Apple Customer Loyalty

The iPod Nano sixth generation, now features a smaller 1. 54 inch multi-touch screen with a lower resolution of 240×240 pixels but a higher pixel density of 220 pixels per inch, as opposed to the larger 2. 2 inch screen on the iPod Nano 5G. The iPod Nano has 24 hours of music playback on a single charge. The new iPod Nano has lost the previous generation’s video camera, built-in voice recorder and built-in speaker, and games. It has also lost support for video playback, but music videos and video podcasts can be synced onto the device, and the audio from them will play on the device, with a single key-frame shown on the screen.

It still includes the Nike+iPod fitness option as well as an FM radio tuner. It has a black on white screen contrast option and other accessibility options. While competitors like Sony, SanDisk and Zune, have been trying to keep up with Apple Inc and the iPods, none were successful. Thus far only one company is 2006 was able to actually compete with Apple iPod and that was Zune, when Apple came out with their 5th generation classic iPod, Zune too came out with an MP3 player also know as Zune 30, which was just as good as Apple classic iPod, but quality was the difference.

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While Zune had a very nice MP3 player, it had a couple of flaws, (1) it was too big, and the size of the first Zune was like stack of cards, (2) was that when it came to downloading music an videos onto the Zune is was quite difficult. Now the 5th generation iPod was simple but also had new technology known, as the click wheel. This set Apple iPods far apart with any and all competitors. First “Industrial Analysis”, (1) some of the major competitors for Apple iPod are Sony, San Disk and Zune. 2) The degree of differentiation within the music player industry can be best described by monopolistic competition. The reason why I believe that the competition for Apple iPod is monopolistic competition, is mainly because there is a few markets open to selling audio player and all the different companies have their own unique traits that make their products more special, for example in 2006, the main reason why iPods became so unique is because of the click wheel. 3) One of the main entry barriers that Apple has is advertising, with the type of advertisement that Apple iPod has, it is hard for any other audio music player to market. Also with the great and popular name that Apple has, with a huge core of loyal customers, it is risky for any new marketer to try entering this type of market. So far I have not seen a company try to exit the barrier. (4) The impact of vertical integration within the audio music player industry is, positive for all companies, because Apple, Sony, San Disk and others still do sell other products with their brand name.

Example, Apple Inc sells items like Mac Book, iPad, iPhone, and Apple TV. Sony sells similar things like computers, TV’s, Playstation 3 and other great items. Second “Competitive Analysis”, (1) so by fallowing figure 11. 2 Group A has one competitor (Apple Inc. ); group B has three (San Disk, Sony, and Zune); group C has three and group D has two. Apple Inc is the main competitor in the audio music player industry, fallowed by the three sub competitors, which are San Disk, Sony, and Zune. 2) Apple Inc’s competitors right now cannot obtain maximum sales and profit even though that is their main goal. The reason behind this is because since 2004 Apple iPods have been on top of sales charts from 2000 to present. Main competitors are not distributing as many audio players as Apple, because Sony, San Disk, and Zune all have other products that they excel in the market with. Example Sony with the Playstation 3 and San Disk with Flash Drives and ect.

I would say that Apple emphasizes Long-Term profit and other audio player marketers emphasize Short-Term profit. Apple’s main idea is to always gain more and more market, so they can become one of the biggest super chains for electronic sales; for marketers like Sony, San Disk and Zune, in the audio player market they are just trying to keep up with the high standard’s that Apple sets, so they are all just trying to retain market share. Apple iPods would be considered leaders and Sony, San Disk and Zune would be considered as followers of the iPod.

Apple’s long-term goal is to become a superior power, for sales of audio player like iPod, and they have a vision of becoming into a monopoly where Apple is the only company selling audio player, but for Sony, Zune and others, they just want to stay in the market, and profit a bit from consumers. (4) Apple is very excellent when it comes to customer awareness, product quality, product availability, technical assistance and their selling staff is excellent as well. But when it comes to Sony and Zune, customer awareness, product quality, product availability, technical assistance is good, but their selling staff is poor.

The size of the current market for Apple Inc is very huge, to the point that, Apple has become a very dominating presence, in the audio player market, but for the competitors of Apple the market is small and thin. When asking people and when reading more into this market only one marketer stands out the most and that is Apple. Apple is on the edge of everyone’s tongs when it comes to electronics, it is miraculous what Steve Jobs has been able to do with this company, to bring it from a small industry and make Apple into an empire.

Every one wants to have an Apple product. Third “Analysis of your product’s strategy toward your competition”, Apple has 11 steps, which makes Apple, basically superior power, first is that Apple has a store just to sell Apple products. Second is that Apple has complete solutions, which means that all Apple products complement and complete each other. Buy an iPod, and you can download music via iTunes. For the average user, most Mac programs are produced by Apple. This sort of control over the entire user process, from hardware to software, strengthens customer loyalty.

Apple users generally don’t have to stray to find products and solutions they want. Third is that every one compares electronics with Apple, consumers like to know that they own an Apple product and not a Sony. Fourth is that Apple sells varied items, which means that many consumers may not be ready to buy an Apple computer, but they’re willing to give gadgets like the iPod or iPhone a try. By selling products with lower entry costs, it creates an opportunity for new users to be introduced to Apple.

If these users enjoy their gadgets, they’re more likely to consider buying an Apple computer in the future. Fifth is that Apple does media fodder is basically media outlets, especially bloggers, who love to write about Apple. Why? Because Apple makes it so easy. With leaked rumors about new developments, its very own expo and mysterious shutdowns of its online store, Apple gift-wraps news stories that are just begging for speculation and hype. By perpetuating this cycle of media frenzy, Apple keeps its customers excited about buying new Apple products now and in the future.

Sixth is that Apple makes education sales, by selling its products to schools and universities, Apple turns classrooms into showrooms. If students go through school using Apple products, they become comfortable with the interface and familiar with the superior performance the brand offers. By creating this early exposure, Apple captures customers before they even know that they are customers. Seventh all of Apple’s products deliver great quality. Apple carefully considers what consumers are looking for, so its products are a result of both extensive research and strong design.

This meticulous planning is a large contributor to Apple’s high customer-satisfaction rates. It’s plain and simple: Robust and easy-to-use products not only make your customers happy, but also make them want to buy more products from you in the future. Eighth Apple tries very hard to outsource unpleasantness, with Apple products, the average consumer’s interaction with the company is likely to be low. Unless something goes wrong, you don’t have any reason to speak with an Apple customer-service representative.

Of course, the iPhone presented an opportunity that could have made Apple much more involved, similar to administering iTunes for the iPod. With a phone, interaction becomes multifaceted. You have to consider billing errors, quality of wireless service, contracts and a number of other factors that often lead to customer frustration. Ninth is that Apple has a great consistency, all of Apple’s products have the same basic architecture. Because of this consistency, customers who already own Apple products have a good idea of what they’ll be getting before they make a purchase.

They know that it will be easy to adapt to new hardware, and this makes them more open to making a repeat purchase. Tenth, Apple always has new innovative technology that can be implemented in everyday life, although the architecture of Apple products is consistent, its portfolio is not. The company offers consumers a number of different ways to enjoy its products. By giving customers an opportunity to employ Apple in their living rooms, pockets and offices, Apple makes it easy to stay loyal to a brand they already like.

Last the eleventh strategy/step is that the Apple brand name is very attractive, from packaging to aesthetic design to user-interface experience, Apple makes its products accessible and attractive. Bright colors, a smiling icon and slick-looking hardware remind customers every time they use Apple products that what Apple offers is appealing. This is what makes Apple so high when it comes to sales of iPod’s and other product’s. Their main strategy is to perform great and to stay on top of their game at all times, so they do not have any surprise competitions in the near future.

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Apple Customer Loyalty. (2017, Mar 20). Retrieved from