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Apple Case - Essay Example

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Apple is a US based company that deals with designing, development and marketing of personal computers, consumer electronics as well as computer software. …
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21st November Apple Case Apple is a US based company that deals with designing, development and marketing of personal computers, consumer electronics as well as computer software. Having been founded in 1976 by three renowned entrepreneurs namely Steve Jobs, Ronald Wayne and Steve Wozniak, Apple has attained a competitive edge in the technology industry making it an industry leader. One of the major aspects that make the company to be a market leader is production of wide range of quality brands that meet the needs of its global consumers. Some of the top brands that the company is known for production include iPhone Smartphone, iPod tablet computer, iPad tablet, iPad 2, Pad with Retina display, Apple TV and recently the iWatch. In the US and global markets, Apple brands are the most valuable based on their use of modern technology and effective in meeting the needs of international business community. In terms of distribution, the company has more than 410 retails stores with iTunes Store being the largest music outlet in the world. By market capitalization, the company is the largest publicly traded in the world. As compared to its competitors, Apple provides products that employ highly improved technology. For example, in 2013 the company introduced iPod digital player that attained the position of being the best device within the industry of portable music players. Additionally, the company has continued to improve its iPad brands since they were launched in 2010. From the first iPad tablet to iPad Air that was the fifth generation, the company has shown how technology can create a difference between a firm and its competitors in the market. According to my view, Apple operates in an oligopoly market structure. Among its major competitors that are also key players in the technology industry are Samsung and Nokia. Based on the stiff competition in the industry, the sector has been dominated by small number of sellers thus making it to qualify as industry acting within oligopoly market structure. Most precisely, Apple seems to be operating within the differentiated oligopolies (Vives 26). This is based on the fact that even though the company and its competitors produce similar products, they are not identical brands. Additionally, the aspect of creating distinct advantages in its products including use of high and modern technology makes Apple to be within the bracket of differentiated oligopoly. Various factors have contributed to the success of Apple. First, the company pioneers were individuals of high integrity. Additionally, the founders had extensive management and entrepreneurial skills (Jeffrey 12). During its establishment, the company had enough capital. Immediately after being launched, Apple embarked on extensive marketing thus increasing its average monthly growth rate by 700% in the first five years of operations. Another aspect that contributes to the success of Apple is product diversification and brand positioning. According to Omnicom Group, the world largest corporate media services company, as compared to Coca-Cola Company, Apple had more valuable brands in the world in 2013. This is due to the company’s culture of providing brands that effectively meets the needs of its consumers regardless of their ages. The use of extensive marketing strategies such as marketing has also greatly contributed to creation of strong consumer awareness thus increasing the company sales and profits. For example, the company has used international artists and singers such as Yael Naim, Guy Kawasaki and Feist to promote its brands (Gil and William 21). In this way, the company has succeeded in creating a strong positive customer-product relationship that has resulted to sustainable profit. Based on the stiff competition that has emerged in the 21st century, Apple must expand on its innovation strategies by establishing more research centers especially in the emerging markets. With the increasing demand of its products in the international market, Apple must make adjustments on its prices without compromising the quality of its brands. It is worth to note that one of the aspects that makes consumers in the emerging economies to use the products of Nokia and Samsung the major competitors of Apple. Competitors are offering products of low prices still without compromising their quality. Thus it is necessary for Apple to offer prices that are affordable by low and middle income earners. Apple Company must also undertake extensive corporate social responsibilities (CSR) programs for it to succeed in the 21st Century. In this way, the company will be in a position to assist the society to overcome the environmental challenges that are currently being experienced globally. As a result, Apple image on the eyes of the public will be greatly enhanced. The launching of iPad in 2010 had a great impact on the financial performance of Apple Company. On the day the brand was launched, the company sold approximately 300,000 units. As it continued with increasing its sales for iPad in 2010, the market capitalization for Apple exceeded that one of Microsoft. In the part of management, Apple recruited Paul Deneve, as a top manager. To become stronger in the market, Apple is noted to have acquired Embark Incorporation, a mapping company based in Silicon Valley in 2013. Embark is known for production of free transit apps to help users of smartphones in their movements and navigation. Works Cited Gil, A and William, S. On the Firing Line: My 500 Days at Apple. New York: Macmillan, 1999. Print. Jeffrey S. Steve Jobs, The Journey is the Reward. New York: Lynx Books, 1988.Print. Vives, X. Oligopoly pricing. Cambridge: MIT Press. 1999.Print. Read More
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