Discussion Board Forum 3
Attractiveness of Market Segments and Market Segments
Attractiveness of Segments
In evaluating the attractiveness of the identified market segments of the Apple watch the firm must first consider that” People will pay up for the top of the line of the Apple brand, fewer wanting the functionality but not that brand” (Worstall, 2013). The firm also has take into account that Apple’s normal segment of consumers are young, well educated with “one third of Apple’s U.S. sales in 2013 were to Americans making more than $100,000 a year” (Elmer-Dewitt, 2014). With the apple watch not only will apple continue to keep their brand loyal consumers, they will add market ...view middle of the document...
00 - $400.00 where the Apple watch’s lowest price point is $350.00 keeping the price sensitive consumer in favor of the competitive product.
Threat of new entry
In the smartwatch world Apple is entering into an already established market. Threat of new entry into the brand loyal and luxury oriented are low and attractive as there does not seem to be a product of this stature on the horizon. The threat of entry for the health conscious and price sensitive is high and unattractive due to their being a low barrier of entry and more companies find these segments easier to enter.
Threats of substitutes
The threat of substitutes already exists in health conscious and price sensitive consumer market segment which makes these markets unattractive. As there are products that are cheaper and perform many of the health features accommodating our health conscious customer. There are far less threats of substitutes in the brand loyal and luxury oriented market segments that make these segments attractive.
Bargaining power of buyers
The bargaining power of buyers does exist with the health conscious and price sensitive consumer market segment which makes these markets unattractive. In both of these segments there are products that offer many of the same features as the Apple watch at lower price points. The brand loyal and luxury oriented market segments are attractive as the bargaining power of buyers is low due to the distinctive qualities of the apple watch that appeal to these markets.
Bargaining power of suppliers
The Apple watch comes in many shapes sizes and colors and is being sold by way of pre order. As of now there is a delay on receiving items anywhere from one to two months out. It seems the delay is not the watch but due to wrist band choices. If the demand for the watches goes up, suppliers could decide to raise the price on supplies. If this is the case all...