Company Case 10: Apple Pay

1. As completely as possible, sketch the value delivery network for Apple Pay.

Program Developers > Apple Pay (Service Provider) > Apple (Marketing, Distributor

Channel) > Consumer

2. With respect to Apple Pay, is Apple a producer, a consumer, or an intermediary? Explain.

I believe that Apple pay is an intermediary because Apple is in between the services that

are being provided by Apple Pay, as well as Apple’s consumers. Apple Pay services have

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created a new distribution platform that improve the consumer’s effectiveness and

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efficiency to shop. As the book describes, an intermediary "is the link in the supply chain

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that links the producer or other intermediaries to the end consumer.” So in this case Apple
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is the producer, Apple Pay is the intermediary (or middleman), and the users of Apple Pay

are the consumers.

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3. Identify all of the reasons why Apple’s partnerships are essential to the success of Apple
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Pay.

Partnerships with retailers are essential for the success of Apple pay for a very simple
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reason, if retailers do not accept that form of payment then consumers will not use the

product. If retailers do not accept Apple pay, it will quickly fail because that form of
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payment will not be an option.

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4. With respect to marketing channels, what are some threats to Apple Pay’s future?

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 The biggest threat that Apple Pay faces is the lack of cooperation from retailers. Apple Pay is

making its way to be the alternative method of a physical credit card, it saves you the step of

actually swiping your card, and it provides a new form of security by requiring your

fingerprint in order to complete a transaction. According to paymentsleader.com “Apple is

touting this product as the future of payments and the most secure way of doing business.”

Clearly the cooperation of retailers is needed in their physical stores in order for that form of

payment to even be accepted, without the readers for apple pay, it would be pointless to have

that form of payment.

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Armstrong, G. & Kotler, P. (2016). Marketing: an introduction. Boston: Pearson.

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11 Apr. 2018, www.paymentsleader.com/does-apple-pay-replace-the-plastic-in-your-

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