Apple Inc believes in different strategies. Cheap can sometimes represent a less quality product. Most of the products Apple Inc were priced at generally twice as expensive than competitor's product price. What about Apple Inc products more expensive can attract customers to buy it. The answer to this question is because Apple Inc created the product and customers not only love it but feel terrible to have it.
Samsung Company is a conglomerate, a manufacturer, and the world’s largest chip-maker. It makes much more cost advantage components, its go into smartphones in term of it to produce and when. Besides that, it is Apple’s biggest parts supplier and its fiercest competitor in the smartphone maker. Although Apple declared war over intellectual property and won, Samsung won’t likely cut its supplier partnership with rival. However, Apple’s company also is the most powerful and drive loyalty through its unique ecosystem and proprietary operating software among customers.
While telecommunications is not very unique, not every other business can be able to offer the same services. In addition, competition remains limited due to the cost of market entry. Cost of leadership focuses on reduction of operating costs in order to reduce product prices. Verizon wireless does not require reducing its operating costs further because its prices are already competitive
Apple has a strong brand image, innovation and customer service making it different for new entrants to compete against. Threats of substitutes: it not necessary the same products offered by other companies, but rather different products that satisfy the same need as the product being offered. If a supplier increase their prices, a company with differentiated product can pass that cost to its customers. Since Apple competes as a quasi-monopoly in its market segment, Buyer power: in general, the more customers a company has the less barging power each customers will have, and it switching costs are high, then buying power substantially decrease. Since the company competes as a quasi- monopoly in its market segment, there is a reduction of the buyer's
Nevertheless, Apple earns a lot from iPads, therefore continual investment is required to ensure the product retains its position. Mac Apple Mac is the third largest circle on the matrix. Mac is surrounded by many mature and successful players such as Lenovo, Dell, HP who have already made their space is the market. There may be less chances of gaining future market share as the technology is slowly moving to a complete portable era. Having said this, Apple Macs are most desired by big businesses due to its fast and reliable and multi functioning operating systems and features.
• The retail stores set up by apple is a major advantage over other rivals in the market. Weakness: • The price set for the IPhone products by Apple is quite high. IPhone is very expensively priced. • There are lot of restrictions in the phone such as the operating system IOS is very different, which makes it hard for the customers to use other operating systems in the phone. Also some features like battery, which is fixed, and Bluetooth
Political/Legal Segment Political segment becomes a significant influence on Apple Inc.’s in establishing their business all over the world. However, as a company, Apple Inc. is not able to regulate the political segment. It is mentioned that majority of their sales is obtained from other countries outside the United States. Therefore, Apple Inc. needs to lower their production cost by moving their production assembly to other countries. However, some concerns may arise between the United States and those countries, such as bad international relation, public issues, and others.
Higher Price than its competitor – Smart phone competitor like Samsung and Xiaomi are stealing the market share via the lower level price smartphone, however, Apple don’t have the lower price smartphone. 5. Narrow product range – Apple has only 7-8 products in its portfolio compared to the various products that its competitor Microsoft and Google have. So if one of the products failed, it will have a big effect on company’s
In regards to MP3 players, Apple Inc. made a big revolution in the sphere of music listening, but these technological advances have been already in the past. Thus, the company does not see any perspectives in the further development of this exact market segment, unless it comes to the MP3 players built into smartphones. Apple iPhone entered the market in 2007 as a revolutionary product of broad functionality and high quality. The brand developed by Apple does not leave indifferent those who wish to have the best out of the best technological advances even for the higher than average
Disadvantages of Multinational Corporations: • Potential Abuse of Workers Multinational companies often invest in developing countries where they can take advantage of cheaper labour. Some multinational corporations prefer to put up branches in these parts of the world where there are no demanding policies in labour and where people need jobs because these multinationals can demand for cheaper labour and lower standard in healthcare benefits. • Threat to Local Businesses Another disadvantage of multinational corporations in other countries is that they have the potential to dominate the market. These giant corporations can dominate the markets they are in because they have the more renowned products and they can afford to even sell them at lower prices since they have the financial resources to buy in a much larger quantity. This can devour all the other small businesses offering the same goods and services.