Paper Example Undergraduate 1,094 words

Apple\'s Marketing Strategy Steve Jobs

Last reviewed: June 11, 2013 ~6 min read
Abstract

Apple Inc is a company based in the United States of America dealing in the manufacture of information technology products; its products include ipad, iphone Smartphone. Entry of other players in the market has greatly affected the popularity of the company. This papers explains Apple's business environment, challenges it faces in the market, its market segmentation and finally the strategies it has employed to meet competition.

¶ … Apple's Marketing Strategy

Steve Jobs and Steve Worzniak are the founders of Apple Computer Inc. In 1976, apple started manufacturing personalized personal computers. This was after IBM changed personal computers into open systems; Windows Intel systems structure dominated personal computers back then. Apple, formally known as Apple computer Inc. is a multinational organization based in California. The company specializes in developing personal computers, consumer electronics, computer software and hardware. Apple rose in popularity, in the United States, in the year 2008 due to increase in sale margins of the firm. Majority of American consumers purchased iphones increasing revenue of the firm. From the year, 2008 to 2012, Apple sold most of its products in the international market thus making it a global leader in innovation. Apple Company is second after Samsung in revenue collected in the information technology market. It is the third phone maker after Samsung and Nokia. Apple maintains 406 stores all over the world in different regions as well as online stores making it the second largest public traded company by market capitalization universally. Apple's line of hardware includes Macs computer line, the iPhone smart phones, iPad computer tablet and laptops. On the side of software, apple's developments are OS X software, iTunes media browsers, iLife, work and safari browser.

Critics fault Apple Inc. For its ignorance on changes of the industrial environment, in 1981, every computer manufacturer had developed its own software and hardware, and technical skilled individuals purchased personal computers. These machines used proprietary systems and were in two streams, the Apple computer system and the IBM system. At this period, Apple was more superior to IBM's system. Apple went further to develop family friendly Apple II system, but did not file for patents, which made its competitors develop cheaper products using Apple's designs. From this period to 1997 IBM had taken over market leadership role in manufacturing of information technology products, the Pc was transformed to open structures during this period computers were separated into CPU, mother board, disk drive and other peripherals.

Separation of Software includes basic input and output, operation systems, computer language, office systems and graphics application. Each of these areas had many providers who competed for the market. Because of this, manufactures like IBM and other big companies preferred to develop hardware products then sought for software products from providers to produce complete computer systems. During this period apple continued to lose its market position because of the following reasons: the company insisted on selling highly priced proprietary systems, Apple produced computer hardware that was not compatible with software developed by providers. Most computer users preferred IBM machines to Apple, so software developers concentrated in developing IBM compatible products. Apple's CPU capacity was low as compared to IBM and other market players. Apple changed its strategy by entering the printing market to make up for losses it had incurred.

The year 1997 came with the advent of internet computer, and during this period Apple Inc. was coming back to the market, Steve Jobs took over the C.E.O's position from Gil Amelio. He stepped as an acting CEO, under Steve's leadership, Apple products underwent a lot of restructuring and transformations he would eventually become the companies CEO to the year 2005 when he lost his life to pancreatic cancer. There are many changes affecting business operations of companies; producers change their production method to save on cost and to maximize on revenue, consumers' tastes and preferences do change. Apple's marketing environment face the following challenges, high rates of inflation, stiff competition from other producers, high costs of production and influence from the natural environment's policies. Apple's political and legal environment has a broad spectrum, laws and regulations impact on the marketing strategy of a company.

Without regulations and laws in business, means that some firms will transact unfairly, laws are not only limited to, legislations, but it can also include public policies that protect consumers of product in any said market. Apple is faced with legislations and laws that govern its market operations, some of these laws and policies not only include, price controls, labor laws, tax policies, import and export laws and consumers protection Acts and legislations. On the technological front, apple faces stiff competition from other producers of computer accessories and information technology products, as explained by the presence of big players like Samsung, Lenovo, Dell and other companies.

Technological advancement is a challenging marketing environment because technology is always in a change motion, what is today's technological advancement might not be the next day. Economics as an environment has an important influence on marketing strategies of a company, state of the economy can slow down business operations, and inflation, on the other hand, destroys business operations. Apple Inc., did not escape the financial meltdown of 2008, any change on the inflation rate, interest rates influence market operations of Apple Inc. society is also another market environment that needs great attention. In the case of Apple Inc., consumers form the society and with the ever change in consumer needs, a perfect strategy is required for Apple Inc. To retain its global reputation.

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PaperDue. (2013). Apple\'s Marketing Strategy Steve Jobs. PaperDue. https://www.paperdue.com/essay/apple-marketing-strategy-steve-jobs-91844

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