apple pay case study solution

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Why Hasn’t Apple Pay Replicated Alipay’s Success?

• Kristofer “Kriffy” Perez,
• Bee-Lian Quah

Two key drivers for successful platform adoption.

As of late 2019, only 9% of American consumers had adopted Apple Pay while 81% of Chinese consumers used AliPay. What explains the huge gap between adoption of these mobile payment services in the two countries? The authors argue that it’s largely a question of approach. Based on our their experience in the financial services industry and work with platform companies, the authors identified two key strategic drivers for successful platform adoption: 1) Create value for all parties, not just the consumer, and 2) Monetize the ecosystem , not just the product.

Even before Covid-19, mobile payment platforms were experiencing a boom in the U.S. and China. Apple Pay (U.S.) and Alipay (China) have radically changed the way people transact, offering secure, contactless payment options through mobile phones. Though both platforms are growing, Alipay is outperforming its U.S. peer: As of late 2019 , Bain & Company found that only 9% of American consumers had adopted Apple Pay while 81% of Chinese consumers used Alipay. Given the size difference between the two countries, the difference between the number of Alipay users in China and Apple Pay users in the U.S. is staggeringly large. What are some of the factors driving this stark contrast?

• IG Ian Gross  is a go-to-market leader in the technology sector, having served in strategy and operations roles at LinkedIn, IBM and Boston Consulting Group. He has over a decade of experience conducting research, consulting for Fortune 500 clients and supporting enterprise sales teams in high-growth environments. Ian has an MBA from the University of Chicago, Booth School of Business and a BA from the University of Maryland.
• KP Kristofer “Kriffy” Perez has over a decade of experience as a payment’s strategy consultant with leading global banks and retailers across Europe and the Americas. Based in New York City, he is a serial innovator who seeks to drive how technology impacts society. Kriffy has worked for Visa, MasterCard Advisors, the Boston Consulting Group, IBM, and co-founded a startup; accumulating over 120 projects across eight countries and filed 15 patents. He has received a degree in mechanical engineering from Lehigh University and an MBA from New York University’s Stern School of Business.
• BQ Bee-Lian Quah is an Associate Partner at IBM, where she partners with her clients to unleash the power of digital for their customers and across their organizations. She primarily works with financial services clients on strategies that bring unique, first-of-a-kind products and experiences to their customers, employees, and partners. Bee-Lian has her MBA from Duke University’s Fuqua School of Business and her B.S.E. in Bioengineering from Arizona State University.

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Case Study On Apple Pay : A New Digital Marketing Tool

About APPLE

Apple Inc. is an US Based multinational technology company headquartered in Cupertino, that designs, develops, and sells consumer electronics, softwares. Its hardware products include the iPhone , the iPad, the Mac , the iPod , and the Apple Watch smartwatch.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers.Later It was incorporated as Apple Computer, Inc. and was renamed as Apple Inc., to reflect its shifted focus toward consumer electronics.

APPLE’S Business Objective

The objective of this case study is: ‘To obtain stellar approach products and service within tight time-frame, at a cost that represents the best possible value to our customers and shareholders.’ 

Strategy Adopted by APPLE

Launched Last summer, Apple Pay has been an advanced step in replacing the traditional wallet. And not only will it have consumer benefits, and is a big plus for the retail sector but this new technology is also bringing a fresh tool for digital marketers to play with.

Apple Pay and customer data

It has been announced by Apple that it won’t be collecting any data itself through the new technology – even though this offers immense knowledge of the  customers’ spending habits and could have been extremely useful for digital marketing purposes. The data will be shared between the customer, merchant, and bank.

So this will help digital marketers  to build a profile of their customer based on data about their purchasing habits.

“Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets users make payments using the iPhone 6, 6 Plus, and later, Apple Watch-compatible devices (iPhone 5 and later models), iPad Air 2, iPad Pro and iPad Mini 3 and later. Apple Pay does not require Apple Pay-specific contactless payment terminals, and can work with existing contactless terminals. “

A new digital marketing tool

Building loyal relationships.

Those using Apple Pay are much more likely to be open to e-receipts  which is an ideal way for digital marketers to engage with customers after the foremost interaction or purchase, as the space on the receipt can be used for promotional purpose. Here brands can display their offers, and push social media channels, amongst other things, to consumers that are already engaged with them.

The mobile wallet

The ‘Passbook’ app (Wallet), where Apple Pay will be available to customers, helps users to store all of their credit and debit card details, keeping their methods of payment in one place. And with consumers constantly having their phones with them and this can  be good news for brands who are trying to reach them probably as easy as  a clickable ‘Add to Passbook’ button in marketing campaigns .

Plus, the app will even give brands the chance to build  relationships with the consumers. Customers will no longer need to carry their multiple loyalty cards, and points and rewards will be available to them on their device itself , rather than collecting receipts for the same.

The in-app purchasing process development

For apps that have adopted Apple Pay feature, iOS developers have already started witnessing  that the checkout rates are more than double. Apple has created a much smoother and simpler in-app buying process and consumers can now authenticate payments just with the touch of their finger with the new technology of TOUCH ID. Not only does this improves the user experience on mobile, but it plays a key role in deciding which app needs to be downloaded for time saving functionality. Once downloaded, the app provides another channel through which digital marketers can reach consumers with their messages.

Apple Pay is a big step for the contactless payment industry, and as other brands are in the race to create their competitor technologies, the future of the industry is looking bright. As these new technologies are developed, they will provide more ways for digital marketers to reach their target audiences, and it’s therefore important that brands adopt them as soon as possible to keep up with the evolving landscape of digital marketing.

Results Achieved by “APPLE”

Secure, simple, and even more useful.

Paying in stores have become much easier and safer because of technology. Gone are the days when we used to search for wallets and wasted moments finding the right card. Now we  can simply do so by our credit cards, store credit cards, and rewards cards with just a touch.

Apple Pay is very simple to use and works with the cards we already have on the devices we use every day. And because our card details are never shared when we use Apple Pay — in fact, they aren’t stored on your device at all — using Apple Pay on our apple mobile devices is the safer and more private way to pay.

IMAGE CREDITS : Apple

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Mobile payment adoption in the age of digital transformation: the case of apple pay.

1. Introduction

2. literature review, 2.1. mobile payment as a tool for digital transformation, 2.2. user- and mobile phone-related factors: mobile user skillfulness, personal innovation and effort, 2.3. factors related to benefits received: convenience and perceived value, 2.4. mobile payment inhibitors: perceived risk, 3. research methods and measures validation, 3.1. evaluation of the measurement scales used, 3.2. exploratory analyses, 3.3. confirmatory analysis, 5. discussion, limitations and future lines of research, author contributions, conflicts of interest, appendix a. scales used, appendix a.1. mobile user skillfulness (lu et al., 2009).

• I feel confident using the payment system displayed to complete an online transaction efficiently (MS1)
• I would be able to use the payment system displayed to complete an online transaction in a short period of time (MS2)
• I would be able to use the payment system displayed to complete an online transaction in a short period of time if I had used a similar system before (MS3)

Appendix A.2. Personal Innovation (Ramos-de-Luna et al., 2016)

• I like to experiment with new technologies (PI1)
• Among my friends and family, I am usually the first to try out new information technologies (PI2)
• In general, I would not hesitate to test new technologies (PI3)
• I would like to look for new ways to experiment with new technologies (PI4)

Appendix A.3. Effort Expectation (Venkatesh et al., 2012; Hew et al., 2015)

• Learning to use mobile applications is easy for me (EE1)
• In my interactions with mobile applications, I find them clear and understandable (EE2)
• I find mobile applications easy to use (EE3)
• It is easy for me to become proficient in using mobile applications (EE4)

Appendix A.4. Convenience (Pal et al., 2015)

• The payment system displayed is convenient because I usually carry the mobile phone with me (CO1)
• The payment system displayed is convenient because I can use it at any time (CO2)
• The payment system displayed is convenient because I can use it in any situation (CO3)
• The payment system displayed is convenient because it is not complex (CO4)
• The payment system displayed is convenient because it can be used regardless of location (CON5)

Appendix A.5. Perceived Value (Liébana-Cabanillas and Alonso-Dos-Santos, 2017)

• The payment system displayed is valuable and worth the time spent learning how to use it (PV1)
• The payment system displayed is useful to me and worth the effort made learning how to use it (PV2)
• The payment system displayed is useful for me thanks to the amount of experience I have (PV3)

Appendix A.6. Perceived Risk (Liébana-Cabanillas et al., 2014)

• Other people may access information about my online transactions if I use this mobile payment system (PR1)
• There is a high potential for monetary loss if I make purchases with this mobile payment system (PR2)
• There is a significant risk when making purchases using this mobile payment system (PR3)
• I consider making purchases with this mobile payment tool a risk (PR4)

Appendix A.7. Perceived Usefulness (Davis et al., 1989)

• Using the payment system displayed can help me make the purchases I normally make over the Internet (PU1)
• Using the payment system displayed can increase my efficiency when making purchases (PU2)
• Using the payment system displayed for my purchases can increase my productivity (PU3)
• In general, the payment system displayed can be useful to me when making purchases (PU4)

Appendix A.8. Intention to Use (Venkatesh and Bala, 2008)

• Assuming I have access to the payment system displayed, I intend to use it to make purchases (IU1)
• If I have access to the payment system displayed during the next few months, I believe I will use this system rather than another, alternative system (IU2)
• Assuming I had access to the payment system displayed, I would use it in the near future (IU3)
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Share and Cite

Liébana-Cabanillas, F.; García-Maroto, I.; Muñoz-Leiva, F.; Ramos-de-Luna, I. Mobile Payment Adoption in the Age of Digital Transformation: The Case of Apple Pay. Sustainability 2020 , 12 , 5443. https://doi.org/10.3390/su12135443

Liébana-Cabanillas F, García-Maroto I, Muñoz-Leiva F, Ramos-de-Luna I. Mobile Payment Adoption in the Age of Digital Transformation: The Case of Apple Pay. Sustainability . 2020; 12(13):5443. https://doi.org/10.3390/su12135443

Liébana-Cabanillas, Francisco, Inmaculada García-Maroto, Francisco Muñoz-Leiva, and Iviane Ramos-de-Luna. 2020. "Mobile Payment Adoption in the Age of Digital Transformation: The Case of Apple Pay" Sustainability 12, no. 13: 5443. https://doi.org/10.3390/su12135443

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APPLE PAY Case Study solution

Introduction.

The current case solution is published by 247caseanalysis and focuses on APPLE PAY. The case presents an overview of the strategic and managerial issues that the APPLE PAY faces in the growth and development of the business. The case solution focuses on understanding the central issue(s) in the case. The case study solution then uses strategic tools and models to solve the case and makes strategic recommendations for the APPLE PAY (Abratt & Bendixen, 2018; Iacobucci, 2021).

The case study and the case solution for the APPLE PAY are intended to give a comprehensive and holistic perspective regarding real-world business situations and challenges to the reader. Like all HBS case studies, it is important for the reader to first read the case for the APPLE PAY. The proposed case study solution for the APPLE PAY has encompassed the needs of all stakeholders while addressing the central challenge effectively (Deepak & Jeyakumar, 2019).

External environment analysis

The APPLE PAY cannot directly influence the external environment. The APPLE PAY must ensure to assess and continually review the external environment to identify potential challenges and opportunities (Abratt & Bendixen, 2018). This is needed because:

The external environment is dynamic and keeps changing.

External environment factors and dynamics, directly and indirectly, influence APPLE PAY operations (Anthony, 2021).

PESTEL Analysis

The APPLE PAY needs political stability to maintain business development and growth globally.

The APPLE PAY must also pay heed to local and global taxation implications for operations carried on site, as well as in other countries.

The APPLE PAY is directly impacted by the policies and regulations devised by the governments in its host as well as home countries (Chernev, 2018).

Lower interest rates facilitate the APPLE PAY as it leads to increased instances of borrowing.

Lower interest rates also lead to increased consumer power, and increased demand for products of APPLE PAY (Deepak & Jeyakumar, 2019).

The operations and demand for APPLE PAY are directly influenced by the GDP and economic growth in the countries where it operates and exports (Buchanan & Huczynski, 2019).

Increased focus on education and higher literacy rates have allowed the APPLE PAY to benefit from a more skilled and talented labor pool.

The higher portion of the youth has also benefitted the APPLE PAY in creating a high demand for its products and services (Iacobucci, 2021).

Assessment of the population and consumer trends have allowed the APPLE PAY to refine its segmentation and targeting strategies – leading to improved positioning of its portfolio offering (De Mooij, 2019).

Technological

APPLE PAY has high internal innovation capabilities.

APPLE PAY invests in research and development for improved creativity and technological progress.

The APPLE PAY makes use of innovative and advanced technology to make its internal processes more efficient and work towards achieving economies of scale.

APPLE PAY also benefits from knowledge sharing through global operations and transfers technology internally (Baines, Fill, & Rosengren, 2017).

Environmental

The APPLE PAY follows and abides by environmental regulations imposed in various countries.

Consumers for APPLE PAY have rapidly adopted green lifestyles and green consumption.

Incorporating environmentalism into its strategic goals and direction has enabled the APPLE PAY to become more efficient in this resource allocation (Stead & Stead, 2014).

The APPLE PAY ensures to follow the equal employment and equal opportunity law.

Through the equal opportunity act and regulations, the APPLE PAY ensures that it does not discriminate against different groups in its HUMAN RESOURCE MANAGEMENT practices.

The APPLE PAY also ensures to abide by the health and safety regulations.

The APPLE PAY makes sure to follow regulations regarding employment contracts and employer responsibilities to ensure fair policy-making and high performance (Lasserre, 2017).

Porter Five Forces

Industry rivalry.

There is high competitiveness and rivalry in the industry.

The market is highly fragmented, which leads to increased competition for APPLE PAY.

The APPLE PAY faces industry rivals of various sizes and operations.

The competition for APPLE PAY is local as well as global in nature.

The increased rivalry in the industry ensures that all players, including APPLE PAY, offer high-quality products and services to consumers at competitive prices (Varadarajan, 2015).

The threat of new entrants

The threat of new entrants is moderate.

There are entry barriers such as government regulations and financial capital needed for setting up operations.

This ensures that only powerful players with high financial muscle enter the market where APPLE PAY is operating.

New entrants ensure that the APPLE PAY maintains its focus on competitiveness and high quality (Wunder, 2019; Abratt & Bendixen, 2018).

Threat of substitutes

The threat of substitutes is moderate to high.

There is direct well as indirect substitutes available for APPLE PAY offerings.

The high number of players and market fragmentation has led to the increased availability of substitutes for APPLE PAY products.

There are low switching costs for consumers between substitutes (Sahaf, 2019; Kotabe & Helsen, 2020).

Bargaining power of buyers

APPLE PAY operational a highly fragmented industry.

The bargaining power of the buyers is high.

Players, including APPLE PAY, do not have a retail setup (Phillips & Moutinho, 2018; Chernev, 2018).

Bargaining power of sellers

The bargaining power of suppliers is high in the industry where APPLE PAY operates.

There're numerous players in the industry, and suppliers have contracted with most of them.

The raw materials provided by suppliers are restricted, and limited owing to quality needs and benchmarks (Kotabe & Helsen, 2020; Joyce, 2022).

Internal environment analysis

The internal analysis allows an insight into the factors that APPLE PAY can directly influence. These factors and capabilities are used by the APPLE PAY to ensure that:

It is able to capitalize on the opportunities from the external environment.

It is able to mitigate risks and manage challenges and threats appropriately.

The APPLE PAY is able to set the right strategic direction and use internal capacities towards its attainment (Stead & Stead, 2014; Deepak & Jeyakumar, 2019).

The APPLE PAY has a strong brand image and a positive consumer perception in the market.

The APPLE PAY invests in research and development, which helps the company focus its new product development as well as marketing capabilities (Phillips & Moutinho, 2018).

The company has a strong financial revenue earning ability and enjoys high profits.

The APPLE PAY has a global distribution network, which is strong and has allowed it to enjoy high business growth.

International expansion has allowed the APPLE PAY to understand diverse cultures and their knees – and engage in the localization of its product portfolio (DuBrin, 2013).

The APPLE PAY is criticized for high prices for its product portfolio.

The company has suffered negative PR owing to the recall of some of its products which were faulty.

Despite engagement with advanced technology, APPLE PAY continues to use manual systems internally, which leads to time ineffectiveness (Abratt & Bendixen, 2018).

The APPLE PAY has an organizational culture that is resistant to change and, as a result, exhibits slow adaptation to new trends.

The product design for the APPLE PAY’s offerings is imitative.

The APPLE PAY has undifferentiated products in its portfolio with respect to the competition (Phillips & Moutinho, 2018; Baines, Fill, & Rosengren, 2017).

Opportunities

The APPLE PAY has the opportunity to expand to developing and emerging economies.

The APPLE PAY can develop outsourcing partnerships to further maintain cost-effectiveness.

The APPLE PAY can also engage in green production and work towards environmental sustainability (Stead & Stead, 2014; Lasserre, 2017).

The APPLE PAY can also develop strategic partnerships and alliances to facilitate business growth and development.

Target niche markets, and develop new products.

The APPLE PAY can benefit from the evolving media trends for marketing purposes – including using social media content creation to target new consumer groups (Varadarajan, 2015; Wilson, 2018).

The APPLE PAY is facing high competition.

The APPLE PAY is also experiencing high imitation of its products.

The APPLE PAY faces threats from the increased price volatility of raw materials as well.

The unstable government and government policies are also a threat to the operations of the APPLE PAY- especially internationally.

Slow change adaptation may lead the APPLE PAY to become an industry laggard (Anthony, 2021; Abratt & Bendixen, 2018).

Marketing mix

The product offerings by the APPLE PAY maintain consistently high quality.

The APPLE PAY engages in brand-building activities to ensure that its product and service offerings are well received by the target audience (Chernev, 2018).

Brand-building activities build positive associations for APPLE PAY and lead to repeat purchases as well as high consumer loyalty.

APPLE PAY ensures that its products are available in different SKU sizes to cater to the needs of different groups within its target audience.

The APPLE PAY also offers a warranty for its products (Khan, 2014).

The APPLE PAY ensures competitive pricing in the industry among the high number of market players.

For new products, the APPLE PAY maintains an introductory pricing strategy to encourage trials and purchases (Kareh, 2018).

For its star products, the company maintains penetrative pricing strategies to allow maximum trial.

For mature products, the APPLE PAY engages in aggressive and competitive pricing.

The APPLE PAY offers regular discounts to appeal to consumers, clear stocks, as well as for increasing footfall (Išoraitė, 2016).

APPLE PAY ensures that all its product offerings are highly accessible.

The APPLE PAY places products in physical retail setups like supermarkets and hypermarkets.

The APPLE PAY also places products with e-tailers such as amazon so consumers can easily access the products (Iacobucci, 2021).

The APPLE PAY also has an online system on its website for managing orders placed directly with the company.

The APPLE PAY has a strong distribution network, as well as competent and quick consumer service. (Kareh, 2018; Abratt & Bendixen, 2018).

The APPLE PAY uses traditional promotional platforms of television to reach the masses with its product portfolio.

The APPLE PAY also engages in radio and print promotional activities and advertisements (Deepak & Jeyakumar, 2019).

The APPLE PAY also uses social media to reach out to its audiences and influence them.

The APPLE PAY has developed expertise in interesting and relevant content creation, which attracts its primary as well as secondary target consumer groups (De Mooij, 2019).

The APPLE PAY frequently uses influencers to create a positive buzz and hype regarding its products, as well as to ensure high reach.

All promotional content is integrated and uses emotional appeals to create a lasting relationship with the consumers (Chernev, 2018).

The APPLE PAY has a strong global presence and strong business development capabilities.

The APPLE PAY focuses on research and development internally to identify market gaps and demands.

The APPLE PAY makes use of AI in its production operations and marketing functions to increase cost efficiency as well as affectivity (Dimitrieska, Stankovska, & Efremova, 2018).

The APPLE PAY engages and invests in acquiring advanced and progressive technology for operational efficiency. (Joyce, 2022).

The APPLE PAY has a strong retail setup and a strong distribution network across the globe (Gillespie & Swan, 2021; Chernev, 2018).

The APPLE PAY has access to unique raw materials, which helps it maintain high quality as well as differentiation in its product offerings.

The APPLE PAY holds special patents and licenses for manufacturing processes, as well as for being able to manufacture off-site in other countries (Grewal & Levy, 2021).

The APPLE PAY undertakes and participates in sustainable and eco-friendly manufacturing processes.

The APPLE PAY has also developed a green packaging solution for its product offerings and portfolio (Gillespie & Swan, 2021).

The leadership within the APPLE PAY is visionary and charismatic.

The organizational culture within APPLE PAY is robust, innovative and creative.

The organizational culture is based on the unique values, and implementation of the same – including transparency, honesty, and commitment (Groucutt & Hopkins, 2015).

The human resource management policies within the APPLE PAY support employee development and engagement – leading to high employee satisfaction and high employee morale (Machado, 2019; Anthony, 2021).

The compensation framework within the APPLE PAY is advanced and focuses on extrinsic as well as intrinsic drivers for employee performance.

The APPLE PAY enjoys high brand equity based on consistently high deliverance of product quality (Hitt, Miller, Colella, & Triana, 2017; Grewal & Levy, 2021).

The technical infrastructure within the APPLE PAY comprises new and advanced technology as well as network development to support its operations (Griffin, 2021)

The APPLE PAY has access to advanced physical infrastructure as well which helps support its technical advancements, as well as its manufacturing and related operations (Valeri, 2021)

The international exposure that the APPLE PAY has received owing to its expansions has allowed it to develop and apply innovation as well as new knowledge for improving existing processes and schedules within the company (Hitt, Miller, Colella, & Triana, 2017; Abratt & Bendixen, 2018; Valeri, 2021).

Value chain

The core capabilities and strengths of the APPLE PAY have enabled it to overcome obstacles and challenges and achieve its strategic goals and targets.

The core strengths and competencies of APPLE PAY form an important part of the company’s value chain (Chernev, 2018; Anthony, 2021).

Primary activities

APPLE PAY works directly and owns part of its operations in the value chain.

The APPLE PAY also works through different third parties as well as contracts with other parties for managing operations in other countries (Anthony, 2021).

For inbound logistics, the APPLE PAY ensures that all raw materials are transferred to warehouses and manufacturing sites in a timely fashion using company-owned transportation.

The APPLE PAY manages its operations directly as well as through third parties.

The operations of the APPLE PAY are spanned in its hometown as well as conducted overseas at other locations (Deepak & Jeyakumar, 2019).

In offshore countries, the APPLE PAY manages operations through partners and agents – who look after distribution and marketing activities for the APPLE PAY.

The APPLE PAY engages in invested marketing activities – based on consumer and market research (Dimitrieska, Stankovska, & Efremova, 2018; Chernev, 2018).

The APPLE PAY also makes use of AI for its marketing and promotional activities.

The APPLE PAY regularly trains its employees to develop skills regarding consumer service.

The APPLE PAY has maintained strict policies regarding consumer service as well as ensuring high quality and increased customer satisfaction (Joyce, 2022).

Secondary activities

The APPLE PAY has a strong human resource management department, regulated by modern policies and practices.

The human resource management department at the APPLE PAY supports the organizational culture and the leadership through its various functions – such as hiring, training and compensation management (DuBrin, 2013).

The APPLE PAY makes use of advanced technology to support its operations and achieve strategic goals and targets (DuBrin, 2013; Joyce, 2022).

The advanced technology is acquired internationally (Iacobucci, 2021).

The APPLE PAY engages in regulated procurement with selected suppliers.

The APPLE PAY ensures its contracted suppliers provide consistently high-quality raw materials to maintain high quality for end consumers (Gillespie & Swan, 2021).

The APPLE PAY is used to resolve its managerial and strategic challenges using one of the following strategies.

The strategies recommended will allow the APPLE PAY to expand and develop, as well as manage its risks and challenges effectively.

Using these strategies, the APPLE PAY will also be able to remain competitive in the market.

Market development strategies

The APPLE PAY can engage in informative and emotional marketing to appeal to the target audience in the market and increase brand awareness.

The APPLE PAY can devise and run educational campaigns to help understand the importance of the product, and its need (Išoraitė, 2016).

The APPLE PAY can work with influencers and celebrities to help spread the message through social media as well as conventional media.

The APPLE PAY can use a team on the ground to interact with the target audience, brief them about the product and its benefits, and influence them positively towards purchase decisions. (Baines, Fill, & Rosengren, 2017).

Market penetration strategies

The APPLE PAY can increase its marketing spending and use emotional appeals to influence the target audience.

The marketing strategies should be focused on maximizing the reach of the brand's message and promise (Iacobucci, 2021).

The APPLE PAY is recommended to make its products accessible through an increased number of supermarkets and hypermarkets.

The APPLE PAY can also open its own retail setups to increase footfall and reach across different regions (Sahaf, 2019).

Product development strategies

The APPLE PAY is recommended to and can engage in market and consumer research for product development.

Encouraging innovation and discussion of new ideas within the APPLE PAY can also lead to rapid new product development (Varadarajan, 2015).

The APPLE PAY can also optimize the development of new products by making its manufacturing and testing processes more effective.

The APPLE PAY can also create innovation labs and labs for new product development and testing (Sahaf, 2019; Abratt & Bendixen, 2018).

Diversification strategies

The APPLE PAY can expand horizontally and add new product lines.

The APPLE PAY can also expand vertically and add new products to the existing product line

The diversification will allow the APPLE PAY to attract new consumer groups (De Mooij, 2019).

The diversification will also allow the APPLE PAY to increase its penetration and reach amongst existing consumers.

The APPLE PAY will be able to increase brand awareness through diversification as well (Iacobucci, 2021; Abratt & Bendixen, 2018).

The APPLE PAY needs to strategically align its resources for optimization and to achieve its strategic goals and targets. The APPLE PAY should continue to use its internal capabilities to realize new opportunities and for mitigating risks and weaknesses. In addition, the APPLE PAY should also make use of other strategic models to understand the managerial challenges that the organization faces and devise suitable strategies and actions for overcoming them. The leadership of the APPLE PAY will play a critical role in ensuring that the organization overcomes the challenges by focusing on the organizational culture and values, which will then impact the operations and performance at large.

Abratt, R., & Bendixen, M. (2018). Strategic marketing: Concepts and cases. New York, United States: Routledge.

Anthony, H. (2021). Understanding strategic management. New York: Oxford University Press.

Baines, P., Fill, C., & Rosengren, S. (2017). Marketing. New York, United States: Oxford University Press.

Buchanan, D., & Huczynski, A. (2019). Organizational behaviour. London: Pearson UK.

Chernev, A. (2018). Strategic marketing management. Berlin/Heidelberg, Germany: Cerebellum Press.

De Mooij, M. (2019). Consumer behavior and culture: Consequences for global marketing and advertising. Thousand Oaks, California: Sage.

Deepak, R., & Jeyakumar, S. (2019). Marketing management. New Delhi, India: Educreation Publishing.

Dimitrieska, S., Stankovska, A., & Efremova, T. (2018). Artificial intelligence and marketing. Entrepreneurship, 6(2), 298-304.

DuBrin, A. (2013). Fundamentals of organizational behavior: An applied perspective. Amsterdam, Netherlands: Elsevier.

Gillespie, K., & Swan, K. (2021). Global marketing. New York, United States: Routledge.

Grewal, D., & Levy, M. (2021). M: marketing. New York, United States: McGraw-Hill Education.

Griffin, R. (2021). Management. Boston, Massachusetts, United States: Cengage Learning.

Groucutt, J., & Hopkins, C. (2015). Marketing. London: Macmillan International Higher Education.

Hitt, M., Miller, C., Colella, A., & Triana, M. (2017). Organizational behavior. Hoboken, New Jersey, United States: John Wiley & Sons.

Iacobucci, D. (2021). Marketing management. Boston, Massachusetts, United States: Cengage Learning.

Išoraitė, M. (2016). Marketing mix theoretical aspects. International Journal of Research-Granthaalayah, 4(6), 25-37.

Joyce, P. (2022). Strategic Management and Governance: Strategy Execution Around the World. Oxfordshire United Kingdom: Taylor & Francis.

Kareh, A. (2018). Evolution of the four Ps: Revisiting the marketing mix. Retrieved June 2022, from Forbes: https://www.forbes.com/sites/forbesagencycouncil/2018/01/03/evolution-of-the-four-ps-revisiting-the-marketing-mix/

Khan, M. (2014). The concept of ‘marketing mix’and its elements. International journal of information, business and management, 6(2), 95-107.

Kotabe, M., & Helsen, K. (2020). Global marketing management. Hoboken, New Jersey, United States: John Wiley & Sons.

Lasserre, P. (2017). Global strategic management. London: Macmillan International Higher Education.

Machado, C. (2019). Organizational Behaviour and Human Resource Management. Berlin: Springer.

Phillips, P., & Moutinho, L. (2018). Contemporary issues in strategic management. London: Routledge.

Sahaf, A. (2019). Strategic marketing: Making decisions for strategic advantage. New Delhi, India: PHI Learning Pvt. Ltd.

Stead, J., & Stead, W. (2014). Sustainable strategic management. London: Routledge.

Valeri, M. (2021). Organizational studies: implications for the strategic management. Berlin, Germany: Springer Nature.

Varadarajan, R. (2015). Strategic marketing, marketing strategy and market strategy. AMS review , 5(3), 78-90.

Wilson, F. (2018). Organizational behaviour and work: a critical introduction. New York: Oxford university press.

Wunder, T. (2019). Rethinking strategic management: Sustainable strategizing for positive impact. Berlin: Springer Nature.

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Case – 2: Apple Pay Case Solution & Answer

Home » Case Study Analysis Solutions » Case – 2: Apple Pay

Apple Pay Case Study Solution

Q1- why did banks agree to partner with apple for apple pay in the us are retailers excited about apple pay why or why not.

Banks agreed to establish the partnership relation with the Apple Pay in the United States of America, because this program will increase the usage of credit cards and debit cards, which is beneficial for the bank as banks’ sales targets will increase and banks’ goal of diverting the customer towards e-payments will enhance. The second reason is the customer preference for immediate e-payments and prediction of an increase in spending in the coming years.(Gupta, 2016)

However, the banks realize the fact that Apple Pay stops its operations in the market then banks will not be incurring losses; therefore, it was a win-win situation for both ,i.e. banks as well as the Apple Pay. Besides that, banks were positive that by replacing the cash-based transactions; banks could avail the opportunity of reducing the frauds that are good for the economy, and will increase the banks’ revenues in long term.

Retailers were excited for Apple Pay as Apple always hits the niche market and has customer loyalty. Moreover, to make the retailers more excited; Apple pay used a FAQ page where retailers can ask questions and have a ware ness regarding the functions and offers that Apple Pay would provide to the retailers. The FAQ provides details for questions based on: how to start using it, payment functions, how to download the payment mark and hardware requirements. Retailers identified this App as an opportunity to increase the market share and develop good relationships with the Apple Company……………………….

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

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• Harvard Case Studies

Apple Pay Case Study Solution & Analysis

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

STEP 2: Reading The Apple Pay Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Apple Pay:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Apple Pay and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Apple Pay HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Apple Pay is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Apple Pay.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Apple Pay Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

Pest analysis

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Apple Pay.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Apple Pay Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Apple Pay:

Vrio analysis for Apple Pay case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Apple Pay company’s activities and resources values. RARE: the resources of the Apple Pay company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE : the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation.  Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE : resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Apple Pay)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Apple Pay Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Apple Pay Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Apple Pay Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Apple Pay Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.

Apple Pay Case Study Solution Analysis

by HBR Eighteen

Apple Pay Case Study Solution & Analysis. Get Apple Pay Case Study Analysis & Solution. Contact us directly at buycasesolutions(at)gmail(dot)com if you want to order for Apple Pay Case Solution, Case Analysis, Case Study Solution. Sunil Gupta, Shelle... More

Apple Pay Case Study Solution & Analysis. Get Apple Pay Case Study Analysis & Solution. Contact us directly at buycasesolutions(at)gmail(dot)com if you want to order for Apple Pay Case Solution, Case Analysis, Case Study Solution. Sunil Gupta, Shelle Santana, Margaret L. Rodriguez Less

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APPLE PAY Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of APPLE PAY Case Solution

The APPLE PAY case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The APPLE PAY case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved APPLE PAY case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the APPLE PAY case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of APPLE PAY Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by APPLE PAY is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the APPLE PAY HBR Case Study

The objective of the case should be focused on. This is doing the APPLE PAY Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of APPLE PAY

An important tool that helps in addressing the central issue of the case and coming up with APPLE PAY HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of APPLE PAY.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the APPLE PAY Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for APPLE PAY

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which APPLE PAY operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of APPLE PAY

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the APPLE PAY case solution.

VRIO Analysis of APPLE PAY

This is an analysis carried out to know about the internal strengths and capabilities of APPLE PAY. Under the VRIO analysis, the following steps are carried out:

• The internal resources of APPLE PAY are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of APPLE PAY

The Value chain analysis of APPLE PAY helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow APPLE PAY to increase its competitive advantage.

BCG Matrix of APPLE PAY

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the APPLE PAY BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of APPLE PAY

Ansoff Matrix is an important strategic tool to come up with future strategies for APPLE PAY in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of APPLE PAY

APPLE PAY needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

APPLE PAY Blue Ocean Strategy

The strategies devised and included in the APPLE PAY case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of APPLE PAY

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of APPLE PAY looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of APPLE PAY.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into APPLE PAY Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the APPLE PAY case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the APPLE PAY Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and APPLE PAY case answers should be written down in the APPLE PAY case memo, clearly identifying which part shows what. The APPLE PAY case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the APPLE PAY HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for APPLE PAY is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of APPLE PAY Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the APPLE PAY Harvard case is complete and properly answered.

Recommendations and Action Plan for APPLE PAY case analysis

For APPLE PAY, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• APPLE PAY should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• APPLE PAY should enhance the value creating activities within its value chain.
• APPLE PAY should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here .

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Apple Inc. in 2020 – Select Market Data

• Apple Inc. in 2020  By: David B. Yoffie
• Apple Inc. in 2020 – Select Market Data  By: David B. Yoffie

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Financial Policy at Apple 2013 (A) Harvard Case Solution & Analysis

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Financial Policy at Apple 2013 (A) Case Study Solution

Payout alternate to pay its excess cash.

Broadly, in the first quarter of the fiscal year 2013, the price of the Apple Incorporation’ common stock appears to be $450, and in case of assuming that the price earnings ratio is 10, then the earning per share of Apple Incorporation would be $45. In addition to this, it is to evaluate that in case the preferred stock would be issued by the company i.e. 5 preferred stock for each common stock is assumed at the purchase price of $50, and the dividend of $2 per year is given on such preferred stock then the total value of the share of Apple Incorporation would most probably be of $600, $150 gain would most likely be unlocked in valuation by the company in case 5 preferred stock is issued for each common stock outstanding. The total value of the share of company and the effect of the preferred share on the common stock are summarized in table provided below:

If the company issues one iPref for each common share to its shareholders, it would most likely be unlocking a lot of value on immediate basis. Also, by separating the dividends from the common shares, the investors would have an option to choose for themselves on whether to sell iPref in the open market and reinvest in the Apple stock or to keep the Ipref.

Recommendations to Cook and Oppenheimer

To sum up, it is recommended to Cook and Oppenheimer that they should focus on formulating the effective strategy of providing the excess amount of cash to the shareholders, this in turn would increase the value of the shareholders. In addition to this, they should also formulate the investment plan by exploiting or capturing the market opportunities as well as driving an innovative plan for the product development so that it would allow the company to cope with the customers ‘expectations related to brand that the company is concerted its efforts in providing the value added and innovative products to its customers . As a result, it is recommended that Cook and Oppenheimer should introduce the investment plan in order to retain the value of the company by utilizing the excess cash flow,which is retained by the company, or they can either issue preferred shares in case the company is not able to find the feasible investment plan that could be invested in through excess cash. The investment planning would allow the company to derive the maximum benefits from its investments. The effective investment plan or growth strategy would allow the company to remain the market leader, accelerate longterm growth, maximize the market share and improve the performance, beat head-to-head competition and gain popularity.......

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Chaos and Confusion: Tech Outage Causes Disruptions Worldwide

Airlines, hospitals and people’s computers were affected after CrowdStrike, a cybersecurity company, sent out a flawed software update.

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By Adam Satariano Paul Mozur Kate Conger and Sheera Frenkel

• July 19, 2024

Airlines grounded flights. Operators of 911 lines could not respond to emergencies. Hospitals canceled surgeries. Retailers closed for the day. And the actions all traced back to a batch of bad computer code.

A flawed software update sent out by a little-known cybersecurity company caused chaos and disruption around the world on Friday. The company, CrowdStrike , based in Austin, Texas, makes software used by multinational corporations, government agencies and scores of other organizations to protect against hackers and online intruders.

But when CrowdStrike sent its update on Thursday to its customers that run Microsoft Windows software, computers began to crash.

The fallout, which was immediate and inescapable, highlighted the brittleness of global technology infrastructure. The world has become reliant on Microsoft and a handful of cybersecurity firms like CrowdStrike. So when a single flawed piece of software is released over the internet, it can almost instantly damage countless companies and organizations that depend on the technology as part of everyday business.

“This is a very, very uncomfortable illustration of the fragility of the world’s core internet infrastructure,” said Ciaran Martin, the former chief executive of Britain’s National Cyber Security Center and a professor at the Blavatnik School of Government at Oxford University.

A cyberattack did not cause the widespread outage, but the effects on Friday showed how devastating the damage can be when a main artery of the global technology system is disrupted. It raised broader questions about CrowdStrike’s testing processes and what repercussions such software firms should face when flaws in their code cause major disruptions.

How a Software Update Crashed Computers Around the World

Here’s a visual explanation for how a faulty software update crippled machines.

How the airline cancellations rippled around the world (and across time zones)

Share of canceled flights at 25 airports on Friday

50% of flights

Ai r po r t

Bengalu r u K empeg o wda

Dhaka Shahjalal

Minneapolis-Saint P aul

Stuttga r t

Melbou r ne

Be r lin B r anden b urg

London City

Amsterdam Schiphol

Chicago O'Hare

Raleigh−Durham

B r adl e y

Cha r lotte

Reagan National

Philadelphia

1:20 a.m. ET

CrowdStrike’s stock price so far this year

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