https://research-methodology.net Necessary knowledge to conduct a business research Tue, 11 Jul 2023 01:17:44 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/apple-corporate-social-responsibility-csr/ Tue, 11 Jul 2023 00:15:00 +0000 http://research-methodology.net/?p=6483 Apple corporate social responsibility (CSR) programs and initiatives are led by Lisa Jackson, Vice President for Environment, Policy and Social Initiatives, reporting directly to CEO Tim Cook. More than 1 million people work in Apple supplier facilities and as such, the company’s operations have considerable implications on the society. It has to be noted that “Steve Jobs wasn’t known for philanthropy. Some wondered if he made anonymous donations to charity, some criticized him for his lack of public giving, while others defended him”[1]. However, with Tim Cook assuming Apple leadership in 2011, the focus on CSR aspect of the business has increased to a considerable extent. Tim Cook is a member of Paulson Institute’s CEO Council for Sustainable Urbanization, working with other CEOs of top Chinese and Western companies to advance sustainability in China.   Apple Supporting Local Communities In Oregon, USA, Apple partners with Bluestone Natural Farms to transform compostable materials generated onsite into rich organic material for use on the farm. The tech giant launched a 100-kilowatt rooftop solar project at an educational premise for disadvantaged children in Philippines. The company added 50-kilowatt solar power system and a 260-kilowatt-hour battery to supply clean electricity to off-grid fishing community in Thailand.   Apple Educating and Empowering Workers The multinational technology company provided training courses to about 4 million people since 2008. The tech giant has competitive employee benefits practices. For example, expectant mothers can take up to four weeks before a delivery and up to 14 weeks after a birth, while fathers and other non-birth parents are eligible for up to six weeks of parental leave. Apple suppliers paid back USD 32.2 million recruitment fees to their 36,599 employees since 2008. The iPhone maker taught employees organized 185,000 hours of inclusion and diversity training in 2021[2] The company organized 80,000 hours of management…]]> https://research-methodology.net/apple-swot-analysis/ Tue, 11 Jul 2023 00:05:51 +0000 http://research-methodology.net/?p=6513 SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates Apple SWOT analysis: Strengths 1.      High quality, design and performance of Apple products and services 2.      Brand value of more than USD 3 trillion 3.      High profit margin 4.      Solid financial position of the business 5.      Sophisticated supply-chain infrastructure Weaknesses 1.      Lack of innovation 2.      Decreasing sales of iPhones 3.      Higher prices than competition 4.      Incompatibility of Apple products and services with other products and services for users 5.      Limited customazation options of products Opportunities 1.      Further increasing concentration on Services business segment 2.      Increasing focus in research and development 3.      Product diversification 4.      Formation of strategic partnerships 5.      Increasing focus on green technology Threats 1.      Quality problems with negative effects on sales and Apple brand image 2.      Intensifying competition from China and India 3.      Being found to have infringed on intellectual property rights 4.      Reputation damage due to the tax scandal 5.      Disruptive innovation by competitors Apple SWOT analysis   Strengths in Apple SWOT Analysis 1. High quality of Apple products and services in terms of design and performance is the main strength of the company. Co-founder and late CEO Steve Jobs never compromised design and functionality because of the cost of raw materials and manufacturing. The same principle persists to this day. The tech giant pursues differentiation business strategy and effectively differentiates its products and services with high quality, design and performance. Moreover, highly sophisticated Apple ecosystem plays an instrumental role in maintaining brand loyalty and consequently sustaining market share in the global scale. Specifically, third-party products are not usually compatible with Apple products and all products belonging to Apple portfolio work well with each-other. Thanks to services such as iCloud, airplay, and airdrop, you can start a task in on…]]> https://research-methodology.net/apple-pestel-analysis-4/ Fri, 07 Jul 2023 00:38:11 +0000 http://research-methodology.net/?p=6522 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Apple PESTEL analysis (or Apple PESTLE analysis) involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects for the tech giant.   Political Factors in Apple PESTEL Analysis The extent to which Apple is able to achieve its primary objective of profit maximization depends on a wide range of political factors. These include government stability, level of bureaucracy, corruption, freedom of press, home market lobbying groups etc. Additionally, activities of trade unions can be mentioned as important external political factors for Apple.   Tax Payments The payment of taxes is a noteworthy political factor affecting Apple. The multinational technology company uses complex legal means to keep its tax payments as low as possible globally, especially in the US and Ireland. In the US, the tech giant holds the majority of its cash offshore so that it can avoid paying corporate income taxes in the US.[1] Any changes in government taxation policies may affect the bottom line for the iPhone maker. In Europe, European Commission concluded that Apple should have paid the Irish state at least €14 billion (USD 16.2 billion) in corporate tax for 2004-2014. However, in 2020 the General Court of the European Union ruled that European Commission was wrong, a decision that was welcomed by the Irish government.[2] Changes in taxation policies in general and the stance of governments and government agencies towards the iPhone maker in particular are external political factors that have implications for the business.   Dispute with US Federal Bureau of Investigations The most significant case that illustrates the potential impact of a political factor relates to Apple’s battle with US Federal Bureau of Investigations (FBI). Specifically, the…]]> https://research-methodology.net/apple-organizational-culture/ Wed, 05 Jul 2023 00:17:28 +0000 http://research-methodology.net/?p=9915 Corporate culture of Apple plays an important role in efficiently maintaining its operations in the global scale with 164,000 full-time equivalent employees.[1] Apple organizational culture used to have a reputation of being harsh, demanding and intimidating under the leadership of founder and late CEO Steve Jobs. However, it can be argued that since assuming the top leadership in 2011, Tim Cook has invested considerable efforts towards ‘humanising’ the brand. Specifically, unlike his predecessor, Tim Cook has spoken out about human rights, privacy, immigration reform and environmental issues.[2]     Apple corporate culture integrates the following important features: 1. Creativity and innovativeness. Apple pursues the business strategy of product differentiation with the focus on the design and functionality of products and services. An effective implementation of this strategy in practice requires a high level of creativity and innovativeness from employees at all levels. Accordingly, in order to encourage their employees to be more creative and innovative, the company attempts to develop relevant working environment. Creative design of Apple Campus, informal dress codes and creatively designed working space can be mentioned to illustrate this point. 2. Working under pressure. Ability to work under pressure is a must-have skill for Apple employees at all levels. In fact, it is challenging to work for the first company ever to be valued at $3 trillion. Most projects have strict and short deadlines and working long hours is a norm in the company. CEO Tim Cook sets example in terms of his loyalty to the company and working long hours. He is known for sending emails to employees at 4:30 am. Moreover, Sunday is a work night for many managers at Apple because of the executive meeting the next day. Not everyone can sustain to work at such an intense rate. But employees who survive within the first…]]> https://research-methodology.net/apple-business-strategy/ Mon, 03 Jul 2023 01:10:09 +0000 http://research-methodology.net/?p=7358 Apple business strategy can be classified as product differentiation. Specifically, the multinational technology company differentiates its products and services on the basis of simple, yet attractive design and advanced functionality.     Apple business strategy consists of the following four elements: 1. Focus on design and functionality of products. According to its business strategy, Apple has adapted advanced features and capabilities of its products and services as bases of its competitive advantage. The list of innovations introduced by Apple include, but not limited to the introduction of iPad, the first device of its kind that stored thousands of songs with a simple shuffle capabilities through songs, development Macintosh, the first computer to use a graphical user interface and the launch of iMac that “ripped up the computer design rule book, doing away with dull beige boxes and instead replacing them with fun, translucent machines in shades such as “Bondi Blue” that hinted at the aesthetic Apple would become so well-known for.”[1] The first company ever to be valued at $1 trillion systematically improves features and capabilities of its products, setting new standards for the industry at the same time. Take photos for example. Apple single-handedly advanced global photography industry with a range of innovations illustrated in table below.   Innovation Year High dynamic range imaging 2010 Panorama photos 2012 True Tone flash 2013 Optical image stabilization 2015 Dual-lens camera 2016 portrait mode 2016 portrait lighting 2017 night mode 2019 LiDar scanning 2020 Photography innovations by Apple Inc.   First mover advantage is another element of Apple competitive advantage. It has to be stated that Apple competitive advantage may be challenging to be sustained for long-term perspective. Specifically, the management may fail in terms of ensuring the addition of innovative features and capabilities in new versions of its products, thus compromising…]]> https://research-methodology.net/apple-ansoff-matrix-2/ Mon, 03 Jul 2023 00:13:49 +0000 https://research-methodology.net/?p=12998 Apple Ansoff Matrix is a marketing planning model that helps the multinational technology company to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses.  These are market penetration, product development, market development and diversification.  Apple Ansoff Growth Matrix Within the scope of Ansoff Matrix, Apple uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets. Existing market for Apple consists of its global operations divided into five operating segments: Americas, Europe, Greater China, Japan and Rest of Asian Pacific. The tech giant operates more than 518 retail stores in 25 countries and regions.[1] Apple engages in market penetration strategy via effective application of marketing strategy.  Apple’s ecosystem of products and services also plays an instrumental role in pursuing market penetration strategy with high level of efficiency. 2. Product development. This involves developing new products to sell to existing markets. New product development in a regular manner is one of the core growth strategies pursued by Apple. Each new product or service by Apple nicely fits within its ecosystem and serves to further strengthen the company ecosystem. Moreover, the multinational technology company regularly introduces updated versions of its existing products and services and introduces totally new products.  The company’s investments on research and development for new products has increased from USD 0,78 billion in 2007 to USD 25,3 billion in 2023. 3. Market development. Market development strategy is associated with finding new markets for existing products. This strategy has been adapted as the main growth strategy by Apple. Specifically, the world’s largest IT company by revenue focuses of emerging economies in Asia as attractive markets for long-term perspective. The multinational technology company appeals to local culture and sentiment when developing marketing strategies…]]> https://research-methodology.net/apple-organizational-structure-a-hierarchical-structure-that-may-change-in-near-future/ Mon, 03 Jul 2023 00:04:00 +0000 http://research-methodology.net/?p=9912 Apple organizational structure can be described as hierarchical and functional. Such a structure has been developed by its founder and former CEO late Steve Jobs in order to ensure focused realization of his innovative ideas and clear vision for the business. When Steve Jobs returned to turnaround failing Apple in 1997 the company had a typical organizational structure with many business units with their own profit and loss (P&L) responsibilities. In order to increase the coherence and fuel innovation, Jobs fired general managers of all business units (within one day) and put in place one P&L for the entire business. Apple organizational structure has been subjected to certain modifications since the leadership role was assumed by Tim Cook on August 2011. Specifically, Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage innovation and creativity at various levels. Also, Cook divided hardware function into hardware engineering and hardware technologies. As the most recent change to the corporate structure Cook added artificial intelligence (AI) and machine learning as separate function areas due the increasing importance of AI and machine learning. Currently, Apple organizational structure has the format illustrated in figure below: Apple Organizational Structure Generally, Apple corporate structure has the following characteristics: 1. Hierarchical organizational structure. Although Tim Cook introduced considerable changes to Apple corporate structure since assuming the top job in 2011, the structure still remains to be highly hierarchical with many layers of management. Massive size of the company that comprises 164,000 full-time equivalent employees globally necessitates the adherence to the hierarchical organisational structure. Advantages of Apple hierarchical organizational structure include tight control possessed by senior management over all aspects of the business. Moreover, promotion opportunities motivate employees to perform well and there are clear levels of authority and responsibility. On the negative…]]> https://research-methodology.net/apple-leadership-and-apple-organizational-structure/ Mon, 03 Jul 2023 00:02:06 +0000 http://research-methodology.net/?p=7364 During Steve Jobs era that covers the period 1997 – 2011, Apple leadership was autocratic with Steve Jobs micro-managing a wide range of business operations. It has been noted that “when Steve Jobs was in charge, everything flowed through him.”[1] Apple leadership practices have changed dramatically under Tim Cook.     Acknowledged as the World’s Greatest Leader by Fortune Magazine[2], Tim Cook proved to be effective from various perspectives. Moreover, Tim Cook has been praised by employees for inspirational leadership and helping his subordinates to become a better human being.[3] The multinational technology company is parting with perfectionism and autocracy elements of leadership that had prevailed under Steve Jobs. Apple leadership style integrates the following elements: 1. Democratic leadership style. In contrast to highly autocratic leadership style of Apple co-founder and late CEO Steve Jobs, the current CEO Tim Cook exercises and promotes democratic leadership. For Cook, it is important to build consensus among senior management regarding strategic decisions for the ebusiness. Moreover, since assuming the top role, Cook granted greater autonomy to new product development team, decreasing the direct participation of the CEO in new product development process. 2. “Quiet” leadership. Tim Cook has been praised for his quiet, yet effective leadership style. Nicknamed as “quiet leader” by some industry analysts[4], Cook is totally different from his charismatic predecessor, Steve Jobs. At the same time, Tim Cook is occasionally criticized by analysts and industry watchers for the lack of ambition and vigour, his predecessor Steve Jobs had. For example, according to a report by BGC financial services firm, “under Cook, Apple has been cautious about entering new product categories. The Apple Watch, launched in April 2015, is the No. 1 smartwatch, but overall sales have disappointed. Apple Music, which debuted in June 2015, has grown rapidly to 15 million subscribers, but…]]> https://research-methodology.net/apple-porters-five-forces-analysis-3/ Sat, 01 Jul 2023 00:55:58 +0000 http://research-methodology.net/?p=6491 Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1] represents five individual forces that shape the overall extent of competition in the industry. Apple Porter’s Five Forces are represented in Figure 1 below: Figure 1 Porter’s Five Forces   Threat of new entrants in Apple Porter’s Five Forces Analysis Threat of new entrants into consumer electronics industry is not substantial. The following factors, among others, determine the threat of new entrants into the industry to compete with Apple: 1. Massive capital requirements. Manufacturing technological devices and producing operating systems require massive capital investments. As illustrated in Table 1 below, the top players in the market invest billions of dollars in R&D in order to keep the pipeline of new products and services active. New market entrants will have to produce new products and services that will have to compete with products and services of top players that invest billions of dollars every year in R&D.   Rank Company R&D spending (USD) 1 Amazon 70.3 billion 2 Alphabet 38.1 billion 3 Meta Platforms 34.0 billion 4 Apple 25.3 billion 5 Microsoft 23.0 billion 6 Samsung Electronics 18.2 billion 7 Intel 17.5 billion 8 Roche 16.0 billion 9 Volkswagen 14.0 billion 10 Johnson & Johnson 14.0 billion Table 1 Top R&D spenders among technology companies in 2022   Moreover, capital is needed to obtain resources in general and to attract human resources and talented employees in particular. Accordingly, it is safe to argue that access to capital can prove to be a substantial entry barrier for new businesses. 2. Economies of scale. Economies of scale are substantial entry barrier into consumer electronics and tech industry. New players will find it difficult to compete with established global brands such as Apple, Samsung, Google and HTC that are able to gain cost advantage…]]> https://research-methodology.net/apple-value-chain-analysis/ Sat, 01 Jul 2023 00:05:28 +0000 http://research-methodology.net/?p=6537 Apple value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Figure 1 below illustrates the essence of Apple value chain analysis. Figure 1 Apple Value Chain Analysis Apple Primary Activities Apple Inbound logistics Inbound logistics primary activity refers to receiving and storing of raw materials for their consecutive use in manufacturing. Apple works with hundreds of suppliers around the globe and maintains a highly sophisticated supply-chain management as illustrated in Figure 2 below. Figure 2 Apple operations roadmap[1] Apple supply chain involves more than 3 million people working for thousands of businesses in 52 countries[2] The multinational technology company’s purchase commitments typically cover its requirements for periods up to 150 days[3].  Tim Cook is an experienced word-class supply chain professional. Steve Jobs had convinced him to join Apple as head of supply chain in 1998 when the tech giant was in trouble, risking the bankruptcy. As part of massive supply chain turnover Tim Cook cut the numbers of suppliers, reduced the number of warehouses by half and established relationships with contract manufacturers. Cook has been able to reduce Apple inventory turn over from 1 month to 2-5 days. Cook further reduced the numbers of suppliers after becoming CEO in 2011. As a result of these and other initiatives, Apple supply chain practices have become a benchmark for efficiency for global businesses. The main sources of value in Apple inbound logistics relate to the economies of scale due to the massive scope and scale of business operations as discussed below and the development of strategic relationships with suppliers. Moreover, Apple Inc. exercises an immense bargaining power in dealing with its suppliers and as a result, the company is able to secure cost advantage in the purchase of…]]> https://research-methodology.net/apple-7ps-of-marketing/ Fri, 30 Jun 2023 00:57:09 +0000 http://research-methodology.net/?p=7377 Apple marketing mix (Apple’s 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence. Product Element in Apple Marketing Mix (Apple 7Ps of Marketing) In 2010, before he became chief executive officer, Tim Cook claimed that Apple’s all products could fit on a single table. At that time the multinational technology company produced only 14 products.[1] It is different now. It has been noted that “no longer do the barista and the corporate executive use the same iPhone — today, there are high-end models, consumer models, and a long line of old products the company keeps around to fill every niche and price point.”[2] Today, Apple designs, manufactures and sells technological devices such as IPhone smartphones, IPad tablets, Mac desktop and portable personal computers and iPod digital music and media players. Moreover, the company generates revenues via iTunes and the iTunes Store, Mac App Store, iCloud and Apple Pay. Apple also develops iOS and OS X operating system software and a range of application software such as iLife and iWork. Lastly, Apple Corporation designs, manufactures and sells own and third-party Mac-compatible and iOS-compatible accessories, including Apple TV, headphones, cases, displays, storage devices and various other connectivity and computing products and supplies[3]. Apple also sells third-party digital content and applications through iTunes Store®, App Store®, Mac App Store, TV App Store, iBooks Store™ and Apple Music®. Table 1 below illustrates the full range of Apple products, their brief descriptions and additions in 2023: Product Categories Description Additions in 2020 iPhone A line of smartphones based on iOS operating system iPhone SE, iPhone 12, iPhone 12 Pro, iPhone 12 Pro Max, iPhone 12 mini Mac A line of personal computers based on  macOS operating system 16-inch MacBook Pro, 13-inch MacBook Pro, 27-inch iMac iPad…]]> https://research-methodology.net/apple-marketing-strategy-an-overview/ Fri, 30 Jun 2023 00:52:47 +0000 http://research-methodology.net/?p=9951 Apple marketing strategy is based on the founder Steve Jobs’s philosophy that customers do not always know what they want. Accordingly, instead of conducting marketing researches to identify customer needs and wants, the multinational technology company prefers to install innovative features and capabilities in their products, making customers to want Apple products. Under the leadership of Tim Cook since 2011 certain aspects of the business such as management style and company’s stance towards CSR have changed. However, the dismissal of marketing research remains to this day. Apple marketing strategy expresses the brand in minimalist, yet highly efficient ways. The world’s largest IT company by revenue is one of the first companies to successfully associate the brand image with being innovative, rebellious and non-conformist. Apple 7Ps of marketing is marked with a particular focus on the product element of the marketing mix and the company’s segmentation targeting and positioning initiatives are aimed at targeting users of premium products. Moreover, marketing communication mix of Apple Inc. places greater emphasis on print and media advertising and personal selling in Apple Stores and the company rarely uses sales promotions as part of its marketing strategy. Generally, Apple marketing strategy integrates the following:   1. Focusing on attractive value proposition. Apple’s value proposition is “beautiful design that works right out of the box with ever-smaller packaging”[1] The world’s largest IT company by revenue has been able to avoid price wars with competitors by emphasizing its unique value proposition in its marketing communication messages. Apple is a unique company in a way that it is a design firm, a media platform, a publishing company, a software powerhouse and a computer manufacturer – all at the same time. Such a position allows the company to communicate its value proposition to target customer segment in a cost-effective manner.…]]> https://research-methodology.net/apple-marketing-strategy-4/ Fri, 30 Jun 2023 00:50:21 +0000 http://research-methodology.net/?p=6528 Apple marketing communication mix explains the company’s stance towards individual elements of the marketing communication mix such as print and media advertising, sales promotions, events and experiences, public relations, direct marketing and personal selling. The main aim behind Apple marketing communications mix is to communicate the marketing message of the brand to the target customer segment through elements listed above. Apple is effective in using elements of the marketing communication mix in an integrated manner to ensure the consistency of the marketing message.   Apple Print and Media Advertising Since its foundation more than 40 years ago Apple has been using print and media advertising extensively to promote the brand in general and new products in particular. Some of the ads by the tech giant have become truly iconic raising the bar for advertisement globally. The following is the list of the most memorable print and media advertising campaigns launched by Apple: “1984” campaign directed by Ridley Scott and first shown during 1984 Super Bowl is widely considered as one of the most successful marketing campaigns of all times “The Quadra Revolution” is 1991 campaign that was a successful attempt by the tech giant to further itself ahead of the competition at the beginning of the digital age of 90s “Misunderstood”, a Christmas ad of 2013 won Emmy Award for the year’s most “Outstanding Commercial.” “40 Years in 40 Seconds” is a viral video that chronicles  40 years of the company in 40 seconds “Meu Bloco na Rua” (2017) is the latest ad released in Brazil for the Rio Carnival, highlighting the iPhone 7 Plus’ new portrait photography mode Apple also uses celebrity endorsements in print and media advertising extensively. In the past Apple’s ‘Think Different’ print and media advertising materials featured the images of innovators and pioneers in different areas…]]> https://research-methodology.net/apple-segmentation-targeting-and-positioning/ Fri, 30 Jun 2023 00:29:06 +0000 http://research-methodology.net/?p=7368 Apple segmentation, targeting and positioning represents the core of its marketing efforts. Segmentation, targeting and positioning is needed because no company or product can be all things to all people. Apple segmentation targeting and positioning initiatives include the following stages: 1. Segmenting the market. Segmentation involves dividing population into groups according to certain characteristics. Specifically, customers can be segmented on the basis of their place of living, demographic variables, behavioural traits, psychographic characteristics and other variables. Market segments need to be measurable, accessible, sustainable and actionable in order to be used for marketing purposes. 2. Targeting selected segment(s). This stage involves identifying segments that are most attractive for the business. In other words, targeting implies choosing specific groups identified as a result of segmentation to sell products to. The multinational technology company positions itself as a premium brand offering products and services with advanced functions and capabilities for additional costs. Accordingly, Apple target customer segment comprise well-off individuals who are willing to pay extra for technology products and services with advanced design, functions and capabilities. A common set of characteristics shared by Apple target customer segment include appreciating design, quality and performance of technology products and services over their prices. 3. Positioning the offering. Positioning refers to the selection of the marketing mix that is the most suitable for the target customer segment. It is the final process, where companies attempt to associate their products and services with needs and wants of selected customer segment. Apple targets its customer segment by tailoring products, services and overall business approach to appeal to the members of segment to a maximum extent. Under the leadership of late Steve Jobs, Apple mainly used mono-segment type of positioning, appealing to the needs and wants of a single customer segment. However, after Tim Cook became CEO,…]]> https://research-methodology.net/nvidia-marketing-communication-mix/ Mon, 26 Jun 2023 00:33:25 +0000 https://research-methodology.net/?p=74402 Nvidia marketing communication mix includes the use of various communication channels to transmit the marketing message to the target customer segment. These channels are print and media advertising, sales promotions, events and experiences, public relations and direct marketing.     Nvidia Print and Media Advertising Nvidia uses print and media as an effective advertising platform systematically. Specifically, the multinational technology company runs advertising campaigns on TV and radio channels, as well as magazines and newspapers popular with their target customer segment. Additionally, Nvidia places large billboards in crowded area in large metropolitan cities. The software and fables company also uses viral marketing extensively on popular social media platforms such as Twitter, LinkedIn, and YouTube. Nvidia also uses product placement strategy by Nvidia include a science fiction movie “Blade Runner 2049” released in 2017 and Steven Spielberg film “Ready Player One” released in 2018.   Nvidia Sales Promotions Nvidia uses various sales promotions techniques regularly to increase its revenues. Specifically, the multinational technology company uses the following sales promotions techniques: – Seasonal sales promotions. Nvidia uses seasonal sales promotions to boost its revenues during holidays and festive seasons. Additionally, the company runs promotions during major industry events such as the Consumer Electronics Show or the Game Developers Conference. – Money off coupons. Nvidia does not offer money off coupons to end-users directly, but its distributors use this particular sales promotions technique regularly. – Free gifts. The company offers free gifts occasionally as part of its marketing strategy. For example, in 2023 Nvidia offered Marvel’s Midnight Suns Captain Marvel’sMedieval Marvel Suit free of charge to users of graphics cards GeForce GTX 10 and above. Nvidia Corporation Report contains a full analysis of Nvidia marketing communication mix and Nvidia marketing strategy in general. The report illustrates the application of the major analytical strategic…]]> https://research-methodology.net/nvidia-ecosystem-overview/ Fri, 23 Jun 2023 05:23:06 +0000 https://research-methodology.net/?p=74448 Nvidia ecosystem refers to the network of interconnected components, technologies, and partners that work together to support the company’s products and services. The following are the key elements of Nvidia ecosystem: 1. Products. The core of Nvidia’s ecosystem is its products, which include graphics cards, data centre products, and system-on-a-chip (SoC) products. These products form the foundation of the ecosystem and are used by developers, data scientists, and other users to create and innovate. 2. Developer Tools and Platforms. The company offers a range of developer tools and platforms to support the development of software and applications that leverage Nvidia’s products. These tools and platforms include CUDA, TensorRT, and the Nvidia Deep Learning Institute.     3. Partner Network. Nvidia has a broad partner network that includes hardware and software vendors, cloud providers, system integrators, and other partners. These partners help to integrate Nvidia’s products and technologies into a wide range of solutions and services, further strengthening its ecosystem. 4. AI and HPC Applications. Nvidia’s ecosystem is used to support a wide range of artificial intelligence (AI) and high-performance computing (HPC) applications. These include, but not limited to deep learning, computer vision, and scientific simulations. These applications leverage Nvidia’s products and technologies to achieve breakthrough performance and efficiency. 5. Community and Support. The multinational technology company has a strong community of users and developers who support each other through forums, user groups, and other online communities. The company also offers customer support services to help users troubleshoot issues and optimize their use of Nvidia’s products and technologies. To summarize, Nvidia ecosystem is dynamic and comprises interconnected network of products, technologies, partners, and communities that work together to support innovation and growth. By fostering a strong ecosystem, the company aims to drive innovation and accelerate the adoption of AI and HPC…]]> https://research-methodology.net/nvidia-mckinsey-7s-model/ Thu, 22 Jun 2023 06:22:03 +0000 https://research-methodology.net/?p=74445 Nvidia McKinsey 7S model illustrates the ways in which seven elements of businesses can be aligned to increase effectiveness. According to the framework strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong links between elements in a way that a change in one element causes changes in others. The model positions shared values are positioned at the core remaining elements, because shared values guide employee behaviour with implications on their performance. McKinsey 7S model   Hard Elements in Nvidia McKinsey 7S Model Strategy.  Nvidia business strategy benefits from first mover advantage systematically. This has been the case with GPU, Computer Unified Device Architecture (CUDA) and invented deep learning hardware accelerators, such as the Tesla V100 and T4 GPUs  and a range of other products. However the sustainability of this strategy in the long-term perspective requires the regular pipeline of new products through effective investment in research and development. Structure.  As one of the largest multinational technology companies in the world Nvidia organizational structure integrates the elements of functional and hybrid structures. Within the company business processes are divided into various divisions with highly specialised employees with the relevant skills and competencies attached into respective divisions. Furthermore, the senior management forms temporary project groups to develop new products or for other initiatives and group members report to multiple superiors for the duration of project. Systems. Nvidia depends on a wide range of systems for the business to operate smoothly. These include, but not limited to employee recruitment and selection, team development and orientation, transaction processing, customer relationship management, business intelligence and knowledge management. Each system has its KPIs and controls in place and they are monitored systematically. Nvidia Corporation Report contains a full analysis of Nvidia…]]> https://research-methodology.net/nvidia-value-chain-analysis/ Thu, 22 Jun 2023 05:33:58 +0000 https://research-methodology.net/?p=74441 Nvidia value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Specifically, business leaders can create competitive advantage through dividing the business into various activities and analysing each activity individually from value creation perspective. Figure below illustrates the essence of Nvidia value chain analysis. Value chain analysis     Primary Activities in Nvidia Value Chain Analysis Nvidia Inbound logistics Nvidia inbound logistics involves managing the supply chain of components and raw materials into the premises of its contract manufacturers. The multinational technology company performs quality checks of semiconductors and other spare parts using test equipment purchased from industry-leading suppliers such as Advantest America Inc. Nvidia benefits from the economies of scale in inbound logistics activities due to the large amount of spare parts and components it purchases. Furthermore, the company has strategic relationships with its key suppliers in place and these relationships play an instrumental role in new product development.    Nvidia Operations Nvidia employs fabless manufacturing strategy. It employs third party companies outside of United States for all phases of the manufacturing process, including wafer fabrication, assembly, testing, and packaging.[1] Nvidia does not engage in any of these activities directly and chooses to focus the design, marketing and distribution of its products. The company works with world-class manufacturers to produce its products. Semiconductor wafers are produced by leading companies such as Taiwan Semiconductor Manufacturing Company Limited and Samsung Electronics Co. Ltd, adapter card products and switch systems are produced by the likes of Flex Ltd., Jabil Inc., and Universal Scientific Industrial Co., Ltd. and Fabrinet manufactures Nvidia cables. Assembly, testing and packaging of products and platforms are done by Amkor Technology, King Yuan Electronics Co., Ltd., Omni Logistics, LLC, Siliconware Precision Industries Company Ltd., Wistron Corporation…]]> https://research-methodology.net/nvidia-porters-five-forces-analysis/ Thu, 22 Jun 2023 05:06:58 +0000 https://research-methodology.net/?p=74435 Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1] consists of five individual forces that shape an overall extent of competition in the industry. Nvidia Porters Five Forces are illustrated in figure below: Porter’s Five Forces     Threat of new entrants in Nvidia Porter’s Five Forces Analysis Threat of new entrants into graphics processing unit (GPU) industry is low. The below are the main factors that determine the level of threat of new entrants: 1. Time of entry. GPUs are highly saturated market with dominant market players already in the business for decades. Moreover, customer loyalty towards dominant players such as Advanced Micro Devices (AMD, Intel Corporation, Qualcomm Inc., Broadcom Inc. and Arm Holdings (a subsidiary of Softbank Group) is high this fact crates entry barrier for potential market entrants. 2. Massive investments. GPU producing requires massive capital requirements of millions of dollars. It will be very challenging for potential market entrance to secure funding for producing GPUs unless they offer unique competitive advantages with the potential to disrupt the market. 3. Specialist knowledge. GPUs are highly advanced technological products. The production requires highly specialist knowledge and technological know-how. New market entrants will face substantial difficulties in terms of finding employees with specialist knowledge who will agree to join a new company in a highly saturated market.   Bargaining power of buyers in Nvidia Porter’s Five Forces Analysis The bargaining power of buyers for Nvidia products is generally insubstantial. The following considerations need to be taken into account in this regard: 1. Switching costs. Nvidia’s products are often integrated into larger systems and it is often difficult to replace these products with similar products produced by competitors due to massive costs and expertise knowledge involved. Such a situation limits buyer bargaining power with positive implications for Nvidia. 2.…]]> https://research-methodology.net/nvidia-segmentation-targeting-positioning/ Sun, 18 Jun 2023 07:29:35 +0000 https://research-methodology.net/?p=74397 Nvidia segmentation, targeting, and positioning (STP) is a strategic approach to marketing that involves dividing the market into smaller groups of consumers (segmentation), selecting one or more of these groups to target with a specific marketing mix (targeting), and then positioning the product or service in the minds of consumers in a way that differentiates it from the competition (positioning).     Nvidia uses the following types of product positioning. – Anticipatory positioning. Anticipatory product positioning is a strategy in which a company positions its products or services in a way that anticipates future trends or needs in the market. Nvidia has used this strategy effectively by positioning its products in a way that anticipates the increasing demand for high-performance computing solutions and emerging technologies such as artificial intelligence and autonomous vehicles. For example, Nvidia recognized in early 1990s the potential of AI and positioned its products accordingly, investing heavily in research and development to create GPUs that are specifically designed to accelerate AI workloads. As a result, Nvidia has become a key player in the AI market, with its GPUs powering many of the most advanced AI applications in industries such as healthcare, finance, and automotive. – Quality product positioning. Quality product positioning is a strategy in which a company positions its products or services as high-quality, reliable, and superior to those of its competitors. Nvidia has used this strategy effectively by emphasizing the quality and reliability of its products and by investing in research and development to continually improve its offerings. Accordingly the company creates high-performance GPUs for a wide range of applications, from gaming to data centre workloads. The following table illustrates Nvidia segmentation, targeting and positioning: Type of segmentation Segmentation criteria Nvidia target customer segment   Geographic Region Taiwan, China, United States, other countries Density Urban…]]>