The industry is characterized by very intense and fierce competition against players like HP, Dell, Acer and etc. because of low switching cost. In PC segment, the key for Apple’s success is its unique positioning and differentiation from others comprising attractive design, ease of use, security, and high-quality bundled software. They also made their customers purchase complementary products that do not transfer to other platforms, thus creating a high switching cost that enhances the retention rate and loyalty. 2.
• The marketing and promotional activities of apple are very strong and they have been successful so far. • Apple has a strong financial background. • Innovation in technology and constant investment in development of technology. • IOS is not an open source, which has created a brand loyalty among the customers and buyers. • The retail stores set up by apple is a major advantage over other rivals in the market.
Apple’s core competencies are a low-cost operation, excellent consumer services, and totally dependable product supply (Ferrell & Hartline, 2014). Many of Apple’s products are manufactured in countries with low labor cost (Ferrell & Hartline, 2014). Although Apple is under much scrutiny for their unconventional and innovative ways (Ferrell & Hartline, 2014). Apple is taken steps in improving their labor standards (Ferrell & Hartline, 2014). Apple is innovators of excellent consumer service, Apple is aware of the consumer's current wants and needs as well as their future needs (Ferrell & Hartline, 2014).
Service Operations Management Case Analysis Apple Inc. in 2012 2010120344 Taewoo Kim 1. What, historically, have been Apple’s competitive advantages? Apple’s competitive advantages have been their devices on desktop platforms. Especially, they have concentrated on high quality yet high price desktop personal computers. While Intel and Microsoft cooperated and provided more open environment to users, Apple chose to integrate both horizontally and vertically, which meant that they provided more closed but stable environment.
Since Apple is a premium computer firm, they are less competitive with prices. They will only commence to decrease the prices after it launches a future generation product. They utilise skimming and premium pricing strategy. Apple utilised price skimming as it was initially sold at a high price when released at which the customer’s had to pay. The price was then lowered when the next generation IPhone was released (IPhone 6s/6s plus).
I. Introduction The purpose of this research is to find out the main environmental forces which affect decisions regarding to Apple Inc. and also to find out who is the target customer for this product, how this brand is being positioned at this target segment. And explain how the elements of the marketing mix are used to position this product. II. Background We chose Apple Computer Inc. brand because it is a multinational corporation that produces computer software and consumer’s electronics.
One of the exceptionality of the organization is its late leader Steve Jobs because of him the company achieved an unbelievable business performance. Apple products such as IPod, IPhone, IPad and Mac are very well-liked products in the market because of its own software, design, brand image and functions. Besides, Apple has a good business and marketing strategies. For example, all product line of Apple and marketing materials are different and you will not find the same things among competitors including its design, advertisement strategy, brand name, product packaging as the company spends a quite a big amount to beat its competitors and look better than them. Another strategy of Apple Inc is to make presentation about its new product before its release and also tell more in details about it and give a clear presentation to people, mass media, and reporters by impressing them with a new launched product (Small Fuels Marketing Inc, 2007).
Apple is all about the customer experience, be it in their stores or else creating products that their customers will love, and isn’t too concerned with concentrating on those who don’t. As mentioned previously, Apple has a clear idea of who its target market is and will design marketing plans around ensuring its core competencies adhere to that. However, Apple’s decision to bring out the iPhone 5S and 5C and offer it at a much lower price than its other iPhones in order to tap in to developing markets showed that it wants to increase its market share in developing markets (notably Asia and Africa), as well as looking for a solution to arrest a fall in its gross margin by
Meyer(2016) In fact, Apple has many strong competitors such as: Google, Microsoft, and Samsung. Apple is not the company with IT industry history, so how the company managed to produce products that beat all the competitors? But Apple has more core competencies and lead to achieve competitive advantage through available resources. Impact of Globalization on Apple Inc (n.d.) According to (Tim Cook, 2012) It is precisely this idea that makes Apple’s products so unique. Apple is synonymous with innovation in the consumer’s perception.