Question

Given the following utility function for the work trip U_i = a_i - 0.003C_i - 0.04T_i

Where Ui is the utility for mode i, ai is the modal constant term for mode i, Ci is the travel cost in cents for mode i, and Ti is the travel time in minutes by mode i.

a) Calculate the market shares of the following travel modes in a corridor:

Mode i	ai	Ci (Cents)	Ti (Minutes)
Automobile	0.47	130	30
Express Bus	0.24	60	45
Regular Bus	0.00	30	55
Bike	0.11	0.00	70

b. Estimate the effect that a proposed 30% increase in the cost associated with the automobile will have on mode split in the corridor. You should show all steps to your solution of the problem.

Answer 1

Executive Summary

For a disruptive company like Apple, its imssion statement need to be more catchy and easier to remember. Apple is a designer-centric company that likes to build all parts of a product — hardware, software, and online services — itself. That approach has allowed Apple to build some of the most elegant and user-friendly products ever created. Their product line consists of but is not limited to, computers, iPads, iPhones, iPods, headphones, HomePod, Apple TV, iTunes, etc.Apple's success is due in large part to its obsessive focus on the user experience.

Apple Watch is targeting people of all ages. Some functions of the watch include heart rated monitoring, making calls and sending texts, stream music, ask Siri to set a reminder, send a calendar invitation, or give you directions, all without your phone, getting alerts from one's favorite apps etc. Workout app and other 3rd party apps that are being created are really useful.

Apple being one of the big 5 i.e. Google, Amazon, Apple, Facebook and Microsoft , is always competing and innovating. Apple is one step ahead, especially in the smart watch industry. Fitbit,Garmin, Rolex, Tag Heuer are the competitiors of Apple in watch industry. Aoole watch is available at different prices varying from $320 to $1399 and in varitety of designs and material.

Target segments of Apple Watch: newly married couples ranging in age from 20-45, active individuals with an emphasis on a healthy lifestyle, professionals/managers, and high-income earners. Apple watch is positioning itself as a lifestyle brand.

SWOT of Apple Watch:: Strengths: superior capabilities, and resources with assets values.Weakness: Negative feedback on the watch. Opportunities: Working on negative feedback Threats: Competition and changing technology.

Apple improves its sales through advertisement and a variety of marketing tactics in various kinds of advertisements. Apple has an eight-step PR plan that allows them to remain one of the most respected brands of modern times. Storytelling. The CEO of Apple recognizes a problem and then offers a solution with one of Apple’s products.Simplicity, Learn from failure, The Golden Circle strategy, Reviews, Top-down secrecy, Press releases. Culture marketing etc come under their 8 step PR plan.

and has very good online and social media presence. They take continuous feed back from customers and from the website views and surveys it was found that more than 88% customers are satisfied with Apple products.

This projects is mainly focussed on America. It was estimated that around 21.1 million smartwatches were sold globally, 8 millions of which were just during the holiday quarter. After September of 2016, heading into September of 2017, Apple stock was on the rise, and this has a lot to do with the innovation of many of their new products like the iPhone, and most importantly, the growth of the Apple Watch.