Essay about Apple 's Business Strategy Under Steve Jobs

Essay about Apple 's Business Strategy Under Steve Jobs

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Steve Job Business Strategy
Apple’s business strategy under Steve Jobs was well executed. Apple was very cautious about the release of its mobile and tablets. Therefore, Jobs allowed long development cycles that encouraged anticipation and displayed new innovations with each release. A report showed that Steve Jobs strategy was to develop and sell brand new, innovative products of which blended art and technology to provide simple and streamlined user experience. This business strategy made Apple a booming company for smartphones initiating the launch of the first iPhone in 2007 (Apple Business Strategy Under Steve Jobs, n.d.).
Apple captured many consumers after the launch of the iPhone and continued to devise innovative strategies by producing tablets. Customer loyalty increased for Apple as customer’s developed a commitment to Apple products. Jobs strategy was to use a long development cycle that produced at least one large innovation each cycle. Therefore, they incorporated the strategy of releasing these products in a yearly cycle, and marketing the earlier models at lower prices. From this time, Apple gained a great amount of anticipation for new products, as consumer expectancy increased for new and innovative Apple products every time a new product was announced. While using this strategy, they offered lower priced products as a choice to cutsomers by showcasing the older smartphone models. Furthermore, Apple managed to attract and keep their customers by bundling their other product offerings, namely, iTunes with the use of iPhone and iPad and the ability of the iPhone working as an iPod (Apple Business Strategy Under Steve Jobs, n.d.).
Tim Cook Business Strategy

When Steve Jobs resigned from his position as CEO of A...


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...below a particular minimum price. Therefore, MAP is incorporated through marketing subsidies offered by a manufacturer to its resellers (Riley, n.d.).
An article in Macworld states that Apple maintains the popularity of its high-priced products by only offering retailers such as Wal-Mart or Best Buy a marginal wholesale discount. This small percentage in savings does not provide a significant profit margin for retailers to offer big discounts on Apple’s products, which results in customers paying a price close to the manufacturer suggested retail price (or MSRP) (Apple Inc Objectives and Strategies, 2015). On the other hand, a retailer could give up this small profit margin and offer discounted products to attract more customers. Apple prevents this occurrence by offering monetary incentives to retailers to sell goods at the MAPs fixed by the company (Riley, n.d.).

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