Marketing Assignment Example | Topics and Well Written Essays - 3000 words

Marketing - Assignment Example A slight increase in price will result in driving its customers to competitors’ brands. Its niche market is getting saturated and should try and target newer market segments in emerging economies. The emerging markets are very sensitive to price and Apple Inc should try and reduce its direct and indirect costs to increase the profit margin. Since price is an important determinant of the product quality, thus reducing will also result in negative customer perception. It should try to achieve better economies of scale, strategic partnerships, vertical integration of business process, ancillary services etc (Rogers, 2001). Apple Inc should aim at increasing its economies of scale to enjoy better profit margin. This will allow it to enjoy higher profitability without adjusting the price of its products. It can enjoy better scale of operations by buying in bulk from its vendors. It imports value added component that is imported from countries across the world. It imports from countries like China, Taiwan, Singapore, France, Germany, Japan, etc. Economies of scale is achieved either through internal or external scale of operations. Apple can increase its orders to enjoy better rates from its suppliers. This will reduce its shipping costs as bulk transportation will allow it to receive discounts from its logistics partner. At the operational level this will lead to increased scale of operations which will reduce per unit cost of production resulting in an overall decrease in the total cost. For enjoying better economies Apple Inc should forecast the market demand of its products. There should be significa nt demand of its products that will incentivise it to order in bulk (Kotler, and Keller, 2012). Vendors and logistics partners of Apple Inc might offer trade discounts, long term supply contracts, etc. Its current list of vendors is provided in the table below: Better customer relationship