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Pricing Strategy - Term Paper Example

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The author focuses on pricing strategy which focuses on three different approaches namely; cost-based pricing which is determined by adding profit part on top of the cost of producing of a product. The buying prices are set by adding a percentage to the rate of manufacturing or purchasing a product…
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Pricing Strategy
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Download file to see previous pages Pricing is very important for the organization and aims at maximizing current profit, maximizing current revenue, maximizing quantity, recovery of partial costs, quality leadership; it helps in business survival and to maintain the status quo in business (entrepreneurs.about.com).
Apple Inc, one of the companies that use technology to win the price war has successfully experienced rapid growth in the market. The company produces and sells a different kind of consumer electronics products ranging from personal computers, commercial servers, the digital distributor of media content and computer software. The company’s core products are a smartphone, iPhone, iPod portable media players, iPod table computers and Macintosh computers. Apple Inc, headquartered in Cupertino, California, has a long history dating back from its formation on April 1, 1976 (apple-history.com).
The American multinational corporation has gone through tuff market conditions resulting from financial challenges to stiff competition in the market. By revenue rating, Apple Inc is the world’s second largest information technology firm after Samsung Electronics. The company is also the world’s third-largest mobile phone producer after Samsung Electronics and Nokia. Apple Inc has 394 retail stores in fourteen countries and also has the online Apple Store and iTunes Store. By market capitalization, Apple Inc is the second-largest public commercial firm in the world, with a predictable value of US $ 414 billion. The company currently has 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide (apple.com).
Pricing strategy can focus on three different approaches namely; cost-based pricing which is determined by adding profit part on top of the cost of producing of a product.    ...Download file to see next pagesRead More
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