Answer to Question #208712 in Management for hazel

Question

Conduct some online research about Apple Pay. You may use this link to gain some background information: <span style="font-size: 14pt; line-height: 150%; font-family: &quot;Times New Roman&quot;, serif; color: windowtext;">https://www.apple.com/apple-pay/</span>

Feel free to do additional research to answer the questions below:

1)   Outline how Apple Pay creates value for its customers

 

2)   With respect to Apple Pay, is Apple a producer, a consumer, or an intermediary? Explain.

3)   Identify all the reasons why Apple’s partnerships are essential to the success of Apple Pay.

Answer 1

1.    Since the release of the iMac upon Steve Jobs' epic homecoming in 1997, Apple has been in the business of "delighting" its customers. While most analysts look at the company's financial statements, market growth rates, and market share estimates to determine its health, Apple's management team has made it a point to focus on customer pleasure. That has been the driving force behind the measurable financial reports that analysts use to assess Apple's business model's long-term effectiveness. It attracts and retains clients. It prospers more the more it creates. The more clients it keeps, the more likely it is to survive. This metric of a company's performance is difficult to come by. Apple's priority is to "please" and "satisfy" their customers with their current products. Customers' expectations of what Apple would offer on new items based on their experience with previous products encourage large-scale adoption of new products by creating the hyper-loyal "FANBOY" mindset among their customers. Buyers are looking for unique experiences. They are purchasing security, convenience, simplicity, and productivity. They are purchasing modules to be used in conjunction with other modules that aid in the completion of a task. Something more suitable. They are purchasing hope, fulfillment, escape, or vanity. To put it another way, they don't know what they want, but they do know when they have it. They place their faith in unseen products that have a reputation for delivering what they believe they might like, even if they have no idea what that is. They learn to exploit a product by using it, as well as a lot more—effort, time, mental energy, and repetitive actions—to obtain happiness.

2.    Apple Pay serves as both an intermediary and a producer, as Apple is accountable for the technology they use. Apple is one of America's three most powerful firms, and they're leveraging their platform to bring their payment method to the masses. Apple is the one who invented this technology and wants it to become the standard. Apple is also a middleman since they build brand loyalty with customers and form alliances with retailers to ensure that the option is available. Apple Pay will not operate unless we are aware of the app and utilize it in conjunction with stores that accept it.

3.    The Apple Pay Partnership is critical to the overall market success and efficiency of the Apple Pay system. Based on the evidence presented in the case study, it is clear that Apple Pay is heavily reliant on the company's capacity to reach out to clients and offer its market offerings. Apple clearly has a well-established marketing strategy that reaches millions of people, which is why Apple Pay is so reliant on the company. Furthermore, Apple ensures that an effective link between Apple Pay and its customers is maintained throughout the delivery and fulfillment of services. Apple Pay would not be able to maintain a distribution channel that allows for both efficiency and quality in the absence of Apple. In addition, it is clear that the cooperation enables resource sharing with the technical behemoth Apple, which has more resources, a factor that allows for service delivery success. As a result, the collaboration is critical to the Apple's success.