The Company Analysis Of Apple Inc Marketing Essay

Apple Inc. was established by Steven Jobs and Stephen Wozniak in the twelvemonth 1977. The Company designs, industries and markets nomadic communicating and media devices, personal computing machines, and portable digital music participants, and sells a assortment of related package, services, peripherals, networking solutions, and third-party digital content and applications. The Apple Inc. U.S. central office is located in Cupertino, California.A It was widely reported that a celebrated quotation mark from Steve Jobs in the 1980 ‘s was the Apple company mission statement: “ Man is the Godhead of alteration in this universe. As such he should be above systems and constructions, and non subordinate to them. “ A Apple ‘s vision statement is that to do a part to the universe by doing tools for the head that progress world.

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Apple Inc. became the figure one company which has the most market value all over the universe in August, 2012. Apple went to public in 1980 and it joined into the universe ‘s top five 100 companies in 1985. Apple are well-known for quality and invention. Behind these successes, there are some possible menaces or failings will act upon the development of Apple in the hereafter. The cardinal issues should be the progressively intense competition among the industry and maintain focussing to distinction.

Apple faces really aggressive competition in a really aggressive market. With that said, the hazard of entry by possible rivals is low. Bing the aggressive and well-established market it is, the likeliness of a new entrant is low. The sum of capital and research and development a new entrant would necessitate to vie with the top Canis familiariss, like Apple, Samsung, Google, and more, would be huge. The top companies are already running a really tight race. It is non impossible, but it would be hard for a new entrant to come in this market based on cost barriers entirely.

Current rivals have already obtained economic systems of graduated table. This besides makes it hard for a new rival to come in the market. Large companies such as the 1s reference above have entree to mass production and standardisation, every bit good as the ability to market their merchandise globally. And because these companies have already infiltrated the market for old ages, there is a great trade of trade name trueness. Fans of Apple merchandises will remain with Apple merchandises. The compatibility that trade name trueness offers is a great added benefit. Those runing on a Windowss based system will probably keep loyal to that trade name, every bit good. Having a strong recognizable trade name is a great hindrance to possible entrants.

Rivalry among current rivals is a different narrative, nevertheless. As mentioned before, Apple is involved in really aggressive markets. It seems as if Apple is involved in an oligopoly: Apple OSX Mountain Lion versus Windows 8 ; Apple iPhone versus Google Android, Samsung Galaxy, Nokia Lumina, HTC Windows 8, LG Spectrum ; Apple iPad versus Samsung Galaxy, Google Android XYBoard ; Apple Mac versus HP, Toshiba, Asus, Samsung, Dell, Acer. Every one of the merchandises Apple creates has a extremely comparable opposite number. There is a great sum of industry demand in smartphones, tablets, and computing machines. Because of Apple ‘s quality computing machines, they have the ability to put their monetary values a small higher. Phone and tablets, nevertheless, are a bitt different. Apple ‘s monetary values for these are a bit more comparable. The Samsung Galaxy, the Google Android, and the Apple iPhone are all priced at about the same sum and the same rings true with the tablets. Rivalry among rivals is really high.

The bargaining power of purchasers is considered to be moderate. With the outgrowth of challengers, Apple ‘s merchandises have become a bit more comparable to others. Some clients who are non looking for compatibility benefits may happen that monetary value is a larger factor when choosing their merchandises. Over the old ages, it appears as if rivals have been run intoing the degree of excellence that Apple provides with their merchandises. This means that the purchasers do hold some power when it comes to setting monetary value. A great illustration of this would be the iPads. The monetary value was really lowered about a twelvemonth ago to run into the market demand and compete with other tablets on the market.

The bargaining power of providers is considered to be low. Many companies would likely love to acquire their custodies on Apple ‘s production. “ Because Apple is purchasing these constituents in such big measures it can exert important purchase over providers. This purchase enables Apple to negociate favourable footings and pricing ” ( FERNSTRATEGY ) . The production of Apple ‘s merchandises is about hands free and seamless and because they order in such big measures, it makes them a desirable company to bring forth for, every bit good. Apple has the power when it comes to providers.

The menace of replacements for Apple ‘s merchandises is rather high. As mentioned above, competition among rivals is rather high. In a 2012 case against Samsung, Apple sued Samsung for violation on belongings rights and patent violation. Apple is making every bit much as it can to keep a strong clasp on their place in the market, but it is clear that at some point the characteristics Apple provides will necessitate to go the industry criterion. There are many other merchandises that are extremely comparable to Apple ‘s. In order to keep their place in the markets, they need to continually and sharply put in research and development. Each of these forces affects each other and in order for Apple to keep a strong clasp on the competition, they need to go on to supply new and advanced merchandises. Currently Apple ‘s tablet market portion is at 50.4 % . “ Apple retained a bulk of tablet market portion in the 3rd one-fourth of 2012, at 50.4 per centum, but that was down from 65.5 per centum in the 2nd one-fourth, harmonizing to a study from the International Data Corp. The biggest gainers were Samsung, which increased from a 9 per centum portion in the 2nd one-fourth to 18.4 per centum in the 3rd one-fourth after let go ofing its Galaxy Note 10.1 tablet in August ; and Amazon, which increased from 5 per centum to 9 per centum ” ( DENVERPOST ) . As pictured, competition is huge in this market. Anything can go on in a one-fourth. Although a hard undertaking, by go oning R & A ; D and following tendencies Apple can keep their place.

Demographic, societal, and technological tendencies have shaped this market. Social media has played a large function in consumers ‘ day-to-day lives and the manner companies react. When making a smartphone, for illustration, in order to hold it vie in the market it needs to entree societal networking sites, and even better, have an app. This has become a society that needs to remain connected through the cyberspace, whether it is FaceBook, LinkedIn, FourSquare, Twitter, YouTube, Tumblr, etc. If clients can non link to societal media, they will non link to the merchandise. Technological tendencies, such as “ syncing ” information have besides become rather popular. Having the ability to knock or go through along information with person with a touch of a button is rather convenient. This is seen in Apple ‘s iPhone as “ bump ” and with the Samsung Galaxy as “ sharing. ” Taging people in exposure is besides a immense societal media tendency that smartphones and tablets need to be able to steer expeditiously. The mean nomadic day-to-day visits on FaceBook is 200 Million ( SOCIALNOMICS ) . Over “ 46 % of American grownups now own a smartphone of some sort, up from 35 % in May 2011 ; Smartphone proprietors now outnumber users of more basic phones ” ( PEW INTERNET ) . If a smartphone user can non link to their societal media via phone, it is really likely they will happen a phone that can. Technological tendencies play a immense function in finding the market criterions and a house must manage this well in order to vie in the industry.

Internal Analysis

In 1976, college dropouts Steve Jobs and Steve Wozniak found Apple in Santa Clara Valley, California. In 1983, Wozniak left the company, taking occupations to engage John Sculley from Pepsi Company as president. After holding issues with Sculley, Jobs left Apple in 1985 and founded NeXT which is a interior decorator of applications for developing package. In 1998, Jobs returned to his place as CEO. At the same clip, Apple Company developed colourful iMacs and the MAC OS X, its first waiter package. Apple ‘s gross revenues increased in 2000 and continued to turn after they released the iPod Nano in 2005. The company unveiled the iPhone in 2007 and has continued to develop newer editions every twelvemonth therefore far of the iPhone. In mid-2011, Apple ‘s former COO, Tim Cook, became CEO after Jobs ‘ surrender. Apple ‘s stock made history when it merely late broke the $ 500 threshold and became the most valuable IT Company subsequently.

From Apple ‘s fiscal public presentation, we can cognize that it has strength in selling and gross revenues. It besides has high client trueness and strong developed sole trade name. But it besides has some failings like the monetary value, market cannibalization and niche market. Comparing with HP and Dell, Apple has the biggest capitalisation which is about $ 437.12 billion while HP merely has $ 58.45 billion and Dell has $ 32.43 billion. But the gross revenues of Apple and HP are really near. The sale of Apple is about $ 127.84 billion and HP is about 127.24 billion. Harmonizing to many studies ‘ consequences, Apple has the highest client satisfaction and trade name consciousness. The sale of Apple in 2007 was $ 24.01 billion. But in 2011, it became 108.25 billion. And the market portion besides changed from 6.7 % in 2007 to 15.0 % in 2011. Both of these show that Apple has strength in market portion and gross revenues.

From Apple ‘s selling public presentation, we can see that it has strength in leader in invention, distribution channels and developed and sole trade name. But it besides has failings in monetary values and changeless changing in merchandises. Apple ‘s trade name has become a civilization that is embraced by many different types of people. These clients basically do the advertisement for the company. And the client satisfaction, in return, has been on the upward tendency for the past 5 old ages. In the past 5 old ages, Apple continued ramifying out its merchandises. Now, it has digital media, tablets, phones and Personal computers. Apple now is better able to function a broader demographic and finally hold entree to more consumers. Its clients are really diversified, nevertheless, many of their clients are younger with about 60 % under age 35 which gives Apple an border over rivals with an older demographic. It has used many marketing techniques to derive market portion and develop their trade name. The nucleus values of Apple ‘s selling scheme are be the leader in the industry and client comes foremost. Apple has its ain retail merchants. In these retail merchants, clients can experience the difference from other companies. Large glass window, free usage of Apple ‘s merchandises and the mastermind saloon, all of these invention shows Apple ‘s selling scheme.

Apple besides has many failings. The monetary value of its merchandise is higher than other company ‘s merchandises. That made many possible clients changed their head. That is the ground why many clients now choose Android. In add-on, Apple ever changes its merchandises. That made its ain merchandises seizes their ain market portion, like iPad and iPad mini. The last thing is the iTunes. Apple made its ain package ecosphere to protect the benefit of company and package developers. But this ecosphere is non unfastened like Android. That besides made many clients feels unsated.

Analysis of business-level scheme used by the house

Apple used cost leading scheme to heighten its production ‘s competitory power. The company ‘s director wish it is the lowest cost manufacturer and distributer by utilizing this scheme. Lower cost of production and distributer can do the company to set competitory monetary value on its production and heightening its gross net income borders. Compared with other companies ‘ similar productions, Apple does hold the lowest monetary value. When every newer coevals is released, the older coevals gets 100 dollars off from the original monetary value. This means that the version that is two coevalss before the newer version is free with a program provided by either AT & A ; T or Version. This attracts many costumiers return to Apple coevals after coevals. Apple besides has its ain retail shop to sell its productions. As we know, Apple has 394 retail shops over 14 states. This is rather unbeatable by other companies. So it does n’t hold to depend on other retail shop.

The distinction scheme besides has been widely adopted by Apple Company. It is heightening its productions ‘ fight and profitableness every bit good. Apple ‘s productions are alone and about perfect. Although these distinctions caused higher cost than its rivals, it is still have cost leading when its rivals used same engineering. Apple has been much witting about the increased costs following the acceptance of distinction, therefore enabling it to keep its fight.

The focal point of Apple on digital music environment has been a critical component of success and inventions. Concentrating on digital music has been taking at capturing the immature coevals. Unlike other companies, Apple ‘s productions have been widely focused on the immature coevals every bit good as the elite. This is much apparent through iMovie and iTunes. Unlike rivals who are characterized by concentration on broader scope of clients and merchandises, the company has been able to heighten distinction and cost leading.

To sum up, Apple used cost leading, distinction and focal point as its concern degree scheme. As we know, most of current clients are satisfy with its merchandises. By offering the about perfect merchandise with 1000s of application, teenager group now is its most loyalty client group. The civilization of the Apple Company is doing the perfect merchandise for clients. This is the motive for Apple to introduce and prosecute its scheme.

Analysis of the corporate-level scheme of the house

Apple is non a individual concern house. Apple has its pes in many doors. The concerns Apple Inc. are apart of are: cell phones and media devices, personal computing machines, and portable digital music participants. Apple besides sells a assortment of related package, services, peripherals, networking solutions, and third-party digital content and applications ( Reuters ) . These concerns are related to one another because the merchandises such as the iPhone, iPad, iPod are really similar ; the lone thing that differs from the three is that the iPhone is the lone merchandise that can do phone calls. But besides that, they all can make the same thing. Value is created in the combination of the concerns because if a client buys one merchandise from Apple and they find that it is really good and has no jobs and genuinely enjoys utilizing this merchandise, they might travel out to the shop and purchase more merchandises with the Apple name on it. Customers do non hold to research for different merchandises that might non compare with Apple and might non experience safe with a different company.

Apple is a transnational company ; you can happen an Apple shop across the universe in about every continent except for Antarctica. Because it is a transnational company, it needs to hold a scheme that separates it from the remainder and hold it be able to work globally and non merely in a few states but all states. The planetary scheme that Apple uses is the international scheme. They sell merchandises that serve cosmopolitan demands and do non necessitate to distinguish in those merchandises, and do non confront immense a immense competition. In order for Apple to go a transnational company, it needed to utilize an entry manner that helps solidify it and non neglect. Apple used a first used the exporting to get down their entry into the planetary market. It would non hold been smart to set retail shops into states without cognizing if the merchandise will sell good plenty in order to maintain shops out at that place. With their merchandise merchandising good plenty, Apple was able to travel to the franchising entry manner and put retail shops in major metropoliss across the universe. Apple now can sell their merchandises where clients can come into their shops, ask for aid if needed, and acquire information about merchandises and where they can acquire a feel for the merchandise before really purchasing to do certain they really like the merchandise.

These two entry manners that Apple used were the best pick to utilize because if they merely jumped into franchising without cognizing if their merchandise was traveling to sell, they would stop up losing money and the retail shops would stop up shutting and the company will non be every bit successful as it could hold been. So by utilizing the exporting entry manner, Apple can prove the markets of each state and their major metropoliss to see if it is possible to set a retail shop in a certain country or non. If the merchandise is popular and they are exporting to a certain country in each state they can so make up one’s mind about seting a shop in countries and non hold the ability to neglect or perchance near down.


No company can be perfect. Companies are ever looking to do a move to blow their competition in the dust. Some may believe that Apple is a perfect company because they do some much with their merchandises and ever coming out with an update. But in fact, they can besides utilize some recommendations. Some recommendations Apple can utilize are Apple Inc. should research for the possibility of a new section to market its merchandises and services. Apple could seek and fall in venture with another company to make a top of the line picture game system to let go of. Or the possibility of a hand-held picture game system that is portable for people to utilize out in public.

Besides, the decease of Steven Jobs was a major blow to the company. Apple should go on following his bluish prints manner of running the personal businesss of the company. The strategic construction of direction left behind should be followed to vouch the continued success of the company. Mission and vision statements are helpful to a company or single as they act as a map that guides the company to maintain it on path. The company should develop a clear mission statement to achieve corporate success.

Another recommendation would be non making merchandises that could potentially halt the sale of another merchandise. Earlier 2013, Apple started to sell the iPad 3 which was reasonably close to the same size as its predecessor, the iPad 2 and 1 and merely had a few updates compared to the 2. Then a few months after the release of the 3, Apple decided to let go of the iPad mini. This was the illumination size the iPad 3 and did n’t have anything different than the 3 either. Although holding an iPad at a smaller size would be nice, but the job with that is that it creates everything on the screen smaller: the letters are smaller, images are smaller, and icons smaller excessively. If an older client buys a regular sized iPad, they will be able to see the screen better and non hold to squinch or hold any problem utilizing it. The inquiry to Apple is what is the point of selling something and so hold a newer, smaller version of it be sold merely a few months early? It needs to halt merchandising merchandises that could potentially stop the sale of a merchandise or decelerate the sale of a merchandise.


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