This case basically introduces the history of the Apple Company, and shows the company’s ups and downs in the computer industry. Apple Computer is the key factor to upgrade computer industry innovation. It is one of the first companies to venture into the computer marketplace. Apple Computer founded in 1976 by Steve Jobs and Steve Wozniack. After launching the first product Apple 2, Apple quickly became the industry leader and ready to change the world through technology. Apple was still maintaining the leader position until the mid 1980’s when IBM entered the PC market, Dell, Compaq and HP were soon to follow, and they have taken some market share from Apple. In this bad situation, Apple …show more content…
And, Apple position itself as a niche player in the PC industry, targets a less price sensitive customers. In the case, Apple wants to target all customers to increase its market share. But the risks of this method will come out. Because the method will destroy its brand image-premium and influence the company’s culture.
In the case, different CEO will set a different types of pricing strategy. Apple uses is that they set their products different price ranges for each product based on the amount of storage that the products offers. This differentiation feature became a competitive advantage in the electronic market. Because this feature would enlarge Apple target customers and stimulate customer to buy their products for different experiences. For the Apple computer, they have three models. They are MacBook Air, MacBook Pro, and iMac. In MacBook Air and MacBook Pro, they all have two sizes, and in each size, they have two types of storage. For iMac, it has five types of model. The differences are sizes and amount of memory. Each type of product has a different price.
Compare with competitors, in the introduction stage of product life cycle, Apple uses skimming pricing strategy.
The most important promotion of Apple is advertising. Apple created a large amount of advertisings that can be found on TV, websites, magazines and building walls. Apple also made many advertising for other countries, such