Apple Inc Analysis: Ethics and Pricing
The purpose of this report is to analyze critically the position of Apple in terms of technology, ethics and pricing with regard to the growth of the technology industry. It is essentially required that significant issue or criticism for an organization be addressed in order to assist Apple in maintaining its market position and market leadership.
Apple is a firm that is well known for innovation of high end technology based computational and digital products. Yet, it has been criticized for the pricing of these products which is very high. At the same time Apple, which is a market leader has several positive elements to its credit including several social and CSR initiatives as well as innovation. It is quite evident that Apple is a successful multinational firm. Yet there are many elements that the firm can consider improving upon:
- Providing a reasonable pricing and ensuring products are affordable
- Ensuring reasonable pricing on i-tunes and app store
- Continuing to work on its social and CSR endeavors
The technology industry, is globally growing in terms of products and players. It is quite evident that as there are more and more customers for digital technologies, the industry is booming. With the advent of advance technologies on a very rapid scale, technology firms have scope for innovation and bringing out new technologies which can help their customers manage various activities at work as well as in their lives with higher efficiency.
Entrepreneurship is extremely valuable to the economy. It enables better creation of wealth and employment which are crucial for an economy (Czarnitzki, D. & Delanote, J., 2013). Innovation helps entrepreneurship be even more beneficial to the society as it helps create a unique value creation process. Along with this, CSR and innovation are expected from technology firms as they work towards creating a better society and better life for their customers.
2. Apple Inc
Apple is a firm that is known for advancement in the field of innovation. The Apple i-pod was one of its underlying developments which re-imagined the experience of tuning in to music by getting an inventive gadget that was little in measure, to a great degree convenient, with a memory chip and high caliber. It was additionally packaged with i-tunes which was the source from where the music must be downloaded into the i-pod. It revolutionized the music devices industry itself. Apple has since then been known for innovation as it launched its i-phone and i-pad all of which promise its users a unique and premium quality user experience thus creating higher value (Hollander, Stanley C., et al, 2005).
Strengths: Current market segment, Customer loyalty and uniqueness
Weakness: Being easily replaced, competition from traditional products
Opportunities: Expansion and stronger branding
Threats: New entrants, exposure to international market risk
Innovation can help an organization to bring in unique value to consumers including a user experience which is fulfilling (Kotler, Philip; Kevin Lane Keller, 2009).Apple has been known to be an innovative firm with its strategic framework being woven around innovation. This helps bring in a strategic direction for the organization from a long term perspective and for sustainability even in an extremely competitive environment.
Development of i-pod has acquired high an incentive for clients as a great gadget which enhanced the experience of tuning in to music significantly. It has helped clients encounter music never like. It has furnished them with a marked item which they are pleased to claim. This has helped them get acquainted with innovation more than ever and furthermore get an incentive for their cash. It has additionally acquired high an incentive for the business. It has helped Apple build up itself as a top notch innovation mark all inclusive. It has helped Apple construct a solid marking for itself alongside high benefits (Czarnitzki, D. and Delanote, J., 2013).
2.1 Technological innovation
Apple is known for innovation. Innovation is a very important aspect of the digital industry. Products of Apple are unique and of high end technologies which enable the building of a unique product range of Apple. Innovation refers to the process of bringing in new ideas and commercializing them in order to earn higher economic returns. It is important that the products of Apple be unique in terms of technology and in terms of delivering value to its customers through unique user experience. Apple has been praised for innovation and bringing in very useful and different products. Innovation is a strategy of Apple, and has been adopted by them for pursuing product development in a defined framework. This helps them remain an innovative enterprise along with forming improvement over existing technologies (Chesbrough, H.W., 2003).
Apple is an organization that is actively involved in several CSR activities and uses CSR policies and framework. Corporate social duty alludes to the activities taken by an enterprise with the target of assuming liability of the organization's exercises and its effect on the earth. The effect of CSR is tremendous on the general public as it organizes the interests of the general public. It is critical that present day corporate associations comprehend the significance and effect of CSR and plan solid and successful CSR strategies. Steve Job and is foundation for philanthropic activities are a crucial aspect of CSR by Apple Inc (Saeed Samiee and Kendall Roth, 2006).
It is vital for a present day association to stay concentrated on conveying top notch benefit for the society. Corporate social commitment decisions are particularly fundamental for the association as it incorporates most of the accomplices of the affiliation. CSR similarly considers the accomplices that are not monetarily benefitted by the affiliation. As these decisions are key for the relationship to fabricate a brand picture and agree to the institutions that may have been passed by the organization, it is basic to complete a CSR procedure in the affiliation (Adcock, Dennis; Al Halborg; Caroline Ross, 2011).
2.3 Criticized for pricing
Apple Inc follows a premium pricing policy which makes its products very expensive. The same pricing strategy is used globally which makes it very difficult for Apple to grow in terms of customer preference in several developing countries. Yet, Apple has been associated with status products and it is important that they readapt their pricing strategy to better suit the various needs of customers globally. Only then it would be possible for them to be sustainable as new products and new technologies flood the markets (Payne A. F.; Storbacka K.; Frow P., 2008). It is very important that the firm considers altering its pricing strategy in order to remain popular with its customers. Relationship marketing is a domain or method of marketing with focuses on customer relationship management where in the goal is to maintain customer loyalty and long term relationship with customers. Apple Inc followed this strategy initially. But as the business grew and its pricing went exorbitantly high, this strategy came to a stop. It is important for Apple to revive its relationship marketing through altering its pricing technique and ensure better customer loyalty. The strategic goal in case of relationship marketing is customer engagement rather than shorter-term goals like customer acquisition and individual sales and so it is important for Apple to reposition itself and build better positioning in terms of prices being based on value that the product provides to its customers. This can benefit the firm in ensuring long term sustainability and market leadership with a favorable positioning with customers and in the market in general. It is important for organizations to be able to create sustainability even in its pricing and not just in terms of innovation in order to sustain in the long run.
3. Conclusion and Recommendation
It is basic that advancement and enterprise be urged keeping in mind the end goal to grow better levels of monetary improvement and in addition showcase improvement. It enables work to better spotlight on getting more up to date thoughts and advances which is fundamental for building better development and benefit too. Along these lines advancement and business enterprise are essential for purchasers, associations and the economy. Additionally it likewise makes better spotlight on development which is basic to stay away from stagnation and achieve aggressive edges (Czarnitzki, D. and Delanote, J., 2013). It is important that Apple stays focused on delivering higher value to customer in terms of delivering long term sustainability with CSR and social relevance. Only then it will be able to sustain market leadership. It has to revisit its pricing strategy in several aspects in order to remain competitive with other technology firms that have digital products which can replace products of Apple.