Chinese Exploitation And Discrimination In Canada History Essay

Chinese Exploitation And Discrimination In Canada History Essay European colonial period is characterized by the conquering of foreign land, the exploitation of resources and slaves, and the imposition of European culture. From European colonialism arose many atrocious acts such as the Triangular Slave Trade and the decimation of many indigenous populations. Ideologically, the concept of orientalism emerged from European colonialism where it became lens in which the West sees the people of the East as weak and inferior. European explorers sought to make sense of their travels by drawing from classical knowledge, religious sources, and mythology (Glyn, Meth and Willis 2009); it was a corrupt archive on the cultural identity of the colonized based on sweeping generalizations and stereotypes that crossed several cultural and national boundaries (ibid). The information isolated the colonized and separated them as the other from Europeans (ibid). The creation of a general inferior identity allowed colonial powers to legitimize their colonization and e xploitation of these people (ibid). Although Great Britain and other powerful countries in Europe actively colonized much of the modern Third World and created many obstacles for their future development, other non-colonizing countries do are not guilt-free. Loyal historical colonies like Canada have had a similarly exploitative relationship with Third World citizens, including its blatant discrimination against non-European settlers such as the Chinese. Contrary to the popular belief that Canada has always had a benevolent relationship with people of the Third World, Canada carried forth the orientalist view from European colonialism and used them to justify its discrimination against and exploitation of Chinese immigrants from 1880 to 1947. Under the pretense of orientalism, Canada exploited Chinese labour in building their national railway, created racism immigration policies to keep the Chinese out, and withheld fundamental rights on the grounds of ethnicity. Canada exploited Chinese immigrants as a solution to the labour shortage in building the Canadian Pacific Railway (CPR) from 1881 to 1885. Throughout the four years and even following it, Chinese suffering outweighed their benefits while Canada was able to complete its railroad on time for a considerably cheaper price. The completion of the CPR was extremely important to Canada because it was a physical means to unite the different regions of Canada together as a country (Baureiss 2007:15). Canada had a lot at stake in the CPR project where a delay in its construction could lead to British Columbias secession from the union of Canada (ibid). In order to meet the completion deadline, the CPR contractor, Andrew Onderdonk, was granted permission from the federal government to import Chinese labourers to compensate for the insufficient Canadian labour force (Wang 2006:11). The Chinese immigrants were allowed entry only for the purposes of building the railroad; Canada was not in favour o f having permanent Chinese settlements and primarily hired men who would presumably return home to their families upon completion (ibid). With the extra labour force of approximately 15 000 Chinese labourers working on the Western portion of the CPR, the railroad was completed on time (Yu 2009:16). Canada also benefit from the low wages that they paid the Chinese immigrants. In the construction of the CPR, white Canadian labourers were paid an average wage of $1.50 to $1.75 while the Chinese labourers were paid $1.00 with the mandate to purchase their provisions solely from the company store (Baureiss 2007:15). Although the two groups performed the same tasks, Canada justified the difference using the orientalist stereotype that the Chinese could survive on a lower wage than the white Canadian labourers (Whiteley, 1929: 342). The railway company saved money in paying cheaper wages and also earned profits in selling provisions to Chinese labourers (ibid). Orientalism created an unequal power relation between Canada and the Chinese immigrants where the Chinese served to benefit Canada. A tragic example is the 4 000 deaths of Chinese labourers working on the CPR as a result of poor working conditions, disease, landslides and accidental explosions (Toronto Star 1986:F.2) For those who survived, Canada did not make an attempt to include or integrate the Chinese into Canadian society because they were not truly welcome and were expected to leave anyway (Wang 2006:12). However, nearing completion of the CPR many Chinese labourers were dismissed early and found themselves with insufficient funds to finance their return fare back to China (ibid). Many descended into poverty as they lost employment with the railway company and others resorted to labouring in mines (ibid). The sole reason that the Chinese were allowed entry into Canada was to advance Canadas own interests in completing the railway in the most efficient and cost effective manner; in complete disregard for the well-being of the Chinese, they opened the gates for the destitute in China in order for Canada to exploit their cheap labour and then abandon them. Canada initially decided to import Chinese because orientalist beliefs dictated that the Chinese were stereotypically inferior in hard labour (Wang 2006:12); Canada would be able to exploit their inferiority and still use them to complete the railroad efficiently. Although this orientalist perception of the Chinese is inaccurate, the fact that Chinese immigrants were imported into a disadvantaged position forced them into the powerless stereotype as they were subject to Canadian interests. They were allowed entry into Canada in accordance to the amount of labour needed by Canada, and they worked at any offered in order to survive. In p urposefully pushing a number of Chinese immigrants into the orientalist stereotype, Canada was able to prove the orientalist knowledge as true and thus justify their exploitation of cheap Chinese labour. As exemplified in the CPR project, Canadas relationship with the Chinese people from the then developing country of China is in no way benevolent or good-willed; on the contrary Canada used and promoted orientalist perceptions of the Chinese in order to rationalize the exploitation of their labour. Canada subsequently discriminated against the Chinese systematically through a racially exclusive immigration policy. The orientalist stereotypes of the Chinese fuelled Canadas institutionally racist immigration policy as they primarily focused on defending against the sojourner image of transitory labourers, who had come [to Canada] to find a fortune and return with it to China (Baureiss 2007:22). Believing in this sojourner stereotype, Canadians felt threatened by the Chinese labourers competitive edge and feared for their job security (ibid). Moreover, in 1903 Prime Minister Wilfred Laurier publically supported the racist and orientalist ideals in his statement to the House of Commons where he said in my opinion there is not much room for the Chinaman in Canada (Winter 2008:122). In response to the wantlessness for the Chinese, Canada passed racially discriminatory regulations through the 1885 Act to Restrict and Regulate Chinese Immigration into Canada which necessitated a $50 pa yment for entry know as the head tax (ibid). However the head tax seemed to reinforce the sojourner stereotype as Chinese men arrived in Canada to work and often sent large sums of their salaries home to their families rather than spending it on the Canadian economy (Baureiss 2007:22). The orientalist stereotype fuelled further intolerance for the Chinese, even though it ignores the fact that the head tax was designed to discourage permanent Chinese settlements in Canada; it was presumably too expensive for a Chinese family to afford the head tax for all family members (ibid). In response to the growing intolerance for the Chinese, Canada took intensified measures to stop Chinese immigration, the head tax was raised to $100 in 1902 and then $500 in 1904 the equivalent of two years worth of wages for an average worker (Wang 2006:12). With the hike in price for the head tax, many men who immigrated ahead of their families lost hope of bringing their wives or children to Canada and fo r many years [the Chinese] community became a bachelor society (Plaitiel 1988:A8). As men working on a dollar a day could not afford to bring their families to Canada, Chinese immigration was significantly curtailed and the Canadian government profited $23 million generated by approximately 81 000 Chinese immigrants (Winter 2008:122), however Canadas intolerance was not satiated. In 1923 Canada replaced the head taxes with the Chinese Immigration Act that prohibited Chinese immigration altogether for a total of twenty-four years (Winter 2008:122). The act gave many Chinese workers the ultimatum of being separated from their family permanently or giving up their immigrant status to return home (Wang 2006:12). The immigration policies set forth by the Canadian government are not only racially discriminatory, but it spread the general orientalist view of unworthiness and undesirability in the Chinese ethnicity. The orientalist stereotypes of the Chinese initially caused Canadians to unwelcome the Chinese but the implementation of head taxes seemingly reinforced the stereotypes, without consideration towards the actual circumstances and created a completely intolerant society. The exclusion of the Chinese in Canada was justified by the orientalist stigma that the Chinese are an unwanted ethnicity in Canada, and thus legitimating any means to eliminate them; the h ead tax that created a financial burden on the Chinese, separated families between countries, and prevented a second generation of Chinese Canadians were valid. Moreover, the eventual total refusal of Chinese immigrants was substantiated based on the orientalist sojourner identity created for the Chinese immigrants dictated them as morally inferior and self-interested. Canadas creation of an orientalist lens in which to view the Chinese through blatantly racism immigration policies contradicts its perceived identity as being benevolent and accommodating to people of the Third World in development. In addition to barring the entry of Chinese immigrants, Canada systemically discriminated against Chinese immigrants already within Canada by legally withholding fundamental human rights. For example, the Chinese were excluded from political life and did not have the right to vote (Baureiss 2007:23). Although they were initially granted voting rights like immigrants of other ethnicities, the right to vote was disallowed to the Chinese in British Columbia in 1985 in provincial and municipal elections (ibid). Later, the federal government also refused to give the Chinese voting rights in federal elections (ibid). Prime Minister John A. Macdonald further justified disenfranchisement of the Chinese by stating that à ¢Ã¢â€š ¬Ã‚ ¦the Chinese have no British instinct and their mind [is] not suited for democracy (Baureiss 2007:23). Macdonalds statement crystallized the fact that the Chinese are denied rights based on the knowledge about their race as communicated by orientalism; the Chinese are inferior because without British instinct, their intelligence is too elementary for democracy. The Chinese in Canada did not have access to equal opportunity and were further excluded from numerous jobs based on racial grounds. Initially, the exclusion from participating in politics led to disqualification from certain prestigious or powerful professions that included law, pharmacy and accounting (Baureiss 2007:27). Similar to the discriminatory immigration policy, the denial of equality rights to the Chinese stemmed from the oriental stereotype of the sojourner. Since the sojourner stereotype dictated that the Chinese immigrants would all leave after amassing their wealth, Canadians rationalized that it was unnecessary to grant them equal opportunity rights because they would return home and not remain in Canada permanently (Baureiss 2007:23). As a result, in 1878 British Columbia passed a resolution that prohibited Chinese immigrants from working in the provincial public sector (Baureiss 2007:26). Subsequently, the Chinese were also denied positions in many skilled occupatio ns such as boat-makers, mechanics and merchants (ibid). Disqualification became widespread in so many different professions because of restrictive legislation that the Chinese were marginalized to a very limited number of industries such as agriculture, retail and services trades and certain elements of lumbering and fishing low-paying professions that required very minimal education or training (ibid:27). In an effort to combat the greedy and self-interested sojourner, there were a limited number of tasks that the Chinese were eligible to perform within these designated industries. For example, the Chinese were only welcome as cheap farm labourers and could not buy or lease their own land by law (ibid). Being surrounded by these restrictions made the service industry the only major avenue available and the Chinese were generally marginalized to become laundrymen, grocers or homemakers (ibid). Through orientalist knowledge, the Chinese were perceived as weak and incompetent compared to white Canadians, validating their exclusion from franchise and from many more respectable professions. The acceptance and creation of an orientalist identity justified that any measures including those that violate the fundamental human rights the Chinese should be entitled to were justified so long as they cater towards protecting the employment opportunities of white Canadians. In essence, orientalism was a tool for Canada to rationalize the second-class treatment of the Chinese and the refusal of several inalienable human rights. The blatant institutional racism that Canada created under the pretense of orientalist knowledge not only shattered down its perceived kindness but it reveals the hostility that Canada showed to the Chinese. Canadas discrimination and exploitation of the Chinese people directly contradicts the belief that Canada is benevolent towards people of the Third World and Third World countries in general. Canada accepted and further enhanced the orientalist views of the Chinese to exploit their cheap labour in constructing the CPR. Subsequently once the Chinese were no longer useful, Canada justified discriminatory immigration policies to stop Chinese immigration with orientalist stereotypes. In regards to the Chinese immigrants in Canada, the government systemically withheld fundamental political and equality rights from them and justified the second-class treatment with orientalist knowledge of inferiority. Historically, Canada has evidently not been as benevolent towards people of the Third World as it portrays itself to be. Although conditions have significantly improved since the nineteenth century, Canada still has not lived up to the high standards of benevolence and generosity as immigrat ion policies remain exclusive in many other ways. Canadians may see themselves as peaceful and kind to the multicultural people of the Third World but whether it becomes the truth or not depends on what actions Canada decides to take. Canada can choose to make it a priority to root out orientalism or to simply lower the standards of Canadas role in helping and empowering people of the Third World.

George Orwells Nineteen Eighty-Four 1984 :: essays research papers

1984 I think that today's society is a "half version" of George Owell's novel, 1984, in some ways it is similar and in others, uniquely different. The closest we come today to a "Big Brother" is the mob. The people are also controlled by watchful security cameras and subliminal messages. However, something in life today is very different from that of 1984, it is the people. In the words of the famous lyricist, "Power to the People." In analyzing "Big Brother," there are similarities between it and the mob. The Mafia is a crime family that can see everything, there is no going against the mob or else someone is going to die. The Mafia is so widespread that it has operatives all over keeping an eye out for cops or law enforcement, this is the Mafia's "telescreens" (Orwell 6). Another startling similarity between the mob and "Big Brother" is the Mafia's strange way of making someone disappear or "vaporize" (Orwell ). Almost unknowingly a person's identity can be changed, altered, or deleted. Authorities use security and surveillance cameras to observe criminal activities or possibly every day activities. Too much surveillance liberties are given to police or FBI. By using hi-tech cameras which can actually document a person's life. Unknowingly, there may be a cute little camera installed in the bedroom. Another way that today's society controls the masses is subliminal messages. Illegal now, subliminal messages were widely used in the entertainment business, especially during the fifties. An example is that movie makers would add a split-second commercial add for popcorn and soda during a movie. Customers would actually be manipulated into buying these products. Even though, this kind of brainwashing is illegal, it is still very hard to detect, who's to say that we are not bombarded by subliminal messages just by watching commercials on television. This is too risky, to think that a person's actions and emotions can be swayed by someone else's perversion's. Again, this is very similar to 1984. Of all the things there are today that would make it impossible for there to be an inner or outer party, as in 1984, is that there is each other. No matter how hard our government tries, they cannot reach everyone. Contrary to 1984, where they do get everyone, I feel that was extreme and unlikely. I find it highly unlikely that a form of government can find a way to get the whole

Global Warming Research Paper

Global Warming: Its effects on the Economy by Vincent Colletti Professor Shakely English Composition II July 1, 2008 Outline THESIS: From the findings of experts on Global Warming and Climatology, it can be concluded that Global Warming has a direct effect on our current global economy and the instability of the future. Introduction I. Background A. The study of Environmental Economics B. Economic issues and relations to past and future global warming estimates II. The effects on GDP A. Increase of natural disasters B. Impact on agriculture C.Rise in health care cost 1. Heat waves 2. Spread of disease D. Further subjugation those who have a lower standard of living 1. Displacement III. Opposing arguments A. Efforts to prevent global warming are to costly B. Low Winter mortality rate C. Possible Profit lies in the Arctic IV. What is being done to counteract climate change’s affects and plans for the future A. Kyoto Protocol 1. Acceptance/Refusal 2. Funds created B. â€Å"Green Collar† Jobs and Alternative Energy Sources 1. Wind/Water Power 2. Fuel efficient automobiles 3. Carbon CaptureConclusion Global Warming: It’s affects on the economy In considering climate change policies, the fundamental trade-off principal that society faces is between, consumption today and consumption in the nearing future. It is a question of economics; the return on this environmental investment is lower damages and thus higher consumption in the future. Now is the time that nations must decide whether or not they will make investments in understanding the economics of the environment and act accordingly to slow the climate change over the coming centuries.According to the National Bureau of Environmental Research (NBER) environmental economics is defined as â€Å"†¦ studies of the economic effects of national or local environmental policies around the world, including effects on pollution, research and development, physical investment, labor supply, econom ic efficiency, and the distribution of real income. † It is the desirable option to have policies that are economically efficient so that the environmental objectives can be achieved in a least cost approach, but then the question arises how long should we wait until an optimal climate-change policy is fabricated? pic] This chart explains the forecasted increase in Earth’s average surface temperature according to a series of climate change situations. It is, of course, impossible to predict with certainty what permanent economic effect global warming will have, but many economists and scientists agree the past and present effects can serve as a guide as to what can be expected. From the findings of experts on Global Warming and Climatology, it can be concluded that Global Warming has a direct effect on our current global economy and the instability of the future.Although scientists generally agree on the probable rise in the average global temperature over the next cent ury foretelling the change in a specific region is more complex. Due to the fact that the forecast models used in determining global warming’s affects are just that, models, they cannot be taken as fact and are subject to change. According to the Stern Review, a report created by the former Chief Economist of the World Bank Nicholas Stern, â€Å"the cost of climate change could be equivalent to a permanent loss of around 0-3% in global world output† (Stern ix).This would take humans into unknown territory which is the essential factor in the Stern Review which develops the basis that climate change will affect everyone, not just those whose greenhouse gas emissions are elevated. The report conveys the costs of extreme weather conditions could decrease the â€Å"†¦world Gross Domestic Product (GDP) by . 5-1% per annum†¦ † (Stern viii) before the middle of the century. In regards to the models Stern used in his report, the USA could expect a double of an nual natural disaster costs due to the increase in hurricane wind speed attributable to the rise of sea temperature.This should serve as Americas warning considering one of the most costly hurricanes, Hurricane Katrina, hit our shores in 2005. As Al Gore, former Vice President and long time Environmentalist, points out in his book An Inconvenient Truth, â€Å"Hurricane Katrina caused approximately $60 billion in insured losses† (Gore 102). A further impact on the world economy would concentrate in the UK who will be heavily affected by the melting of glaciers, whose â€Å"annual flood losses alone could increase from 0. % of GDP today to 0. 2-0. 4% of GDP once the increase in global average temperatures reaches 3 or 4 degrees Celsius† (Stern viii). Along with the devastation that will follow the increase in natural disasters, global warming will soon prove to be a burden on our agricultural market as well. According to the Environmental Protection Agency (EPA), the â⠂¬Å"changing climate could cause soils to become drier and drier, and crop failures could become more widespread. † What burdens will this place on the global economy?It will affect the poorest countries first, mostly due to the fact that the majority of these â€Å"poor† countries have a high dependency on agriculture as a means of living and trade. Another affect on our agriculture will be the disruption in our food supply according to author and Boston Globe editor Ross Gelbspan, â€Å"global warming could result in insect related crop damage. † With the information presented pertaining to the rising level in carbon dioxide it should be inferred that although plant growth accelerates in areas with elevated carbon dioxide concentration and to some would seem like an opportunity to initiate in mass harvesting and ncrease yields but it should be considered that many scientist along with Gelbspan predict, â€Å"these initial increases will soon flatten, and a lon g-term diet of concentrated carbon dioxide will weaken plants,† (Gelbspan 37) resulting in a less full-bodied, nutritious product. The fall in farm industry will ultimately pilot the increase of illness, death, and poverty, especially in third world countries. As briefly mentioned before, global warming will not only have an affect on our economy but also our health care system.Naturally the rise of global temperature can be dangerous for humans because of the extreme weather conditions that are bodies are not accustomed to. A study by the EPA shows that an increase in â€Å"†¦the concentration of ozone at ground level due to higher air temperatures†¦Ã¢â‚¬  may lead to severe complications â€Å"for people with asthma and other lung related diseases. † Logically higher air temperatures could seriously impact those who live in southern areas of the world.The EPA estimates that in Atlanta, for example, even a warming of about two degrees(F) would increase heat -related deaths from currently 78 people annually to anywhere from 96 to 247 people per year, which if translated into a global scene it would be a travesty. The Stern Review points out a shocking yet â€Å"scared straight† statistic for some, it expressed that the heat wave in Europe of 2003 killed 35,000 people and is estimates show that if temperatures increase 2 or 3 degrees(C) this number can come close to doubling.Also the EPA has speculated that global warming will promote insect life in farther northern areas that were once unable to facilitate growth. In terms of providing medicine for the various diseases carried by the insects such as Malaria, Dengue fever, Nile virus, and Yellow fever, it worries me if government or medical help will be able to offer aid to enough people considering it’s hard enough to get an adequate amount of Flu vaccinations in a single season; imagine an extension of warm seasons with infected insects spreading and establishing themselv es in â€Å"unknown territories,† this could be the next modern epidemic.In the Heat Is On, a striking fact the author uses to convey a similar point of that of above is â€Å"A side effect to global warming are insect attacks. A study shows that Alaskan forests have suffered from severe outbreaks of bark beetles, which have devastated several million acres of forest† (Gelbspan 141). With an increase in severe weather conditions, spread of disease, decline inhabitable land, and sea levels raising many people will be forced to flee their homes. In a 60 Minutes special one of the worlds leading authorities on climate control, Bob Corell, told the world that â€Å"98 percent of the world’s mountain glaciers are melting. This is a startling fact considering the impact that will have on coastal cities around the world. Corell proceeded to explain that sea levels around the world will increase three feet within 100 years. Melting glaciers will inevitably increase flo od risk and water supplies around the world. Thus approximately â€Å"one-sixth of the world’s population† (Stern vi) will be threatened with drinkable water shortages and displacement. Being unable to produce food or purchase necessities, it is estimated that â€Å"tens to hundreds of millions of people, with warming of 3 or 4 degrees(C) will have to relocate† (Stern vi).Although it is often thought just those in Africa, Asia, and small islands will be affected it should be known that large cities such as New York, Tokyo, London, and Cairo all possess an equal risk. An estimate put forth by the Stern Report states that â€Å"†¦by the middle of the century, 200 million people may become permanently displaced†¦Ã¢â‚¬  all of which can be attributed to rising sea levels, strong floods, and soil and water salinization. Increases in extreme weather patterns â€Å"could reduce global gross domestic product by up to 1%†¦ A two to three degrees Celsius , up to 10% of global output could be lost†¦Ã¢â‚¬  (Stern Review).Nations worldwide must see the broader economic and security factors of global warming. â€Å"The melting Artic is the proverbial canary in the coalmine of planetary health and a harbinger of how the warming planet will profoundly affect U. S. national security† (Borgerson 9). With an economy in distress such as the United States, investing in energy efficiency should seem like the logical step forward in the nation’s history but lobbyists and those who oppose, with their isolationist instinct, look to seek a profit and mask the environment’s downward spiraling transformation.It is time we â€Å"†¦get on with the important work of mitigation and adaptation by managing the consequences of the great melt† (Borgerson 9) however this proves to be harder than environmentalists expected. Opposition to â€Å"green energy† has currently caused much debate, with slandering advertis ements from both extremes of the spectrum. One combatant idea stems from the â€Å"respected economic analysts GlobalInsight, their estimations, in 2002, concluded that meeting the Kyoto target would reduce Germany’s GDP by 5. 2%, Spains by 5. 0%, the U. K. ’s by 4. %, and the Netherlands by 3. 8%† (Horner 259). These speculated values stressed the idea that cleaning the environment was just not worth the lost incurred with following the protocol. Another suggestion opponents of environmental cleanup is â€Å"Spain and Britain would lose a million jobs, while Germany would lose nearly 2 million jobs, thanks in part to 40% increase in electricity and heating cost† (Horner 259), an proposal that has proved to be false, although they have seen a loss in GDP many analysts believe it is due to rising fuel costs.Since the estimations of those who consider global warming too large of a problem to deal with, surfaced to be a fallacy, a new concept was pushed into the media, thus influencing the public in their favor. â€Å"Between 2004 and 2005, the Artic lost 14 percent of itsperennial ice—the dense, thick ice that is the main obstacle to shipping. In the last 23 years, 41 percent of this hard, multiyear ice has vanished. † (Borgerson 2).To many this may seem like a grim glance into the future, but for commercial industries and government this is an opportunity to exploit our land. The artic region located near Alaska would be a prime spot for accessing gas reserves. President Bush has proposed that a three way treaty between the United States, Russia, and Canada should be created and refineries put in place. It would seem as if â€Å"big business† is blind to what must occur in order for them to have their chance at producing fuel from the gas reserves.This plan is supported by the fact that it will lessen the dependency on foreign oil. Climate change will have an un-proportionate positive to negative effect ration ex cept for idealists in the market looking to turn a profit. The Stern Report addressed argument that global warming will have a constructive role in the future for instance; places such as Russia and Canada will be beneficiaries of a 2 or 3 degrees (C) in the sense that climate change will lessen winter’s harshness eventually leading to lower winter mortality, and heating costs.It is also believed that the surge of warmer climates may also increase tourism to once barren artic tundra regions. An efficient response to global climate change will depend on the actions of an internationally collaborative effort. The United Nations Framework Convention on Climate Change (UNFCCC) has realized this and formatted a treaty entitled the Kyoto Protocol. This protocol sets forth for almost every industrialized nation, except the United States and Kazakhstan, a guideline as to how much greenhouse gas they may emit within a year.It proposes that countries with higher emissions of greenhouse gases be held responsible and require them to pay for more energy efficient activities in less developed countries, thus managing not so much limiting, the amount of harmful gases released and funding countries in need of further energy efficient program development. According to the Union of Concerned Scientists, â€Å"over 50 nations representing 55 percent of industrialized nations’ emissions have agreed to ratify the protocol. † To many economists this places the United States in the middle of the â€Å"war on global warming† and sees the U.S. soon being forced to participate or face global environmental isolation. â€Å"Every country will need to adapt to climate change†¦Ã¢â‚¬  (Walker 163) although it will be much easier for some than others. Countries who barely produce enough GDP will find it harder to allocate funds to environmentally safe practices rather than an industrialized nation whose profits soar and money is easily set aside to research and development of â€Å"green† methods. â€Å"Already 3 global funds are aimed at aiding the least developed countries to adapt† (Walker 163).As of April 2006, the Least Developed Country Fund has collected a sum of $89 million in actual funds. While the Special Climate Change Fund has received $45 million towards alternative manners of conduct and the estimated by the World Bank state the Clean Development Mechanism will have obtained close to $500 million by the year 2012 (Walker 163). It is ostensibly and economically understandable why so many countries fear the reduction of emissions the cost of mitigation, the loss of jobs, the public will become discontent with government.However a transition to renewable energy would create millions of jobs globally and facilitate less fortunate nation’s raise of living standards without negatively compromising economic conditions of established countries. The transition from a high to a low greenhouse gas polluting ec onomy will promote competitiveness and opportunity growth. For instance, Britain, within the next twelve years, has a targeted 20% increase in energy efficiency, 10% of vehicle traffic being powered by bio-fuels, and 15% of energy derived from renewable sources (Black).Currently Sweden obtains about 5% of its electrical energy from water, this is called tidal power. Tidal power creates energy from the sea water that moves landwards, the current drives turbines which in effect generate energy. Another way to counteract global warming is the use of wind. Wind power is produced by use of wind mills, often clustered together on a wind farm, the force of the wind converts natural energy into a useful form such as electricity. Wind energy is easily harnessed, renewable, and is responsible for about 1% of world wide electricity use (Black). The importance of change is illustrated by the fact that world economic energy efficiency is presently improving at only half the rate of world economi c growth† (U. S. Department of Energy). Another option to offset or maybe even neutralize the affects of global warming lies in the ideas set forth by an economic analyst Cliff May. May believes an â€Å"open standards† fuel law should be sanctioned that would require all new cars sold in the U. S. be Flexible Fuel Vehicles. Flexible fuel cars are automobiles that run not just on gasoline but a variety of alcohol and ethanol based fuels.This would force consumers to buy these new cars that burn fuels cleaner than gasoline. One way of creating a demand for theses flex fuel cars would be to offer tax breaks as incentives for both the producer and consumer. An advantage that comes from alternative fuel such as ethanol is it is made from corn, sugar cane, sweet potatoes, and just about any starchy crop. Along with crops as possible â€Å"green† fuel sources, biomass for instance grass, crop residue, fallen leaves, weeds, and trash, all can serve a higher purpose and consequently are in abundance in the U. S. Before long, billions of dollars that we are now sending over seas could be going into the pockets of Americas—farmers, auto workers, alternative fuel producers and investors† (May 8A). Not only would alternative fuels create an economic stimulus, far greater than the checks sent out by President Bush, but it would help restore the environment. .By adding to our consumption of an emerging market, alternative fueled automobiles, investing in companies that produce these fleets of vehicles, and taking away from government spending which follows the formula in calculating GDP, the U. S. ould be ranked number one. Additionally, a solution for increasing unemployment rates would finally be achieved. Also, being one the largest manufacturers of flexible fuel automobiles will enable international trade to increase significantly along with national income. There are limitless ideas as to what can rejuvenate the economy but few have hop e of standing up to an idea this enveloping. It is worth keeping in mind that our past can serve as an example of how mankind reacted too late when faced with â€Å"threats like acid rain, deforestation, asbestos, CFCs, declining fisheries, BSE† (Black).Simply, climate change will cause damage, in the sense that in what is done for our own benefit will cause harm to those in the future. Global warming can not be predicted with complete accuracy but enough can be inferred from the information and effects already available. â€Å"Mitigation- taking strong action to reduce emissions- must be viewed as an investment† (Stern i). Economists may see the fight against global warming as a cost incurred at this moment in order to avoid the repercussions of what the future may bring. And the less mitigation we do now, the greater complexity of ongoing adaptation will be.The production and dispersing of low carbon or â€Å"green† technologies is critical in moving the world into a more sustainable condition. â€Å"There is no reason economic development and environmental stewardship cannot go hand in hand† (Borgerson 8).

Apple Inc Marketing Plan - Free Essay Example

Sample details Pages: 29 Words: 8758 Downloads: 6 Date added: 2017/09/23 Category Advertising Essay Type Argumentative essay Tags: Apple Inc Essay Development Essay Did you like this example? Apple is involved in the design, development and marketing of personal computers (PC) and related software, peripherals, network solutions, portable digital music players, and associated accessories. The company’s portfolio of offerings comprises Mac computing systems, iPods, iPhones, and servers . The company’s software applications include Mac OS,iLife , iWork, and internet applications like Safari and QuickTime, among others. The company mainly operates in the US. It is head quartered in Cupertino, California and employs 32,000 employees. The blue colour in the below figure depicting the iPhone presence around the world. Figure: 1. 1 [pic] Source: https://upload. wikimedia. org/wikipedia/commons/thumb/a/a1/IPhone_3G_Availability. svg/800px-IPhone_3G_Availability. svg. png The objective of the assignment is to enhance my marketing plan concepts which I learned in the classroom with practical application of Apple iPhone marketing plan especially its market p enetration in areas like U. S and India. Please see Appendix for company’s information. The objective of the assignment is: ? To critically analyse the marketing strategy of Apple iPhone. To assess the marketing plan and various factors like marketing audits, Marketing mix and different kinds of analysis with respect to the industry in the world of mobile market. ? To report PESTEL and SWOT analysis of Apple iPhone. ? To look deeply into the facts that made iPhone a huge success and also suggest some viable recommendations to help Apple iPhone to make further inroads in the mobile market. ? To discuss the failure of iPhone market penetration in Indian market and the steps for gaining market share in India. ? To discuss the mistakes made by Apple in marketing iPhone. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerin gs. I enjoyed quote from Tim Cook of Apple regarding Apples business philosophy, please find it in Appendix. Figure: 4. 1 [pic] Source: www. learnmarket. net This can be classified into Macro environment and Micro environment. 4. 1 Macro Environment Analysis: The macro environment is a set of forces that affect the company and have an impact on the purchasing power of the consumers. According to Jobber the constituents of macro environment that moves the industry are Political factors, Economic factors, Social/ cultural factors and Technological factors. The analysis of all these factors is determined by PEST analysis: Political Environment: †¢ Taxation is something that governments put and Apple should be study this as country by country case to forestall profitability, and pricing strategy. †¢ Importing laws in the world with GATT are in favor of trading environment. †¢ Countries are very variable in stability, so we should study each country case by case. Tab le 4. 1 |Factor |Impact with respect to iPhone | |Economic environment: |Far be it from Apple to let a pesky recession stand in the way of | |The economic environment depends on the purchasing power of the |a strong sales performance. On Apr. 22 the consumer electronics | |people in a country. As per Armstrong Kotler(2005), the |company reported earnings of $1. 21 billion, or $1. 3 a share, on | |spending patterns and purchasing power of the public play a vital|sales of $8. 16 billion in the fiscal second quarter. That bested | |role. The factors such as disposable income of the people, |the average forecast of analysts surveyed by Firstcall, who | |availability of credit to purchase, prices of the competing |expected Apple to report earnings of $1. 09 a share on sales of | |industries all have an impact in buying power. In case of a weak |$7. 96 billion. | |economy the sales is expected to come down. Results for the period that ended on Mar. 28 were bolstered by | | |sales of the iPhone, especially overseas, and a | | |better-than-forecast margin performance. Strength in Apples | | |handset and music player businesses offset declines in sales of | | |Macintosh computers. | |Sales was also affected by the disposable income of the consumers. | | |Like in U. S where disposable income is high consumers never | | |reluctant to pay 800 USD to buy a iPhone but in places like India | | |where disposable income is low were reluctant to pay 750 USD , so | | |sales were not so great in India. | |Economical growth world wide is in a big recession which need | | |careful manipulation. | | |Potentiality of the market is decreasing but it is higher than any| | |others in the Telecom sector. |Social/cultural environment: |Impact with respect to Apple iPhone: | |The Social/cultural environment comprises of things such as |Population growth leading to expansion of the sector needs for | |demography, consumerism and cultural forces. |cell phones. | |The demography determines t hings such as distribution in the |People depend more on mobile communication everywhere. | |market like younger generation, older generation the kind of |There is educational growth in the world. |families in a locality such as low income group, high income |Culture’s perception of the technological devices is positive | |group etc. The purchasing power varies according to the |worldwide. | |demography. For example the younger generation may wish to buy |Literacy illiteracy level is not affecting using cell phones but| |stylish items and goods are expected to move fast in areas near |affecting high technological cell phones, this fact needs to be | |the bus stand and railway stations. The cultural factors are |considered. | |connected with certain values, beliefs and norms that a |Acceptance of imported products in some countries are less if | |particular group of people follow which also impacts the sale of |there is local provider | |products. The consumerism is someth ing connected with the |There are different social views that may affect product should be| |preference of consumers and the way to establish their rights. |considered (e. g. Boycotting American products in the Islamic | | |world) | | | | | | | | | | |Technological environment: |Impact with respect to Apple: | |For any industry to sustain the competition and keep itself up in|They have huge and extensive R D facilities whose main aim is to| |the market they should have strong R D facilities. This will |create innovative and latest products to meet up the growing | |help the companies to come up with new products and cope up with |customer demands around the world. They are investing more in | |the latest innovations. Technology update will help to improve |equipping themselves with sophisticated technologies and enhanced | |the efficiency and effectiveness of the firm and create a brand |testing capabilities. |value in a territory as well globally. |Level of technology in the worl d is increasing. | | |Internet level of awareness usage for individuals industrial | | |aspect are increasing worldwide | | |Fixed phone lines capacity and development attempts. | | |New technologies in the cell phones are increasing. | | |Future plans for echnological linkage between cities, | | |universities, colleges, hospitals and other institutes are | | |increasing and can be connected to cell phones | | |Level of usage of the E- Technology (online bidding, billing, | | |complaints, blogging etc) are high and trendy. | The Future – Apple plans on focusing on filling personal consumer demands rather than merely fulfilling a demographic requirement as well as, improving performance and stability rather than introducing new features when releasing new versions of any product of its product. Recently Apple has come up with one more tremendous product i. iPad with this it targets the left out market between phone and laptop. Ecological environment: †¢ The global conce rn of the Global Warming issue other pollution effects regarding the packaging material and radiation of the cell phones . The demand of the international environmental approvals is a essential (if there is any). 4. 2 Micro Environment Analysis: According to Michael Porter the micro-environment is best described as the â€Å"structural determinants of the intensity of competition†. They are better known as five forces model of Porter. As per Porter and Jobber there are certain challenges in the micro-environment which an organisation has to see. Here the microenvironment analysis of Apple iPhone. Entry barriers: Apple not only had to face a number of barriers to entry in the development of the iPhone but they must also worry about potential competitors (Google, Microsoft) overcoming them as well. 1. Economies of Scale Apple already had pre-existing experience in manufacturing mass-market consumer electronics devices, many of which portion components of the iPhone; so Appl e was not adversely affected by this barrier. New entrants, however, may not have that luxury and the cell phone market is almost defined by its mass-market (which requires mass production and consumption) environment. 2. Product Differentiation Overall this attribute sides favourably for Apple (right now) because the iPhone is significantly different than its nearest competitors. Apple also has a certain amount of guard through the strength of its brand identity. But this product differentiation can be matched, to a certain degree. Cell phones, in general, are pretty uniform in functionality and use and thus not excessively differentiated between each other. 3. Capital Requirements Apple enjoys a small advantage here, though it’s an advantage that may be quickly lost. The other cell phone manufacturers have a lot of experience making cell phones, but not necessarily software. So, to most effectively compete with the iPhone they will need to invest significantly in convinc ed areas. And Apple also has a lot of experience making hardware, which gives them a head start on some other potential entrants into the cell phone market whose experience lies largely in the software territory. In this sense, Apple itself did not face much resistance with this barrier because of their experience creating both software and hardware. Future entrants looking to enter the cell phone arena are less likely to have that advantage. 4. Cost Disadvantages Independent of Size Apple has a number of manufacturing resources and channels available to it and was able to minimize the impact of this attribute; though this would be a significant barrier to an aspiring entrant who did not have these assets. Apple has, however, invested heavily in knowledge and experience which will take time for competitors to be able to outdo. Furthermore, Apple is in control of at least one patent for the iPhone, which will give them short-term monopoly rights on some of its technology. 5. Ac cess to Distribution Channels While Apple was successful in gaining access to a distribution channel, they also tied themselves solely to a single cell phone network. Furthermore, the iPhone will be only available at Apple and Cingular stores and it is only reinforced by the Cingular network. Not only are they not able to sell to the cell phone market in its entirety but they are making it tough for people to even purchase the phone. A future entrant into the market may be able to make their product available for numerous carriers and multiple retailers. Even in India iPhone is available with operators like Airtel and Vodafone but not as a separate piece. 6. Government Policy Two factors may work to keep competitors from entering this market: the forte of current players’ patents and the regulatory obligations and approval requirements of the FCC, which governs communication technologies (radio, television, wire, satellite and cable) in the United States. Apple applied and was granted a patent for the iPhone, which may help keep competitors to compete with their phone too closely, and are currently in the process of receiving FCC approval for the iPhone. Supplier Bargaining Power: Opportunely for Apple the iPhone is more than the sum of its parts. Arguably, the parts themselves are not that interesting as they are readily obtainable from a number of sources and alternatives exist for most of the parts. What gives the iPhone its appeal is really the software that brings all these parts together and allows the user to interact with the phone in a captivating way. And Apple, of course, developed and owns the software. Further, given the barriers to entry outlined above, Apple has little to apprehension about forward integration from its suppliers. So, in this sense, Apple is not beholden to the impulses of powerful suppliers. Buyer’s Bargaining Power: The buyers of the iPhone are somewhat more potent, though. Broadly speaking the consumers as a group can be considered the principle purchasers of the iPhone, a claim that gains more acceptance given the fact that no large resellers will be selling the phone. And consumers tend to be vulnerable to price sensitivity and alternative choices. Given the relatively high price of the iPhone it remains to be seen whether consumers will pay a premium for Apple status and technological convergence when their needs may be equally met by cheaper alternatives. This is the main reason why iPhone was not hugely successful in Indian market. Industry Rivalry: Eventually the iPhone is going to face the most competition from imitators who can sell a similar or comparable device at a lower price. Most of these threats are going to come from established players in the cell phone industry (such as LG and Samsung) rather than companies trying to enter the cell phone market afresh. This is not to say, however, that new entrants may not be round the corner. Software companies such as Google and Microsoft may pose a credible threat at entering the cell phone market and trying to whittle a niche out for themselves. Microsoft currently has a lot of experience creating software precisely for mobile devices. It remains to be seen, however, if company will take the initiative to enter into the cell phone device market directly rather than content themselves with making licensing software for cell phones. Google already entered into the market with its Android phone though the sales figures are far less than iPhone ,it seems to be potential customer in future. Substitutes: The iPhone mainly differentiates itself from competitors over its user interface which is driven by a multi-touch screen. Apple privileges various patents relating to this technology. However, it is still likely that other players in the market will soon be able to bring similar products. Synaptics, LG and RIM(Black Berry) have already revealed details of coming products which feature touch-screen interf aces, as well. 4. 2. 1 Market growth: Apples smartphone market share growth over 1 year has been 10 folds that of any other of its competitors. However, Apple is still only third in line when counting the number of units sold by each main smartphone manufacturer. Nokia is first, selling a whopping 18,441,000 in the 2nd quarter of 2009, and RIM (Blackberry) is 2nd with 7,678,900 units sold. Apple trails in third, but with the help of this infographic , we can tell that Apple is still besetting up the most profit 32%. The graphic below parallels the total units sold and the market share of the top smart phone manufacturers worldwide: †¢ Nokia †¢ RIM (Blackberry) †¢ Apple †¢ HTC †¢ Fujitsu †¢ Others (includes Motorola, Sony, and everyone else) Fig 4. 2 [pic] 4. 2. Competitor analysis: Fig 4. 3 [pic] Source: https://www. macobserver. com/imgs/tmo_articles/20100105smartphone1. jpg Of course, the intents of a small group of technical users has nothing muc h to do with the overall smartphone market share. The Android market share growth may be at a (spectacular) high rate, yet as in the example above, the absolute numbers can remain small. Lets take a look at the absolute numbers from several sources, including SAI itself. Fig 4. 4 [pic] Source: https://www. macobserver. com/imgs/tmo_articles/20100105smartphone2. jpg The story there was that Apples iPhone user base has exceeded Microsofts Windows Mobile. The chart also gives a feel for the installed base of Smartphone users in the U. S. and the rate of growth. As of October, Google persisted small in absolute terms. Fig 4. 5 [pic] Source: https://www. macobserver. com/imgs/tmo_articles/20100105smartphone3a. jpg All this isnt to say that Googles Android smartphone OS isnt gaining in popularity. It is. But when one looks at market share numbers for the present time, Windows Mobile is still and Apple and RIM are growing in market share and fighting for leading market share in the U. S . Android still has a ways yet to go. 5. 1 Operating results: Apple has posted an operating income of 11. 74 billion USD . Fig 5. 1 [pic] Source:https://fortunebrainstormtech. files. wordpress. com/2010/03/chart_ws_stock_appleinc-03. png? w=220=170 Fig 5. 2 [pic] Source:https://www. 9to5mac. com/files/apple-revenue-by-segment. jpg iPhone sales quarter wise: Fig 5. 3 [pic] Source:https://upload. wikimedia. org/wikipedia/commons/thumb/d/d9/IPhone_sales_per_quarter_siple. svg/800px-IPhone_sales_per_quarter_simple. svg. png 5. 2 Strategic Issues Analysis: Strategic Issues : AT has contractual rights for the distribution and sales of iPhone in the US leading to contractual buyer negotiating power , restrictive customer base decreasing overall profits and market share †¢ Apple needs to address the iPhone’s technical flaws which include but are not limited to its 3G response and non–user replaceable battery. KEY ISSUE: †¢ Apple must get iPhone 3G beyond the yo uthful technophiles and into the hands of ordinary users. This group of customers is great for launching a product, but there aren’t sufficient of them to create sustained growth. The biggest question about the future of the iPhone is whether Apple can reach beyond the early adopters to generate substantial amounts of mainstream demand for the iPhone. Market research: †¢ Four age groups will be targeted: 15-20 years, 20-25 years, 25-45 years, and 45 years and up †¢ High School and College aged people will reveal social uses The 25-45 years group will be used to determine business application and social/personal use †¢ The 45 years and above will give us a plan to market to more senior well-refined group 5. 3 Marketing Mix Effectiveness: Marketing mix effectiveness refers to the 4 P’s of marketing which are Product, Place, Price and Promotion. Table 5. 1 |Product |Price | |Full year warranty along with an optional three-year Apple Care |Set the base model at a cheap price of $349 | |warranty |A more advanced model for 399 | |Same taste as all other Apple products |Special limited edition Beatles iPhone for special prices | |Special edition version to be launched (including the iPhone Beatles|Generally lower our prices to ensure we establish market dominance | |edition celebrating their 40th anniversary) |in as short of time as possible | |Launching a cheaper version in 2008 with less advanced features | | |along with a more | | |advanced version for professional use. | |Adding the following features to the iphone (large disk storage | | |capacity, lower weight, thinner device, long battery life, 4G | | |wireless, GPS and improved camera) | | |Place |Promotion | |Massive rollout worldwide at all reputable major retailers |Integrate Apple message of revolutionary communications and | |Massive rollout Online, Showrooms and in all cell phone providers |audio/visual experience together in all media advertisements | |All Apple Stores the Apple website will dedicate themselves to the | | |iPhone |Differentiate the iPhone against others is the touch screen | |Eye catching displays will be found at all physical stores featuring|functionality | |the iPhone to make the product stand out from the pack . Emphasize Apple brand prominently and associate the iPhone with the | |Apple Stores will have the iPhone on display a full month before |iPod’s groundbreaking lineage | |its worldwide release . |Original but tasteful advertisements at the same time | | |A massive TV campaign is planned before launching the iPhone | | |featuring a soon to be legendary ad to be the talk of the country. | | |Advertising will be appearing on a regular basis to maintain general| | |public awareness . | 5. 4 Marketing structure and systems: Apples 3-Tiered Marketing Model While listening to This Week in Technology a few days ago, the masterfulness of Apples marketing dawned on me. Heres a look at the 3-tiered structure. Whether this st ructure is intentional or not, and whether it would work for any company is arguable. Table 5. 2 |Tier One: The Rumor Sites | |The first level is purely a result of Apples tight-lipped policies and the secrecy that surrounds everything the company does. Because | |of this secrecy and the dearth of any official knowledge, information becomes a valuable asset on which rumor sites capitalize. There are| |several prominent rumor sites that start buzz around Apple products, long before they are officially announced and sometimes months | |before they are launched and ready to ship. | |Tier Two: Mainstream Media | |The second level is the result of exclusivity. Apple doesnt always hand out information freely. Instead, they rely on a few large | |mainstream media outlets such as Walt Mosberg at the Wall Street Journal and David Pogue at the New York Times. By giving these outlets | |information first, not only does Apple ensure that mainstream media provides controlled coverage but it i s arguable that the exclusivity | |helps appease the writers and color their opinion in Apples favor. | |Tier Three: Enthusiasts | |Once mainstream media has all the relevant information, this information then trickles down to enthusiast sites such as Engadget and | |Gizmodo. Not to be outdone by mainstream media and to ensure that their audience gets the information it is looking for, these enthusiast| |sites is where the most detailed and critical analysis happens and the definitive judgment on the products is given. | Though it can be contended that this marketing structure is a product of chance, I think it is more a result of the secrecy that Apple is masked in and the exclusivity of any information coming out of the company; and it shows us how sometimes limited revelation can lead to much more exposure. With respect to the current market set up of Apple its strengths, weaknesses, threats and opportunities can be analysed. Fig 6. 1 [pic] Table 6. 1 |A. Strengths |B. Weak nesses | |The iPhone has several features that add to the strength of the |Like every new product, there are is a set of weaknesses. The iPhone is | |product. These include its unique look and feel accompanied by a |not a 3G device and will not work in technologically advanced countries | |mobile operating system. It has phone sensors that work with the |such as Japan and Korea. All of their phones are 3G compliant. Several | |multi-touch screen, which is a new patented technology. These new |of the iPhone features are also not particularly impressive. These | |features are presented to a large and loyal user base that Apple has |include the fact that it has a sub par camera, standing at about 2 | |accrued over the years. Additionally, marketing was given support from|megapixels as well as its memory not being removable. The phone is | |all over the internet, saving the company over 400 million in |priced around 500 to 600 dollars and surveys have shown that 52% of | |advertising fees. Finally, the fact that the company is first to |consumers are happy with their current mobile device; essentially, this | |deliver in this arena of computer phones is one of its greatest |phone is geared towards the high end consumers. Apple’s choice of | |strengths |distribution channel has also been construed as a weakness as they’re | | |limiting it to only Cingular and Apple retailers. Finally, its purpose | | |is to be questioned – does the phone fulfill corporate duties or is it | | |just an entertainment system | |C. Opportunities |D. Threats | |There is quite a demand for a better mobile computing experience. The |The majority of threats come from other companies including Nokia, Sony, | |iPhone tries to combine both powerful computing as well as |and Google with their respective products. Smart phones are one popular | |entertainment into one system. People have also noted that the Mac OS |example that stands to compete against the iPhone. The fact that these | |applications for desktop can be seamlessly adapted for the iPhone. phones run on the 3G network also puts iPhone behind in the speed race. | |Also, this is the first step towards an Internet Protocol-based |Although the economy is no longer in its volatile stages, the release of | |network. The emergence of Wi-Fi networks is pushing for there to be |the iPhone is still in a time where people are cautious of spending | |visitor fees instead of having a provider lock in users. It is very |money. The last threat is the Cisco vs. Apple trademark-infringement | |likely for the device fees and pay-per-view system to take flight, |lawsuit that may or may not have taken away from the product launch | |eliminating the month to month subscription fee. |steam. | For an organisation to focus on its growth strategy and to achieve its marketing objectives by means of refining marketing activities Ansoff’s matrix will be very useful. It analyses on the existing pro ducts markets and new products markets which can be valuable for any industry to plan its strategy based on that. Figure: 7. 1 Ansoff Matrix [pic] Source: https://tutor2u. net/business/images/Ansoff%20Matrix%20w500. gif Marketing objectives: Based on the above matrix our main marketing objective is comes under the product development ( though I discussed market penetration of iPhone in not so successful Indian market). †¢ Extend on the Apple brand name and link to the established meaningful positioning. †¢ Extend on Apples image of innovation, quality, and value. Measure the awareness and response in order to make adjustments to the marketing campaigns as necessary. Target Market †¢ Differentiate the iPhone from other PDA’s on the market. †¢ Primary customer targets is the middle-upper income professional to coordinate their busy schedules and communicate with colleagues, friends and family. †¢ Secondary consumer targets are high school, college and graduate students who need one portable multifunction device. †¢ Primary business target is to partner with : †¢ large cell phone service providers, AT, Verizon, Sprint and Cellular One †¢ large enterprise software firms where information is critical to the end user. Secondary business target is mid-to mid-size corporations that want to help managers and employees stay in communication or access critical data on the go. †¢ Market segment will consist of companies with $10-$50 million in annual sales. Positioning †¢ Using product differentiation, positioning the iPhone as the versatile, convenient, value-added device for personal and professional use. †¢ Focus on the convenience of having one device for communication, but also music, pictures, and video, and full Internet access. The iPhone will be promoted as both professional and hip. Fig 8. 1 [pic] To bring the iPhone to the front of the business world it is important to research different ways to grow the 15-25 year old group into business uses of the product Brand awareness will be an vital tool in taking the Apple brand from social cool to business cool. †¢ Asking for feedback on iPhone features, and instrument those changes most important to the end user in the next generation iPhone. †¢ Allowing users themselves to design their own ideal iPhone on-line and use any useful ideas to further refine future iPhone models . †¢ Continuously scouring the Apple fan websites to understand what the Mac faithful are saying, as they are our best customers. 8. 1 Competitive advantage: The mobile devices industry is a competitive market conquered by key firms like Nokia Corporation, Samsung Electronics Company, and Motorola, Inc. These companies, which have extensive product lines, capture a large share of consumers in the mobile devices industry. However, the release of Apple, Inc. ’s iPhone, in June of 2007, positioned the company as a direct competitor in th e industry as the iPhone offered a variety of unparalleled features. Although the product has challenged various problems since the unveiling, Apple has done well to identify key internal and external threats that challenge the success of the iPhone. Conceptual frameworks, such as Porter’s fives forces model and VRIO analysis (Value, Rarity, Imitability, Organization) found Apple’s resources and capabilities and identify the organization’s positioning within the market. The analysis also provides an understanding of Apple’s current competitive advantage and delivers information necessary for strategic planning. From these studies, it is apparent that the iPhone has had marvellous success per volume of sales. However, with Apple’s severely limited product line, little product diversification capabilities, and the recent release of similar alternatives, such as the T-Mobile G1 by Google and the Dare by LG, the iPhone’s competitive advantage seems transitory. New strategy and direction is related to the continued success of Apple’s iPhone. After having marketing objectives and strategy marketing mix decisions has been postulated. Table 9. 1 Product: A cheaper less advanced iPhone along more advanced version of the iPhone for professionals with these additional features| |will attract extra consumers: | |Larger, removable disk storage capacity – support for USB memory sticks, digital camera memory cards, external hard drives. | |Lower weight and thinness – should fit into a wallet or become the wallet (with features to act as a credit or debit card). | |Significantly longer battery life – should play movies for twice as long; battery should be easily replaceable. | |4G wirelesses – even faster, more incredible speeds than ever offered on this sort of device. This will leapfrog the competition. |GPS functionality – more precise information on location. Can link with software to a dd even more functionality. | |Peer to peer wireless exchange – Zune has this. Lets us easily share your music and pictures. | |Improved camera – For more detailed pictures and high quality video conferencing. | |Pricing: It has to lower prices to ensure we establish market dominance in as short of time as possible. | | | |Distribution: It has to sell their phones without any tie-ups with operator in the markets like India where number portability is| |not exist, then only consumers can shift to new mobile without changing their old number. | | |Marketing and Communication: Marketing should focus regional base rather than depending only on operator promotional | |advertisements, this will attract new customers especially markets like India where operator and mobile device is entirely a | |separate thing. | †¢ Apple iPhone’s break-even analysis assumes wholesale revenue of $500 per unit variable cost of $250 per unit and established fixed cost of $50 million . Based on these molds the break-even calculation is $50 million divided by $500 minus $250 equals 200,000 units sold. Break-even calculations indicate that Apple will become profitable after the sales volume exceeds 200k. After the first year Apple will make a profit of 1. 25 billion minus 50 million in fixed costs. †¢ Suggested price is $350. The markup is 40 percent. †¢ It is foretold that sales volume will increase at least 60 percent from this change; this will decrease the impact of fixed costs and improve opportunities to increase Apple’s production scale, which will further progress profits in the long run . Compensation system †¢ workers $5 incentive pay for every non reject phone they produce †¢ $10 per phone six sigma quality program †¢ On each worker $5000 each year for best practice training Feedback: Uses control measures to closely observe quality and customer service satisfaction consumers can contact the main headquarters about any possible technical problems – by using Apple Customer Service Bar and a customer service phone number stored in the phone book In case of slow sales : †¢ Offer iPhone to customers who have purchased other Apple products which will lead to: †¢ Determine the product for consumers, it will promote synergy and lure buyers. †¢ Develop deep relationships with two very different sectors: those who have it and those who aspire. To plan the strategy apple team meets monthly with the board of Apple, present their information, and make a proposal for continual marketing efforts. Before each meeting their team will meet in private, with each person presenting their own proposal based on the information they have cultured. After the initial proposals, they will vote on the best one or come to a conciliation. The final proposal sent beforehand Apple is the result of that meeting. Apple has not seen success in India (which has highest growth in mobile market) as seen in t he other parts of the world. The position of iPhone in Indian mobile market is 22nd. Wharton marketing professor Peter Fader is inclined to believe that Apple may have a smarter strategy for its Indian iPhone launch than is immediately apparent. If you compare [the iPhones] U. S. aunch to the India launch, it is a beautiful example of the distinction between a penetration strategy and a skim strategy,' he says. Here in the U. S. , Apple basically wanted to bust the market open all at once. So, they had all these people lined up all around the block, and when they flipped the switch boom! the market existed. In India, its almost like they are doing a test market. The other reasons for slow pace of Apple iPhone in India is of technological advancements , like 3G service( which is USP of iPhone) is yet to come in India . I am providing primary data which I collected through a survey of 180 members to support my recommendation. Fig 13. 1[pic] G service increases usage of internet , a nd majority wants to use internet on their mobile. Fig 13. 2 [pic] There is no number portability among operators( So users are unwilling to change to operator tied up phone like iPhone) . Fig 13. 3[pic] Indian customers are accustomed to GSM services and they frequently change their SIM cards which gives better deals, so most of customers are reluctant to buy operator linked phones. Fig 13. 4 [pic] To improve market share , Apple needs to address price sensitivity of Indian consumer who are not willing to buy a phone for 700 USD (other competitor mobiles like Nokia,LG and Samsung can buy at half of this price) more analysis given regarding this in reflexive account. Fig 13. 5 [pic] The other improvements that Apple should consider are message forwarding and MMS service which are important now a days, and also Apple does not provide regional dynamic product but consumers always wants to have some extra Apps like color splash and mobile money( these are some of the findings of the my survey). So in addition technological advancements like 3G and number portability which are on the roads, if Apple considers other factors which I mentioned in the above then it will definitely encourage consumers to buy this great product. When it comes to the already successful markets like U. S, in order to gain more market Apple should introduce iPhone with different models and designs as mobile is identity every body wants it to be different from others. I have always had admiration for Apple C. E. O Steve jobs so as for Apple products which made me to choose Apple iPhone as my product and prepare marketing plan for it. I have used Apple iPhone and have experienced the quality of the product and I though it will make more sense for me to choose this product as I can apply my real time experiences also in this. Though I had flair for this industry the details that I collected throughout the process of documenting this assignment made it more fascinating. The Macro and Mic ro environment analysis required extraordinary research as different aspects of information has to be collected regarding different markets like U. S ,India etc and its past policies, present scenario were also to be compared. Porter’s five forces analysis had extended my understanding of the facts regarding buyers, suppliers, entry barriers etc and how an industry should handle itself in these situations. The SWOT analysis preparation provided me a detailed picture regarding the company’s strengths, weaknesses, opportunities and threats. They were carefully depicted in the assignment so as to avoid any wrong information being scattered. While preparing the marketing mix my abilities were ignited in terms of visualising the facts. It needed in depth research of the company’s marketing strategy and my suggestions as a Apple fan to improvise the sales of the industry. I was able to apply myself as a responsible marketer and bring out the hidden talents in me to make my product a huge success. I was able to come out with creative ideas and learning from theories and research has actually broadened my views as a marketer with confident perception. There are lot of things that I have learnt from this coursework. I was able to first understand the role of a marketer and the advantage of a marketing plan. The pros and cons that have to be examined while promoting and selling the product. The brand value though speaks it is the competence of the marketer to make the product success. The concept of target sector taught me that all sorts of people should be targeted. Right from the common man to rich people the product should be accessible. The role of a marketer is not simple and he should be unceasingly aware of the trends and be ethically responsible for the sale of his company’s products. Thus I found this coursework to be extremely useful for enhancing my skills and views as a marketer and self-reliant that this will stand in go od stead for my future as a marketer. Marketing mistakes by Apple: Table 14. 1 |Mistake #1 The iPhone Pricing at market launch. | | | |Apple made a big marketing mistake in 2007, by reducing the iPhone retail price from $599 to $399 a 33% rebate after only 3 months | |from the initial product launch. This way the iPhone early adopters and Apple most faithful costumers have rightfully felt being | |betrayed and exploited. | | | |A great company must not do so serious and bad mistakes, betraying their most faithful customer base. | | | |They had other 3 better options: | |They could have waited 6 more months before reducing the price of the iPhone, or they could have delayed the iPhone launch for 3 months, | |or they could have decided to price the iPhone at $399 since the initial launch. nd since July 2008, the iPhone 3G is sold at $199, 50% | |less than the September 2007 price, 66% less than the launch price of just one year earlier. | | | |Mistake #2 Forcing costumers in s igning with AT as exclusive carrier and the revenue sharing business model. | | | |It has been a greedy and wrong marketing strategy on the side of Apple. Result: slowing down the sales of the iPhone. 3. 3 million iPhones| |were sold in the US between June andl December 2007, but only 2 million contracts were signed with AT. Were did the remaining 1. 3 | |million iPhones go? | | |Mistake #3 the Apple iPhone and the Europe markets | | | |The US makes 300 million inhabitants. | |Western Europe makes 350 million inhabitants, more than the whole US. | | | |On June 29, 2007 the iPhone was launched in the US. Only in November 2007 the iPhone was launched in some European countries. To be | |precise only in 3 countries: UK, Germany and France. In each of these country with the same stupid and self hammering business model used| |in the US, and in each country with a different carrier: O2 in the UK, T-Mobile in Germany, Orange in France. | | |Only on July 11, 2008, one full year later, the iPhone has been launched in several other European countries, as Italy, Spain, | |Switzerland, Austria, Ireland, Denmark, Norway, Sweden, Finland, Netherlands, Belgium. Why so late? | | | | | |It gets interesting to see the jam and confusion of prices, terms and monthly fees charged by the many different carriers in Europe: O2 | |in the UK, T-Mobile in Germany, Austria and Netherlands, Orange in France, Swisscom in Switzerland, Vodafone in Italy, Telia Sonera in | |Denmark, Norway, Sweden, Finland. The iPhone 3G Price in Europe | | | |On July 11, 2008 the iPhone has been launched also in other key countries worldwide: Australia, New Zealand, Canada, Japan, Mexico, | |Brasil. | | | |In conclusion: a great lesson from Apple on how to undermine a great product adopting a stupid, greedy and self hammering marketing | |strategy. | |Mistake #4 iPhone failure in Indian market.. | |Everybody was anticipated iPhone’s success in India including me, but that was not the case. I foun d out some interesting reasons or | |factors which might caused the low penetration level of iPhone in India. | |Unlike the initial argument that it was the steep price tag that queered the pitch for iPhone in India,there is more to the debacle than | |just the pricing. Besides a very high price tag, one main reason behind iPhone’s failure in India is that there was a very weak link as | |far as consumer confidence was concerned. | | | |Apple’s rivals in India, industry observers and analysts say that a flawed sales and distribution model and communication failure were | |the biggest reasons behind iPhone’s debacle. The company failed to strike a connect with Indian consumers. | | | |India not a priority market? | |Selling huge numbers in India was not even Apple’s game plan, it seems. Around the time of its launch, the company had said it hoped to | |sell 10 million units | | | |Not good enough: | |While Airtel ran commercials outsourced from Apple for four weeks on a few TV channels,Vodafone used the envelopes of the mobile phone | |bills sent to its customers to apprise them ofiPhone’s launch in India. Globally by December, whereas in India, it would ship 100,000 | |phones by December 2009. Clearly, Apple wasn’t expecting big sales from the market. | | | |Yet, what is surprising is that the company didn’t even manage to achieve this target. Apple had imported around 50,000 phones at the | |time of the launch but had only managed to sell around 11,000 units so far. |Analysts argue that by downplaying India, the world’s second largest and fastest growing telecom and handsets market, Apple may have | |missed not only a big opportunity to sell one of its blockbuster brands but also to lay the ground for its future products. â€Å"Around 120 | |million handsets are soldin India every year and, of these, almost 4% to 5% are smartphones. Nokia has around 60-70% share of this | |market. | | | |Clearly, Apple had a big opportunity to establish itself in this market and, if not break market leader Nokia India’s monopoly, then at | |least give it a tough fight. It’s anopportunity that is now being assiduously chased by rivals such as Samsung Electronics Co. Ltd and | |Research in Motion Ltd, or RIM, the makers of BlackBerry. | | | |It’s not about price | |IPhone’s comedown in India has been described as a pricing failure by most. But on the face of it, it doesn’t seem logical. Priced at | |Rs34,999, Nokia N96 costs around Rs4,000 more than iPhone’s 8GB handset and Rs1,000 less than its 16GB model. IPhone’s other rivals, such| |as Samsung’s Omnia and BlackBerry Bold, are priced even more steeply . More than the price, it was the pricing communication that | |hurtiPhone in India. | | | |Apple CEO Steve Jobs had made a public announcement that iPhone would be priced at $199 globally (about Rs9,490). This built a false hope | |in the minds of those consumers who wanted to buy it and turned away those who could have actually bought it. | | | |IPhone is being sold at $199 in the US and at similar rates in several other markets, yet Apple couldn’t have offered Indian consumers | |the same price because the market dynamics here are very different. | | |The US is predominantly a post-paid market where consumers buy the handsets from service providers under different deals. Carriers such | |as AT Inc. can afford to sell the phone at $199 because they can recover the real cost by raising call charges or through some other | |options. AndApple doesn’t get hit in the process because carriers give it the actual price. | | | |This, however, is not possible in India because it is mainly a pre-paid market. Here, most consumers change their handsets, and even | |service providers, quite frequently in favour of cheaper options. Also, handsets have never been traditionally sold by service providers. | | | | | |Apple had to tag the product with its real price because its licence holders in India, Bharti Airtel Ltd and Vodafone Essar Ltd, couldn’t| |have subsidized the price. â€Å"The reason why the price of an iPhone seems so high (in India) is because it is not sold on a contract. This | |selling process has not yet caught on here. | | |The two service providers, however, are providing finance options for as low as Rs2,600 a month to make it easier for those who want the | |product. But this hasn’t helped much. | | | |Some market observers argue that Apple’s distribution and sales strategy in India was flawed from the word go. To begin with, the company| |licensed the iPhone to two service providers (Airtel and Vodafone) who didn’t have any experience in the retail selling of handsets, | |which is a complex business in India involving different strategies for different income groups. | | |Second, these service providers decided to sell the handset only a t their outlets, thereby limiting its availability. Also, they | |antagonized the big organized retailers in the process (the Top 10 organized retailers are estimated to have a 50% share in total sales). | |Third, selling not being their core area of expertise, these companies couldn’t pitch it to the potential consumers aggressively. | | | |The service providers’ strategy to sell it with a lock-in clause may not have gone down well with consumers. This meant iPhone buyers | |cannot retain their handset should they wish to switch operators despite having paid the cost of the handset upfront. This condition was | |a big dampener, especially because from next year, Indian consumers will have the freedom to changeservice providers without having to | |change their number or handset. | | | |The other most evident flaw was its inability to strike a connect with consumers. Unlike in the US, where a month-long marketing and | |advertising blitz preceded the debut of the iP hone, Apple didn’t run any of its own campaigns in India. All the marketing communication | |was left to the two licence holders. What consumers saw was a round of print advertisements on the launch date that announced the arrival| |ofiPhone and a few billboards in key cities. | | |While Airtel ran commercials outsourced from Apple for four weeks on a few TV channels, Vodafone used the envelopes of the mobile phone | |bills sent to customers to tell them aboutiPhone’s entry into India. | | | |Even if you’re selling a niche product, the communication needs to be there on what’s on offer and to get (make) people curious. | |Otherwise buyers won’t be enthused. | | | |People who buy high-end products buy them either for their technological advantage or to enhance their status. So, marketers promoting a | |high-end product must bring out the technology and exclusivity factors in a vibrant manner. | | |Ambiguous positioning | |Some advertisers say iPhone ’s positioning in the market was ambiguous. â€Å"IPhone was positioned as a lifestyle product but in India, the | |company or its licence holders did nothing to make it seem aspirational. | |On the contrary, Nokia did a smart thing by positioning N96 as a convergence product. It immediately struck a connect with its target | |consumer for the communication was focused on its attributes. | | | |Airtel spent only around Rs3-4 crore on iPhone’s advertising. On average, they spend around Rs14-15 crore on their new launches. The | |licence holders, however, argue that they were discreet in advertising for strategic reasons. | | | |Apple’s strategy was not to sell a million phones in India. It only wanted to establish a presence in the country. Customers who were | |interested in buying iPhone were already aware about iPhone’s launch in India. | |To be sure, some of iPhone’s rivals also went for a low-key entry into the market at the time of their l aunch but now, with the market | |heating up, they are pulling up their socks. | | | |Its own failure notwithstanding, iPhone managed to stir the smartphone market in India quite successfully. To pre-empt its success, Nokia| |launched its N96 series, Samsung came out with its own version of the iPhone, and RIM is set to launch its BlackBerry Storm model soon. | |Google Inc. has also come out with its Android mobile phone software that can help Apple’s competitors better many of the iPhone | |features. | 1. Ablett. J et al, 2007, Mckinsey Global Institute, The Bird of Gold: Rise of India’s Consumer Market. 2. Jobber, D. (2007). Principles and Practice of Marketing (5th edition). Published by McGraw-Hill Education. 3. Jobber. D. , 2010, Principles practices of Marketing, 6th edition, McGraw hill education. 4. Kotler, P. (2000). Marketing Management (11 edition). Pearson Education, India. 5. Kotler. P, Keller. K, Koshy. A, Jha. M, 2009, Marketing Management, A Sout h Asian Perspective, 13th edition, Pearsons Prentice hall. 6. Porter E. M, 2008, On Competition, 2nd edition, Harvard Business Press, NY. 7. Performance report of Apple available at https://www. apple. com/pr/library/2010/01/25results. html. [Accessed 2nd April 2010]. 8. The organisation structure of Apple available at https://www. stern. nyu. edu/mgt/private_file/mo/rfreedma_ca/apple. pdf. [Accessed 31st March 2010]. 9. Company Analysis of Apple available at https://www. appleinsider. com [Accessed 2nd April 2009] 10. Competitor Analysis of Apple iPhone available at https://www. pf. com/marketResearchPDInd. asp? repId=515 . [Accessed 3rd April 2010]. 11. Market Details of Apple iPhone available at https://www. tuaw. com/2009/01/02/apple-market-share-tops-10-windows-share-lowest-since-tracking/ [Accessed 4th April 2009]. 12. Company history and profile available at https://apple-history. com/ . [Accessed 4 April 2010]. 13. Macro- environment analysis overview available at https:/ /www. oup. com/uk/orc/bin/9780199296378/01student/additional/page_12. htm. [Accessed 5th April 2010]. 14. Survey has been done through www. surveymonkey. com 15. https://knowledge. wharton. upenn. edu/ 16. 1 About the company: The Apple Computer was incorporated in 1977. It was co-founded by Steven Wozniak and Steve Jobs. They introduced the first Apple I computer in 1976. The Apple I was a failure but Apple II launched in 1980 was successful. The company offered its IPO in the year 1980. In the early eighties, competition from the PC market and internal difficulties led to critical management changes. By 1983, Apple Computer encountered danger with the entry of IBM into the PC market, and the failure of its Apple III version computer. Apple Computer introduced its first mouse driven computer, the Macintosh in 1984. By 1990, the market was flooded with cheap PC clones and Microsoft had launched Windows 3. 0. In 1994, the company launched the PowerPC chip based PowerMac. This n ew chip allowed Macs to compete with the speed of Intel’s PC processors. Apple Computer still had problems though and in 1995, the company had a $1 billion order backlog. These problems were compounded by the launch of Windows 95. The company’s performance nosedived in 1995-1996 when it lost $68 million. In 1996, Apple Computer acquired NeXT, and NeXT’s operating system, Rhapsody became Apple Computer’s next-generation operating system. By 1997, Apple Computer had incurred huge losses running in millions of dollars. Steve Jobs, the original co-founder returned as interim Chief Executive Officer. Under his leadership, Apple Computer reorganized to concentrate on its more profitable competencies. Apple Computer divested its unsuccessful spin offs, including Newton, its personal digital assistant line of products during this period. Soon after Steve Jobs returned, an agreement was made with Microsoft, and was subsequently followed with the appearance of M S Office on Mac PCs. In 2001, the company acquired PowerSchool, one of the providers of web-based student information systems for K-12 schools and school districts. The company acquired Spruce Technologies, a privately held company involved in developing and marketing DVD authoring products, in the same year. In the following year, Apple Computer, Ericsson and Sun Microsystems formed an alliance to create a standard format for delivering multimedia content to wireless devices, such as smart phones and PDAs. The alliance combined Apple Computer’s QuickTime video creation software, Sun’s content distribution software and hardware, and Ericsson’s mobile infrastructure and services expertise. Apple Computer pursued a number of acquisitions during 2002. The company acquired Prismo Graphics, Silicon Grail and certain assets of Zayante, and also acquired the German based specialist music software manufacturer, Emagic, which became a wholly owned division of Apple Co mputer. Additionally, in the second quarter of 2002, the company acquired certain assets of Nothing Real,a privately held company engaged in the development of high performance tools designed for the digital image creation market. 16. 2 Apple business mission : I enjoyed this quote from Tim Cook of Apple regarding Apples business philosophy: There is an extraordinary breadth and depth and tenure among the Apple executive team, and these executives lead over 35,000 employees that I would call all wicked smart. And thats in all areas of the company, from engineering to marketing to operations and sales and all the rest. And the values of our company are extremely well entrenched. We believe that were on the face of the Earth to make great products, and thats not changing. Were constantly focusing on innovating. We believe in the simple, not the complex. We believe that we need to own and control the primary technologies behind the products we make, and participate only in market s where we can make a significant contribution. We believe in saying no to thousands of projects so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we dont settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when were wrong and the courage to change. And I think, regardless of who is in what job, those values are so embedded in this company that Apple will do extremely well. 16. Indian mobile market leaders : Apple’s iPhone position is 22nd. [pic] Source: https://images. betanews. com/media/3908. png 16. 4 Apple iPhone questionnaire for Indian market. 1. Do you prefer buying iPhone in India if prices are slashed to Rs 17000? |[pic][pic]YES |[pic][pic]NO | 2. Do you prefer buying iPhone with service provider( Airtel, Vodafone) or buying as a separat e piece? |[pic][pic]YES |[pic][pic]NO | 3. Would you consider buying iPhone if 3G service starts i Don’t waste time! Our writers will create an original "Apple Inc Marketing Plan" essay for you Create order