Busi 520 Db3
Business and Management
Submitted By tlambert5
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 segments of the health conscious, price sensitive, and luxury oriented consumer to the mix. “Michael Porter has identified five forces that determine the intrinsic long run attractiveness of a market or market segment”(Kotler & Keller, 2012 p. 232) our firm will evaluate the identified markets.
With Apple just entering the smartwatch industry competitive rivalry for the Apple watch is unattractive as it is in competition with Sony, LG and Samsung all previous owners of the smartwatch industry. The segments that will maintain a low attractive rivalry will be Apple’s brand loyal consumers that no matter what will purchase the Apple watch just because it is a new Apple product. The luxury oriented consumer will keep the rivalry low attractive since most of the smartwatch industry keeps their pricing low and design fairly simple. The rivalry will remain high and unattractive amongst the health conscious and price sensitive consumer market. “The idea is that watches can do much more than the already familiar fitness-tracking wristbands. They will increasingly be used as an aid in the treatment of the sick and the management of chronic conditions” (Blakeway, 2014).…...