New Product Development is the Key to Apple's Marketing Success Coursework - 1

New Product Development is the Key to Apple's Marketing Success - Coursework Example One of the most innovative products of Apple was iPhone which was considered as one of the best-selling products. The business operations of Apple are expanded in almost all geographical nations (Apple Inc, 2012). Apple’s Strategies Apple seeks to apply its idea of being a digital heart in the field of electronic products because customers demand stylish and cohesive digital devices. Apple always attempts to distinguish itself from other brands so that it can put premium rates on their products. The business strategy for Apple is to find the accurate equilibrium between customer satisfactions and cost because this blend is vital for raising the product price for customers and thereby increasing profitability. In the consumer electronics market, Apple is known for premium price products because it invests huge amount of funds on new product development and innovation activities. The product differentiation is a major competitive strength for Apple as it can successfully increas e the perceived value of its products and help to generate more revenue in spite of premium cost (Iiiev & et. al, 2004). Quality products and innovation through wide practise of research and development (R&D) is the other key reason behind the success of Apple in the market. The main objective of Apple is to expand its customer base (Iiiev & et. al, 2004). Product Portfolio of Apple Traditionally, Apple manufactured and developed software applications and computer products; however, after the introduction of iPod as one of the preferable MP3 players for people, several new product lines have been included in product portfolio of Apple. The old and new product portfolios of Apple are described in following table: Product Portfolio Product Lines Software and Computer iOS, Mac Operating System, Professional and Business Application Programmes, Personal Computer Hardware Products Desktop Computer, Laptop Computer, iMac, Mac Pro, Mac Mini, iBook iPhone Mobile Phones, iPods, Digital Devic es, iPads iTunes Music, Applications, Bookstore iCloud Cloud Services Application Software iLife, iWork Display and other Fringe Products Printers, Storage Devices, Digital Cameras, Apple TV Source: (EDGAR Online, 2011). People Apple has a bureaucratic organisational structure where CEO is in the top position of hierarchy. The CEO and Vice Presidents gather reports about company’s business operations from both line and staff managers. Apple is highly dependent on manufacturing representatives on whom it has no direct influence. The positions of Apple in the organisational hierarchy are described below: Source: (Apple Inc., 2012). New Product Development New product development is all about introducing new product in any industry. It is a process for developing a product in order to certify progress or survival in the market. The aim of new product development is to strengthen or transform the strategic direction. An effective new product can help an organisation to add a new product line under the product portfolio (Takeuchi & Nonaka, 1986). Reasons for Launching New Product in the Market Developing new product signifies relocating or