The iPhone is one of the common brands in the mobile phone market today. The iPhone is associated with a high level of uniqueness and makes a remarkable contribution in terms of smartphones that have an attractive design. Apple Company launched the iPhone with a unique iOS operating system in 2007 (Lovejoy, 2021). Since then, the company has continually launched new updated versions of the product, each with a unique feature from the previous one. Conducting a feasibility study is an essential consideration for businesses seeking to define a problem or an opportunity in marketing. With an effective feasibility plan, firms can understand fundamental details such as product alternatives, the definition of requirements, and the proper course of action (Lovejoy, 2021). Therefore, the activities involved with preparing a feasibility plan are generic and applicable to any project or product. This paper presents a feasibility study on the iPhone product. Specifically, the study will focus on the iPhone 13, the latest brand yet to be released in the market.
The Business Problem and Opportunity Statement
Business Problem
IPhone 13 is a new product yet to be released in the market. Apple is increasingly facing stiff competition in the market as players such as Samsung and Nokia are continually producing new phone brands to match the brands provided by the company (Lovejoy, 2021). The strong competition by the players poses a threat to Apple’s market share, thus explaining why the company sets to release a new iPhone product in the market. Notably, the iPhone 13 will be a superior brand to the iPhone 12 already released to the market. According to Lovejoy (2021), iPhone 13 is expected to resolve the company’s challenge of the increased competition since it will offer superior features and efficiency never produced by any market player in the mobile sector.
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Opportunity Statement
The iPhone 13 will create an opportunity for Apple Company to generate more sales to improve its market share and hence competition. Since the iPhone 13 will be 20% more power-efficient than the previous iPhone 12 brand, it is projected that it will sell more than the ones already available in the market (Kelly, 2021). The power-efficient feature associated with iPhone 13 is considered a massive upgrade from the 12 models, an aspect that creates a double win for the iPhone users suggesting better sales and a growth opportunity for the business.
Feasibility Study Requirements
Product Feasibility
Product feasibility provides an insight into the general desirability of the product proposed to the market. The iPhone 13 is considered a desirable product to be provided to the consumers in the market. Kelly (2021) recorded that the product not only has a new design but also 20% better power efficiency in comparison to the iPhone 12. The increase in the power efficiency rate of the new model is considered a massive upgrade from the previously available models in the market, thus making iPhone 13 a superior brand. Additionally, iPhone 13 has a unique LTPO OLED display which has played an effective role in ensuring the power saving capacity of the iPhone brand. Kelly (2021) reported that Apple partnered with LG Display and Samsung Display and further converted its iPhone production lines to LTPO OLED from LTPS OLED previously used in iPhone 12. Notably, the new display is known to be effective when it comes to power saving.
Besides the LTPO display, the iPhone 13 is also considered a desirable product because it will be associated with more efficient next-gen 5G modems (Kelly, 2021). Also, iPhone 13 will also have the A15 Chip provided by Apple, suitable for ensuring improved performance. The product will also have a boosted WiFi speed range, a better camera performance, and an enhanced MagSafe version (Kelly, 2011).
Target Market Feasibility
Iphone’s target market is primarily composed of people aged between 25 and 44 years. The target market mainly entails the working class and the people who are cautious about the brands and the style of the products they obtain from the market. Kim et al. (2017) state that the iPhone’s target market is composed of consumers who love new gadgets and technology and are not always scared from upgrading from their current product brands to have the newly introduced models into their possession. With this quality, it is accurate to derive that Apple’s smartphone target market is highly loyal to the brand (Kim et al., 2017). The identified factor on loyalty indicates that the introduction of the new iPhone 13 into the market will be positively embraced by the consumers in the market. More people are increasingly embracing the use of smartphone technology, especially those with unique features such as desirable battery efficiency. In 2017, iPhone’s target market had an estimated size of 55% of the people aged between 25 and 44 years. In this sample, 64% were men, while 36% were women (Kim et al., 2017).
The iPhone 13 is a product targeted at the global market. In this case, the primary competitors are Samsung, Oppo, Huawei, Xiaomi, and Nokia, among others. However, Apple comes in first in the market with a market share of 61.07%, while Samsung comes in second with a market share of 24.12% (Kelly, 2021). Being the market leader, Apple’s products, such as the iPhone 13, has an increased sale potential in the market.
Organizational Feasibility
According to Kim et al. (2017), organizational feasibility provides an insight into the prowess held by the management team and the sufficiency of the resources required generating the product to guarantee its delivery to the market. Apple Company has strong management with an effective capability of generating a new product to be relayed into the market. Being a strong market leader in the Smartphone sector, the business has been able to successfully put together high-level product ideas with the support of its strong financial resources and management expertise to produce quality products (Templeton et al., 2019). Notably, Tim Cook, the company’s current CEO, is known to be one of the innovative and visionary leaders across the globe (Templeton et al., 2019). Therefore, with his effective leadership, the firm is considered to be on the right step towards the effective product of the new iPhone to facilitate its delivery in the market. Moreover, Apple has enough labor pool, as reflected by a large number of employees. By the end of 2020, Apple had approximately 147,000 workers (Kelly, 2021).
Financial Feasibility
There is an increased likelihood that introducing iPhone 13 into the market will provide the firm with an overwhelming response. Therefore, it is evident that different financial aspects will be considered to ensure that the business captures maximum profits within the Smartphone industry (Templeton et al., 2019). However, to ensure a sustainable outcome, Apple should focus on increasing the number of its loyal customers. The firm can achieve this by ensuring that the iPhone 13 models is more efficient when it comes to power conservation in comparison to the 12 models.
After introducing the product to the market, the company will first focus on pricing as an effective strategy of attracting the interest of the consumers in the market. Keeping in mind that iPhone 13 is a superior brand to the other prevailing ones; the commodity will be highly-priced with a focus on generating profits for the company. However, upon its entry into the market, the prices of the other models will be reduced. The estimated average price of the iPhone 13 is $699 in comparison to $799 for the 12 models (Kelly, 2021). The low price is focused on ensuring Apple’s productivity by ensuring a maximum improvement to the product and also caters to consumer needs. On the other hand, providing a high price for the commodity is necessary to ensure that the company does not face a deficit.
With the provided prices, loyal consumers will still purchase the new iPhone despite the high prices. The high prices will create an opportunity for the business to generate more revenues and profits, a move suitable for boosting its market share in the sector.
Assumptions Alternative ranking
In relation to the new iPhone product being examined in the feasibility report, several assumptions are made. For instance, it is assumed that the product is yet to be produced. Moreover, it is also assumed that the iPhone 13 will be of a superior brand in comparison to the already available iPhone in the market. The specs of the new iPhone will be highly superior to that of the iPhone 12 and the earlier versions, and the product will also be more expensive than the other smartphones in the market.
A numerical score methodology is used in this case ranging from 0 (non-feasible) to 3 (very feasible). A score of 1 indicates that the category is somehow feasibility, and accomplishing the alternative is considered unlikely. The score of 2 indicates that the data generated for the criterion would be associated with a high level of difficulty and complexity, but the activity is still feasible. The score of three relays that accomplishing the alternative would be associated with a high level of difficulty and complexity but is considered very feasible.
Implementing the scoring methodology in the case of the iPhone, it is assumed that the iPhone 13 ranks highly (2) on the product feasibility category. Moreover, the analysis also shows that the product ranks highly (2) on the target market feasibility since the consumers are highly likely to purchase the product after it is delivered to the market. It is also identified that organizational feasibility ranks highly (2) while financial feasibility also obtains a score of two. In this case, it is evident that all the four categories explored are feasible for implementation.
Conclusion
Conclusively, a decision to proceed with the business plan of establishing and delivering the iPhone 13 in the market is generated. The decision is driven by the fact that the product, target market, organizational, and financial alternative proved feasible for the product after each alternative obtained a value of two. As a result, it is accurate to derive that the iPhone 13 product is a successful business idea likely to benefit Apple through increased sales and revenue and better market share. Moreover, it is proper to the driver that the product will be effective in meeting the needs of the target consumers through its improved efficiency and reliability in comparison to the previous models such as the iPhone 12.
References
Kelly, G. (2021). iPhone 13 is 20% more power efficient than iPhone 12, says new Apple report. Forbes . https://www.forbes.com/sites/gordonkelly/2021/04/10/apple-iphone-13-pro-max-battery-life-display-upgrade-iphone-12-pro-max/?sh=13018cbc32b1
Kim, J., Jun, S., Dong-Sik Jang, & Park, S. (2017). An integrated social network mining for product-based technology analysis of apple. Industrial Management & Data Systems, 117 (10), 2417-2430. http://dx.doi.org/10.1108/IMDS-10-2016-0441
Lovejoy, B. (2021). Apple planning for strong iPhone 13 sales; ‘modest’ price increase for iPad Pro . 9to5Mac . https://9to5mac.com/2021/04/19/iphone-13-sales/
Templeton, G. F., Petter, S., French, A. M., Larsen, K. R., & Pace, B. (2019). Information technology firms: Creating value through digital disruption. Communications of the Association for Information Systems, 44 , 35. http://dx.doi.org/10.17705/1CAIS.04435
