How they attained this status was by being different from most other companies out there. As a result, competitors copy Apple's products and designs to reduce the differentiation status they hold over them. This forces Apple to come up with more innovative ideas to remain ahead of their competitors and retain their market share As such, Apple holds a high product differentiation in their markets until technology diffusion makes their products available to their competitors to copy. 5) Technology: Apple, having expertise in the computer technology and the industry, has become a global leader in the computer industry and its research and development. Currently, they have expanded computer technology into phones, laptops, tablets, music players, and recently into watches with the help of medicine.
Through Apple watch, the company develops its reach in the smartwatch market. Innovation is at the heart of Apples business. However, to improve its application of this generic strategy, the company must aggressively penetrate markets, especially developing countries where Apples market reach is still limited. Apples main intensive growth strategy is product development. Market penetration and market development are second and third in priority, respectively.
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
Apple Inc. uses both quantitative and qualitative measures to measure performance spending patterns. Apple Inc. monitors the sales data and the revenue data to reach meaningful conclusions. The company also uses the inputs from its top management and stakeholders to derive at conclusions about the success and failure of its strategic effectiveness. According to "Apple’s Retail Strategy " (2016), " Devices that aren’t upgradeable or modular are not useful, Apple Inc. is taking commerce out of the store experience as much as possible and yet as a reward it’s winning more customer dollars. You can measure innovation strategies in terms of a revolutionary new smartphone, or a dramatically different PC design, or you can measure it in the aggregate effect of a sustained effort to change an age-old practice.
Apple is constantly searching for new technology of recycling process to recover additional materials used and increase resource efficiency. With the strong competitors in the market, Apple has to keep up its pace in the market and gain competitor advantages through developing its capabilities. The organization can build capabilities to enable itself to initiate market changes that can enhance their strategic position and allow firm to accustom to the dynamic market conditions. Although Apple generally focuses on innovation, efficiency and flexibility are also adopted by the firm for an integrated HVE. However, the report will be solely focusing on
In the modern economic environment, companies emphasize most with the communication practices to make sure that customers get the accurate marketing message. Some of the companies may attempt to practice some unethical ways like producing low quality products, misleading advertising, unfair pricing, and deceptive packaging to take the lead in the competition challenge and influence consumers’ purchasing behavior to gather a bigger piece from the market share. The concept of consumerism takes place as a social force to protect consumer interests in the marketplace by organizing consumer pressures on business. Consumerism is the public demand both for improvement in marketing practices to make them more informative, more responsive, more honest,
2.2) Swot analysis of Apple product Internal Environment Strengths Weaknesses Their brand is globally recognised because of effective marketing strategies. Their product is expensive. Global distribution and product support of all Apple product. Apple product is sold worldwide. Limited products means users with specific needs will switch to alternatives.
This allows companies to desensitize prices, and to focus on those characteristics to create value. In addition, manufacturers need to market segmentation to target goods and services for each particular segment, resulting in a higher price than the average. For instance, Apple Company produces their product such as each generation Iphone through product differentiation, innovation advertising and ideas. Focus strategy is applied to the narrow segments concentrated at no cost advantage, without any distinction. Companies use this strategy has been to reduce the size, to focus on narrow market segments, and to clearly define all the resources and efforts, and have the benefit of a high degree of customer loyalty.
The strategic plans all the formulated plans and it is used by the organisation to communicate how it plans to gain a competitive advantage and succeed. Looking at Apple Inc. you can see how they have done this. As part of their strategy planning, they have listed a few pillars of their strategy, offering a small number of products, focusing on the high end customers, giving priority to profits over market share and creating an aspirational effect whereby people starve and look forward to new Apple
These are: • Privacy Issues: Misuse of privacy appears to be one of the most serious concerns in marketing research. Companies having ability to collect and store private customer information can result in the infringement of a person’s right to privacy. Though this information is primarily used for targeting marketing but it can also be sold thereby hurting customer’s personal freedom. • Confidentiality