Apple is superior to its competitors as I will list here below:
? In the US, the MP3 market can be classified as a monopolistic competition where many buyers and sellers trade over a range of prices because sellers can differentiate their offers to buyers. A clear example is Apple's iPods, which offers a wide range of options to consumers in terms of prices and features, compared to its competitors.
? With the introduction of the scroll wheel, Apple was able to differentiate his MP3s from the rest of competitors.
? Developing a good design gave Apple a big push on demand for their iPod players. It was able to capture a great share of the market and to set high prices based on quality, performance and especially design.
? It offers product as one price per song at 99 cents. With this strategy, competitors have less price leverage to compete with the iPods.
? Competitors either would have to come up with an unlikely cheap MP3 player or very expensive MP3 that will be very though to sell. In contrast, iPod offers good quality with stylish products at the you-get-what-you-pay price.
? Getting high margin, it can afford to provide a service that no other competitor can. So when a consumer buys one of its products, a service will follow the purchased products.
? Some competitors have tried to introduce similar products into the market; however, Apple’s first mover with differentiated design and the way consumers perceive the iPod as high-end in quality and operation and fashionable are very difficult change.
? The way Apple made this product inelastic in price is by differentiating it from the other competitor through advertising, costumer service, and technical and quality improvements.
? Apple could easily modify the prices for the ...