Segmentation is putting marketing focus on a particular group of potential consumers. The computer industry has many companies that produce computers but Mac by Apple has segmented them self from other computer companies like HP and Sony. The “five competitive forces and competitors” (Kotler & Keller, 2009, p.154) described by Michael Porter are the “threat of intense segment rivalry, the threat of new entrants, the threat of substitute products, the threat of buyers’ growing bargaining power, and the threat of suppliers’ growing bargaining power” (pp.154-155). Mac stands alone from their competitors although they do advertise against the PC letting the public understand Mac is not the typical computer. Apple advertises Mac letting consumers know if they purchase a Mac they do not need an anti virus protection like PC owners as hackers haven’t been able to break Apple’s code. This could be a threat to Apple if a hacker does break the code and Mac’s start to crash. Mac doesn’t feel the “threat of new entrants” (Kotler & Keller, p.155) as they have innovated the computer, targeting consumers who want the latest in computer technology. Apple does what others don’t do, they sell their computers from either their own store or from a licensed retailer who has an Apple representative available to answer any consumer questions. Raquel, I enjoyed your write –up on Mac vs .Industry. You are correct in stating that Mac doesn’t feel the threat of new entrants at all. Their product, although a bit more expensive than one would like to spend, provides overall the best quality without the constant fear of virus attacks. It is removing that fear is what keeps the customers loyal and willing to pay whatever the amount t... ... middle of paper ... ...rgaining power” (Kotler & Keller, p.155). In conclusion, Apple is a market leader with Mac as they have advanced technology preventing hackers from invading the computer without anti virus protection. They are also able to sell Macs for a price double or triple the cost of a PC. The market challengers for Mac are HP, Sony, Toshiba, and Dell to name a few. For Mac to monopolize the market they must defend and continuously innovate upgrades to meet consumers needs and wants within the computer market. References Apple. (2010, January 21). Apple reports first quarter results. Apple Inc.. Retrieved February 1, 2010, from http://www.apple.com/pr/library/2009/01/21results.html Kotler, P. & Keller, K.L. (2009). Crafting the brand positioning and dealing with competition. A Framework For Marketing Management 4th ed. Pearson Prentice Hall: New Jersey.
Steve Jobs stepped down as the CEO of the company on August 24,2011. He gave Apple a series of successful products like ipod, iphone and ipad. But speculations rose as whether the company will continue to grow at the same pace when Tim Cook joined it. Some said that Apple is losing on innovation on new products or strategies while others criticized Cook on his way of working in the company. But, recent financial statements prove all of them wrong. Apple became the most profitable company in history last week. According to a report by guardian.com the tech giant made $18 billion in just three months by selling 34000 iphones from October to December. Apple now has $178 billion cash in the bank which gives
As stated before, Apple is a multi-billion dollar technology industry. The major competitors that Apple and its products is Microsoft and its Windows platform, as well as Google, and Samsung smartphones. All of these companies are in the top 10 global brands, according to Interbrand (2015). Comparing strengths of all companies, Apple has a solid financial support system and it is highly innovative because of the success of the products and the leadership of Steve Jobs, however what weakens Apple is the premium pricing of their products. Microsoft also has the solid financial support due to its leader, Bill Gates. Microsoft also has the dominance over the operating systems. Windows based applications are on almost all computers in the market
is a hardware company rather than the software company but at the same time it is also very good in the producing software with no doubt. Apple Inc. believes that it is the one who can make the perfect software to run on its own hardware. This is why the Apple Inc. always focuses on the software and then makes specific hardware decisions in order to maximize the value of their software. For instance, Apple created the iLife software which has reigns to be more supreme than most other entertainment software. The Apple even comes out with the latest version ships with every new Mac. Apple Inc. had become the “lead” to many tech companies in either software or hardware development. This has eventually renders many hardware companies to be powerless because it is not easy for a hardware company to insinuate oneself into the software business or vice versa; despite the great efforts by these companies to differentiate their product lines to catch up with Apple
Apple is known to be the world’s most valuable brand. Over the years, Apple has created new technology to help catch the eyes of many users. Apple has been one of the biggest competitor in the technology world. Here is Apple’s mission statement of the company:
Since 2010, Apple has been one of the most valuable companies in the world. Apple has owned the top slot on an annual basis from 2012 onwards. Apple is an American multinational corporation that designed, manufactured and marketed a range of personal computers, mobile communication and media devices and portable digital music players and sold a variety of related software, services, peripherals, networking solutions and third party digital content and applications. The company’s best known hardware products include Macintosh computers, the iPod, the iPhone and the iPad. Apple software includes iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software and Aperture, a professional photography
Rosoff, M. (2015, October 26). Here's the number everybody will be waiting for on Apple's earnings call. Retrieved from http://www.businessinsider.com/appleiphonesalesbyquarter201510
The introduction of Apple’s Macintosh in 1984 revolutionized the personal computer industry (North, 2011). Although Jobs did not invent the
It is a well-known fact that Microsoft is the most marketed operating system. This can be explained by the decision by Microsoft to design and sell its operating system to other computer manufacturers. This meant making it compatible with other hardware. Apple did not choose to do this, making its operating systems only compatible with its own computer hardware (Derene, 2009). In a website article called “HongKait.Com: Online Tips for Designers and Bloggers” Nina Krimly states statistics that identify Microsoft as controlling 91% of the market while Apple Mac around 5%. The exclusivity of Apple did not make it popular among those who used the computer to work on projects both at home and at work in the past ...
Apple can adopt the strategy to portray a picture of a not so conducive less profitable market, which could discourage new entrants from picking that path as they will be demotivated by the low return on investment resulting from low profitability levels. In order for apple to create a niche for t numerous products, it needs to adopt and implement such bold strategies of defense to protect their interests and continue to be profitable and successful (Ideavist, 2011). Entry of a new company into the technology sector would spell doom for most companies already struggling for market share as better priced and reliable products could imply consumers would shift their preference to the new entrant leading to a negative volume of sales stir for most already established companies. Another strategy that could be employed as part of Apple’s defense could be the pre-entry strategies that make it even harder for new entrants to compete and enter into the sector and this involve continuous improvement for their products, covering
...This frontier has reaped major benefits for their competitors in the Android market with a wide range of products targeting all income groups. Apple has begun the foray into developing products for lower income groups with the production of the iPhone 5c which is priced cheaper than it’s flagship product the iPhone 5s. A further advancement in that direction would reap major benefits for Apple. This second concern deals with a mixture of place and product in the marketing mix. Apple offers its operating system exclusively to Apple products and its unquestioned the success of that strategy, however, it must be said there exists a potential and real prospect of complete Apple domination of the software industry if it were to allow its operating system to float onto to other hardware providers in much the similar manner in which Microsoft has benefited greatly from.
In the releasing of our new product we will need to exercise precise and careful observation of all incoming feedback channels. We will need to respond responsibly to any negative responses or defects that may occur. We plan on taking the information we receive and use it to improve our current and future products. We will need to also observe and actively participate in our factories supply chain management activities and operations. By instituting the correct decisions and observation methods regarding our evaluation and control of our new Mac computer and manufacturing factories we feel that Apple will be able to reach new heights.
Computers and technology makes it easier for entrepreneurs to enter this market. Not only are major tech companies competing against one another, but they are also competing against little programmers that know how to code. In our time you will never know with certainty when a small group of engineers or computer scientists are going to create, “next big thing”. Apple has been able to have a competitive advantage over its competitor by creating the highest quality products and services. Some of Apple’s current competitors are Microsoft, Google, and Facebook, and a few other tech companies as well. Most people strongly people Apple is one of the stronger company its industry, but then again some other people have biased views. Financially, they are the strongest company in the world. Also people are always willing to pay a premium for their products because of their durability, quality, and prior experiences with Apple products. Apple is always on the look at for new innovative ideas and concept that are being produced by self-motivated entrepreneurs. They are always looking to hire bright minds and let them develop within the company. A lot of entrepreneurs, programmers and engineers do not have a problem working for Apple because of their well-established perks. Apple offers its employees of the best benefits in the world. They also fairly compensate their employees that work in the front-end store as
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
In 2007, after thirty years, the organization changed its name from Apple Computer to Apple Inc., this was a significant move because the organization became more independent, and it was no longer known as a vendor to Macintosh personal computer line (Yoffie & Slind, 2008). This strategic move paid off; a year and half later, Apple Inc.’s third quarter net profit of $1.07 billion on a $7.46 billion in revenue (Yoffie & Slind, 2008).
The activities consisted in the process of identifying a problem that has to be addressed in marketing or an opportunity to increase the brand image of a business or to increase sales volume by having an increased reach in advertising and formulating a strategy based on extensive market research, segmentation and supporting data is known as positioning in terms of marketing. Positioning is formulating a strategy using tactical development phases to carry out a goal to attain an organizational objective.