Apple's Pricing Strategies
Analyzing the World of Marketing & Technology:
Apple's Pricing Strategies
Technological gadgets govern life in American society. With every step, one is bombarded by advertisements touting the newest and the best in electronic devices. Smart phones, for instance, are seemingly everywhere, from a teenager's texting hands to a board meeting presenting growth figures. Yet one company has managed to outdo all others. Apple has survived through decades of changes in governance and fluctuating stock values, and has finally surfaced as the enterprise with the most coveted electronic devices. Apple has not only created a new vocabulary for this segment of business with its omnipresent "i," but has managed, with Steve Jobs' shrewdness, to advance, in mass numbers, things that society absolutely does not need, at ridiculous prices. One must, thus, wonder, how Apple does it. For this reason, the paragraphs below will focus on analyzing how the company creates value for its products and how it utilizes different price offerings to promote them, as well as how it communicates value and price, and how it develops policies for price objections, increases, and other economic phenomena.
In order to begin to explain how the company creates value for specific market segments, one must analyze how the company has created value, as a whole. In this respect, it is important to mention that Apple has been in business since the 1970's. In fact, in 1976, Steve Jobs and Steve Wozniak found Apple Computer, Inc. with just $1,300.[footnoteRef:1] The fact that the company has not only persisted, but has grown to such an extent as to almost take over the communications technology and personal computing markets is a testament both to its fantastic products, as well as to its shrewd marketing strategies. [1: Apple Computer, Inc. (n.a.). (2011). Funding Universe. Retrieved October 30, 2011, from < http://www.fundinguniverse.com/company-histories/Apple-Computer-Inc.-Company-History.html>. ]
Apple has, thus, been very astute in creating value for its market segments, and very successful in doing so, and has succeeded in this mission by utilizing very simple brand strategies. As mentioned above, Apple has but cornered the market with its breakthrough products. In the last decade alone, Apple has not only introduced...
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