A good example is Lucozade boost. Rather than introducing their products at a high price and then lowering their prices later, Apple stakes out a price and then maintains and defends that price by significantly increasing the value of their products in future iterations. For a business to come up with a decision using the grid, key personal must consider numerous factors such as market penetration, product development, market development and diversification, it measures the brand popularity. Customers then turn around and spend more money than they'd planned. Managers and leaders should monitor this throughout the entire process to ensure smooth changes. After all, why should they pay more if they can save money and still get a product of good quality? October 2013 Market penetration refers to the successful of a product or service in a specific market. These markets are untapped potential for revenue and a good spot for globalization for dominant company's.
It has also investigated the possibility of , as well as planning to invest in India — which will bring approximately 4,500 jobs to the area during the construction process. They provide their consumers with reliable products at a great rate. In Apple's case, the premium pricing strategy involves relatively high prices. I think Apple has a great price policy. The American multinational corporation has gone through tuff market conditions resulting from financial challenges to stiff competition in the market.
Product development requires that the company must offer attractive products to grow its market share and performance. Some more frequent than others. It has grown into a global brand and from the Americas to Europe and Asia Pacific, it is everywhere in all the markets. The ability of your organization to achieve higher usage by customers can be greatly enhanced by rapidly changing technologies that encourage users to upgrade or that offer more reasons to use the product or service. It highlights ways of growing the business through existing or new products and in existing or new markets. Even after you're established you may need new strategies to maintain your market share. The weakness of local competitors is due to their poor customer service and limit in resources as they don't have the capital and reach that large corporations have.
The most striking statistic is the enormous growth rate in the databases - 60% per year! Strayer University Bus 499 January 29, 2012 Professor Erica Atkins Abstract This paper describes the key strategic challenges facing Apple Computer. I guess it must have been hard in the beginning because making their products must have cost quite a lot. As previously mentioned, that requires growing sales and market share in the developed markets. The founder, Steve Jobs, and Steve Woziak started Apple Computers in 1976 and incorporated it into a company on January 3, 1977 Cusumano, 2002. Relevant discussion may be found on the.
He has also worked as a financial advisor and a business coach. I think this article shine a little light on how much power Apple has over the computer, mp3 iPod , tablet, and partial smartphone industry. Market penetration and expansion are strategies relating to growing exiting products in existing markets. Apart from its own retail stores and through other retailers, it also sells online. More specifically, Drexler had stated that if Steve Jobs was to be still alive, he was going to design the first iCar. Although none of the marketing strategies is risk free, the market penetration strategy is generally believed to have the least risk.
Power and Associates awards for customer satisfaction and Apple reported that four times as many iPhone users switched from an Android phone than to an Android phone in the fourth quarter of 2012. However, they have gotten for a long time. Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Igor Ansoff, used to assist companies with decisions that pertain to product and market growth strategies. Market penetration refers to selling existing products to existing markets. Introduction In 2003, the author Lynch suggested that the Ansoff Matrix describes the market and product choices available to a company. However, it is exceptional if the sales growth trend shows the gross increase but is much less significant comparing to its competitors, because this could indicate the business's market share is actually shrinking, then this strategy can be a good approach to try regain its market share.
Diet Coke has been a success for Coca-Cola, but its drinkers are overwhelmingly female. Breakfast cereal, Frosted Flakes, Kellogg Company 1939 Words 6 Pages mention the products kellogs produces and the general target market for these producst E. Its product line continues to grow. However, it involves rigorous competition with existing competitors in order to gain a greater share of the market or maintain leadership position in a known market. ~ Price Skimming A price skimming strategy focuses on maximizing profits by charging a high price for early adopters of a new product, then gradually lowering the price to attract thriftier consumers. Use the branding strategy in order to compete across several high competitive markets.
For perspective, on an ex-retail basis, Apple reported a remarkably stable 75%-76% of its total revenue coming from the Americas, Europe, and Japan during the last three years. Also, Apple implements the market development intensive growth strategy through novel products. You cannot use windows operating system on an Apple laptop. Finally, late adopters might be pleased to get your prestigious product at a bargain price, which creates goodwill for your company. Too much alteration can make consumers wary so change must be implemented in a subtle manner so as to only increase market share and build on profits. Apple has always been known to have high prices, but you always are certain it will be a quality product.
Ansoff Matrix is used to portray alternative growth strategies. Diversification: Apart from computing, portable and personal technology and music, Apple has also entered solar energy which could be turned into a big business later. Instant noodles, Maggi, Market penetration 1791 Words 6 Pages that a business can use to market its products or services. How easy would it be to successfully sell these products to their consumers? First, the market share that they would be buying is worth far less than the market share that they already own. Walmart and Costco both attract customers by promising to sell them things cheaply. Therefore with this low price tablet from a popular brand many people will choose the kindle fire over the apple Ipad. Another strategic direction Marks and Spencer plc demonstrated was diversification when they launched the food concept in their own stores as well as collaborations in other convenience stores in 2003.
The easiest way to achieve this is to localize your product, software or website to another language. Apple has also done some very impressive things in creating loyal and repeat customers. Let us for a second imaging Apple developing running sneakers as its next product to compete with Adidas and Nike or toothpaste to compete with Colgate. Apple has done some very interesting things in order to increase the size of their market. It can increase consumer awareness, change the strategies of competitors and alter the consumer's perception of the product and the brand, and is another method to increase market penetration. It is an attempt by a company that is already in the market with an off-the-shelf product to get more sales from other market participants. Try any of our Foolish newsletter services.