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The apple company is a successful company that was previously under the leadership of Steve Jobs. It deals with the sale of computer software and personal computers. They exist in a market that has many competitors. This is with regard to the product that the company released. This product changed the view of the world on technology. It was called the iPhone

The market structure is monopolistic competition. There are many firms which are producing the same product in this market structure. This leads to direct competition between the firms. Therefore, it is the market structure that determines the steps that should be taken by affirm. When the oligopolistic market is mentioned, this company comes to the mind of most individuals. (Tirole 1988). his is because it exists and thrives in a structure that has ample competition.

Effect of the Structure on the Pricing Strategy

This structure has a substantial effect on the pricing strategy.  The price in this market is mainly affected by the supply and demand of the product.  When the supply of the product decreased, the demand of the same went up. Therefore, the company raised the price by a considerable amount. This is the reason as to why most of the customers were willing and able to acquire it. However, the iPhone had features that made it unique in the market. This meant that the price was also affected by the initial value of the product.

Differentiation of Product from Competitors

The iPhone’s success can be attributed to Apple’s differentiation of their product from those of their competitors. At the time of the launch, other companies were also producing smart phones. The Apple Company kept emphasizing on the 3.5-inch screen to show that this was not just another smart phone (Lele 1992). Mr. Jobs kept insisting that the iPhone had a touch sensitive keypad and commented that he hated keypads in his research. This made the product seem so different from the other pre-existing products in the market. This gave it an upper hand and boosted the success of its launch.

Implementation of Non Price Barriers to Entry into the Market

These are the barriers that do not involve price. Customer satisfaction is the main non-price barrier created by this company. They do this in a bid to make sure that no competitors come to the industry. If any of the competitors chose to join the industry, they would have to cope with the competition. This discourages all competitors from joining the market.

Creation of Non Price Barriers into the Market

The firm uses many other non price barriers. This includes the use of patents. They acquire patents for the goods that they produce. This ensures that for the new products that they produce, no new firms use their idea (Mills 2002). This is effective since no firm is seen to produce such products.


This company exists in a competitive environment. Therefore, it should come up with new ways and methods of dealing with the available competition. This is how that the marketing strategies of a firm largely affected the competition suffered. In turn, this deals with the competition. It happens even with the absence of top executives of the company.

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