Is Apple Entry Into The Mobile Telephone Sector Marketing Essay

Is Apple Entry Into The Mobile Telephone Sector Marketing Essay According to Michael Porter (1979), industry is being influenced by five forces. The strategic business manager planning to develop an advantage over rival firms can use this model to better understand the industry plans in which the firm operates. Since iPhone is only offered by single networks such as O2 in UK and ATT in US, customers of other networks will have to wait until their contract expires, or pay an early cancellation fee (typically $200). The average duration of a cell phone contract is 2 years, which means that 25% of consumers plans will expire in the next 6 months. Since a $200 switching fee makes the iPhone very expensive. Apple introduced the device at high price for early adopters to earn abnormal profits and it slashed down iPhone price by 50% for rest of market segment. For Reference, In US When it reduce the price from $599.99 to $399.99 consumer were force to deal with the mobile carrier AT T mobility, in service package ranging from $59.99 to 99.99 per month. But in UK, low amount of inclusive minutes was not competitive. For reference, O2s iPhone deal allowed 200 inclusive minutes for pound 35 versus competitors that offers of 750 minutes in addition to a free phone. Apple reduces its prices or introduces new models for price-sensitive consumers, and its sales could expand considerably. Barriers to Entry/ Threat of New Entrants Ultimately 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. Software companies such as Google and Microsoft may pose a credible threat at entering the cell phone market. 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. Economies of Scale Apple already had pre-existing experience in manufacturing mass-market consumer electronics devices, many of which share components of the iPhone; so Apple 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) nature. Product Differentiation The iPhone is significantly different than its competitors product. Apple also has a certain amount of protection through the strength of its brand identity. iPhone launch was extremely different technology from other mobile companies. But to keep product differentiation consistent in long run would be challenge for Apple. Capital Requirements Apple enjoys a slight advantage here, though its 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 certain areas. And Apple also has a lot of experience making hardware and software, which gives them an advantage to some extent over their competitors. In this sense, Apple itself did not face much problem with this barrier because of their experience creating both software and hardware. Future competitors looking to enter the cell phone market are less likely to have that advantage. Distribution Channels The iPhone will be only available at Apple and single network stores and it is only supported by the Single network such as o2 in UK. They are not able to sell iPhone in cell phone market and also they are making it difficult for people to even purchase the phone. A future entrant into the market may be able to make their product available for multiple carriers and multiple retailers. For instance, iPhone was available through 1300 Apple, O2 and Carphone warehouses shops in UK. Supplier Power The iPhone software that brings all features together and allows the user to interact with the phone in a compelling way. And Apple, of course, developed and owns the software. A producing industry requires raw materials labour, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industrys profits. But in case of Apple, The Software, Hardware, component is developed and owned by Apple itself. Hence, they have less threat from powerful suppliers. Buyer Power Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. Although the iPhones functionality would be attractive to business users, its price is considerably higher than that of Blackberries .This makes enterprise purchases unlikely, since businesses are typically price sensitive. However, the iPhones compelling mix of features makes it attractive to a broad set of cell-phone consumers. The iPhones market is limited by two factors: 1) the high price ($499 for 4 GB) and 2) Apples exclusive US carrier agreement with Cingular (For example AT T, O2).In case of Apple the buyers of the iPhone are somewhat more powerful. Given the relatively high price of the iPhone it remains to be seen whether consumers will pay a high price for Apple iPhone features when their needs may be equally met by cheaper alternatives. Threat of Substitutes A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose. The iPhone mainly distinguishes itself from competitors over its softwares and hardwares which are driven by a multi-touch screen. Apple claims various patents relating to this technology. However, it is still likely that other players in the market will soon be able to deliver similar products. Synaptics and LG have already disclosed details of coming products which feature touch-screen interfaces, as well. Software companies such as Google and Microsoft may pose a credible threat at entering the cell phone market. Evaluation Being aware of huge competition in mobile phone market, I decided to use porters five forces model to do analysis and based on analysis, I found that there is tough competition for mobile operators who act as both substitutes and new entrant. In the next 3-5 year if we see the industry would be more competitive than today. So many firms will be competing in the market and new firms will be try to come in the market for taking the advantage of profitability, which would reduce the profit of the firms. Consumer will have more choice because of substitution, and they can force the companies to reduce the prices of their product. And the supplier will have the power to raise the price of the raw material because of the high demand on the same time. Word Count: 1,109 words

Mexico :: essays research papers

Why should I invest in Mexico? Mexico has established itself as one of the biggest emerging markets in the world today. It has exhibited many of the signs of a high growth economy, offering several advantages to prospective investors. Some highlights of the Mexican economy include single-digit inflation, a balanced public budget, real economic growth (presently at a rate of 12 percent), a deregulated economy and a favorable investment climate etc. Mexico also possesses a strategic geographic location as a gateway to Latin American markets. Mexico is among the fastest- growing export markets for the United States. In 1985, Mexico became the third largest market for total U.S. exports, behind Canada and Japan. In 1992, Mexico surpassed Japan as the second largest export market for U.S. manufactured goods. Mexico now has become the second most important U.S. trading partner after Canada. U.S. exports to Mexico have grown at double-digit annual rates in every year since 1995, culminating in an astonishing 28 percent growth in 2000. U.S. exports to Mexico grew from $46 billion in 1995 to more than $112 billion in 2000 -- more than our 3rd and 4th largest trading partners, Japan and the U.K., combined, and more than double the value of U.S. exports to the entire European Community. U.S. export growth to Mexico has been buoyed by strong growth in Mexican GDP. The Mexican economy grew a remarkable 7 percent in 2000. Growth declined sharply in 2001, however, in concert with the economic slowdown in the United States. Projections for 2001 have been scaled downward from an initial 5.5 percent to a second quarter estimate of 2.5 percent, and are likely to go lower still. This could be the first year since the inception of NAFTA that U.S. exports to Mexico fail to grow at double-digit rates. Political developments in Mexico have contributed to the country's long-term market potential. On July 2, 2000, voters elected a more plural Congress and chose Vicente Fox of the opposition PAN party as President, ending 71 years of one-party rule by the PRI at the federal level. It is difficult to overestimate the importance of Fox's victory, which marks the first opposition presidency in Mexico's modern era, and symbolizes Mexico's march toward increased pluralism and more open democracy. Fox's priorities include expanding legal avenues for Mexicans seeking employment in the United States, reaching a lasting peace in Chiapas, enhancing foreign trade and investment, and reforming Mexico's fiscal policies.

Are BHA and BHT bad for you? Essay

The foods we consume can have different kinds of compounds in them that we didn’t know about. These compounds added to the foods we eat are not always detectable. For instance certain compounds can be listed on the nutrition label and we can’t even taste or see them. Butylated hydroxyanisole and butylated hydroxytoluene, also known as BHA and BHT, are both phenolic compounds that are added to certain foods in order to preserve fats and oils. Even though these compounds are used to preserve the foods we eat, how do we know that BHA and BHT aren’t bad for us? Even though BHA and BHT have minimal negative effects, they are outweighed by many beneficial attributes and are not bad for us. Knowing what these compounds are made of, what their functions are, and how they work will help in answering this central question. Even though BHA and BHT both have the same function, they have different characteristics. â€Å"BHA is a mixture of the isomers 3-tert-butyl-4-hydroxya nisole and 2-tert-butyl-4-hydroxyanisole, also known as BOA.† The molecular formula of BHA is C11H16O2. BHA can be a yellow tainted or white waxy solid and can have an aromatic odor. BHT â€Å"also known as 3, 5-di-tert-butyl-4-hydroxytoluene; methyl-di-tert-butylphenol; 2, 6-di-tert-butyl-para-cresol,† has a molecular formula of C15H240. BHT physically looks like a white powder. Even though BHA and BHT are used for the same things, BHA is more stable at higher temperatures than BHT so it is used more. There are other antioxidants that can be used like NDGA but they are more expensive than BHA and BHT. BHA and BHT can be found in certain foods or can be found in certain food packaging. BHA and BHT do not have to be directly put into food and products to work. They can be placed in the packaging of food and will have the same effect. These compounds have not only been used to preserve food, but animal feed and some cosmetic products as well. Without BHA and BHT the foods we eat and products containing fats and oils would not be preserved as long as they could be. The use of BHA and BHT enables us to consume foods for a longer period of time. These compounds are antioxidants. â€Å"Oxygen reacts preferentially with BHA or BHT rather than oxidizing fats or oils, thereby protecting them from spoilage.† BHA and BHT are placed either in or inside the packaging of foods so the oxygen reacts with these compounds instead of reacting with the food which in turn will spoil it. In a sense BHA and BHT slow down the oxidizing of fats and oils because eventually most food expires or goes bad and becomes inedible. BHA and BHT are also â€Å"fat soluble and are incompatible with ferric salts.† Since BHA and BHT prevent the fat and oils in food from spoiling, they also prevent the fat and oils in some cosmetic products from spoiling. In addition to preserving cosmetics BHA and BHT are also used in certain pharmaceuticals to be prevented from oxidizing. BHA and BHT can be found in many different kinds of food products. They can be found in â€Å"breakfast cereals, snack food, chewing gum, vegetable oils, shortening, potato flakes, granules and chips, enriched rice, and candy.† BHA and BHT can be found in certain cosmetics like lipstick, lotion, and moisturizers as well. These compounds are also placed inside the packaging of foods. Sometimes when opening a snack or box of food there is a little white package that says â€Å"DO NOT EAT† or â€Å"THROW AWAY† on it. It is usually a white or clear substance inside. Those packages are silica gel, which are similar to BHA and BHT because they are all used in preserving foods, except silica gel is not used in foods and is not safe to consume. BHA and BHT compounds are also found in rubber and petroleum products, and animal feed. Sometimes you can see if a food or product contains BHA or BHT when reading the nutrition label. On the nutrition label sometimes it will say â€Å"BHT has been added to the packaging.† Foods and products that contain fats and oils in them can benefit from BHA and BHT so they can be preserved and therefore used for a longer period of time. BHA and BHT aid in other things relating to the prevention of food and products from becoming rancid due to the oxidization of the oils and fats. â€Å"BHT also prevents oxidative rancidity.† BHA and BHT preserve the color of foods and products as well. When foods or products containing fats and oils become spoiled, their color can change. For example when cereal goes bad it can become stale and moldy which will change its color. BHT and BHA also help maintain the odors of foods and products. When a food becomes rancid it can develop a bad smell. When milk spoils you can tell just by taking the lid off that it instantly has a sour smell. BHT and BHA also help preserve the flavor and taste of foods. After a food has been spoiled, in most cases it has a rancid taste and is not enjoyable or even edible. With BHA and BHT the color, odor, and flavor of foods are being maintained for a longer period of time. BHA and BHT help preserve our foods and products so they are safe to ingest and use in minimal amounts. Even though these compounds have been in many of our food and cosmetic products for a very long time, you can’t help but wonder if they are really safe to come in contact with. â€Å"BHA and BHT were given, generally recognized as safe, GRAS, status and no additional studies were required.† Even though these compounds are considered safe, the amounts in which we receive them are limited. Just because BHA and BHT preserve our foods does not mean we can use mass amounts of them in our foods and packaging to prolong the oxidization process. â€Å"The FDA limits their use in food either alone or in combination with other antioxidants to less than or equal to 0.02% of the total fat and oil content.† BHA and BHT can only be used in these limited amounts enforced by the FDA. It is impossible to ingest or come in contact with too much of BHA and BHT because manufacturers add them is such small amounts. If BHA and BHT were not safe to be used in products and product packaging, the FDA would have banned their use by now. BHA and BHT have been used since 1958 and are still being used today. These compounds are not dangerous to use but have been linked to minor health effects in humans. Lots of animal toxicology has been done with these two compounds, but there have only bee n few records of human reactions to BHA and BHT since its use. â€Å"In 1973 Fisherman and Cohen reported on seven patients with asthma, vasomotor rhinitis with or without nasal polyps, or the combination, who were suspected of intolerance to BHA and BHT.† Even though these patients had these health effects when taking BHT and BHA the details were not given as to why BHA and BHT were considered the reason for these complications. Also another study similar to this was conducted but the same results were not achieved which has proven it inconsistent. â€Å"There are no published reports of BHA or BHT challenges resulting in well documented, reproducible asthmatic responses.† Even though it was found that seven patients had asthma, it cannot be directly related to the ingestion of BHA and BHT. In a different study done in 1975 it was found that after giving patients a total dose of 17 mg of BHA and BHT, they developed recurrent urticaria which is also commonly known as hives. â€Å"Six of 47 tested to BHA reacted, and 6 of 43 reacte d to BHT; it is unclear whether these were the same six patients.† Even though BHA and BHT could have been the cause of urticaria in these patients, it is a very small number of people who reacted to it this way and is not recurring. This does not prove that BHA and BHT are harmful and will always cause people to get hives when ingesting or coming in contact with these compounds. â€Å"Delayed hypersensitivity contact dermatitis through a variety of occupational or medicinal exposures is well documented, but not common.† Skin irritation has been related to BHA and BHT intake but only from very minimal experiences. Urtcaria resulting from these compounds is not common and is not documented as a direct relation to one another. Even though these concerns have resulted from BHA and BHT use, it is not proven to be the cause of these effects on humans The only main concern of BHA and BHT is their carcinogenicity. Carcinogenicity is something that has a tendency to cause cancer in humans. Animal tests using BHA and BHT â€Å"have shown to be cancer promoting and cancer inhibiting.† In some tests BHA and BHT had prevented tumors from developing in mice, and in others the BHA and BHT promoted the development of tumors in mice. Determining whether these compounds promote or prevent cancer in humans depends on various aspects. â€Å"The time of administration, type of carcinogens already present in the body, and the target organ affected,† are a few things that would determine whether it promotes or prevents cancer from arising in humans. Even though the carcinogenicity of these compounds is unsure, the use of them was not prohibited. Any kind of chemical compounds can have suspected negative effects on humans. Even though BHA and BHT have had minor effects, their benefits significantly outweigh those effects. The main benefit of BHA and BHT is of course to preserve food and products for a longer period of time. These compounds can aid us in other ways as well. â€Å"BHA and BHT exhibit anti-microbial activity against several common food pathogens and viruses.† Without BHA and BHT it would be a lot easier for our food products to develop viruses and pathogens that can get us sick. By keeping the food from spoiling longer, these compounds also prevent the development of these pathogens and viruses. This in turn â€Å"helps retain vitamin E in food which otherwise gets destroyed when fat content is oxidized.† Vitamin E helps prevents free radicals from damaging our body tissue. These free radicals can even harm our organs and cells too. Vitamin E also helps us to build a stronger immune system so we won’t get sick as easily from bacteria or develop viruses. Lastly vitamin E is also essential to our body’s formation of red blood cells. BHA and BHT can help us obtain more vitamin E which is necessary for our health. These compounds can enable us to receive so many mor e benefits that vitamin E has by retaining the vitamin E in our foods. â€Å"The oxidization of fat, which occurs in the absence of BHA and BHT, produces peroxides which are definitely carcinogenic and mutagenic.† Carcinogenic peroxides can promote cancer and mutagenic peroxides can cause mutations in our cells. These peroxides can be extremely detrimental to us. So in other words, without BHA and BHT these dangerous peroxides would be produced that are harmful to us. The benefits of BHA and BHT are tremendous and outweigh the small possible negative effects of these compounds. Knowing about the different compounds present in your food and products is important. Just because you can’t see or taste them doesn’t mean that they are not there. BHA and BHT were created to help the preservations of food and products containing fats and oils. These compounds are essential in the prolonging of our use of these certain foods and products. Without BHA and BHT we would not be able to improve shelf life of food and the use of products. Even though BHA and BHT were somewhat connected to asthma and urticaria (hives), they were not declared the direct cause of those conditions. The only concern of BHA and BHT was its carcinogenicity which is unsure due to the confusion and mixed results of its animal testing on mice. The human benefits to BHA and BHT are great ones considering how it is only administered in very minimal amounts. BHA and BHT protect us from pathogens, viruses, and peroxides that can harm us. These compounds enable us to retain more vitamin E which promotes healthier body functions. BHA and BHT have been used for over 50 years. They are not dangerous and have not caused any detrimental effects to humans. We will continue to use BHA and BHT and receive their great benefits.

Legal Research Methodology an Introduction - 4861 Words

Introduction Legal researchers have always struggled to explain the nature of their activities to colleagues in other disciplines. If Becher’s (1981, p. 111) work continues to represent an accurate account of how academic lawyers are viewed by their peers they have much work still to do in this respect. He found that they were regarded as ‘not really academic †¦ arcane, distant and alien: an appendage to the academic world †¦ vociferous, untrustworthy, immoral, narrow and arrogant’. Their research fared no better, being dismissed as ‘†¦ unexciting, uncreative, and comprising a series of intellectual puzzles scattered among large areas of description’. This chapter therefore presents a welcome opportunity to explain the actual nature of legal†¦show more content†¦The methods of doctrinal research are characterised by the study of legal texts and, for this reason, it is often described colloquially as ‘black-letter law’. Normative character of doctrinal research Doctrinal research is therefore concerned with the discovery and development of legal doctrines for publication in textbooks or journal articles and its research questions take the form of asking ‘what is the law?’ in particular contexts. At an epistemological level this differs from the questions asked by empirical investigators in most other areas of built environment research. This is perhaps most obvious in a comparison with research in the natural sciences which typically seeks to explain natural phenomena through studying the causal relationships between variables. Epistemologically, this is clearly very different from the interpretive, qualitative analysis required by doctrinal research. Although the interpretive nature of the process bears a superficial resemblance to the western tradition of the social sciences (Schwandt, 2000), there are actually fundamental epistemological differences between doctrinal analysis and all styles of scientific research. Scientific research, in both the natural and social sciences, relies on the collection of empirical data, either as a basis for its theories, or as a means of testing them. In either case, therefore, the validity of the research findings is determinedShow MoreRelatedThe Uk Civil Partnership Act 20041670 Words   |  7 PagesIntroduction The introduction of the article involves analysis of various literature and researches on the policies and laws that govern lesbian and gay equality. The mention of the different definitions and arguments pave the way for the introduction of the UK Civil Partnership Act 2004 (Taylor 589). 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