Marketing Essay

Words: 813
Pages: 4

….Should Apple make it a priority to enter the computer games console market? Justify your answer (40 marks)
Moving into an existing market can be difficult for a business, especially if the market is already dominated by large competitors. The games console market (GM market) is a highly competitive market, and dominated by well-established businesses such as Sony and Nintendo. In this essay I will discuss to what extent Apple should make a priority to enter the GM market.
In our current society technology has become a big part of our lives, and the technology based markets, such as GM markets, are always changing. This factor creates new markets and/or opportunity within an existing market for companies, with a USP that suits the consumer's needs, to compete profitably. From the 20 century to the 21 century the GC market has grown and changed rapidly, where companies such as Sony and Nintendo have gained oligopoly in the market. Despite the large competitors, the market growth has attracted further potential competitors with a USP different to the existing competitors to enter. Apple already operate in the technology based industry, therefore they understand characteristics shared with the GM market such as the fast change in the market. This experience of technology based market can improve Apple's competitiveness when entering the GC market as they acquire the attributes and innovation needed to develop a new product in a technology based market. Therefore Apple is able to have a comforted start up, and generate their desired sales and achieve higher profits. However the GC market has shortened product life cycle, therefore as mentioned by Ansoff will require high level of product development, otherwise leading the product to become obsolete; for example the Game boy was popular in the 90's and now become obsolete.
Apple is a multinational cooperation who has acquired revenue of over 170 billion in 2013; the company has a USP of being dominant in mobile phone and Computer market and a USP of iOS Virus-free software which has been a strength for the company when selling their products. The uniqueness of the high quality software they offer separates them from other competitors. Apples USP of their software may not be very effective in the GC industry in terms of producing a product different from the competitors. Therefore acknowledging that the market is fast changing Apple will need to invest greatly in the innovation of developing new unique products that will appeal to the market consumer's needs, this could be very costly and time consuming for Apple. This process may take longer than expected and may affect their start up for Apple, and create low start up sales. However, because of Apples strong brand image and dedicated fan base within the other markets, this can attract their customers from the other market to also buy gaming products from Apple. For example, when Apple introduced the iPad the product was high selling from their mobile phone market audience. Therefore, this loyal custom base can generate Apple with repeat custom which enables them to become more competitive in the gaming market and generate sales which leads to profit.
Moving into this market can be…