Question

Apple inc's ipod is the dominant product in the market for mp3 players. suppose that a technology company orange recently introduced an innovative mp3 player, which many consumers feel is a good substitute of the ipod. you would expect

Answer 1

You would expect that a part of the market share would be going over to orange corp. In this hypothetical scenario, Apple inc now has to beef up its marketing strategy by employing price strategies where they lower their prices or give better deals, or they may also use a promotion strategy where they would use better promotions to bring in customers. Apple inc. could also innovate again and create accessories or add more features to the ipod. This is called product improvement. 

Answer 2

Base on the given scenario of which the orange company introduced an innovative mp3 player, the apple inc’s ipod will likely tend to decrease its mark up as a new rival has been introduced which is having a head on with the apple’s mp3 product.