Abstract

This case is about how Apple and Softbank made iPhone become successful in Japan. By that time, several international brands had tried to enter the Japanese market already, but without any success. This case shows how the product differentiation strategy and the entrance strategy affect the success of a product. In this case, Apple established a vertical alliance with Softbank in Japan as a communication service provider. Both focused on the key differentiators and their effort turned into synergy. Apple had some other vertical alliance too, such as application programmers and content providers. Softbank bundled its services with iPhone and sold it at an affordable price. Soon after the use of Softbank's aggressive marketing campain, iPhone became successful in the Japanese smartphone market and Apple with its allies enjyoed the success.

Detailed information