Industry Analysis
Industry Trends
The computer and computer equipment industry is considered as one of the notable growth industries in the world today. The demand for computers and computer peripherals has been on a steady increase in the last years attributed to advancements in technology in different fields. The demand has forced companies to invest in the development of technologically advanced and ergonomic computer peripheral devices with the intention being towards ensuring that they can position themselves effectively. According to Kennedy (2019), demands are high in specific consumer markets, which include North America, Europe, Asia Pacific, and Africa; thus, creating the need for having to invest in the development of new products. By 2026, the computer and computer equipment industry is estimated to be worth more than $100 trillion based on the current trends and demands (Aydalot & Keeble, 2018).
Competitor Analysis
The major companies that have invested in the computer and computer equipment industry include Apple, Inc., Hewlett-Packard Enterprise, IBM Corporation, Microsoft Corporation, Samsung Electronics, and Toshiba Corporation. These companies have been at the forefront in the development of a diverse range of computers and equipment that can meet the rising demands among consumers. The main strategies that the companies have invested in as part of their approach towards ensuring that they remain unique in the products they offer include a constant focus on research and development, and well as, short product upgrade cycles (Li, Li, & Liu, 2017). The strategies create a viable platform for the companies to be in a position allowing them to innovate while ensuring that the quality of products they deliver does not reduce in any way. The impact that this has had is that it has helped towards ensuring that the companies build on their capacities to maintain substantial market shares.
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Market Analysis
Market Trends
The market for computers and computer equipment has experienced a significant shift concerning the product needs and wants among consumers attributed to the fact that a majority of the consumers are fast becoming tech-savvy. The central aspect to note when evaluating the market trends is that a majority of consumers for computers and equipment are focused more on the different elements, including processors, RAM, graphics, and software, among others. Additionally, a majority of the consumers are moving towards well-established brands as a way of ensuring that they cancan get quality products. The expectation is that consumers must get value for their money, as this would help towards increasing their confidence in the products that they purchase regardless of the budgets.
Target Market
The target market for computers and computer equipment is mainly the young generation, specifically generation Y (millennials), which is a generation of persons born between 1981 and 1996 account for approximately 18% of the population in most countries. That highlights the significance of having to consider this population as a target market, primarily when focus on technological devices. Technological companies are shifting their attention towards this generation attributed to the fact that the consumption rate of technology is on a fast rise; thus, creating the need for the companies to invest in innovative and ergonomic products (Wu et al., 2018). It is estimated that the demand for computers and computer equipment is likely to increase further within this population attributed to high demand for technology, especially in some of the developed countries around the world.
Demographic Profile
According to census reports on generation Y, the global spending power associated with millennials is expected to grow by a margin of 13% in 2019 to $3.3 trillion with the vital area of focus being on technology (Zhang, Lu, & Kizildag, 2017). It is estimated that approximately 39% of millennials have a bachelor’s degree or higher; thus, serving as a clear indication of the fact that indeed this serves as a critical market of focus for technological companies. The average annual earning for millennials is approximately $56,000, which seeks to suggest that they tend to have a high spending power allowing them to spend immensely.
Psychographic Profile
From a psychological perspective, generation Y is more optimistic and socially conscious; thus, creating the need for having to ensure that the population remains in constant communication and connection with the peer. That is considered as one of the critical factors that have pushed the demand for technological equipment, as the generation shifts its focus towards connection to the internet. Another essential aspect to note is that the population tends to focus more on the value of the products that they purchase as an essential determinant of their purchasing power regardless of the demand.
SWOT Analysis
Brand Analysis
The product being introduced to the target market is the Apple iMac 21.5-inch with Retina 4K Display, which is an ultra-modern computer that runs on a 3.0GHz 6-core 8th-generation Intel Core i5 processor. That is the latest product that has been introduced by Apple, Inc. in its bid towards ensuring that it can compete within the consumer market. The product is considered as being highly innovative attributed to its impeccable design that not only seeks to meet the needs and wants of the consumers but also focuses on promoting satisfaction and its users.
Analysis of Internal Strengths and Weaknesses
Strengths
The crucial first strength associated with the Apple iMac 21.5-inch with Retina 4K Display is its display system, as Apple focused on providing its clients with 4K Display. That is important, as it helps towards enhancing clarity as a way of ensuring that the product remains unique in its own specifications. The other key strength to consider is Apple's brand reputation. Apple has been able to build a brand reputation attributed to its ability to provide quality products that are durable. That would help towards promoting confidence for the new product after it has been introduced to the target market.
Weaknesses
The main weakness of the Apple iMac 21.5-inch with Retina 4K Display is its price margin, which is notably high; thus, meaning that the number of persons within the target market with the ability to afford it is low. That means that some of the consumers would opt for some of the other products offered by the company’s competitors.
Analysis of External Opportunities and Threats
Opportunities
The foremost opportunity that the Apple iMac 21.5-inch with Retina 4K Display introduces for Apple is that it creates an opportunity for the company to learn more about the expectations from its clients. That means that it will be much easier for Apple to understand how the target market is likely to respond to such products, which would serve as a critical factor that would define its approach to new products.
Threats
The main threat that the Apple iMac 21.5-inch with Retina 4K Display faces is competition, as some of Apple's key competitors have sought to produce similar products in a bid to reducing the competitive power associated with this new product.
References
Aydalot, P., & Keeble, D. (2018). The high technology industry and innovative environments: the European experience . Routledge.
Kennedy, D. (2019). From Mainframes to Smartphones: A History of the International Computer Industry by Martin Campbell-Kelly and Daniel D. Garcia-Swartz. Enterprise & Society , 20 (2), 519-521.
Li, B., Li, X., & Liu, H. (2017). Consumer Preferences, Cannibalization and Competition: Evidence from the Personal Computer Industry. MIS Quarterly, Forthcoming .
Wu, T., Sher, C. W., Lin, Y., Lee, C. F., Liang, S., Lu, Y., ... & Chen, Z. (2018). Mini-LED and micro-LED: promising candidates for the next-generation display technology. Applied Sciences , 8 (9), 1557.
Zhang, T., Lu, C., & Kizildag, M. (2017). Engaging Generation Y to co-create through mobile technology. International Journal of Electronic Commerce , 21 (4), 489-516.
