Headquartered in Cupertino, California, Apple Inc. has experienced many challenges throughout its business history. In 1997, the company’s share price was $3.30. By checking the price today, you can see the unbelievable gains in price. Apple regularly places very highly on lists of “most admired companies,” and to millions of consumers, the Apple brand embodies quality, prestige, and innovation. Its ability to anticipate and fulfill customer needs has made the company the world’s most valuable publicly traded company, with a market value of about $776 billion. This ability has also established the company as a leader in retail stores for electronic products. Apple creates significant value for its customers with its finely tuned in-store experience.

Apple’s success can be attributed in part to its strong marketing mix consisting of product, distribution, promotion, and price. Although Apple started out as a computer company, former CEO Steve Jobs had the foresight to redirect the company’s goal to consumer electronics by developing and protecting intellectual property and creating a decentralized culture. The result was Apple’s expansion into new product lines within the electronics industry. In 2001, Apple satisfied customers’ desires for portable music with the launch of the iPod—a portable music player that forever changed the music industry. The company also introduced iTunes, a type of “jukebox” software that allowed users to upload songs from CDs onto their computers and then organize and manage their personalized song libraries. Two years later Apple introduced the online iTunes Store, in which users could download millions of their favorite songs for $0.99 each. 

Questions for Discussion

1. How has a market orientation contributed to Apple’s success?

2. Describe how Apple embraces the marketing concept.

3. How would you describe Apple’s strategy in the highly competitive consumer electronics industry?