Market Opportunity Assessment for Apple TV Box

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Concept and Vision

Apple TV Box is an electronic device which enables users to access different types of electronic content through iTunes. Users are able to access different types of content directly from their computers and other electronic devices to their high definition television sets. Apple TV Box has agreements with various content providers who sell it high quality programs, music videos, documentaries and recordings of live sports events.

The new model of the product has high quality software that allows users to download data from different content websites at a very high speed (Mayes). This is the products most unique feature which will give it a stronger competitive position in the industry.

The patent rights of the product are already secured and it also has a clear copyright which is used to identify its brand in the market. More importantly, the product will allow users to stream two or more live events simultaneously to expand their viewing options.

Market Analysis

The market has various firms which sell different types of products. Some of the products direct competitors include: Roku, Wii, Playstation Vita Box and Chrome cast. These products appeal to consumers who have different needs and expectations (Mayes). The TV box market is projected to grow at a rate of about 8 percent in the next three years.

Sales data for the past three years shows that the product accounted for more than 40 percent of all TV box devices that were sold in different parts of the world. As more people download different types of content directly to their devices, the product will appeal to customers who are willing to pay premium prices for high download speeds.

Customers and Customer Development

The main focus of this product is to offer customised viewing options to different viewers depending on their specific geographic locations. Users in Europe and Asia will be able to purchase different types of services from local providers which will conform to their cultural practices.

Since it is compatible with other Apple devices, it will utilise existing partnerships it has with other international content providers to provide long term value to customers. It is estimated that Apple has gained close to 20 billion dollars from selling digital content through iTunes from January 2012 to September 2013.

The most popular services which customers prefer are: songs, video clips, electronic books, electronic games and software applications. Apple TV Box has been designed to appeal to the lifestyle patterns of customers who use various Apple gadgets which run on iOS (Mayes)

Competition and Positioning

Nintendo and Sony have products named Wii and Playstation Vita Box respectively, which are designed to stream online content and they also allow users to play online games with other gamers in their network. Other products such as Chromecast allow users to access HBO, Hulu, Netflix and YouTube using Wi-Fi and cable network connections (Oreskovic).

The Roku TV box also allows users to stream media files and to access thousands of applications from different websites. The current market value for home electronic products is estimated at 610 billion dollars and is projected to increase to an estimated 950 billion dollars in 2020.

Therefore, the main barriers to entry which competitors are likely to face in the market include: incompatible products, high costs of operations and high costs of marketing. One of the valuable features that will be included in the upgraded product is an education application which will offer modern digital learning solutions to various schools.

Business Model and Go-to-Market Philosophy.

The business model adopted by the firm focuses on increasing overall satisfaction levels of loyal Apple consumers. Apple TV Boxs features are highly compatible with applications on other Apple products which run on iOS operating systems (Oreskovic). Since the product was introduced in the market six years ago, it has been able to gain close to fifty percent of the market share.

Therefore, in the next five years, the product intends to increase the amount of content it provides to satisfy specific viewing segments. The company intends to partner with educational content providers to offer school going children and teenagers an opportunity to expand their learning options.

Consequently, the firm intends to partner with different schools to encourage them to explore new methods of learning which enable students to interact and exchange ideas with one another in and out of their classrooms.

Potential Opportunities

Many customers of various technological devices are looking for solutions that enable them to integrate different types of technologies seamlessly. As a result, new technologies encourage the convergence of different devices to offer more convenience and flexibility to different consumers that use them for different functions.

In addition, more emphasis is being placed on products that enable consumers to interact with other people in different locations to share their experiences (Oreskovic). This shows that in future, more customers will go for products that have enhanced features which allow them to perform various functions at the same time.

The main focus of the product will be to create new demand in underserved markets to help it achieve its projected growth forecasts. It will seek to offer additional solutions such as healthcare, education, real estate mapping and real time information from major financial markets. Diversification will help the product to overcome different market risks which are associated with low sales revenues.

Purpose and Objectives

The main purpose of this market opportunity assessment is to analyse the viability of Apple TV box in the next five to ten years. More people are looking for ways of using technological solutions to increase their entertainment options (Hughes).

The most promising opportunity for this product is its ability to allow users to customise their entertainment preferences using iTunes. More importantly, this assessment will look at the most effective way in which the product will be integrated with the iTunes service to increase the firms profit revenues in the long run. Therefore, the main objectives that this assessment seeks to accomplish include:

Consumer expectations and perceptions towards this product
Effects of technological changes on its long term performance
Effects of substitutes on the products competitive position in the market
Regulatory factors that affect its performance in different markets
Specific product features and how they increase value perceptions associated with the TV box
Distribution channels to be used to ensure customers are able to access the product on time without any delays
Effective methods that should be used to promote the product to increase market penetration in different places where it is sold
Lifestyle factors that are directly related to the products usage.

Primary Data

It is estimated that the product brought in revenues amounting to more than one billion dollars in 2013 which shows that it is very popular in the market. Currently, the products market price in the U.S. is 100 dollars but it is sold at a higher price in international markets due to high taxes and import duties enforced in different countries (Hughes).

A market survey which was conducted by the firm in the U.S., U.K., Germany, Brazil and China showed that the product appeals mostly to middle and high income consumers, aged twenty two to forty.

More than two hundred and fifty consumers took part in the survey and most of them insisted that they constantly download content from iTunes using their iPhones and iPads. However, seventy respondents revealed that the product needs to have gaming features to enable them to play with other users on the internet.

Secondary Data

Some of the most important factors that are likely to create new avenues for competition in the industry include: price structures, features of the product, quality, compatibility, ease of use and overall design. Consumers of TV box products are also attracted to value added services which help them to solve different types of technical difficulties they are likely to face as they use them (Hughes).

The distribution model to be used to sell Apple TV Box in the market will be crucial to its long term success. Channels of distribution are the main links which a firm has with its customers.

Since Apple has its own specialty stores, the firms sales employees will be involved in selling these products to consumers in both local and international markets. In addition, consumers are also allowed to purchase the product using different online payment systems. This will enable the firm to interact with them more to understand how it can solve their needs.

Analysis and Interpretation of Results

The issue of intellectual property rights needs to be addressed more effectively by the Apple with other companies which the firm relates with. Therefore, since the firm has a closed ecosystem, it will be able to increase its earnings from this product because customers will purchase different types of content from its iTunes digital store.

There is an existing agreement between Apple Corporation and top music production companies regarding the manner in which revenues obtained from selling songs users are shared (Murph).

The firm has similar agreements with television networks, book publishers, movie producers and game developers and this will protect the product from any legal issues that may affect its long term market performance. More importantly, the firm owns the products patent and copyright, which shows other entities cannot go to court to claim ownership rights.

Conclusion

In conclusion, the Apple TV Box has a lot of potential in the market because it benefits from Apples closed ecosystem to reinforce its competitive position over other firms. In addition, the product is compatible with other Apple products such as iPhones and iPads and this factor will increase customers value perceptions towards the product.

However, there is a lot of competition in the industry and this is likely to affect the products profits in future. Therefore, this requires the firm to develop stronger relationships with customers by interacting constantly with them to find out their needs and how they can be satisfied.

Works Cited

Hughes, Neil. New Apple TV Box with Motion Controls to Play Key Role for Apple This Year, but iTV Still a Pipe Dream. Apple Insider. Apple Insider, 9 Apr. 2014. Web.

Mayes, Jordan. The Content Case for the New Apple TV. Ivey Business Review. Ivey Business Review, 15 Sep. 2013. Web.

Murph, Darren. Apple Q4 2012 Earnings: $36 Billion in Revenue, $8.2 Billion Net Profit. Engadget. Engadget Publication, 25 Oct. 2012. Web.

Oreskovic, Alexei. Apple Incs Tim Cook Promises New Products, Says TV Set-Top Box Sales Top US$1B in 2013. Financial Post. Financial Post, 28 Feb. 2014. Web.

Click Here To Order Now!