It has been noted that the company has chosen to expand its production capabilities in other regions as a way of minimizing the cost and time of production. Apple has been at par with changes and the demand in the industry and the market due to its strategy of enhancing diversification of production and the formulation and execution of a supply chain that favors the operations of the company in the competitive market. Production/Supply Process and CostsĮfficiency in supply and production is critical in sustaining the operations of a company in a competitive market. However, the demand in the market will remain to be a key factor in the determination of the rate at which Apple adjusts the prices of its new inventions in the market. The general trend in the market denotes the likelihood of reduction in prices of products of Apple as the company seeks to reduce the pressure that mounts on its performance due to the high prices that are attached on its products. Source: “Lack Supply of Apple iPhone 5”, 2012įigure 1.1 denotes the shortage in demand, which works for the rise in the price of the commodity in the market. This results in the oversupply of the product in the market.ģ22 specialists online Figure 1.1: Shortage in the supply of iPhone 5 in the market and its impact on price stability in the market. The increased demand for the supply of iPhone 5 results in the rise in the prices, which in turn attracts more supply of the iPhones. Source: “Lack Supply of Apple iPhone 5”, 2012 Figure 1.0: The increased supply of iPhone 5 in the market and its effect on price stability. This can be explained by the demand and supply curves below (“Lack Supply of Apple iPhone 5”, 2012). The demand does not match the supply, meaning that the market equilibrium is set higher on the demand and supply curve. However, in certain markets, there are indicators that the demand for Apple iPhone 5, which is one of the latest technological products that have been released in the market by Apple, is quite high. However, the issue of prices keeps pressure on the consumers in the sense that they cannot easily afford the highly technological products, such as the ones produced by Apple at the prices that they can afford to offer. The demand for products that deploy a high level of technology keeps rising. The consumption of goods in the technology industry is mainly shaped by the level of utility and the prices of goods and services in the industry. Consumers often keep seeking for new products with new technological features. There is a resounding rate of shifting demand in consumption trends in the personal computer and information technology industry due to the quick pace at which technological changes take place in the industry. The level of dynamism in the industry is dictated by the number of players in the industry and the demand for information and technology products in the market. The marketing environment in information and communication technology is highly dynamic. The prices of Samsung products, such as tablets, are far much lesser than the prices of iPads (Lee, 2013). On this basis, it can be said that other competitor companies in the market like Samsung have managed to gain a wider market share through the utilization of pricing as a factor for accessing the market. This affects the propensity of consumers to consume technology products. It has been noted that pricing is not only determined by the level of technology that is applied in the manufacture of products or the nature of services that are provided by the company but to a greater extent the external forces in the market. The difference in pricing is one of the factors of competitiveness in the industry in which Apple operates. Due to its continued investment in research, Apple manages to release new technologies in the market at close intervals, a factor that keeps other competitor companies like Samsung on toes as far as competition for the global markets is concerned (Lee, 2013). Technology adoption is the key defining factor of differentiation in the diverse generation of products that are released in the market by the company. Apple has also concentrated on the development of software used in the communication devices and tools that are produced and distributed in the market (Markoff, 2013).Īpple has been proactive in terms of adapting to the changes and demands of technology in the broader industry, which is the reason why the stability and successful operation of the company in the market are guaranteed. The mobile devices have come out as the new set of products that are at the center of focus as far as the competitiveness of the company in the new markets is concerned. The Apple computers form the first line of products that were produced and distributed by the Apple Company in the early years of its operation in the global information and communication industry.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |