Apple is the world’s largest information technology company by revenue, the world’s largest technology company by total assets and the world’s second-largest mobile phone manufacturer In November 2014, in addition to being the largest publicly traded corporation in the world by market capitalization, (Chen, May 11, 2015)
Apple-particularly by CEO Steve Job, has described the appeal Apple product or innovation rather succinctly, saying “It just works.” How it works isn’t important; a magician never tells how he does his tricks. (google, n.d.)
Apple’s marketing and promoting is different. It is about the experience of utilizing the item, not the hard, to an extreme technically specialized work that goes into building it.
• Environmental obligations: Being a company that focus on innovation
• Utilizing capacity to create and develop: By offering prevalent integration and innovation through all its products to maintain its competitive advantage
• Improving and expanding: By investing heavily in Research and Development
• Supporting the community: For the advancement of third-party software and equipment products.
Apple’s SWOT analysis highlights the significant STRENGTHS that can be used to enhance its position and financial growth, the WEAKNESSES and THREATS that ought to be tended through innovative techniques and the major OPPORTUNITIES that shape the strategic direction of the organization (Apple Inc. Form 10-K,, 2014)
The biggest organizational strengths of Apple that withstand business environmental threats are:
Apples strengths are difficult to compete with as it shows its capability of introducing new products with its Strong Brand Image, by maintaining its premium pricing strategy with High Profits and Rapid Innovation Process. (Lin, 2012, July)
1. Because of the company`s exclusivity policy it has got Limited Distribution Network
2. Lower middle class customers who represents the majority of buyers in the present global market, are unable to buy Apple products due to the High Selling Prices.
3. Most sales revenues are from High-End Market because of its premium price strategy.
1. Creation of New Product Lines can support for the growth of the company.
2. Expansion of distribution network can improve its growth as Apple has very limited distribution.
1. Imitation of Apple products by other firms can be a significant threat.
2. Aggressive Competition as it competes with other rapid innovative companies
3. Rising Labor Costs in Apple plants, such as in China, can reduce profit margins or push selling prices even higher
MARKETING MIX (4P’S)
Marketing mix indicates how the company matches its business activities to market conditions (Borden, 1964)
• Product Mix:
Though Apple has the main product lines like Mac, IPad, IPod, IPhone, Apple TV, Apple Watch as part of its product development intensive growth strategy the company still continues to develop new products like Apple Electric Vehicle etc., (Rahmani, 2015)
• Place in Market Mix:
Apple’s distribution strategy involves a holistic approach to distribution through Apple Stores, Online Apple Store and App Store (most visible places), Authorized retailers (like best buy, office works, Walmart’s, Target), Telecom companies (Verizon, AT&T), Fulfillment services (e bay, Amazon).
• Promotional Mix:
Advertising through the company`s website, Apple stores and Technology new sites.
Personal selling through Apple Store employees, who provide specific information regarding the product to convince store visitors to make a purchase.
Sales promotion by offering old models at a discounted price when they bundle it with more expensive products.
• Pricing helps in maintaining the high-end brand image of the company and its products as premium pricing strategy entails higher profit margins (Yoo, 2000)
(n.d.). Retrieved from http://panmore.com/apple-inc-swot-analysis-recommendations
(2014). Apple Inc. Form 10-K,.
Borden, N. H. (1964). The concept of the marketing mix. Journal of Advertising Research.
Chen, L. (May 11, 2015). “The World’s Largest Tech Companies: Apple Beats Samsung, Microsoft, Google”. Forbes. Archived from the original on May 15, 2015. Retrieved December 30, 2015.
google. (n.d.). Retrieved from http://www.macworld.com/article/1161724/its_not_magic_how_apple_achieves_greatness.html
Lin, S. P. (2012, July). How to start continuously improving innovation in organizational knowledge: A case study on Apple, Inc. In Technology Management for Emerging Technologies (PICMET.
Rahmani, K. E. (2015). Quality Function Deployment and New Product Development with a focus on Marketing Mix 4P model. Asian Journal of Research in Marketing, 4(2), 98-108.
Yoo, B. D. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science.