Within your CLC, choose a publicly traded company and identify one of its produc

Question

Within your CLC, choose a publicly traded company and identify one of its products that the group will analyze. Describe the strategic implications that would need to be considered in setting a price for that product, and determine whether the group would use a market-based pricing approach or a cost-based pricing approach to setting the product price. Explain the rationale behind choosing the pricing approach. Identify the costs that the group thinks would be considered in setting the product price, and come up with a sample cost structure for the product (make it as realistic as possible). Calculate a price for the product, and defend your product price and related cost structure. Present your responses in a paper of 1,000-1,500 words.

We have chosen Apple as our company and the iPhone X as the product. We are asked to chose a product that the company already has, but act as if it is new and do our on pricing approach. I need help with the information that we are asked to choose/consideras well as making the structure, bonus if you have help for the paper.

Explanation / Answer

Apple through product differentiation strategy makes an effort to increase the market demand for its products which in fact requires them to make products for their consumers which are exclusive and attractive. Furthermore design and product quality of Apple compared to its competitors have always facilitated them to be ahead of the competition.

Despite high competition Apple has successfully been able to create demand for its products thus giving the company power over prices through product differentiation, innovative advertising, ensured brand loyalty and excitement around the launch of new products.

Furthermore by focusing on consumer willingness to pay more and preserving a premium price at the cost of unit volume Apple has successfully been able to set an artificial entry barrier for its competitors. Thus premium pricing strategy indeed facilitates to reflect on Apple’s belief that customers would pay more for products which are so well designed that they can’t imagine living without them.

Apple made headlines by introducing iPhone X with a price range of $999 to $1,149. Furthermore these prices commanded attention because they were significantly higher than the base prices of iPhone 8 and 8 Plus model that were launched with a price range of $699 and $799 respectively. The pricing policy of iPhone X was also regarded as remarkable because it crossed the crucial threshold of $1,000.

Apple CEO Tim Cook had no doubt in company’s self-belief and assurance on iPhone X where he indeed attempted to outline that iPhone X as a major breakthrough applauding it as the biggest leap forward since the original iPhone. The original iPhone facilitated to modernize and transform society by providing hand-held computers and apps to millions of common people. Thus iPhone X normally promises to do things in much more better form than what earlier smart phones have done.

The technological configuration in iPhone X is regarded to be very impressive. It comprises of a bright new edge-to-edge screen, special artificial-intelligence-enabled chip, new sensors for facial recognition and fun apps like animated emojis that can mimic your expressions, selfie portraits etc. Apple also confirmed that the phone’s battery compared to iPhone 7 would last two hours longer.

iPhone X offers Apple with an opportunity to express in the real-world surroundings with an improved and better projection of computer-generated images. However no one can predict with certainty what kind of app with enhanced version can in fact be a real hit. Gartner analyst Brian Blau expressed that by elucidating a new technology which in everyday life people can use and understand is what Apple does best.

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