The Marketing Strategies of Apple Inc.docx

The Marketing Strategies of Apple Inc.docx - The Marketing...

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The Marketing Strategies of Apple Inc. In the world of consumer goods today, within the electronic equipment industry, it is far from common to not know the name Apple Inc. This tech giant, originally birthed in 1976 by the trio of Steve Jobs, Steve Wozniak, and Ronald Wayne, has become a household name through market and technological innovation and the execution of a marketing strategy on a scale unlike anything the industry has seen before. The brand loyalty enjoyed by Apple has been widely deemed as cult-like, much to the envy of its competitors. To dig into the success of Apple Inc. is to understand the type of company that Apple is, how they view themselves in the market, and how they strategize their marketing. Company Overview Apple Inc.’s current acting CEO is Timothy Donald “Tim” Cook, who officially succeeded the late Steve Jobs on August 24, 2011. The company’s product mix largely focuses on computer hardware (Mac computers) and related software (iOS, OS X, Safari), consumer electronics (iPod, iPhone, Apple TV), and digital distribution of media and apps, generally to its own platforms (iTunes store, iCloud). Apple’s worldwide, diversified market presence elicits a broad range of competitors, including the likes of Samsung Electronics, Sony Corporation, Dell Inc and Microsoft Corporation. Their 2014 revenues ($182.35 billion) and profits ($39.51 billion) both saw increases greater than 6.5% above their 2013 measures ($170.87 billion and $37.04 billion, respectively). As of mid 2015, the company staffs 92,600 employees. This information is summarized in Table 1 at the bottom of the document. Market Opportunity Overview Apple is well positioned to secure significant market share in numerous emerging and growing markets up through the year 2020. IDC has projected the IoT (Internet of Things) market to reach $7.1 trillion in 2020 (Lund, MacGillivray, Turner, Morales, 2104); a market that Apple’s existing software platform well-positions them to take advantage of. More recent ventures into the wearable gadgets and mobile payments markets, via the Apple Watch and Apple Pay, respectively, have notable potential to increase brand value and improve user experience. BI has projected the wearable gadgets market alone to reach 148 million shipments in 2019 (Danova, 2015) and for Apple to dominate said market. Lastly, the partnership announced last year between IBM and Apple could develop into a big pay off as they aim to make an impact in the mobile enterprise management market; a market projected to reach $1.8 billion in 2016 by IDC (McCarthy, 2015).
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Situation Analysis Within the realm of consumer electronics of the type Apple produces, the state of the economy at large has a significant effect on the demand for goods. As the economy grows, the demand for higher-end products will follow. Also, as the economy shrinks, the demand for luxury and higher-end goods will decrease as consumers move to more value products to compensate for decreased purchasing power. Although the state of the economy has been on a somewhat
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