Team Week 5

Apple Inc. designs, manufactures, and sells personal computers, computer accessories and computer related software. The way they made this company into a household name was just a pure marketing genius. Apple has introduced products and accessories that truly has changed the way we live today such as Mac computers and Mac OS X software. The company has gone through many transitions from its inception until today.  Apple has position itself to target certain type of customers. Apple has been building up a very strong brand and I suppose that Apple is one of the most expensive brands of computers and products. When we think of Apple, we think of innovation, quality, and design. Apple has always deliver products that are well designed and top-notch quality. If they changed their strategies, they would be reducing their sales figures dramatically.

The iPod is a monopoly and I believe the iPhone has a monopolistic competition. The iPod has represented a vertical monopoly. When a company controls all aspects of the production, distribution, and sale of a product, it has a vertical monopoly. Because the iPod held a dominant market position, it created a new market rather than displacing an existing one. It is a well know fact the before 2001 when the iPod was released, Apple was almost bankrupt. Apple was able to return to profitability, after it sold over 100 million units of iPods within six years. This was not like a walkman that was large and the battery did not last but nothing like the iPod had been made before. It was small and easy to use.

Usually, understanding different segments and its needs will create a successful market strategy. Customers were forced to use iTunes and the iTunes store when purchasing an iPod. Apple was very smart in creating this strategy. As the iPods quality and innovation improved, more people began buy it. With the introduction of the iPod touch, many songs and movies where being bought from iTunes. The...