Question

Discuss a Business Canvas Model of Apple Watch.The analysis should include these metrics.Value Proposition.Customer Relationships,Customer Segments,Channels,Revenue Streams,Key Resources,Key Partners,Key Activities,and Cost Structure.

Answer 1

The report can contain the following information:

1. Value proposition: Apple's value propositions are three key concepts in general - Difference in thinking, Privacy of customer data and Improved technology. The apple product thrives on its brand value which is a result of these different value propositions. The difference in thinking is comes from the difference in the appearance and the entirely different operating systems that Apple has patented. And the apple products are also known for their privacy and security settings which makes the devices very secure. The most important factor is that Apple controls the software they use, the hardware as well as the content available for apple users, which is why they are able to ensure that their customers have the best experience.

2. Distribution channels: Apple has a unique network of distribution channels which involves the use of online as well as offline sources like its own Apple stores, Apple website, third party stores and telecom companies.

3. Marketing channels: An impressive amount of PR is generated through the unique and long-standing campaigns and advertisements for Apple. Another important source is the existing customers who seem to value their possession of Apple products enough to spread the word among their peers. Apple products, for privacy, speed and brand recognition, have become symbols of grandeur among business groups and associates alike.

4. Customer relationships: Apple maintains good customer relations with their trained staff and their personal servicing. Their on-store as well as online customer services are to notch. Two of Apple's biggest tools of maintaining good customer relations are its design and its sales representatives.

5. Revenue: Apple makes huge profits and has a very strong cash flow. There are four different segments with respect to the products Apple provides - Devices, Services, Software and Warranties (AppleCare). Each of these is capable to be a brand of its own. Apple's operating income is almost 50% more than the combines operating income of Alphabet, Facebook and Amazon.

6. Key Resources: The key resources for Apple are its Product First Design Philosophy, Walled Garden and Supply chain. Apple's design constraints, unlike its competitors, is not based on budget or volume, but on the quality of the product. Other companies want to create. product that is functional, Apple focusses on making a product that delights its customers. Hence, depsite having the same tech level and prices almost similar to the competitor's premium products, apple still manages to extract more profits. Apple has control of its supply chain which it owns, and hence has key partners in them. Hence, it does not have to worry about management and monitoring of its supply chain. Apple has a walled ecosystem, in which it owns and controls all the software and the content along with the hardware, which hence ensures that everything works smoothly together for the customer. This is unlike the others, who either own the software or the hardware and hence might not be compatible with each other.

7. Key Activities: There are two key activities in the apple model, it is the design of the product and the branding. Apple focuses on branding rather than on marketing. This is because it captures the emotional side of its customers. It established a strong and elite brand image so that its customers can feel special, valued and have a sense of achievement when they own an apple product. And this has given apple a strong brand image and loyal customers.

8. Key Partnerships: Apple has two kinds of partners - contract manufacturers and telecom partners. Apple channels its product through telecom companies and hence sells its product with a package deal. Apple has bought its manufacturers rather than do it themselves. This ensured that the technology remains within, but also frees up a lot of the cost associated with the establishment of manufacturing centres.

9. Costs: Apple employs the most expensive designers and the most exotic locations for conducting business. The costs are mainly concentrated in the design and development of the product and the technology, which makes it extremely difficult to design. However, this also ensures that the cost of manufacturing comes down significantly and the product becomes very easy yet sophisticated to use, which ensures loyalty and satisfaction of its customers.

10. Customer Segments: Apple's customer segments include teenagers, business people and customers who are loyal to the brand.