The Relation Between Competition and Success of Apple Inc.

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Illustrate how "competition" correlates to the success of Apple Inc. and why? When comparing different methods of positioning in a market environment, it is tempting to view them in terms of either 'low end' or 'high end' approaches. Wal-Mart, for example, is a large, general merchandiser which provides shoppers with little ambiance but is successful because it offers rock-bottom prices. In contrast, Tiffany offers jewelry in an exclusive environment that is desirable for consumers precisely because its name conveys style and luxury. If Tiffany's diamonds were cheap, they would lack their status as class signifiers (Levy & Weitz 2012). Apple's positioning is slightly different. It is certainly not the cheapest computer system on the market: one of the reasons that PCs still dominate the market in terms of units sold is because of Apple's greater expense. "Apple's share of the PC market has been below 5 percent for most of the past 15 years, and even with the much-hyped 'iPod halo effect,' this level hasn't changed in recent years" (Paczkowski 2010). While Apple has been able to outsell rivals in some areas, such as music, even in arenas in which it is famous such as the smartphone market, Apple is not the undisputed rival. "Samsung and Apple are persisting in their tug-of-war to lay claim as the world's top smartphone vendor" (Foresman 2012). However, although its products often cost a premium, Apple does not market itself as a luxury company like Tiffany's. Unlike a

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