Pattern of Change in Market Model of Apple Inc.

Abstract

Apple has been a powerful brand name. It enjoyed monopoly at a certain point of times. The increase in competition has forced Apple Inc. to take some strategic decisions regarding different issues. Apple operates in various markets and thus faces huge competition. The paper discusses the pattern of change in the market model of Apple Inc. and it impact on business. It also covers pricing strategies, economic growth and profit maximization strategies.

Contents

Introduction1

Market Model of Apple Inc. and its Impact1

Short-Run and Long-Run Behaviors of the Model in A “Market Economy”2

Factors Affecting the Degree of Competitiveness & Measures of Industry Evolvement2

Competitors Analysis for Pricing Strategy3

Maximized Profits by Pricing Policy4

Conclusion:4

References:5

Pattern of Change in Market Model ofApple Inc.

Introduction

The business chosen for this paper is Apple Inc. that operates in IT industry. There have been many phases in Apple's history and it has survived through many hardships.

Market Model of Apple Inc. and its Impact

Steve Wozniak and Steven Jobs started building a computer named Apple. They started improving its features and upgraded it to serve the consumer demand for preassembled computers. With the introduction of newer technology, Apple stated capturing the technology market. With the invention of 'i-series' that included iPhone, iPod etc., Apple became the market leader and imposed a monopoly in the market. It was a private company initially. It went public in 1980 and issued IPOs. Apple received a lot of economic profits thus getting attention of other companies toward this industry (Lee, 2011) There has been a negative impact on the market of Apple because of the presence of substitute products. Samsung offers the similar product with slightly changed features to the public at a much lower cost as compared to that of Apple. Thus, the market share of Apple will be affected because of Samsung and other competitors.

Short-Run and Long-Run Behaviors of the Model in A “Market Economy”

In a market economy, the decisions of investment and production depend on supply and demand. A free price system is observed to determine the price of goods and services. Although the oligopoly affects the long-term behavior of Apple Inc., but Apple has always looked for innovation so that new boundaries of technologies can be reached. Apple achieves growth by exploring new horizons of inventions. Thus, it always transforms the industry. Apple has been affected in the short term as it hasn't achieved any great invention after the loss of Steve Jobs, but the new CEO of Apple has to keep up the innovation (Kristin Hamme, 2006)

It is very important for the company to make strategies as the factors of productions can be adjusted in the long run but not in the short run. In the long run, labor and capital can be shifted according to the need of the company, but it is not possible in the short run, which can harm the company's image. It will make the revival impossible as other companies will grab the market ...