WSJ Article 2, Essay Example

Pages: 1

Words: 379

Essay

An article in Wall Street Journal mentions that Apple’s decision to replace Google Maps with its proprietary map software has sparked a global consumer backlash. Apple had used Google Maps since the introduction of first iPhone but the growing competition between the two companies persuaded Apple to enter the maps market itself. But Apple’s entry into maps has run into problems because of location inaccuracies as well as language problems, especially in non-English speaking countries such as Japan. Google has an advantage because it introduced Google Maps in 2005 and has had enough time to gather data including pictures. Apple has apologize to consumers and has asked them for some time to improve the maps. Some consumers have even delayed purchase of iPhone 5 until the map issue is sorted out (Sherr).

This article demonstrates the importance of understanding consumer needs and doing proper homework before introducing the product/service in the market. Apple overestimated its brand power and underestimated the importance of maps to its consumers. The article also teaches us that the companies should stay within their core competencies. Apple has never worked on maps before but it overestimated its ability to compete with Google that has invested about seven years in its product. The timeline covered by the article is recent since the problem has started with the introduction of iPhone 5.

I understand the competitive rivalry between the two companies but Apple has invested a lot in building a reputation for quality and it should not have replaced Google Maps until it was sure that its map software is equally good if not better. Apple could have waited to introduce its own map software in the next iPhone model. This mishap will also benefit Apple’s other rivals such as Samsung which are eyeing iPhone’s customers and many prospective iPhone 5 customers have indicated they won’t buy iPhone 5 until the map issue is resolved.

I have chosen this article because it demonstrates consumer power in the marketplace as well as the high costs of introducing a product without proper research. The article also teaches us that reputations may take years to develop but they could be tarnished by single missteps.

References

Sherr, Ian. Apple Makes a Wrong Turn As Users Blast Map Switch. 21 September 2012. 30 September 2012 <http://online.wsj.com/article/SB20000872396390443890304578008712527187512.html?mod=WSJ_business_LeadStoryCollection>.

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