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Market Structures
Simulation Table
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly
Open Source Software
Microsoft
Apple
Health Care Insurance
Goods/services
Linux (O/S)
Operating System
O/S, Devices
Insurance
Barriers to Entry
Medium
Number of Organizations
Few
Few
Medium
Few
Price Elasticity
Limited
Medium
Economic Profit
Limited
Apple Inc. -- Market Structure
There are different perspectives in which to view Apple's market structure since they operate in so many different markets. One perspective could be from an internal approach, in which the organization could be perceived as somewhat monopolistic since their hardware and software is "closed" sourced. Apple protects its proprietary hardware and software and does not willingly provide their source code to unapproved developers. Therefore, it could be said that Apple has monopoly control over the goods, services, and software that will work with its products. This allows the organization to charge a considerable premium for many of its products; especially the accessories that work with main products.
However, when considering the perspective that includes the entire market...
In the pc segment for example, Apple's competes with household names such as Microsoft, IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Additionally, even with revolutionary products like the iPhone, Apple must compete with other innovative companies such as HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Therefore Apple is subject to a healthy amount of competition in the market place. The switching costs to switch platforms are relatively low for most consumers and people can move from product to product with relative ease.
Apple is involved in a multitude of different market segments, even though many of the market segments are directly interrelated. For example, the cellular phone industry is dominated by a few large players who have substantial power in this niche. However, since most of the production capabilities utilized by high-tech companies are being outsourced, and then there may be an opportunity for smaller firms to compete in this industry.
Apple has a dynamic pricing strategy is completely dependent on the product and the market niche which the product is marketed. One pricing strategy that Apple uses as a model to price is dependent on the possibility of future revenue streams. Two prime examples of this strategy are the iPod and iTunes as well as the newer Apple TV and the movies and content that can be purchased with this hardware platform (Bui, 2012). Apple can…
Works Cited
Bui, D. (2012, April 3). Little Known Secrets of Apple's Pricing Strategy. Retrieved from Sales Chase: http://www.saleschase.com/blog/2012/04/03/little-known-secrets-of-apples-pricing-strategy/
Keizzer, G. (2009, October 19). Apple sets sales records 'as if recession never happened'. Retrieved August 22, 2012, from Computer World: http://www.computerworld.com/s/article/9139574/Apple_sets_sales_records_as_if_recession_never_happened_
Landau, T. (2011, August 11). Imitating Apple is a Losing Strategy. Retrieved from Slanted Viewpoint: http://www.tedlandau.com/slantedviewpoint/index.php/archives/2011/823
Oliver, S. (2009, January 28). Global recession catches up to Apple's retail stores. Retrieved August 22, 2012, from http://www.appleinsider.com/articles/09/01/28/global_recession_catches_up_to_apples_retail_stores.html
Wildstrom, S. (2009, November 11). Why Apple Leaves Low-End Computers to the Competition. Retrieved August 21, 2012, from Business Week: http://www.businessweek.com/magazine/content/09_47/b4156000345421.htm
Wortham, J. (2011, December 3). Before Latest Phone Debut, Apple Has Harsher Competition. Retrieved August 21, 2012, from New York Times: http://www.nytimes.com/2011/10/04/technology/apple-iPhone-faces-divided-loyalties.html
There is a near limitless supply of snack food available at any gas station, grocery store and convenience store in America, including packages pretzel products. With this many potential competitors, Auntie Anne's Hand Rolled Soft Pretzels must compete vigorously. The competitors range from very large, well-financed competitors with rock-solid brands to mom-and-pop operators and small businesses. Some sell products at a premium, while others are cost leaders. This is
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Market Structures: Market structure is described as the institutional or organizational attributes and characteristics of a market. In most cases, the market structures mainly focus on the characteristics that impact the nature of pricing and competition through it's not important to major simply on the market share of the existing companies in a particular industry. Some of the most common market features include the number of companies, the nature of
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