Apple’s Winning Marketing Strategy
Apple is one of the leading and most innovative electronic and software companies in the world today. The company name is behind great products like Macs, iPods, iPads, iPhones, and a plethora of software. Steve Wozniak and Steve Jobs established Apple in 1976; the company was later incorporated one year later in 1977. In 1997, Steve Jobs was able to successfully restore the corporation from the threat of bankruptcy. Jobs accomplished this task with simple but innovative philosophy behind each product they manufactured. Apple Inc. is currently worth over $150 billion, with valuable stocks being sold every day. Great leadership and superior technological advance is attributed to the success of Apple.
Apple has numerous attributes that have strengthened the company year after year. First, under the leadership of Steve Jobs, Apple was able to establish and reach new heights in their niche. According to Ferrell and Hartline, “Apple has excelled in both leadership and operations. One of the company’s most important resources is its employees, and the company has effectively recruited, trained, and compensated employees to create loyalty” (Pg. 327).
Organizational structure and leadership can make or break any company, they are essential to the proper management of companies. Apple recognized this principle early on and capitalized on it as strength.
In addition, the strength of this corporation also lies in research and cleverness in the development of their products. Apple is able to utilize the result of intricate research development to successfully create masterpieces that consumers desire and are prepared to purchase at high retail price. Consequently, Apple products are now known to headline trends in the industry and have established brand loyalty. In order to fulfill the needs of customers, Apple seeks out the best resources to manufacture devices; “Apple has created a highly efficient and effective supply chain with most of its production in China (Ferrell and Hartline, 2012).
To further improve and better equip their supply chain workers, Apple invests in their employees by providing development courses and educational resources at no cost. “In addition, our suppliers trained more than 1.5 million workers on their rights, bringing the total number trained since 2007 to 3.8 million” (Apple.com, 2014). Weakness
Apple products carry a premium price tag, so the sale of their products is dependent upon our global economy and competition. “Apple Inc. on Tuesday suffered its worst single-day market performance in a year, as the company’s share price fell 8% following a one-two punch combination of disappointing iPhone sales and a weaker-than-expected revenue forecast” (Crum, 2014). A noticeable decline in sales is due to competitors offering similar products like Apple, but at a more affordable price. For instance, the iPad is sold at approximately $500, but Google and Samsung retail other comparable devices for less than $250.
Secondly, major weaknesses plaguing Apple are lawsuits filed against the corporation. In 2009, Nokia sued Apple for an undisclosed amount of money, stating that the company refused to compensate them for the authority to utilize Nokia’s technology. “Back in February, China-based company Proview Electronics sued Apple for $1.6 billion, claiming the company infringed its trademark for the word iPad” (Business Insider, 2012). This lawsuit ultimately set Apple back about $60 million, due to the fact that they were not permitted to use the word “iPad” in China.
Lastly, another weakness is that Apple devices have exclusive apps that are incompatible with non-Apple devices and vice versa. Since the operating system of Apple differs from the system of Android, it renders the functionality of applications invalid. Mobile device users have to actively seek out comparable versions of various apps in the two operating systems...
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