The launch of Samsung Galaxy, at the beginning of this year the market share, became competitive due to already overcrowded tablet computing market. The probable beneficiaries of the tablet market are the Samsung and Apple Electronics who are already in the market. The emergence of the tablet computing market was due to introduction of the Microsoft Tablet in the year 2001. Upon this development, it has seen the entry of 20 separate products into the tablet computing market, which includes Amazon.com’s, Kindle DX, which is coupled with numerous offering from Nokia, Motorola, and LG companies. The ipad 2 significantly boosts the functionality and the internal features of the ipad, which was effected in 2010. The ipad does not only have unique features in terms of speed, but also contain an element of human factor. The Apple Company 2 takes seriously the human factor by educating the users on how to use ipad 2.The ipad is much bigger as compared to iphone in size. The feature will enable the Apple Company to employ the element of portability of the mobile phone, the functionality of laptop, wide screen feature, and exclusively small compact tablet (Apple, Inc., 2011).
The ipad 2 has in the past faced stiff competition from the Smartphone market. The companies, which offer competition, to ipad 2 include Google’s Android, Motorola, LG, and Nokia (Datamonitor Inc, 2011). However, research has shown that competing tablets to the ipad are doomed to fail, and the Apple Company speculates to post 80% share of the US consumer tablet market 2011. The Apple Company chief marketing strategy lies on well established worldwide brand recognition in the Smartphone market. Following the official launch of the product, the company’s sales went beyond their stores, but also to their affiliate’s stores. The company next strategy is to avail the product exclusively in the United States, alone. The company dominant strategy will see the ipad products spread to the rest of the world, via its global network of Apple Stores and associated distributors. The global networking will be accompanied by price reductions, but without 3G connectivity. The Apple Company scores high in its ipad 2 model due its pricing, consumer awareness, expectation, and consideration. Brands such as HTC though well established in the Smartphone market are poised to fail due to its high prices compared to Apple Company’s prices (Apple, Inc., 2011).
Recommendations
(i) The company should explore markets which are differentiated according to income and technology to boost their profits. This is because the company strategy on price discrimination is celebrated as long as the company’s prices remain constant (Brickley, Brickely, Smith & Zimmerman, 2008).
(ii) The Apple Company should also focus on the global retail market which will be facilitated by its retail outlets and affiliate distributors worldwide. This will enable the ipad products to colonize the market before the entry of the rival companies which include Samsung, Blackberry, Xoom, and Nokia. This is because the competition in the Smartphone products has become intense and need global strategy (Apple Library Users Group, Apple Computer, Inc1992).
(iii) The ipad 2, feature of absence of 3G connectivity can enable the company to reach markets in the developing countries. This will also make their products penetrate into extraordinary markets in China, India, and Brazil. This will make the Apple Company make high profits and have high market share.
(iv) The prices of the tablets products remain higher in the market and owing the high competition in the market the company should produce relatively cheaper products, but which will not comprise its functionality. Maintaining the product quality while reducing their price will ensure the product cycle is renewed.
References
Apple Library Users Group, Apple Computer, Inc (1992). ALUG newsletter, Volume 10. New York, NY: Apple Computer, Inc.
Apple, Inc. (2011, October 12). iPad: Amazingly Thin!
Brickley, A., Brickely, J., Smith, W., & Zimmerman, J. (2008). Managerial Economics & Organizational Architecture. London: McGraw-Hill Higher Education.
Datamonitor Inc. (2011). Apple, INc: Company Profile. New York: Datamonitor Inc.
Inside CRM Editors. (2009). 11 Effective Strategies Apple Uses to Create Loyal Customers.
Linzmayer, O. (1999). Apple confidential: the real story of Apple Computer, Inc. New York, NY: No Starch Press
Linzmayer, O. (2004). Apple confidential 2.0: the definitive history of the world's most Colorful Company. New York, NY: No Starch Press
Theroux, P. (2011). How Apple Revolutionized Our World. The Daily Beast. Retrieved from http://www.thedailybeast.com/newsweek/2011/08/28/how-apple-evolutionized-our-world.html>
