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“The actors in the firms immediate environment that affect its capabilities to operate effectively in its chosen markets” – (Jobber, 2007)
By creating Apple TV; Apple is entering into a highly competitive market. Apple has the challenge to gain a competitive edge over recognized brand contract satellite and cable providers such as Virgin Media and Sky.
Sky current dominates the home Television Market in the UK with 39% of the market share. (See appendix 3) (Keynote, 2010).
Organisations such as Sky also offer “package bundles” with other services such as home telephone and broadband included in one total monthly fee. These packages may be more attractive and persuade consumers to choose an all-inclusive service such as Sky rather than an Apple TV for ease and for a package price rather than choosing services from different suppliers.
Virgin Media also offers a TV on Demand Service similar to the service proposed by Apple TV but for a fee of £5 per month (Virgin, 2010) which may be more attractive to those wishing to watch a large number of programs compared to the individual fee per product offered by Apple.
In 2009, 89.2% of UK households already use a digital Television Service (Keynotes, 2010). This would require the majority of households to choose to switch from their existing providers or to use the product alongside their existing digital TV systems.
The introduction of new media streaming systems such as Google TV and iXstreamer also may present Apple with difficult competition. Google - one of the most celebrated organisations in the world – has developed a similar service to Apple TV but with the opportunity to browse the internet and use applications on your Television. This however is not yet available in the UK providing Apple with a key window to gain customers looking to purchase a media streaming television system.
Apple has developed a strong positive reputation with consumers in previous...