Name: NIRVANA SHRESTHA

I.D : 6004080079

Quiz from the Pricing Strategy Unit (10 Marks)

1. Why would Apple want to move into the fashion business?

-Apple Computer Inc. is a multinational company based in the United States that designs and

produces consumer electronics and software. Macintosh devices, the iPod, and the iPhone are

among the company's most well-known hardware items.

Fashion rules have long been used by Apple in the design and marketing of its iconic iPod,

iPhone, and i Pad devices, which are sought after not only for their functionality, but also for

their slick aesthetics and symbolic significance, which distinguish Apple users from others and

signify their affiliation with specific social tribes. Apple is a part of the design industry. They all

have one thing in common, regardless of ambition or complexity: they are long-term investments

that can take years to produce a noticeable reduction in the bottom lines of these large

companies. Apple’s Watch, the company's first foray into wearable tech; personal accessories

with embedded digital technology — is widely expected to be the next big thing in consumer

electronics, and it's a driving force behind these developments. After years of anticipation,

Apple's Chief Executive Officer, Tim Cook, unveiled the latest Apple Watch on Tuesday in

Cupertino. Apple sees the process as much as technology, as shown by the small group of Vogue

editors and other fashion journalists invited to the event: "It's a practical thing but incredibly

beautiful." Apple CEO Tim Cook has stated that the company aims to develop products that help

people in their daily lives, such as health tracking applications for smart watches, as well as solve

a slew of other personal technology issues while others in Silicon Valley will attempt to develop
a prophetic vision of the future. "We wanted to create something truly unique. We both agreed

that the side was the best place." According to the Financial Times, Mr. Cook said.

2 What type of innovation is Apple’s new watch?

-The Apple Watch is an example of Integrative Innovation since it integrates several tasks into

one device and renders other devices that only performed one task (such as fitness trackers like

the Jawbone) obsolete. With a wide range of products, including standalone GPS systems and

portable MP3 players, the iPhone did the same. The Apple Watch has a touch screen and a

digital crown for precise zooming and scrolling without blocking the view. The digital crown can

also be used as a home button. The Apple Watch has the ability to be a game-changer. If you

shift the research market to smartphones and claim that the Apple Watch is a mobile disruptor,

you'll get a different result, but even that is a stretch.

3 What role does innovation play for a company such as Apple and how was the price planned

for this product?

-Apple is widely regarded as the most creative company in the world. The company's growth

strategy includes fantastic new technology and innovative business models. Apple's engineering
executives think in terms of platforms and pipelines, and they are relentless in their quest for

innovative concepts. Whenever Apple releases its newest product a few months later,

competitors fall behind trying to compete. Apple seeks out great innovators who want to produce

the best goods possible, focusing on places where they can make a huge difference.

Apple's contribution to innovation stems from its history, not its methods. Apple's most well-

known products were created by a small group of people with no hierarchy or organizational

structure, and no corporate control. “It takes a lot of disciplines to transform very new ideas and

fledgling technologies into a company that will continue to innovate for years,” Steve Jobs

advised.

Apple has developed a platform that enables the company to tap into its employees' creativity,

generate innovative ideas, streamline the design process, and launch efficient, profitable new

products. New technology and a wider range of products are developed as a result of innovation.

EXAMPLE: Apple creativity can be seen in the iPhone, iPad, MacBook, iMac, and Apple

Watch.