The ipad 2 has in the past faced stiff competition from the Smartphone market. The companies, which offer competition, to ipad 2 include Google’s Android, Motorola, LG, and Nokia (Datamonitor Inc, 2011). However, research has shown that competing tablets to the ipad are doomed to fail, and the Apple Company speculates to post 80% share of the US consumer tablet market 2011. The Apple Company chief marketing strategy lies on well established worldwide brand recognition in the Smartphone market. Following the official launch of the product, the company’s sales went beyond their stores, but also to their affiliate’s stores. The company next strategy is to avail the product exclusively in the United States, alone. The company dominant strategy will see the ipad products spread to the rest of the world, via its global network of Apple Stores and associated distributors. The global networking will be accompanied by price reductions, but without 3G connectivity. The Apple Company scores high in its ipad 2 model due its pricing, consumer awareness, expectation, and consideration. Brands such as HTC though well established in the Smartphone market are poised to fail due to its high prices compared to Apple Company’s prices (Apple, Inc., 2011).
(i) The company should explore markets which are differentiated according to income and technology to boost their profits. This is because the company strategy on price discrimination is celebrated as long as the company’s prices remain constant (Brickley, Brickely, Smith & Zimmerman, 2008).
(ii) The Apple Company should also focus on the global retail market which will be facilitated by its retail outlets and affiliate distributors worldwide. This will enable the ipad products to colonize the market before the entry of the rival companies which include Samsung, Blackberry, Xoom, and Nokia. This is because the competition in the Smartphone products has become intense and need global strategy (Apple Library Users Group, Apple Computer, Inc1992).
(iii) The ipad 2, feature of absence of 3G connectivity can enable the company to reach markets in the developing countries. This will also make their products penetrate into extraordinary markets in China, India, and Brazil. This will make the Apple Company make high profits and have high market share.
(iv) The prices of the tablets products remain higher in the market and owing the high competition in the market the company should produce relatively cheaper products, but which will not comprise its functionality. Maintaining the product quality while reducing their price will ensure the product cycle is renewed.
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