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Essay / Exploring Profit Maximization Strategies for Microsoft Apple has established a premium brand image which has attracted many loyalty from their customers, this means that any new product launched is immediately demanded by their customers. Proven by the huge demand for “Apple Watches” after their announcement. Demand was so high that orders were held up until August, even though the launch took place in January. This lack of brand loyalty meant that when Microsoft launched its tablets, consumers were much more critical when it came to deciding whether or not to buy a "Surface tablet." This meant that defects were examined more carefully. For example, the app store on Microsoft's tablet launched on a smaller scale compared to what Apple offered, which hurt sales because people had a much smaller choice. For Microsoft to increase its sales and therefore its profits in this market, a longer development process is necessary. allowing the development of a larger number of applications could have been beneficial. However, what Microsoft realized was that even though they didn't have the brand that Apple had built, they were going to combat this with USPs (unique selling points), for example the Lumia 1020 launched with a 41-megapixel camera to appeal to niche markets of consumers who cared more about a phone's camera than apps, this allowed the phone's sales to be higher in some markets. This could be a way for Microsoft to increase its profits by increasing sales of its phones by accepting that they don't have Apple's branding and instead playing to their strengths such as superior quality.
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