Not only that, competitors of Apple will start offering cheap and alternative technology in their own products and services at a much lower cost. This will affect customers loss of interest towards Apple products as they find it no longer unique (Slideshare, 2016). Technological advancement has always force Apple Company to invest a lot in technology as it is largely invested in product research and development field to push the product’s ranking into a much higher rank through their innovative side. For example, one of the most innovative and technologically product will be the IPod touch as it is a big step towards the replacement of basic mp3 (Slideshare, 2014). If Apple Company did not put any pressure towards the research and development department, it is clear to say that without the advance technology, the company will become obsolete.
1. What we know about profit pools is that: ‘Profits don’t necessarily follow revenues’ and that ‘Today’s deep revenue pool may become tomorrow’s dry hole’. In this article we are focusing on Apple and the way how it managed to recognize the variability of profit, and along with it, could find out the best way of realizing it. Apple has three main businesses as top priority: Macintosh, iPod-iTunes and iPhone. These are the pioneers of superior improvement in PC, music and smartphone industries.
It´s important to remember that disruption is positive for the mass-market and are innovations that make products and services more accessible and affordable, thereby making them available to a much larger population. When we look at the full extent of Xiaomi´s business model, we can clearly see how different and how disruptive it is. How does Xiaomi keep their prices at least 60% lower than their competitors? While Apple need to come up with a new model to maintain their high profits, Xiaomi have found a clever way to reach these profits without overserve the market with smartphones. For Xiaomi to sell high-end smartphones at such cost, Xiaomi keeps their models
Skimming strategy with this strategy, Samsung brings a new product in the market, for e.g.S7 edge, initially it uses skimming price for the product, where it tries to get high value in the start before competitors catch the product. Once the product is outdated or same product is released in the market, price immediately drops. Additionally, Samsung also uses competitive pricing for the product other than smartphone, for e.g. T.V., refrigerator and other home appliances. CUSTOMER
Normally, consumers have unique needs that are not similar all the times. Therefore, the company must develop products that can address the unique concerns of the consumers. Evidently, Apple Inc. has been successful in the creating variety of products. However, pricing of the Apple Inc. products tend to limit the ability of buyers to purchase the products. While the company might justify the price of the products, setting the prices too high limits the ability of the willing buyer to purchase the
The threat of competition in the wireless industry is fierce. Verizon 's biggest and most longstanding rival is AT&T. The typical customer profile for the two companies is similar, and AT&T claims the highest market share in the industry behind Verizon. Additional competition comes from T-Mobile, which has a smaller market share but, as of 2016, is adding customers more quickly than any other carrier, and Sprint, which has launched aggressive price promotions to turn around its sagging market
Q1a. MARKET STRUCTURE OF APPLE INC Apple Inc. operates different types of market structure in terms of their different products. In the smart phone business, they happen to be one of the major players with their different models of the “iphone” which makes them operate in an oligopolistic market. Oligopoly arises when there is an imperfect competition in which there are just few firms producing similar products. As a result of high competition, monopolies, interdependence among firms there are just a few big players having the market power and making it very difficult for new firms to penetrate the market with their products.
Often media points to Apple’s massive cash reserve as a key strength that the company could leverage to become even more successful (Ferrell & Hartline, 2014). If Apple asked, what should Apple do with the cash (Ferrell & Hartline, 2014)? Apple could better meet the consumer's needs and wants by strategically investing that cash for the company’s future by developing and leveraging a competitive advantage strategy (Ferrell & Hartline, 2014). A competitive advantage stems from strengths the organization possesses and weakness the competitor possesses (Ferrell & Hartline, 2014). Having a competitive advantage over their competitors can also be based on perception rather than reality (Ferrell & Hartline, 2014).
When a producer has a little impact on the price of its product it creates a limited profit potential. As a result, a company needs to act the way market dictates. On the other hand, too much market power brings other problems along, as the Apple Inc. found to its dismay. Apple Inc. is a company with the largest market power and is therefore called a near-monopoly in the oligopolistic industry it operates in. Even though Apple Inc. operates in the oligopolistic market, since it is not the only provider in the smartphone/tablet market, or in the operating systems market, it takes a dominant market share.
As I mentioned previously, Think Different campaign had changed the world and changed Apple to a better company that holds one of the best brands all over the world that could grab the customer attention.Nowadays, Apple has many competitors such as Samsung and Blackberry. The purpose of the advertisement is to sell the company devices to the customers. Also, to send a message to customers that Apple is not the same as any company that sells electronics and that’s a good reason to buy electronics from Apple. In conclusion, the advertisement uses ethos and logos to convince customers to buy the phone. Logos are used to prove to the customers why they should trust Apple electronics.