung Galaxy S4 Release: Is The Smartphone Already Samsung 's Best Seller With 6-Million Units Bought? . Retrieved from http://www.ibtimes.com/samsung-galaxy-s4-release-smartphone-already-samsungs-best-seller-6-million-units-bought-1257997
Cooper, D.R., & Schindler, P.S. (). Business Research Methods (11th ed.). New York, NY: McGraw-Hill Companies, Inc.
Is Apple going far enough? (2012). Retrieved from http://www.technewsdaily.com/3724-embargoed-apple.html
Is It Ethical to own an iPhone? (2012). Retrieved from http://www.businessnewsdaily.com/1979-owning-iphone-ethical.html
Jones, C. (2013, September 8). Apple Vs. Samsung: Who Could Win The Smartphone War? Retrieved from http://www.forbes.com/sites/chuckjones/2013/08/20/apple-and-samsung-who-could-win-the-smartphone-war/
Sharma, C. (2013, September 10). WHAT (REALLY) DRIVES MOBILE DEVICE MARKET PERFORMANCE? Retrieved from http://www.mobilefutureforward.com/What_Really_Drives_Mobile_Devices_Market_Performance_CSC.pdf
Yarow, J. (2013). Android Now Controls A Breathtaking 80% Of The Smartphone Market. Retrieved from http://www.businessinsider.com/android-now-controls-a-breath-taking-80-of-the-smartphone-market-2013-8
Spoonauer, M. (2013). Apple iPhone 5s vs Samsung Galaxy S4: What Should You Buy?. Retrieved from http://blog.laptopmag.com/iphone-5s-vs-galaxy-s4