MARKETING STRATEGY

Marketing Strategy - Apple Inc.

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Table of Contents

APPLE INC.3

SOURCE OF DATA3

INDUSTRY ANALYSIS4

Rivalry amongst competitors6

Supplier Power7

Buyer Power7

Threat of Potential Entrants8

Threat of Substitutes8

BCG MATRIX9

4 P'S OF MARKETING MIX10

Product10

Price10

Promotion11

Place11

Pricing Strategy12

Marketing Strategy - Apple Inc.

Apple Inc.

Apple is popularly known as a technology company, astounding the world with its exceptional products. The American multinational conceptualize, designs and markets consumer electronics, personal computers and computer software. The company has a comparative advantage in Macintosh computers, the iPod, iPhone and iPad. It has global strategic position largely because of differentiated line of product offerings and tremendous brand loyalty. Their range of softwares includes iTunes media browser, iWork suite of productivity software, Mac OS X operating system, Final cut studio (a suite professional audio and film-industry software), Aperture (a professional photography package), iLife suite (media and creativity software), and reasoning studio (suite of audio tools). The company has a global reach with 284 retail stores in 10 countries while an online store catering to varying markets throughout the world (Company Information).

Apple has inspired its customer base with its value of 'Think Different'; it has incorporated enormous features that are unique and revolutionary in the current market. By offering such products, the company has appealed customers and one way or the other while maintaining strong brand image accompanied with loyalty (Masi, 2009). As of May 2010, Apple is one of the largest companies with comparative advantage in highly advanced technology, sense of luxury, simplicity and design and most importantly innovation.

Source of Data

The research relies largely on secondary data sources since comprehensive and reliable information, facts, specifics, and evidences can be found. It relies on earlier research findings, conclusions that are applicable to the research presently undertaken. These secondary sources include company website, industry databases, governmental studies, internet, books, journals and newspapers.

Industry Analysis

Apple Inc. offers a range of products in hardware and software lines; primarily it operates in two industries.

Computer - Hardware and Software

Entertainment and Media

For the purpose of explanation, we will restrict our industry analysis in the United States market only, although many of the firms produce market and sell globally. The industry is moderately attractive since numerous firms have prospered, yet the competition is very high and suppliers have a moderate impact over the competitors. The competitors require strong research and development, innovation and advanced technology(Atef, 2008).

Rivalry amongst competitors

Initially, few major players having substantial market share used to define the industry with extremely expensive products and vast profit margins. The swelling consumer base in the personal computers has caused an industry explosion with considerable competition with dozens of manufacturers pursuing millions of customers with best strategies possible.

While computers have penetrated into everyday lives and businesses, it is becoming more and more sophisticated and commodity product. Almost every household and business require personal computers for their operations, and with the advancement of technology, need for more and more innovation with sophisticated and advanced computing is arising. This has led many manufacturers to pursue best cost with high performance strategies (Masi, ...