The paper "Analyzing Market Segmentation for Apple's Products" is a perfect example of a case study on marketing. For various reasons like its philosophy of comprehensive aesthetic design to its advertising campaigns that are much distinctive, the company has established a reputation that is very unique in the industry of consumer electronics. The company products face completion from alternative sources of computer hardware like Dell, HP, Lenovo do exist. There also exist online music stores that are similar to iTunes stores (Napster). Though the market is unfavorable, new entrants have tried their way, namely; there is streaming audio and video with v-cast (Verizon) and the new entrants with disruptive technologies.
In this market, substitute products are highly available. Due to the uniqueness of Apple’ s products, they are more vulnerable to imitations. The bargaining power of suppliers in the market is high but Apple, as opposed to other companies, is self-sufficient depending mostly on its own. in addition, in Apple Company, major business customers acquire bargaining power, but on the other hand, most of Apple’ s customers are private customers. Apple Company has a unique and renowned brand.
It is one of the companies that are successful worldwide. However, it has been reported that iPod Nano have screens that break under impact and the firm is replacing all faulty ones, in 2005, it announced that it was to end its long term relationship with IBM as a chip supplier and about to switch to Intel, there exists pressure for the firm to increase the price of its music downloads, from the music industry itself. This forms the company’ s weaknesses. Its opportunities include; the opportunity of developing its iTunes and music player technology into a format of mobile phones, international expansion, revolutionizing another industry among others.
Apple threats are; increase in taxation, the existence of high product substitution effects in the innovative and first moving Information Technology consumable products, and global economic conditions that cause a reduction in demand for consumer products that are highly-priced. Apple Inc has divided the markets into categories that are workable, they include homes, education, large businesses, small businesses, and government. All of this can be categorized under three major customer segments.
It usually appeals to; early adopters who in most cases think different. Late majority consumers; who usually want something easy to use that just works in any way. The last category is professional content creators. Although Apple has taken leadership, it faces completion from the likes of Dell, Microsoft, Amazon, real networks, Google and to some degree Sony. Introduction Apple Inc is an American multinational corporation that deals with designing and marketing of consumer electronics, computer software, and personal computers. The best-known hardware products for the company include; iPhone, iPod, and iPad.