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Corporate level - Formulated by top management(parent companies)
Business level - Plans of actions to achieve competitive advantage
Functional level - Covers recruitment,inventory,training and the like
Operational level - Formulated at operating units of the business.
Apple does not particularly concentrate in lowering prices as it produces a range of products and also profits from all of it.
However the decision taken in 2019 grabbed the world's attention excessively.
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Product differentiation is intensively used as marketing and distribution strategies
(mainly used strategy)
In this picture the 2nd option(2 ice creams for 20 Rupees) is called the Decoy.
The negligible 3 Rupee difference gets the customer's attention.
Click on the image to zoom
A similar pricing pattern can be seen in the sale of iPhone
The decoy option is provided so that the customer can compare that option with the expensive one (and select the expensive product).
In the absence of a decoy,the customer is more likely to compare
option 1:$699
option 3:$1099
and choose the relatively cheaper product.
But with the decoy option the customer selects the more expensive option.
iPhone 11 series
Apple not only makes quality products but also drives the customer to buy their expensive versions.
Revenue from 1990-2019
Not only by establishing continuous product development but also other aspects like setting an ambient environment for employees,protecting privacy of customers,assuring security and producing high standard products,Apple has emerged as one of the most recognized,leading industry in the whole world today.
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