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Apple Pay: Taking Mobile Payments Mainstream
After years of predictions that mobile payments would replace cash and credit cards, there are finally signs that it might actually be happening. And Apple is leading the way with Apple Pay. And yet while Apple Pay is quickly gobbling up market share, Apple is far from being the first to market. This case highlights how Apple jumped into the market and vaulted right over the competition. Taking advantage of its vast network of loyalists and strong distribution relationships, Apple designed a product with security measures that have allowed skeptical U.S. customers to trust digital payments.
Question A) Define value delivery network in general, then sketch the value delivery network for Apple Pay.
Question B) With respect to Apple Pay, is Apple a producer, a consumer, or an intermediary? Explain.
Question C) With respect to marketing channels, what are some threats to Apple Pay's future? Explain 3 threat.
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