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In: Psychology

The market analysis of Apple Inc.: Nature of Demand

The market analysis of Apple Inc.:

Nature of Demand

Solutions

Expert Solution

  • Apple Inc. industry can be articulated to operate on an oligopolistic market structure. This assertion is based on the fact that the industry’s market portrays distinctivetraits as those of an oligopolistic
  • For example, the smart phone industry which Apple Company operates is characterized by barriers to entry. This nature of this market makes it difficult for other new firms to enter the smart phone market.
  • Additionally, the market structure of the company is an oligopolistic because this industry characterized by few firms such as LG, Samsung, Apple and Nokia. According to Dunne, (2013) Apple and Samsung lead the industry with a large market share.
  • Lastly, the industry is featured by a joint interdependency pricing strategy among the firms. This aspect implies that prices of one company influences the prices of the rest corporation in this industry.
  • One of the reason why the company has successfully sailed in the market is creation of products, which are customer friendly, opposed to rival companies where innovation does not match customer’s taste. Apple technicians truly knows customers taste and is ought to be done sell the product without a flop. Industrial design has been Apple’s key pillar that has helped to create customers confidence. Software and hardware engineer have worked tirelessly since day one creating new and more amazing features.
  • The demand of the I phone product follows the customer’s tastes. The customer are more favorable to the Apple product compared to any other product which are conducted under the survey in Taylors University.In all over the world, this UK based company has introduced its products. Recently, Apple has a pronouncement of development of “super tablet” computer. Market researches show that customers’ demands are high for this new technology item.
  • In long run, demand and supply forces represents the whole influence on buyers and sellers on quantity and price of the super tablets offered in the market. In general,excessive demand may result increase in price and quantity, and excess supply causes it to fall. In particular, market researchers should examine changing patterns in customer demands which may show that a longer term change in economy is occurring.

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