Thursday, June 06, 2013

Google's strategy

I don’t buy Apple ipad in the future because it’s too expensive compared with competitors’ products, like Google’s Nexus 7 and Amazon’s Kindle. I bought Nexus 7 after I carefully compared it to Amazon’s one and Apple’s one. It’s too cheap and has a lot of functions given the price. Apple’s one seemed to have good functions but it was pricy. Moreover, a lot of Japanese maker is selling tablet PC in the market but these are too high as well as Apple’s one. 

Why? The biggest and inimitable reason is that Google and Amazon don’t need to earn money from tablet PC its self but want to earn money from the advertisement and amazon shopping by table users. Their primary resource of profit is completely different from Apple’s. Apple has to make money from selling its products, so that they need high profit margin from the products. Naturally, price is higher than Google’s and Amazon’s as well as Japanese maker, like Sony and Toshiba.


I believe this kind of way is effective for non maker companies and smart way. The only way Apple can compete is that Apple needs to strengthen its brand value to adjust its price, so that their customer segment will be completely different.

No comments: