Consequently, the company cannot continually rely on this approach if it is to maintain and increase its market share going forward. It is also the case that the profit margins of the other product categories offered by Apple are not as high as those of the iPhone, hence highlighting the centrality of the iPhone to Apple’s success. There are many ethical approaches that can be used in addressing the management issue at hand. However, the most appropriate ethical approach would be one that embraces the common good. This approach implies that life in itself is good and as such all actions undertaken by individuals and organizations should be geared towards enhancing that life (Santa Clara University, 2012).
In essence, the ethical goals adopted …show more content…
This is attributed to a number of factors as will be evaluated below. First, is the design of the iPhone, the smartphone has been designed in such a manner that it appeals to high-end customers. In essence, those customers that are price indifferent, that is, significant increases in price do not affect their decision on whether to buy or not; brand proposition is rather the most important determinant. While it is important to target this section of customers, their numbers are not as high when compared to the low end of the market. This presents a problem on a number of fronts. The first issue is that Apple will have to constantly innovate and introduce new features to its products that will appeal to the high-end segment of the market. However, such innovation cannot happen infinitely unless there is a change in the product offered by Apple. Consequently, the segment of the market that Apple relies on will in the long run experience a …show more content…
This is because a subscription model does not require customers to pay for the full cost of owning an iPhone upfront. Instead, subscription terms make it possible for customers to have small payments on a regular basis that they can afford.
Consequently, even individuals that would ordinarily not be able to foot the bill for a new iPhone at once will then be in a position to own one. This will enable Apple rope in the low-end of the market, hence increasing the growth rate of its sales as well as market share in the long run. The primary threat to such an approach is that emerging smartphone manufacturers (especially those from China) could increase the quality of their products significantly while maintaining low prices. This is because of significantly low production costs in countries such as China relative to Apple’s home market in the U.S. Consequently, customers targeted through the subscription model may not see the need to be tied to an Apple product, which in the long run will end being expensive (despite the cheaper regular payments) and would rather purchase a cheaper smartphone.
PEST
In essence, the ethical goals adopted …show more content…
This is attributed to a number of factors as will be evaluated below. First, is the design of the iPhone, the smartphone has been designed in such a manner that it appeals to high-end customers. In essence, those customers that are price indifferent, that is, significant increases in price do not affect their decision on whether to buy or not; brand proposition is rather the most important determinant. While it is important to target this section of customers, their numbers are not as high when compared to the low end of the market. This presents a problem on a number of fronts. The first issue is that Apple will have to constantly innovate and introduce new features to its products that will appeal to the high-end segment of the market. However, such innovation cannot happen infinitely unless there is a change in the product offered by Apple. Consequently, the segment of the market that Apple relies on will in the long run experience a …show more content…
This is because a subscription model does not require customers to pay for the full cost of owning an iPhone upfront. Instead, subscription terms make it possible for customers to have small payments on a regular basis that they can afford.
Consequently, even individuals that would ordinarily not be able to foot the bill for a new iPhone at once will then be in a position to own one. This will enable Apple rope in the low-end of the market, hence increasing the growth rate of its sales as well as market share in the long run. The primary threat to such an approach is that emerging smartphone manufacturers (especially those from China) could increase the quality of their products significantly while maintaining low prices. This is because of significantly low production costs in countries such as China relative to Apple’s home market in the U.S. Consequently, customers targeted through the subscription model may not see the need to be tied to an Apple product, which in the long run will end being expensive (despite the cheaper regular payments) and would rather purchase a cheaper smartphone.
PEST