Is Apple’s Pricing Strategy a good example of CVP? How would you define Apple’s strategy and how do competitors survive?
Expert Answer
Apple offers a very limited number of products and advertise them as a premium products for the market. By focusing on the high and device only the product pricing is also divided into the high and price sector and the customers with high capital are targeted to increase the overall revenue of the company. Company deals in mobile phones as well as the computer system which are always falling in the premium category creating maximum profits as well as the service benefits for apple.
Apple always give priority to its overall profit over the market share. New strategies on how to increase the profits rather than focusing on increasing in market share has always been companies main motto.
Premium pricing of the devices are basically their main strategy for capturing the sector or as well as the high and sector of the customers. Even the company is most nominal devices are priced in mid range but the normal devices are usually price that very high range that normal customer cannot afford. By giving out different contracts with the phone as well as other devices company has specifically developed an ecosystem for its environment off work.
Apple uses the vertical integration strategy to deal with the problems. Company has expertise in Software Hardware as well as the other services. All of these three services are linked together creates vertical integration between the devices as well as their services. Company uses the best available design which is eye catching as well as aesthetic which also increases the number of customers coming towards the company.
Biggest competitor to the Apple is Android, android has grown like a giant in last decade and give the most fierce competition in terms of sales as well as the software. Android price. Unique selling point of the device is as the Android can be very cheap as compared to Apple. Specific difference is making android Run I had in the race of selling devices to the customers.
