ANALYSING THE PRICING STRATEGY OF APPLE PRODUCTS

Analysing the Pricing strategy of Apple Products



Abstract

The study aims to analyse the case analysis of Apple with respect to their pricing strategy and strategic decision making that Apple adopted. The pricing strategies of Apple include the setting of the price higher at the start of the launching of new product. It has been observed that after they get profit from early customers that are more fascinated with their new product and technology, Apple then reduces its prices so that it can maintain its market worth and remain affordable and popular as compared with other competitors. The case is analysed by the qualitative, method facilitated by the secondary research. The aim is to examine the comprehensive strategies of Apple and the pros and cons of such actions.

I.Introduction4

Over view of the Apple Inc4

Background5

II.Research Question and Research Methodology5

a.Research question:5

Aims and Objectives5

Significance of the study6

Ethical Considerations6

b. Methodology7

Data Collection Method7

III.Analysis and Findings8

Present Market Status8

Marketing Strategy9

Price Skimming Strategy10

Product10

Dropping the Price12

Technological Analysis13

Competitive Promotions13

Market Niche14

Literature Search14

IV.Conclusion15

References17

Analysing the Pricing strategy of Apple Products

Introduction

At the heart of the business management is the development of strategies, adapting it to the specific company and implementation. The company's strategy is a comprehensive management plan, which should strengthen the company's position in the market and to ensure coordination, involvement and satisfaction, compete and achieve global goals. The process of developing a strategy based on a thorough study of all the possible directions of development and activities and is to select general direction, develop markets, serving the needs, methods of competition, and attract resources and business models (Jones, 2012). In other words, the strategy means a company's choice of development path, markets, competition and methods of doing business.

Over view of the Apple Inc

Apple Computers is considered to be the creator of the personal computer and much more. One relegated to a niche, hobbyist computer manufacturer, Apple Computers has matured into a media powerhouse with its long tentacles in every aspect of the business. Apple Computers plays a major role in the consumption (iPod and Mac) and distribution (iTunes Store) of music, once thought to be the exclusive domain of giant record tables. Among the products of hardware known to the company has teams Macintosh, the iPod, the iPhone and the iPad (Apple Inc, 2008).



Background

Technology has been developed more rapidly in the last few years in order to meet people need and it results in increasing both domestically and international competitive market for business. Apple Company is the one of Computer Company and its products are in high demand even though its products are also high prices and services. Apple is a very innovative company and always looks for numberless ways of remodelling and creating new products to satisfy the demand of consumers (Johnson, 2012). A competitive market is a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker. Consumers make the decision on the different brands available in the ...