Analysis of Apple

Erdžan Limanče
Eldis Sulejmani
Rabit Sulejmani
 Introduction
• Apple has evolved since the start of their company in the early 70’s.
The company has successfully been able to develop a strong hold to
being a competitor and innovator. Apple Inc. has been able to gain
widespread success due to their ability to create innovative
products. Apple stands out in the market because they know what
the consumers want and then executes their strategies. The
companies’ effective business strategies have allowed them to gain
large revenue growth. Apple has been able to coordinate and
integrate pricing and high quality products. Apple Inc. uses the
highest quality materials and industrial design on their carefully
crafted products even though they are mass produced. The company
is able to sell a large amount of products because the buyer’s
reservation price matches the pricing of their products. Apple Inc.
marketing strategies has allowed them to generate a large amount of
revenue.
 Principles of Marketing
• 1. How Apple uses differentiation strategy
to gain competitive advantage?

• Apple uses : DIFFERENTIATION STRATEGY;

INTEGRATION STRATEGY; BRANDING STRATEGY;
STRATEGIC OUTSOURCING; PRICING STRATEGY;
INTENSIVE GROWTH STRATEGIES; RETAILIN G
STRATEGY; COOPERATIVE STRATEGY.
• Under a differentation strategy is implied:
Unique Features and characteristics, Superior
Quality, Innovation, Premium Price.
• Integration strategy: Apple builds great
hardware, owns the core software experience,
optimizes its software for that hardware, equips
it with web services (iTunes and iCloud), and
finally controls the selling experience through its
own retail stores.
• Branding strategy: they depend on the loyalty
of their customers, good reputation, and on the
luxurious of their products to attract other
customers.
• Strategic outsourcing: They have primarily
focussed on R&D which helped them bring
disruptive innovation into the market with their
products.
• Pricing strategy: In Apple's case, the
premium pricing strategy involves relatively
high prices. This pricing strategy helps maintain
the high-end image of the company and its
products.
• Intensive growth strategies: Apple’s intensive
strategies for growth support the firm’s ability to
maintain its strong position in the global market.
This successful position indicates Apple’s
effectiveness in using its generic strategy and
intensive growth strategies.
• 1. Product Development
• 2. Market Penetration
• 3. Market Development
• Relating strategy: Apple empowers its store’s
visitors by letting them touch everything, try
anything, and stay as long as they like.
• Cooperative strategy: Apple uses a business-
level cooperative strategy in one major Apple
product which is iTunes. Apple wants everyone
around the world to buy from iTunes and works
with international entertainment firms to offer
products specific to the different users of the
world.
2. Explain the extended marketing mix of the
Apple’s marketing strategy.
• Product: This component of the marketing mix
determines the outputs of the business
organization.
• Apple’s Core Product Line:
• iPhone Smart Phone
• iPad tablet computer
• iPod Portable media Players
• MAcintosh Computer Line
• Apple TV
• Apple Watch
• Place & Distribution: Where you can find
Apple Products:
• - Apple Stores; Online Apple Store and App Store;
Authorised Retailers; Telecom Companies (selling
of iPhone units by Verizon, Sprint); Fulfilment
Services (3rd Parties, like Amazon, Ebay).
• Price: The Main Focus of Apple:
• - Offer a small number of products
• - Focus on the high end
• - Give priority to profits over market share
• - Create a halo effect that makes people starve for
new Apple products
• Apple’s Promotional Mix: Apple is using
Promotion through:
• Advertising; Personal Selling; Sales Promotion;
Public Relations.
• People as Part of the Marketing Mix:
Employees; Management - Founder and former
CEO Steve Job; Culture; Customer service.
• Processes: Supply Chain Management of
Apple:
• - Customer comes first
• - Simplify Products and Process support
• - Enhance Relationship
• - Prioritise Action
• Physical Evidence: - Apple has retail stores,
the online store and app store.
• - Apple uses bright colours, white ear phone
leads and style is very important.
• - The Logo of Apple has evolved over the years.
Public Sector in the Modern State
• T2 CORPORATE SOCIAL RESPONSIBLITIES?

CORPORATE SOCIAL RESPONSIBILITY is

about how companies manage the business
processes to produce an overall positive impact
on society. CSR also called corporate conscience,
corporate citizenship or responsible business is a
form of corporate self-regulation integrated into a
business model.
• TYPES OF CSR POLICIES:
• Economic Responsibilities - A business exists to make a profit for
shareholders. If it fails to do so, it likely wonʼt be able to pay its
employees, taxes and other obligations. A corporate social
responsibility program (CSR program) cannot be implemented until a
business profitable.

• Legal Responsibilities - Following the law is the foundation of

corporate responsibility. A company cannot benefit society if it does
not adhere to labor and tax laws or applicable industry regulations.

• Ethical Responsibilities- Once a company is profitable and meets its

legal responsibilities, it can move up leader to ethical responsibilities,
which might include playing higher wages, offering employees better
benefits, avoiding trade with unscrupulous companies or providing
jobs to those who would otherwise have difficulty finding work.

• Philanthropic Responsibilities - As a company meets its economic,

legal and ethical responsibilities, it can consider taking on
philanthropic responsibilities. Corporate philanthropy ranges in size
and scope, and can include everything from donating time to a local
charity to building a children’s hospital.
2. What are the impacts Public Policies have on
Apple domestic operations?
• How important public policies for Apple shows the Apple CEO Tim Cook.
• Apple CEO Tim Cook said that the iPhone is in fact largely made in
America.
• He clarified his comments to say the flagship phones are assembled
elsewhere, but said "there's equipment and manufacturing" all over the
U.S.
• President Donald Trump has touted Apple as one of the top many
American companies investing at home.
• The company is hoping the new iPad, marketed primarily to schools, will
help regain some of the education market share from Googleand its
Chromebook. Meanwhile, Apple is facing reports of iPhone "demand
deterioration."
• Cook said the hardware giant is looking to expand its domestic operations
from its main hubs in California and Texas.
• He said Apple wouldn't be launching a "contest" like Amazon has in its
search for a second headquarters.
 Microeconomics
• 1. Why do the prices of the latest iPhones
are at a level they are?

• All latest iPhones are first of all luxury High-Tech devices

who have almost monopoly on market and all other
manufacturers are waiting for iphone to dictate price
then they make their offers regarding of iPhone.
• For iPhone price also contributes a warranty of their
services and hardware with best software in world.
• 2. If you were the owner of a mobile
phone shop, how would you set about
deciding what prices to charge for the
older model of iPhone?

• If i had mobile Shop store i would allways care about

new models mostly because after all they are high tech
luxury devices because they represent style and social
position. But about old devices price would be reduced
by average of 20% for every new model, and difference
between 2 previous models is like 20% allways. So,
customers who are more average paycheck can still
afford older models and luxury new models will have
good earnings also.
• 3. What determines how much Apple
supplies of the latest iPhone?

• Apple appears to be on a kick of delivering product

refreshes to punctuate its major release cycle, with
changes to devices and tweaked versions that go beyond
what it has done in terms of spec refreshes in the past. It
looks like we could see a new era of light changes in
direction to cater to market trends and optimize product
viability under Tim Cook, which in many ways makes
sense for a man known as a supply chain maestro.
 Conclusion
• Do apple devices move limits of beyond? Or they are just amazing
marketing trick ?
• We can say they are both.
• Flawless quality of hardware, attractive look, designed to be slick,
good hardware and even better software are really components of
every apple device. We can also say owning of an iPhone represent
prestige. But this prestige have a price, what is that price?
• If we talk about price we came up to number of 800 euros for
iphone 8 or even one thousand for iphone X.
• For this summ you get a phone which is limited in case of
Applications, their exchange and you can use.
• Apple only apps, he is limited to only hardware memory, although
its big but it can be filled pretty easy today.
Thank you 