Apple And Microsoft

1422 Words 6 Pages
1. Introduction
The following assignment is to carry out a comparative analysis between Apple and Microsoft. Both the firms operate in the electronic based industry. They are multinational corporations and possess a strong foot hold in the markets where they operate. The current assignment aims in understanding the various product management tactics, distribution management system and pricing strategies implemented by Apple and Microsoft for enabling a strong presence in the market.
2. History and Background of Companies
Apple Inc: Apple is a multinational corporation involved in creating high end consumer electronic products, software’s, commercial servers and is also involved in distributing media content. The main products of Apple are
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Apple is in the electronic communication industry, which is dominated by many players. However, with the leadership of Steve Jobs, the company was able to create a huge range of product offerings which is very attractive added by high quality made all the products a success. The success story starts with the introduction of iPod, portable music player. The success of iPod has made Steve Jobs to introduce iPhone, a smart phone runs on Apple OS. The company was the first to launch highly advanced sophisticated mobile phones, called smart phones. (Isaacson, 2011). The introduction of iPhone has changed the entire mobile phone market and with the introduction of full touch has made a separate high end market for such product. The company manages the product and its images well by introducing highly advanced products at frequent interval of time when the competitors starts to eat away their market share. Apple is always a pioneer in introducing highly advanced devices than its competitors and thereby retaining a larger market share when compared with the …show more content…
The company implements a practice of skimming pricing for all of its products during the introduction stage. The skimming pricing involves in charging a higher price for the product for short time. This is usually carried out for new, innovative and sophisticated products. For example, when Apple recently introduced iPhone 6, it keeps a higher price; there exist big segment of customers who are willing to pay premium prices for procuring advanced level technological products. (Mallik, 2009). During the initial stage, the price elasticity of demand tends to be very low; therefore the company can claim higher profits during this period. However, when competitors pitch in after some time, the company tries to reduce the price little, in order to face the competition. However, Apple is always poised to introduce advanced version of the product soon after the competitors gets into the competition and will claim a skimming price for newly introduced

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