Apple Marketing Strategy

Topics: Apple Inc., Steve Jobs, IPhone Pages: 13 (3469 words) Published: October 19, 2014


Marketing Strategy

Case Analysis – Apple Inc.

Content
Introduction -----------------------------------------------------------3 SWOT analysis -------------------------------------------------------4 Question 1 -------------------------------------------------------------6 Question 2 -------------------------------------------------------------7 Question 3 ------------------------------------------------------------10 Recommendation ---------------------------------------------------12 Conclusion -----------------------------------------------------------12 Reference -------------------------------------------------------------13

Introduction

Apple Inc. is an American multinational corporation headquartered in Cupertino, California which designs and manufactures consumer electronics, computer software, and personal computers. It was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976 to develop and sell personal computers and it was incorporated as Apple Computer, Inc. on January 3, 1977. Later, it renamed as Apple Inc. on January 9, 2007, as it was no longer only focus on computer and to reflect the company's ongoing expansion into the consumer electronics market.

The current CEO of Apple is Tim Cook since 2011 after the death of the former CEO Steve Jobs. Apple has 425 retail stores in 14 countries as well as online Apple Store in 39 countries and ITunes Store, which is the world's largest music retailer. In 2013, Interbrand and Forbes recognized Apple brand as the most valuable brand in the world and it entered the top ten of Fortune 500 list of companies for the first time. Apple was valued at $118.9 billion in this year, up $20.6 billion from its $98.3 billion valuation in 2013.

Apple is famous for its innovative products and broke a lot of records. For instance, iPod could hold 1000 songs in 2001, MacBook Air was the world’s thinnest laptops in 2008, and iPhone 5 was the best-selling smartphone in 2013.

In September 2014, Apple launched the 4.7-inch iPhone 6 and 5.5-inch iPhone 6 plus, with both devices selling a record-breaking ten million units during their first three days on sale, break the sale record. Apple announced that pre-orders for the two phones together topped a record-breaking 4 million in the first 24 hours the phones were on sale. The company also announced its highly-anticipated Apple Watch wearable device, which will come in multiple screen sizes and collections when it launches next year. And a new mobile payments platform that enables consumers to pay for items with Apple devices, Apple Pay, which is only available in the U.S. On October 16, 2014, Apple has announced a new iPads, a 27-inch iMac with Retina Display and perhaps a new Mac Mini.

SWOT analysis

Strengths
Brand awareness and reputation
Apple has a reputation of highly innovative, well-functioning, and well-designed products. It also has great business performance as the most valuable brand in the world.

Customer’s loyalty
Apple is a leading innovator in technology aspect; it produces high quality and superior design products which attract customers and has high customers’ trustworthiness. Apple is able to recruits new customers and also retains its existing customers to buy their latest products.

Marketing and advertising capabilities
Apple’s annual advertising budget reached U.S. $1.1 billion in 2013, while other rivals such as Microsoft Corporation has spent U.S. $2.5 billion. In 2012, Apple spent only 0.6% of total sales on advertising compared to Samsung’s 2.3% of total sales spent. However, Apple’s earnings in 2012 grew or 44.5% over the 2011, compared to Samsung Electronics’ earnings growth of only 21.9%. Even Apple spent less in advertising, but it achieved greater returns than its rivals.

Weaknesses
Outsourcing
For Apple’s manufacturing process, it had divided into many small parts and outsources them to other companies around...
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