Apple Company is a multinational organization that is renowned for designing, developing and marketing consumer electronic devices. For instance, Apple Company's products comprise of iPod, iTunes, desktop computers, Mac laptops, the OS X operating system, iPad, and iPhone. The company operates under a competitive market structure due to high competition from rival companies. Some of the Apple's rival companies include Dell Company, Samsung Company, and Microsoft Company. A competitive market structure allows an organization to identify various marketing strategies that will facilitate in increasing the company's performance under stiff competition. Companies engage in the production of similar products and services as a result of the high demand of the products. On the contrary, different market structures have their respective advantages and disadvantages. Therefore, companies need to identify a competitive marketing strategy that will prevent their elimination from the market .
The Apple Company is, among many other multinational companies around the world producing consumer electronics. As a result, the market is comprised of quite a number of manufacturers and producers. This creates competition of consumer goods due to production of similar electronic products. The products' prices are determined by the market condition and competitive nature of other products. These features comprise a competitive market structure. Unlike an oligopolistic market structure where a company sets its own prices, a competitive market structure price depends on the demand and supply of the products. A competitive market structure is also characterized by lack of barriers to enter or exit the market. As a result, business organizations enter and exit the market without facing any barriers. As a competitive market structure, the Apple Company produces homogenous products. Production of homogenous products and services in a competitive market structure results in low bargaining power .
Apple Company's electronic gadgets have over the recent past shown an improvement in the market sales. Their sales and increased demand in the market have consequently led to technological improvements. Despite the stiff competition from rival companies, Apple Company has embarked on strategic measures in ensuring Apple's products remain competitive in the market. For instance, the Apple computers allow users to have an effective operating system compatible with other operating systems. Macintosh computer has continually distinguished itself from the rest of the PC equivalent. Apple gains an advantage over the other computer makers due to the fact that it makes its own hardware and thus able to set own prices for the products. Therefore, Apple computers have an added advantage when it comes to hardware selection compared with other PCs' in the market .
As a result of stiff market competition from other market rivals, producing the same line of products, Apple Company can adopt various competitive strategies that will ensure profit maximization. For instance, the company can decide to differentiate its products in order to meet consumers' demands, and expectations. Consumers, have different tastes and preferences. Therefore, it is vital for Apple Company to identify consumer needs and tailor their products according to those needs. Product differentiation is of crucial importance to a company because it increases sales through a variety of products in the market. For instance, the Apple's production of the iPhone and iPad has been consistently changing as a result of changes in the market. The company has designed computers and other electronic devices that possess unique features of other rival company's products. Product differentiation does not involve changing the original product, rather creating a different campaign strategy .
A competitive market structure can also adopt a different campaign and advertising strategy as part of competitive plan to improve sales. There are myriad advertisement and marketing strategies that Apple Company can adopt in creating awareness of products to consumers. The company, therefore, needs to evaluate the best advertising and marketing strategy that will ensure high sales. Advertisement and campaign programs of Apple's products can take an innovative strategy that will ensure a wide coverage of consumer awareness. For instance, the company can take advantage of improved technology in marketing its products. The company can also lower the production and distribution costs in order to maximize profits. Production cost is one of the main determinants of a company's profits or losses. Apple Company can adopt a competitive strategy where the production cost is kept low as possible in order to maintain an overall cost leadership in the market .
Another way to improve Apple's Company profits is through product innovation and development. Product innovation is a strategy that can be used in order to increase the company's sales, raising profits. Product innovation can take various forms within an organization. For instance, it can be a development of new product or an improvement of already existing product in the market. Therefore, it is important for Apple Company to be creative and innovative in bringing products in the market. A market analysis is always important in order to identify consumers' expectations. This allows the company to manufacture products according to consumers' needs. An improvement in a product plays an imperative role in increasing sales, thus improve the company's performance. Apple Company also needs to establish a good relationship with its customers through superior business values. This can be through listening, and satisfying customers' needs in order to create value .
The aforementioned strategies are of imperative importance in a competitive market because of the stiff competition. As a result, Apple Company can employ one or all the strategies in order to have a great share of market profits. These methods are efficient and effective since all companies are producing a homogenous product. According to research, the more the product is differentiated the less competition in the market. It is important for a competitive market structure to embark on unique competitive business strategies in order to stay in the market. Production of a new product in the market is, usually, part of a company's strategy to improve their products and increase sales. Development of a product, on the other hand, allows the company to incorporate various features that did not exist in the previous product .
The Apple Company has a lot of potential to increase its customer base and increase sales across the world through the use of competitive market strategies. The use of these business strategies plays a crucial role in improving the company's performance thus profitability. In the recent times, improved technology has impacted on the use of electronic devices. There are various features and applications that need to be incorporated in these products in order to compete. Many organizations have relied on technological advancements in manufacturing of quality products that match customers' expectations. Therefore, it is important for Apple Company to consider the advanced technology and its effects on consumer goods and services.
References
Ireland, D., Hoskisson, R., & Hitt, M. (2008). Understanding Business Strategy: Concepts and Cases. New York: Cengage Learning.
Thompson, J. L., & Martin, F. (2010). Strategic Management: Awareness & Change. London: Cengage Learning EMEA.
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