In the current market, there has been the release of different types of cell phones. This is because they have been found to be significant in a wide range of areas. Phones make it easy for individuals to connect and conduct various business errands. Use of the gadgets helps in saving time and is cost effective. The increased need and use of cell phones have led to new inventions worth many dollars. This has also led to increased competition in the industry. The innovative Phone Company Inc. has the mission to introduce a top of the line phone in the form of the Great star to its many consumers. In particular, the production of this phone was done to enable it to compete with some of the best in the market. This is done to ensure that the company is ready, which mean that a market analysis is performed to make it complete. In this sense, it is important to make sure that it is possible to understand the competition in the market and the factors that affect the market act the first step towards the provision of a favorable release. It is in the same sense that Apple was able to release an iPhone that is consumer friendly and for this reason has been able to enjoy some years at the top of the food chain economically.
In particular, every month and year, Apple has had to deal with several rumors and some specifications that have provided the drive for it to make a release of new and better models. However, there have still been a lot of speculations about the newest iPhone that has been produced by Apple Company. They include some of the additional specifications, the date of availability and the names of the phone. It is at that time that Apple Inc. announced the name of the new phone to be the iPhone 4s. Some customers expressed their disappointment in the phone despite the fact that some of its superior specs had not been released into the market. It was in May 2011 that the right specs about the phone were made known through the internet and the other sources that include the chipset, data capabilities, camera, voice and the application functionality. Apple finally made a release of the iPhone 4s in October 2011 as the fifth phone to be issued by the company. It is for this reason that the release of the phone was not as thrilling as it had been expected. Nonetheless, the phone still had some capabilities when compared to its predecessor and the other similar phones in the market since it was considered impressive. In essence, the phone was packed with all the features that were known to the public in addition to a number of the new applications that include Siri and the other services such as iCloud (Rochet, J. C., & Tirole, 2013).
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In the current times, the iPhone 4S is among the best-selling iPhones in the market. It is for this acumen that it is offered by more than 100 service providers all over the world. It is an indication that the phone similarly to the company that produces it cannot be matched by any other in the market. In particular, the cell phone in the market is among the fastest moving in the history of the universe.
Market Growth of the iPhone 4s regarding Competition
Some years ago, the technology that is related to the production of cell phones was in its infancy stages. However, nearly a decade back, the cell phones started to grow in the popularity. This was enhanced by the fact that most of the cell phone companies were making an effort to meet the needs of their markets and their customers by producing the best quality that would suit the needs of the customers. There was that time when the apps, time, data, GPS and the cameras were not on the radar and were not made out of the advanced technological know-how. It can be proven by the fact that even five years ago, the cell phone technology that includes 4G speed and the quad-core processors were not available at the time. Nevertheless, in the current world, there is a great boom in the phone technology market, and there are no signs that it will stop soon especially with the release of the iPhone $s in the market. The competition for the market advancement of the different phone types is on the increase, and Apple is not stopping any time based on the specifications that are required by the market.
Major Competitors of the iPhone 4S Market
According to the strategic planning group, it has been determined that the closest competing organization for most of the Apple products is Samsung. This is a company that has been in business for more than 70 years. In turn, it has managed to become a global leader in the high-tech industry that deals with the manufacture of electronics. The Samsung Company was first established on the 1st of March 1938. Over the past few years, it has managed to produce technologically advanced phones, tablets and technical gadgets that have proven to be the major competitors in the market based on their ability to meet the needs of the market population (Aaker, 2008).
Factors that Affect Demand, Supply, and Price
The mobile phone industry that has presently been able to include the iPhones is becoming a popular every year. The customers have highly desired the iPad that is produced by the Apple Company. The demand for the tablets and the iPhones has become a high one and in increasing each year since the excitement over these products has been on the increase each year. One factor that confuses the consumers and affects the demands for the products is the ability to choose some of the specifications and features over the others. It includes the capacity to make the choice of tablets over the notebooks. For instance, as indicated by Merritt (2011), the chief operating officer at Apple realises that most of the customers make their choice of an iPad instead of a Mac, while others also choose the iPad over the Windows PC. Besides this, what is also offered by the other competitors regarding speed and additional features also tends to affect the demand. Regarding the supply, the area of manufacture and assembly, as well as the established and the loyal customers together with their location across the world, affects the supply of the gadgets (Grant, 2016).
The price of the product is affected by various variables. The cost of production is a crucial factor when determining the price of the gadget. It is important for the manufacturer to include the cost of production in the price. This will cover the expenses incurred. Given that iPhone have better specifications than most of the gadgets in the market, the cost of production is high. In some cases, the price of the device will influence how the customers perceive the quality of the product. Most iPhone users associate the high price with its good quality. Thus it performs well in the market.
For instance, over time, the Amazon Company has been able to introduce the Kindle Fire which is an e-reader as well as a tablet that is all in one. With this advancement, the demand for the iPad and the iPhone has been affected significantly. It is in this sense that the ability to produce gadgets that suit the needs of the market and capacity to produce them in numbers that are comfortable enough to satisfy the market brings about the equilibrium in the company and market. In this sense, the total revenue of this product will be determined by some sales made as a result of the total number of gadgets sold. It is an indication that the company should be able to perform above all the other competitors, to provide items that appeal to the customers and those which will attract the level of sales. In turn, it will lead to increased taxes and revenues.
The total revenue is not only limited to the price elasticity of demand. Other factors such as sales, marketing and customer service capacity have contributed to the growth in total revenue. The company has focused on developing good sales and marketing strategy. Intelligent strategies have enabled to boost product loyalty and increase demand. Customer service is a good differentiator for all businesses. The company has focused on paying attention to the needs of customers thus giving room to attracting new ones that also want to enjoy the excellent services offered.
The productivity of the company is an important variable that is affected by various elements. These factors have contributed to significant decisions made by the enterprise. For instance, the company considers returns on investment. The need for higher returns can be influenced by internal or external factors. Diversity in the number of gadgets produced by the company has not only provided the customers with a wide choice but also giving the company a chance to maximize profits for products that are doing well in the market when others are for their low performance.
Cost is a broad topic for any company. In this case, factors such as fixed, variable and opportunity costs affect the overall cost incurred by the company. The preferences of customers influence the opportunity cost. Fixed and variable costs affect the overall cost both in the short and long-run. For instance, in the short-run, some of the costs are fixed while in the long-run they become variable costs. It is important to take into account the aspect of costs as it helps in decisions such as pricing strategy and profit maximization.
Government public policy and externalities may have a positive or adverse effect on the marginal cost and revenue of the company. For instance, it is the duty of the government to protect customers from being exploited. Therefore, it will inspect the quality of the product and if it matches the value of the product offered. Over the years, the company has performed well regarding quality delivery. But if the company fails to conform to the government policies and other externalities such as meeting the customers' expectations, then it would affect both marginal revenue and cost. If the marginal cost of production for one unit is increased, it will influence the overall price. On the other hand, if for one reason the demand decreases as a result of externalities, a change in marginal revenue of one unit will lead to an overall change in total revenue.
Profit maximization and increasing the market presence of your product is important. Our company can maximize profit by focusing more on delivering quality products, excellent customer service, and marketing strategies. This will retain customers and attract new ones. Market presence is crucial. It can be improved by making more use of the social media ads, other marketing strategies, and search engines advertisements that provide an informative portfolio of the product.
References
Aaker, D. A. (2008). Strategic market management. John Wiley & Sons.
Grant, R. M. (2016). Contemporary strategy analysis: Text and Cases edition. John Wiley & Sons.
Rochet, J. C., & Tirole, J. (2003). Platform competition in two‐sided markets. Journal of the European Economic Association, 1(4), 990-1029.
