Market Framework of Apple

Keywords: apple market structures

Apple (I telephone) is one of the multinational leading company bringing out tremendous technology gadgets day by day. In all around the world, this UK based company has created its products. Recently, Apple has a pronouncement of development of very tablet computer. Market studies show that customers needs are high for this new technology item. Over the past seven years, Apple has seen great success due to its imaginative and fresh way to do the business enterprise. Through continuous creativity, Apple is rolling out a series of exceptional products with imaginative style and design. In modern technology innovations, Apple Inc. has made fair steps in the expansion of it world. This extension also forced its few competitors to boom and survive in the market with due competition

In my points of view, Apple Inc. can be considered stand in difference market constructions such as oligopoly and monopolistic competition. Apple Inc. sustains oligopoly market structure in the competition of smart phone brands announcements, but Apple Inc. is recognized as monopolistic competition in the top quality personal computers. Monopolistic competition in which many vendors are producing highly differentiated products. Monopolistic competition is also called monopsonistic competition. Monopsonistic competition represents the demand-side appears to be parallel and peer to the monopolistic competition on the supply side.

Some economist claims that monopolistic competition is more reasonable than perfect competition because products produced by the competitors are heterogeneous (non - homogenous). Imperfect competition will not operate under rigorous and stringent types of procedures of perfect competition. In the forex market situation of imperfect competition, the entity looks forward to the comfort of increasing the price in order to earn maximum gains. Apple Inc. sells the un-identical technology in the market. This enables those to survive on the market effectively and efficiently.

Compare to oligopoly, monopolistic competition has more opponents, thus the apples very tablet computer is recognized as a monopolistic competition. A great many other branded computer companies like Samsung, HTC and Dell are strong opponents that share a mobile and tablet personal computers market internationally. The sales earnings generated by such competitive companies is close enough to Apple inc. that will keep themselves stay competitive. As the name ensure, competitive industry of imperfect nature

Characteristics
Monopolistic competitive market represents the following qualities
  • There are many makers and many consumers in this approach. Thus, low awareness ratio. For instance, the ratio of total sales of industry created by few significant vendors in the industry market.
  • Consumers perceive that there surely is non-price differences one of the challengers' products i. e. there isproduct differentiation. There's a high non price competition.
  • Producers have control over price- they are not price takers however the price creators. This competitive edge supplies the entity an chance to influence their financial periods.
  • There are fewbarriers to entry and leave. Unlike monopoly, there are no any restrictions to enter in the competitive environment. This means that the brief run supernormal earnings provides other producers into the industry sector, and so normal gains only are created over time.
  • Apple Inc. executes and carries independent action. There is in shared interdependence strategy in the competitive companies.
  • All entities aim is to improve up their revenue for several periods. And the client tries to maximize welfare by their purchase form such companies.
  • One assumption in this type of market structure is that the factors of development are mobile. If they are not consumed effectively and efficiently, they could move to another place where they would like to be to satisfy their seeks.
Priority reason among Opponents

Monopolistic competition (Imperfect competition) is the terminology for competitive market segments that not match the requirements of perfect competition. They are really competitive, nevertheless they are imperfect. Lots of the markets in true to life can be viewed as as imperfect competition. Market buildings without competition (monopoly) are excluded. Each participant recognizes the talents and weakness of its other opponents as well. Many markets operate on the list of few opponents. In such market segments, a participant may gain advantage by supplying a quality product that is just a little much better than other competitors--not the best product however the little better product. Such competition usually brings about an efficient use of scarce resources. . High gains encourage the new rivals to type in the market and those who faces deficits, leave the market.

Imperfection and inefficiency

Sometimes, monopolistic competition cannot successfully use their allocated options. They become inefficient because they mostly be based upon market control if any competitor takes the higher list by wonderful product release. Monopolistic competitive entities have humble level of market control whereas oligopolistic companies have strong amount of market control.

Analysis of Apple Inc. with other Competitive Companies

Apple has an "i" for groundbreaking technology. Since its release, the business's I‑Mobile phone hasmade a revolutionarychange on the market of mobile phones and mobile, tablet processing. Among its popular products, iPadtablet computerhasbecome another twirl change in thetechnology market. In previous few years, it was mentioned that Samsung is a solid competitor to Apple Inc. and engaged in a rivalry relationship. Many economist crews said, Samsung will knock down the Apple Inc. and get the very best position as a respected company in the modern period of technology.

Samsung is actually a company whose key strategy is to use economies of scale to get a competitive advantage. This is actually the comparison of both companies regarding their economies of size that shows a modest difference in exactly the same products released by Apple Inc. and Samsung may award the fantastic revenue to other

Dichotomy in the makeup of Products

Apple gets its 15% market tell just three models of phones or tablets. While Samsung can take 30% of the marketplace, it must produce 150 types of smart phones to take action. We can examine that Apple averages 50 MU per handset model while Samsung averages just 2 MU per model. Thats a 25x difference!

More level of products awards an expense advantages in electronics hardware to the competitive head. Software development and maintenance becomes sophisticated when it must fix on a broad range of hardware items. It really is amazing to compare that Samsung can depreciate the price of 150 types of mobile phones across 300 MU as profitably as Apple can amortize the cost of just 3 devices across 150 MU.

Short run Way for Competitive Entities

In monopolistic competition, both Apple Inc. and Samsung can act like monopoliesin the short run, including using market power to generate profit. Inside the short-run way, both Apple Inc. and Samsung can normally gain some irregular profit. But over the long run methodology, other competitive companies shall enter in the market due to the low entry barriers. New entries will try to obtain the competitive edge on the prevailing companies and make an effort to pick up the significant market share in conditions of profit. The assumption is that Brief run is a period period where at least one factor of production is set.

To earn maximum revenue over Samsung, Apple Inc. should produce variety Qs at price Ps. The organization produce the merchandise where marginal cost (MC) and marginal earnings (MR) curves will meet, because MC is the cost of producing an one more (additional item) of the good and MR is the revenue of selling yet another good and their intersecting point shall be most efficient development and only Apple Inc. Which means that the shaded area between Ps, ACs (average production cost of one item at this defined number) and the AR curve (average earnings curve) is the unusual revenue that the Apple Inc will love. AR is equivalent to the demand curve and is also the average earnings the Apple Inc. will earn on sold of 1 item. Production upon this point shall award maximum profits for the Apple Inc.

Thus, equilibrium is created in the short run. For maximum earnings, Samsung or Apple Inc. both companies have to produce level of goods at point Qs where marginal income curve coincides with the marginal cost curve. If the company face losses in the brief run, such company will quit from competition race and the remaining firms will meet the higher requirements on the will of entities on price.

Whereas in the long run procedure, it is impossible to earn unusual profits as a result of features and assumption of Monopolistic competition. There are a few large businesses, but many small firms that will contend for profit and so company will be destined to deflate its prices to attain targets. Another factor, other competition of Apple Inc. and Samsung anticipated to low admittance barriers in the market structure will enter the market and additional add competition for market show. Finally, the products are similar enough to ensure that competition will usually remain high. The main one, who makes slighter difference as said early on, will earn maximum earnings and achieve not only its major objectives but the extra also.

Part (b)

The price of what to be sold takes on a key and vital role in building a competent and effective allocation of resources in a market system. Price functions as a sign for surplus and deficit which assist the company respond to changing market conditions and field causes. Apple Inc. should consider the price of super tablets in order to achieve ideal benefits and positive consequence highly relevant to their monetary concerns. Costing also plays vital role as a competitive advantage to help a business to extract market opportunities.

Theory of price represents that the marketplace price will show intercourse between two opposing concepts. At one part are demand considerations depending on marginal electricity; while on the other hand are supply considerations that be based upon marginal cost. An equilibrium price is meant to be add up to marginal energy (counted in income units) from the consumers point of view and marginal cost from the seller's side. Every economist allows this point of view, and it identifies the gist of economics mainstream, just lately this concept has been challenged seriously.

Importance of Price in Apple Inc. Economy

In the given scenario, management of Apple Inc. has conducted a recent research for the new super tablet computer. Consumers demand seems to be high for this electronic item according to research results and the supply of very tablet is reduced, this will raise up the purchase price.

Price stableness of product in a long run way may also have positive final results on the gains of Apple Inc. Price stability means to all the increase and loss of that electronic digital item to be sold. Pursuing points motivates avoids the negative results of economies of level
  • Price stability shall chip directly into achieve high degrees of financial activity ;
  • Increase the limpidity of the purchase price mechanism of ultra tablet. People can find changes in relative prices (i. e. prices between different products and articles), without being untidy by changes in the overall price dimensions of opponents similar electric items;
  • Encourage buyer to make high needs also to use his scarce resources more effectively and effectively by comparisons with strong rivals;
  • Discourages useless exertion to bring barrier against the negative impact of inflation or deflation;
  • Avoids contortions of inflation or deflation, which can have worse effect on economic action of communal security systems and taxation requirements;
  • Preventing an imperious section of riches and income therefore of unforeseen deflation or inflation.

Thus, price of super tablet costed by Apple Inc. is the most important business decisions management must lead to the achievements of budgeted profits. For example, unlike the other systems of the marketing mix (product, place & promotion), prices decisions affect the income or sales amount than the cost factor. Costs also requires being congruent with the other components of the marketing mix, since it patterns to the conception of a product by consumers. In short, setting a cost of excellent tablet which could too high or too low will limit the progress of your business. At worst, it may direct result serious paradox for sales and cashflow of Apple Inc.

Market force Evaluation in Long run approach

Market causes can be explained as way that the behavior of Apple Inc (retailer) and clients affects the price and income levels, without the government involvement. Marketing blend (product, place and advertising) seems to be more important than price, and so requires more attention of Apple Inc. , but deciding the price of super tablet is really one of the most crucial decisions of management. This solid concept presents the competitive causes on the market and ensures that technology in the inventions of Apple Inc. in the form of super tablet is at the frontline of any industry coverage.

In long haul, demand and supply forces represents the whole influence on clients and sellers on amount and price of the very tablets offered on the market. Generally, excessive demand may effect increase in price and quantity, and excess supply triggers it to show up. In particular, market researchers should take a look at changing habits in customer needs which may show that a longer term change in current economic climate is occurring. Changes that continue over a long term strategy may be included as some of the business cycle associated with an monetary period. When economic forces are limited, resource and demand makes a decision the prices of goods and Prices. Because of this, force businesses what things to produce; if people want more of a particular item, the price of the good goes up.

Some of the advantages and down sides of market causes are entailed below

Advantages:

  • Apple Inc. may produces a wide range of excellent tablets to meet the buyers's wants
  • The market force responds instantly to consumer's wants
  • Market system stimulates the use of new and increased techniques and machines to produce upgraded version of excellent tablets

Disadvantages:

  • factors of production will be utilized if earnings is gained at level required
  • the free market can neglect to provide certain items credited to natural market limitations
  • the free market may promote the utilization of harmful goods which could lead to litigation and claims
  • the productions communal results and needs may be filtered
  • the market composition allocates more products to prospects purchasers who are financially strong

When prices are not allowed to upsurge in comparison with market level, suppliers might not exactly provide demanded super tablet personal computers as buyer want. In simple words, shortages of super tablet pcs will be found in the marketplace. These shortages become serious sometimes. Nevertheless, if prices set are low than market level, more consumers will be able to buy the digital item. When Apple Inc. management will not allow reducing their price from market level, suppliers may supply more electronic digital items than consumers needs.

Market gives necessary data for both owner and customers to make important decisions for the daily market bargains. That is a universal rule that we need things from others yet others need things from us. In some way, both buyer and owner find their own equilibrium point.

Consequences if Apple Inc. fails to introduce Innovation

Objectives will be the strategic goals of entity. Conversion of goals into measurable focuses on is possible through a cataract process that moves from Companys goals, to planned business device objectives, to operate programs for execution of a successful business. To make it through in today's competitive business period, organizations have to comprehend the factors that cause the entities to achieve their objectives proficiently and effectively.

A goal-management solution ensures that employee goals and objectives should corroborate with the vision, mission and tactical goals of the entire entity. Goal-management provides company with a technique to effectively and successfully connect entitys goals and commercial objectives to every individual employed in the complete organization. IT affects corporate obstacles and creates opportunities and issues that management of a business need to handle in many aspects of their business to implement it in effective and reliable manner.

Instant changes in it have created market, and a contemporary society, where information takes on essential role for strong competition among rivals. For Apple Inc. its patent may be its software technology patents that are being used as intangible belongings. For most businesses, its information databases is the most valuable and priceless goods it is the owner of.

It is necessary for an organization to present change in its environment in line with the market situation. In the same scenario, if Apple Inc. fails to meet changes of invention and marketing, it might not exactly only have worst effect on the overall economy of Apple Inc. but the going concern also affects. If Apple Inc. does not achieve the creativity requirements in its products then it has nothing to work at. Pursuing issues may come up if Apple Inc fails to meet marketing requirements and invention in technology items
  • Entity shall not be able to make it through in market due to strong competitors
  • Low profits due to reduced revenues
  • Once a customer is diverted to other entity, it is difficult to bring him again
  • Chances of economic growth will become low

Here is the useful exemplory case of Nokia. What occurred to Nokia, Reason is: Apple and Android ruined it. But the reasons for that failing are somewhat more inexplicable. Historically, in the end, Nokia have been a amazingly adaptive company; but shifting to new time create problem for its survival.

Some of the reasons are given below by the suitable research about their inability
  • They lost contact with their customers. " True, -- and interesting to note that this is the same Nokia company that in the early 2000s was applause to its customer reactions.
  • "They didn't introduce the required technology requirements. " This may be the significant issue.
  • "They didn't notice that competition basis was moving from the hardware to the ecosystem. " Not necessarily true -- the "ecosystem" fight was initiated in the early 2000s, with Nokia subscribing to makes with Motorola, and Ericsson to build Symbian as a technological platform that maintained the Microsoft away.

Bibliography

  1. PEP, CPB guru 2011, The importance of pricing electric power:
  2. Morningstar 2011, Costs strong for Philip Morris in Q3, but amounts also encouraging
  3. W. W. | HOUSTON 2013, Market makes and attracts fairness, New York times.
  4. Biz Arena, In Focus 2011, Role of Markets and Government authorities in taking care of the growth in Appearing/Developing Economies.
  5. Paul J. Bolster, S. G. Badrinath 1996, The role of market forces in EPA enforcement activity, Journal of Regulatory Economics, Amount 10, Issue 2, pp 165-181.
  6. Kondratenko, Anatoly, 2013 Possibility Economics: Market Power in THE PURCHASE PRICE Space.

1

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)