Name: Pranjal Baral

I.D: 6008040014

Quiz from the Pricing Strategy Unit (10 Marks)

1 Why would Apple want to move into the fashion business? (3 Marks)
Apple is in the plan business in the interim. While the aspiration and vulnerability are fairly
extraordinary, they all offer something: they are long haul speculations that require a very long
time to diminish considerably in the primary concerns of these huge organizations. Following
quite a while of expectation, Tim Cook, Chief Executive Officer of Apple, disclosed the most
recent Apple Watch on Tuesday in Cupertino. Apple considers the to be just about as much as
innovation: "It’s something reasonable yet incredibly excellent," as the uncommon local area of
Vogue editors and other design writers welcome to the occasion demonstrates.
Apple Watch, indeed, sure, it has its employments. In any case, that thing is fashion more than
anything. Apple of the old (second gen Apple), could never deliver a watch that must be
physically charged each day. That is simply crazy, it loads the client. They slapped strong gold
cases, and joined forces with design industry to make ties. Bling design!

2 What type of innovation is Apple’s new watch? (3 Marks)

Apple made a wonderful scope of Apple Watch items to engage various preferences, styles, and
situations. Not at all like a PC that goes around your work area, or an iPhone that goes in your
pocket, the Apple Watch is worn on the wrist where it makes a design proclamation about the
individual wearing it. No other smartwatch available has offered really near the scope of styles
that the Apple Watch will be offered in at dispatch. There are two sizes: 38mm and 42mm.
Apple put an accelerometer and pulse screen on the Apple Watch. While including such sensors
is the same than contending android Wear gadgets, the execution is required to be more fruitful.
Joined with the GPS, Wi-fi, and altimeter (iPhone 6) on the iPhone, these sensors track your
development for the duration of the day. With Apple's Activity App the Apple Watch shows you
the amount you are moving, working out, and remaining for the duration of the day and
recommend objectives for doing every one of those things. Also, the Apple Watch has its own
Workout App to follow cardio exercises with more nitty gritty estimations, like time, distance,
calories, and speed.
3 What roles does innovation play for a company such as Apple and how was the price planned
for this product? (4 Marks)
To face competition, companies must have innovations. No longer an issue whether we should
have or not innovations, but a condition that must be created to establish an effective innovation
management. Great companies put under pressure of international competition have instruments
for the management of innovation. Coordination specialists and organizational impediments are
the main problems facing companies. Innovation is generally considered as the main engine of
economic growth in the global economy today. By introducing innovations into practice, you
may obtain products with improved quality characteristics, quality service, new production
processes, more efficient and cleaner (environmental) management system, improved models of
business, modern management methods of employment etc. There are many reasons for
companies and organizations to innovate, including: increasing market share, capture new
markets, improve product quality, choice of products, replacing outdated products, reducing
environmental impact, etc.

Apple follows a reasonable advertising technique dependent on separation which focuses on the
item worth, abilities and benefits and permits the organization to sell the item with edges
outstandingly higher than those of its rivals. Apple isn't the expense chief. The organization has
never utilized infiltration estimating to acquire piece of the pie quickly, as Apple has figured out
how to immediately turn into the pioneer in numerous item fragments short after its passageway
in spite of its similarly higher evaluating. What Apple truly does would be such a "market-
skimming"[7], or at the end of the day enter the market with another item valued higher than the
opposition to amplify introductory income with early adopters. However, a significant contrast
must be called attention to here. Most organizations utilizing a value skimming methodology will
in general lower their costs over the long haul as clients begin to lose interest or new items show
up. Apple has just done it in not many events and with least limits, as the organization figures out
how to sell their items at exorbitant costs over the greater part of the item life cycle.
It is clear then that the organization utilizes separation additionally as a value procedure. In the
event that its image stands apart among numerous others, Apple's clients should therefore be
prepared to pay more than the normal for an item that will put them in the diminished gathering
of those chose to be seen and be taken a gander at.